Industry 4.0: what stage are we at in Europe?

The term Industry 4.0 refers to the current trend of automation within industry which is incorporating new production technology to improve working conditions and boost productivity. It has a focus on the use of data and computer calculations as a vehicle for creating value. Technology is at the heart of Industry 4.0, with big data, analytics, augmented reality and 3D printing all key components of the new trend, and Brussels set to invest €500 million between now and 2020 to create a pan-European network of digital innovation hubs.

The commitment of the European Commission

The European Commission is aiming to create a European network of centres designed to support the digitalisation of companies. At the start of the year, DG Connect – the Directorate-General for Communications Networks, Content and Technology – launched an EU tender for the creation of the network of Digital Innovation Hubs (DIHs), with the aim being to promote collaboration between the various European hubs to develop common projects and build a network capable of boosting Europe’s competitiveness in the field of Industry 4.0. The total value of the project is estimated at €1.5 million. With the wider context of the EU’s digitalisation strategy for European industry, the DIHs will play a key role in supporting European companies as they transition to the 4.0 production system.

The current situation in Europe

At country level, a number of nations are already making moves in this direction. The UK’s Catapult – High Value Manufacturing project, Germany’s Plattform Industrie 4.0, the Netherlands’ Smart Industry policy and France’s Alliance Industrie du Futur are just some of the strategies currently being followed.

The UK’s Catapult project engages with universities and industrial players to finance projects at corporate level and fund applied research centres, for example, while France’s Alliance Industrie du Futur offers tax incentives on research and funding for Industry 4.0 projects.

The German case

Germany is busy funding corporate projects, financing applied research centres and handing out tax incentives on investment in tech start-ups. The country is the world leader in terms of developing Industry 4.0, with 15 million jobs in Germany depending either directly or indirectly on the manufacturing industry (and the digitalisation thereof). The German government has recognised the enormous potential of Industry 4.0 and has thus launched a number of programmes designed to incentivise the digitalisation of SMEs, including the Digital Agenda 2014-2017 and the Digital Strategy 2025, a far-reaching initiative unveiled by the Federal Ministry of Economics and Technology (BMWi) in 2016. More specifically, the BMWi is providing €100 million in funding for the Autonomik für Industrie 4.0 and Smart Service Welt programmes.

The Italian case

In Italy, Minister of Economic Development Carlo Candela launched the Industry 4.0 Plan, which included a significant economic commitment both from the state (around €13 billion) and from private finance (around €24 billion). The state supports this investment and is attempting to promote a matching programme between start-ups, innovative SMEs, the market and investors. At the heart of the Industry 4.0 Plan are the objectives of doubling the number of students in higher technical education, ensure 200,000 university students learn 4.0 skills, train 3,000 managers and create 1,900 research doctorates.