International Entrepreneurship Review (Sep 2023)
The path to Industry 4.0: The evolution of industry in the national economies of the European Union in 2009-2020
Abstract
Objective: This study aims to present the economies of EU countries in the context of transformations in the industrial sector to increase the share of branches with higher technological intensity (changes in the industrial turnover structure). The analysis was carried out at different time horizons. Research Design & Methods: Research has a quantitative character. The vector elimination method was used to analyse the industrial turnover structure from 2009 to 2020 in 17 EU countries, based on EUROSTAT data. Findings: The research identified the following national economies: 1) with intensive and long-term but not permanent changes in the structure during the study period; 2) stagnated in the industrial turnover structure due to high-tech; 3) with unambiguous transformations in their industrial turnover structures due to high-tech, aimed at the development of medium-high-tech industries. The research identified countries in which industry did not undergo significant transformations or these transformations were relatively slow. The adopted research hypothesis was confirmed. Implications & Recommendations: The observed structural changes in the industries of the studied countries allowed us to identify ongoing transformations and assess their stability. Currently, transformations in the industrial sector are associated with innovation and the implementation of new technologies. The development of modern industries in the EU countries affects the economic position on the international stage. Therefore, it is reasonable to constantly monitor the changes that take place in the industrial structure of individual countries, which can provide important recommendations to their respective governments. The results of the research indicate the development directions for the industrial sector, which can significantly facilitate the introduction of regulations that support the development of modern industries. Contribution & Value Added: The novelty of the paper is that it illustrates changes in the industry turnover structure due to the advancement of technology. The rule of Industry 4.0 development was confirmed, although with uneven dynamics in respective European economies. It will be interesting to study this phenomenon in the future given the impact of the pandemic and the war in Ukraine on the studied phenomenon. The applied method proved useful for this type of analysis and was deemed useful in other areas of studies of the turnover structure in other markets, such as nutrition, which will be undertaken by the authors in the future.
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