422
Views
3
CrossRef citations to date
0
Altmetric
Articles

How does Industry 4.0 affect the relationship between centre and periphery? The case of manufacturing industry in Germany

Pages 1656-1671 | Published online: 04 Aug 2021
 

ABSTRACT

In Germany, the debate on economic challenges and strategic orientation is strongly focussed on the industrial sector as the backbone and anchor of the German economy. In relation to the digitalization of the manufacturing industry, the term Industry 4.0 is used. The concept focuses primarily on possibilities for optimizing processes of production and product innovation. It thus aims at incremental rather than disruptive developments. Incremental digital development that enables synergies between existing regional strengths and the potentials of Industry 4.0 bears the danger of increasing rather than reducing regional disparities. The expansion of Industry 4.0 can especially be found in strong industrial centres. Many implementation examples are located in the vicinity of university towns, in regions with high population density as well as high expenditure on research and development by large industrial companies. As a result, there are hardly any shifts between the existing industrial centres and the periphery with its weak industrial base. So far, Industry 4.0 seems to have contributed little to reducing existing regional disparities.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 The term Industry 4.0 was introduced at the Hannover Messe 2011. It originates from acatech, the German Academy of Science and Engineering. They proposed the future project Industry 4.0 as a course of action to enable Germany to ‘maintain its position as a production location even in a high-wage region’ in the global competition, which means ‘getting fit for the fourth industrial revolution driven by the Internet’ (Kagermann, Lukas, and Wahlster Citation2011).

The version number 4.0 originates from software development and adopts a counting scheme used for the historical course of industrial development. It begins with the first industrial revolution (steam engine), followed by the second (assembly line) and the third (computer) (Schwab Citation2016, 16f.). The essence of the fourth revolution is the new quality of self-regulated cyber-physical systems (CPS), which refers to the ubiquitous, decentralized networking and autonomous communication of IT-controlled machines, products and people. Industry 4.0 aims at the ‘process efficiency of industrial value creation’ and at ‘product innovations in the form of intelligent and interconnected products’ (Obermaier Citation2019, 4f.).

2 Germany is divided into 16 federal states. Berlin, Hamburg and Bremen are called city states as their territory covers only a single city and the surrounding area.

3 Nevertheless, terms such as disruption or disruptive innovation can be found frequently in the publications of the Federal Government and ministries.

4 An evolutionary process can nevertheless be characterized by dynamic phases of development and can also have retrospectively revolutionary effects in its long-term impact (Obermaier Citation2019, 3).

5 10,795 municipalities represent the lowest level of administrative structure. They are either part of one of the 294 counties or one of the 107 non-county cities. Non-county cities have enough inhabitants and administrative power to take over the tasks of a county municipality as well as the tasks of a county.

6 Share of gross investment in GDP in % (in respective prices).

7 Internal expenditures of companies for R&D.

8 In 2019, IG Metall surveyed nearly 2000 companies with 1.7 million employees about the stage of their digital transformation. The survey is called Transformationsatlas (Transformation Atlas).

9 The IG Metall (Industriegewerkschaft Metall) (Industrial Union of Metalworkers) is the largest trade union in Germany (with 2.26 million members in 2019). The union represents workers in the manufacturing and industrial production, in the engineering and the electrical sector as well as workers in the wood, plastics, textiles and clothing industry.

10 The IG Metall regions are not always congruent with the federal states, for example Brandenburg and Saxony form one region.

11 The statutory mandated IAB (Institut für Arbeitsmarkt- und Berufsfroschung) (Institute for Employment and Occupational Research) is the scientific research and consulting institution of the Federal Employment Agency.

Log in via your institution

Log in to Taylor & Francis Online

PDF download + Online access

  • 48 hours access to article PDF & online version
  • Article PDF can be downloaded
  • Article PDF can be printed
USD 53.00 Add to cart

Issue Purchase

  • 30 days online access to complete issue
  • Article PDFs can be downloaded
  • Article PDFs can be printed
USD 622.00 Add to cart

* Local tax will be added as applicable

Related Research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.