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In this chapter we determine the industry 4.0 (I4.0) readiness of eight Central and Eastern European countries (CEECs): Bulgaria, the Czech Republic, Lithuania, Hungary, Poland, Romania, the Slovak Republic, and Slovenia. We explain the nature of I4.0 showing that there are three key dimensions of I4.0 readiness: technological, entrepreneurial, and governance competencies. Using a wide variety of quantitative measures for these and calculating a composite distance normalization index in order to rank the countries relative to each other in terms of these three competencies, we find that the Czech Republic, Lithuania, Hungary, and Slovenia are most I4.0 ready. Bulgaria, Slovakia, Romania, and Poland are the least ready. We make the following recommendations. All the countries in the region could do more to (i) promote entrepreneurship, to (ii) diversify and grow manufacturing export markets through focused trade facilitation and exchange rate policy in the cases of the non-eurozone countries, and (iii) to cooperate regionally on industrial policy – through, for instance, establishing a regional CEEC I4.0 Platform.
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- Ready for Industry 4.0? The Case of Central and Eastern Europe
- Chapter 10