The goal of Industry 4.0 research

In recent years, the investigation of the industrial and geographical connections of the fourth industrial revolution and Industry 4.0 technologies has received special attention in industrial geography research.

We examined the factors affecting the spread and application of new technologies in the Hungarian manufacturing industry from different aspects and using various methods. Also important research questions were how the progress of Industry 4.0 affects the employment of industrial enterprises, what expectations it places on the workforce, how it encourages university-industry-government cooperation, the digitalisation of health industry companies and how all these processes appear in the spatial pattern of Hungarian industry. The research entitled: "New trends in the spatial structure of Hungarian industry in connection with the fourth industrial revolution" was supported by NKFIH between 2017 and 2023 (project number K125091).


Project Leader:
Éva Kiss

Key factors of Industry 4.0 adoption

THE APPLICATION OF INDUSTRY 4.0 TECHNOLOGIES IN INDUSTRY AND INDUSTRIAL COMPANIES IS INFLUENCED BY SEVERAL FACTORS

During the complex research, it became obvious that the application of Industry 4.0 technologies in industry and industrial companies is influenced by several factors. In addition to the most common reasons (e.g. size, owner), the research drew attention to those (sector affiliation, geographical location, headquarters-plants relations) that had been pushed into the background until now, and identified them as new factors.


Kiss, E.; Kuttor, D.; Varga, B.: Key factors affecting Industry 4.0 adoption: An empirical study in Hungarian manufacturing companies. GEOGRAPHIA POLONICA 96: 2 pp. 239-257. 19 p. (2023) DOI

The research, which provides more accurate knowledge of the factors influencing Industry 4.0, thus contributes to a better understanding of the adoption of Industry 4.0. These experiences and company reactions can also serve as a basis for other companies to handle new technological challenges more effectively. BAZ county is also a good example of how a former heavy industry district can adapt to I4.0, which shows the "path dependence" of development. Despite the fact that each industrial company follows a different strategy and development path in relation to I4.0 technologies, together they significantly promote the digitalisation of local industry and the development of the entire area.

INDUSTRY 4.0 AND THE SECTORAL TERRITORIAL STRUCTURE, DIGITALISATION

THE TERRITORIAL DISTRIBUTION OF INDUSTRIAL SECTORS ALSO AFFECTS THE SPATIAL PATTERN OF DIGITALISATION

The territorial distribution of the sectors of Hungarian industry also significantly influences the spatial pattern of digitalisation. One of the most important findings is that there is a close correlation between the sectoral structure of the Hungarian manufacturing industry with different technological intensity and the degree of digitalisation.

Publication:

Kiss, E.; Páger, B.: Spatial patterns of manufacturing sectors and digitalisation in Hungary in the age of Industry 4.0. EUROPEAN PLANNING STUDIES, (Article in Press) 26 p. (2023) DOI

Using the 2014-2019 data of industrial sectors classified according to technological intensity and indicators measuring digitalisation trends, a correlation and cluster analysis in Hungarian districts (former LAU 1 level) were conducted. We found that the geographical features of the manufacturing industries determine the spatial patterns of digitization and thus also the spatial dynamics of Industry 4.0 technologies. Digitalisation is more advanced in districts with high and medium-high technological intensity sectors. At the beginning of the fourth industrial revolution regional inequalities increased in the digitalisation of the Hungarian manufacturing industry, and this points to such unfavourable processes, which could lead to a new era in the development of industry and districts.

Groups of Hungarian districs by cluster analysis, 2014-2019




The groups were ordered according to the concentration of operating firms in high-and medium-high technology sectors. The group with the highest concentration value was assigned the number 1, while the group with the lowest value was given the number 6, or number 7 in the case of 2019.

Based on the literature, this novel approach is also important from a practical point of view. It provides economic policy specialists and decision-makers with deeper knowledge of the more closely and loosely related areas of the sectoral structure and digitalisation, thereby facilitating the development of regional (economic) development strategies.

Industry 4.0 and its relation with ICT and robotization

CLOSER RELATIONSHIP BETWEEN INDUSTRIAL PRODUCTION AND INFOCOMMUNICATION TECHNOLOGY

The relationship between industrial production and infocommunication technology (ICT) is becoming closer during the period of the fourth industrial revolution, which can bring about revolutionary changes in industry and regional development. The development and spatial pattern of the ICT infrastructure basically follows that of the industry and also affects the application of new technologies and thus the process of automation, robotization and digitalisation.

Through the development of ICT, new opportunities can open up for backward, peripheral areas, because these areas can also be involved in industrial production thanks to new communication technologies.

Publication:

Kiss, É.; Nedelka, E.: Geographical approach of Industry 4.0 based on information and communication technologies at Hungarian enterprises in connection with industrial space. HUNGARIAN GEOGRAPHICAL BULLETIN (2009-) 69: 2 pp. 99-117., 19 p. (2020) DOI


Cumulated ranking of old ICT indicators by county in Hungary

Cumulated ranking of old ICT indicators by county in Hungary

Cumulated ranking of all ICT indicators by county in Hungary

Cumulated ranking of industrial indicators by county in Hungary

The robotization of Hungarian industry follows international trends in several aspects. The number of robots only started to grow faster in the Hungarian industry in the last decade. Their occurrence is primarily related to large companies and some industries and is highly concentrated in space. It follows the (dual) spatial structure of the industry.

Publication:

Kiss, É.; Tiner, T.: Robotization during the fourth industrial revolution in the world and in the Hungarian industry in regional approach. TERÜLETI STATISZTIKA 5: 61 pp. 577-604., 28 p. (2021) DOI


Number of industrial enterprises using robots by settlements and counties, 2019

Industrial enterprises intending to use robots by settlements, 2019

Industry 4.0 and its expectations from the workforce

FOUR MAIN GROUPS OF SKILLS AND COMPETENCES

Each industrial revolution required new skills and competencies from the workforce. Based on extensive bibliometric analysis and empirical research, we investigated which skills and competencies will be important in the labour market and employment in the age of Industry 4.0.

Based on the synthesis of the various research results, we separated four main groups of skills and competences:

  • 1. personal competencies (e.g. flexibility, tolerance, learning motivation, stress tolerance)
  • 2. social/intercultural competences (e.g. intercultural, language, communication, leadership, knowledge transfer ability)
  • 3. technical competences (e.g. media, technical skills)
  • 4. methodological competences (e.g. creativity, research ability, problem-solving, decision-making skills)

Among them, technical and methodological skills are the most important, which was also confirmed by the experience of company surveys.

Publication:

Alhloul, A.; Kiss, E.: Industry 4.0 as a challenge for the skills and competencies of the labor force: a bibliometric review and a survey. Sci 4: 3 Paper: 34, 17 p. (2022) DOI


Database by keywords and the connectivity among them
Source: based on Scopus database edited by Authors

According to the available statistical data, only a few percent of domestic enterprises use the new technologies today, which indicates their slow spread. In the longer term, however, it must be expected that they will result in a marked transformation in industrial employment: the number and composition of the employed will also change. This will also be reflected in the spatial structure of the industry. There is no doubt that compared to fewer industrial workers, completely different skills and competences will be required to work in "smart factories".

Industry-University-Government (IUG) Cooperation

THE COOPERATION WITHIN THE TRIPLE HELIX ALSO AFFECTS THE SPATIAL PATTERN OF INDUSTRY

The revolutionary changes taking place in the industry induced marked changes in the spheres of the triple helix and their cooperation in the last decade. The cooperation of the three spheres (government-industry-university) is also becoming more and more decisive in Hungary. The adaptation of the training structure of the universities to the challenges of the fourth industrial revolution (introduction of new majors, new training methods) and the strengthening of corporate cooperation of educational institutions also have a beneficial effect on the labour market and the supply of specialists. German companies are leading the way in the application of Industry 4.0 technologies and the introduction of dual training in Hungary, as well as in encouraging cooperation between spheres. As technical education becomes more important in the university cities of the Great Plain, relevant changes may also occur in the spatial structure of Hungarian industry.

Publication:

Kiss, E.; Varga, Gy.; Kuttor, D.: Triple helix in the age of the Fourth Industrial Revolution and the spatial pattern of Hungarian industry. ERDKUNDE 77: 1 pp. 53-69., 18 p. (2023) DOI


Spatial pattern of Hungarian industry in the age of the Fourth Industrial Revolution

From the point of view of a multi-site German company (Continental) and a university (University of Miskolc), we evaluated the characteristics of cooperation in connection with new technologies, using the example of mechatronic engineering training. The research drew attention to the fact that the change in the training structure and the closer cooperation between universities and industrial companies, which was also motivated by the technological revolution, can greatly influence the economic development of a settlement and also affect the territorial structure of Hungarian industry in the era of the fourth industrial revolution


Interactions and functions of RBDM in the triple helix in Miskolc

GEOGRAPHY OF INDUSTRY 4.0 ON THE EARTH

ANALYSING INDUSTRY 4.0 PUBLICATIONS

Analysing the Industry 4.0 (I4.0) publications in the two relevant special literature databases (WoS, Scopus) by using the dynamic and static analysis (based on authors’ affiliation and year of publishing), we attempted to present the spatial spread of the fourth industrial revolution, or in other words Industry 4.0 on the Earth.

Publication:

Kiss, É.: The geography of Industry 4.0 publications in dynamic and static approaches. REGIONAL SYMBIOSIS 29-30 pp. 1-16. , 16 p. (2022)


The spatial distribution of Industry 4.0 publications by size categories, WoS database, 2022

The spatial distribution of Industry 4.0 publications by size categories, Scopus database, 2022

Based on the WoS database, there were no significant changes in the spatial pattern of publications between 2011 and 2015. After that, however, the previous "white spots", where the appearance of new technologies was not typical, experienced a significant expansion. The number of publications related to Industry 4.0 began to grow faster from 2017 and in 2022 more than four thousand publications were published. At the same time, the range of countries where these publications were produced also expanded. Despite this, the bulk of Industry 4.0 publications are concentrated in 20 countries, and the two databases did not differ significantly in this respect. Most of the publications come from countries (China, USA, Japan, Germany, UK, Italy, Australia, South Korea, France, India) where the use of new technologies is probably more common. The fourth industrial revolution, which began more than a decade ago, is progressing differently in space and time and is the least advanced in African countries. The geography of Industry 4.0 publications to a certain extent also reflects the intensity of Industry 4.0 research.

Industry 4.0 and the Health Industry Support Program

CONNECTION BETWEEN THE DIGITALISATION OF HEALTHCARE FIRMS AND THE SPATIAL STRUCTURE OF HUNGARIAN INDUSTRY

As a result of COVID-2019, the Health Industry Support Program was announced in Hungary in 2020. In the framework of this research, we examined how it affected the digitalization of healthcare companies and the geography of Hungarian industry.

Kapcsolódó publikáció:

Kiss, É.; Uzzoli, A.: Beneficiary enterprises of the Health Industry Support Program during the global pandemic and the fourth industrial revolution. Interdiszciplináris Magyar Egészségügy (IME) 20: 2 pp. 42-47., 6 p. (2021) DOI


The headquarters of the enterprises supported by the Health Industry Support Program by the amount of the support and the share of the investment, and their branches, 2020

The health industrial enterprises supported by the Health Industry Support Program were mostly medium-sized companies with a long history, most of whose activities were strongly linked to the health industry even before the coronavirus epidemic. After that, the subsidies gave them the opportunity to expand their capacity and/or develop new products, especially in the field of the pharmaceutical industry. The enterprises implementing investments in the health industry were characterized by a marked spatial concentration, as they are mainly located in the northern, more industrialized region of the country, where Industry 4.0 technologies are also more widespread.

UTILIZATION OF RESEARCH RESULTS

The utilization of research results is possible in several ways and very widely. Due to the novelty and pioneering nature of the topic, it contributes to the narrowing of the research gap in the Hungarian geographic and economic geography literature, which concerns the impact of the fourth industrial revolution on Hungarian industry and its geography. The new knowledge also contributes to the knowledge base of the international literature. For the wider professional community, it provides new and more grounded theoretical and partly methodological knowledge about the geography and influencing factors of Industry 4.0 technologies.

This project also provides a lot of usable information for practitioners who work in different fields of life (ministries, municipalities, companies, etc.) (e.g. how the existing sectoral structure determines the spread of new technologies, or e.g. what can be expected in terms of employment). It contributes to a better knowledge and understanding of the territorial processes of Hungarian industry, to a more conscious planning of investments and to the possible reduction of disproportionalities in the spatial structure of the industry. For those active in industry (e.g. company leaders, managers), it provides new knowledge about the corporate, sectoral and geographical characteristics of the application of Industry 4.0 technologies, which can help to strengthen the competitiveness of businesses and specific areas. The experience of the research also provides proposals to be considered for the determination of strategic programs and development goals and various decision preparations that underpin industrial and economic development, as well as regional and settlement development, as well as novel connections and territorial characteristics, which are indispensable for the various decision-making political and economic experts at national, regional and settlement levels. The results can be used most in the field of education policy, employment policy, health care and regional and economic development.

Acknowledgement

The Industry 4.0 research between 2017 and 2023 was supported by the National Research Development and Innovation Office (project number: K125091). The title of the project was: "New trends in the spatial structure of Hungarian industry in connection with the fourth industrial revolution".
The principal investigator and the contributors in the project are very grateful for the support.

Contact

ÉVA KISS

kiss.eva@csfk.hun-ren.hu

+ (36 1) 309 2600 /1455 ext.