Industry 4.0 Accelerating Sustainable Manufacturing in the COVID-19 Era: Assessing the Readiness and Responsiveness of Italian Regions

Abstract

An unpredictable shock hit the Italian economy in February 2020 when the spread of the COVID-19 virus began in Italy and other countries worldwide. In this context, Industry 4.0 (I4.0) technologies can be a fundamental tool for economic recovery by favouring the shift towards sustainable manufacturing. Therefore, it is necessary to measure the readiness of countries for I4.0 in order to guide policies in defining incentives to promote I4.0 and unlock its potential in the pandemic era. In this context, the paper aims to understand the readiness and responsiveness of the Italian Regions with respect to I4.0 concepts prior to the pandemic and identify best practices that are supporting companies in I4.0 adoption, with a focus on those incentivizing sustainable practices. An assessment framework before the pandemic is provided based on two dimensions: the readiness of firms to invest in I4.0 and favourable structural conditions. The assessment shows a group of alert regions as opposed to a group of unprepared, mostly linked Northern and Southern differences. Assuming that the “alert regions” are more likely to effectively manage and overcome the post- COVID-19 crisis, we provide a picture of how the Italian Regions have sought to encourage the adoption of digital technologies to improve resilience after the shock. The analysis shows that supporting measures mainly address Small and Medium-sized Enterprises. Furthermore, the tenders encouraging the adoption of I4.0 suggest that collaboration among stakeholders will become imperative.

Industry 4.0 and production recovery in the covid era

“…Indeed, experimentation of these technologies in the first two phases of the COVID-19 pandemic generated numerous initiatives that enabled improved business survival ( Ivanov and Dolgui, 2020 ). Such support of Industry 4.0 for survival and recovery in the COVID-19 era is linked to its ability to improve productivity ( Fragapane et al, 2020 ; Kagermann et al, 2013 ) and accelerate production ( Lepore et al, 2021 ).…”

“…One line of research underlines that the persistence of the pandemic has prompted many manufacturing firms to use technological innovation to implement robust and sustainable strategies ( Narayanamurthy and Tortorella, 2021 ; Verma and Gustafsson, 2020 ) and attempt a return to a new normal ( Lee and Trimi, 2021 ; Obradović et al, 2021 ). In many cases, the transformation has been achieved through the adoption of Industry 4.0 technologies ( Lepore et al, 2021 ). Moreover, Spieske and Birkel (2021) show that during the pandemic crises, Industry 4.0 has helped increase efficiency in supply chain management, impacting readiness, response, recovery, and growth.…”

Digital Transformation in the Context of the European Union and the Use of Digital Technologies as a Tool for Business Sustainability

“…In the COVID-19 era, Industry 4.0 technologies are also expected to accelerate the transition to sustainable business processes and to achieve sustainable development, especially as a priority of economic recovery, which will have to address biodiversity loss, climate change and promote circular economy principles [17]. Industry 4.0 and digital technology, respectively -Artificial Intelligence (AI) is associated with positive and negative impacts on humans and the planet, and much attention is currently being paid to the analysis and evaluation of these impacts [18].…”

Riding the Digital Product Life Cycle Waves towards a Circular Economy

“…We live in an increasingly digital society, where producers, customers, educators and scientists are expecting high quality digital experiences. The COVID-19 crisis has exposed people globally, to numerous online and digital tools as they work [1] and shop from home. Digital experiences are the results of using technologies to create, manage, deliver and optimize stakeholder services.…”