Abstract
The Fourth Industrial Revolution has become a global buzz word since the World Economic Forum (WEF) adopted it as an annual issue in 2016. It is represented by hyper automation and hyper connectivity based on artificial intelligence (AI), big data, robotics, and Internet of things (IoT). AI, big data, and robotics can contribute to developing hyper automation that can increase productivity and intensify industrial production. Particularly, robots using AI can make decision by themselves as human being on complicated processes. Along with the hyper automation, the hyper connectivity increases not only at national, but also global level by using information and communication technologies (ICT). IoT is the core technology to create the hyper connectivity in Cyber Physical System (CPS) that connects technology, nature, and human being. Accordingly, a perfect convergence between ICT and manufacturing can be completed in the Fourth Industrial Revolution era and an extremely efficient flexible production system by spreading IoT in CPS will be established. Under such a condition, innovative clusters must play their traditional roles in cradles of technology innovation and commercialization. It must be difficult challenges for innovative clusters to meet their targets and to be adjusted by the changing new environment at the same time. This paper argues how the Fourth Industrial Revolution can change the global production chain and how core technologies function in industries. Furthermore, it focuses on how innovative clusters have to evolve to respond the Fourth Industrial Revolution. Last, but not least it also analyzes whether or not innovative clusters can play their roles as technology innovation hubs in the real world and CPS in the Fourth Industrial Revolution era.
Similar content being viewed by others
References
Acemoglu D, Akcigit U, Hanley D, Kerr W (2014) Transition to Clean Technology, NBER Working Paper No. 20743, NBER: Cambridge
Acs Z (2006) How is entrepreneurship good for economic growth? Innovations: technology, governance, globalization, vol 1, No. 1, pp 97–107
Aghion P, Howitt P (1992) A model of growth through creative destruction. Econometrica 60:323–351
Aghion P, Groffith R (2005) Competition and growth: reconciling theory and evidence. MIT Press, Cambridge, MA
Aghion P, Blundell R, Griffith R, Howitt P, Prantl S (2006) The effects of entry on incumbent innovation and productivity. NBER WP 12027, Cambridge, MA
Aghion P, Boulanger J, Cohen E (2011) Rethinking Industrial Policy, Bruegel Policy Brief, Issue 2011/04, Bruegel: Brussels
Amin A, Cohendet P (2012) The firm as a platform of communities: a contribution to the knowledge-based approach of the firm. In: Arena R, Festré A, Lazaric N (eds) Handbook of knowledge and economics. Elgar, Cheltenham, pp 403–434
Balogh LS (2017) Could China be the winner of the next industrial revolution? Fin Econ Rev 16:73–100 (Special Issue)
Baweja B, Donovan P, Haefele M, Siddiqi L, Smiles S (2016) Extreme automation and connectivity: the global, regional, and investment implications of the fourth industrial revolution, UBS white paper for the world economic forum. UBS, Geneva
Bloem J, van Doorn M, Duivestein S, Excoffier D, Maas R, van Ommeren E (2014) The Fourth Industrial Revolution: Things to Tighten the Link between IT and OT, Groningen: Sogeti VINT. http://www.fr.sogeti.com/globalassets/global/downloads/reports/vint-research-3-the-fourth-industrial-revolution. Accessed 16 Sep 2017
Brynjolfsson E, McAfee A (2014) The second machine age: work, progress, and prosperity in a time of brilliant technologies. Norton, New York
Canning M, Kelly E (2015) Business ecosystems come of age. Deloitte University Press, London
Commission EU, Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (2016) Smart Guide to Cluster Policy, EU, Brussels
Davis R (2015) Industry 4.0: digitalisation for productivity and growth, briefing, Sep. PE 568.337, European Parliamentary Research Service (EPRS). EU, Brussels
Delgado M, Porter ME, Stern S (2010) Clusters and entrepreneurship. J Econ Geogr 10(4):495–518
Delgado M, Porter ME, Stern S (2014) Clusters, convergence, and economic performance. Res Policy 43:1785–1799
Dosi G (2012) A note on information, knowledge and economic theory. In: Arena R, Festre A, Lazaric N (eds) Handbook of knowledge and economics. Elgar, Cheltenham, pp 167–182
EC (2016) European Commission: the fourth industrial revolution. https://ec.europa.eu/digital-single-market/en/fourth-industrial-revolution/. Accessed 15 Sep 2017
Eckart J (2016) 8 things you need to know about China’s economy, world economic forum. https://www.weforum.org/agenda/2016/06/8-facts-about-chinas-economy/. Accessed 15 Sep 2017
European Commission (2012) A stronger European industry for growth and economic recovery, industrial policy update: EU
European Commission (2014) The European competitiveness report 2014: helping firms grow, Brussels: EU
European Union, Regional Policy (2012) Guide to research and innovation strategies for smart specialisation (RIS 3), http://s3platform.jrc.ec.europa.eu/en/c/document_library/get_file?uuid=e50397e3-f2b1–4086-8608-7b86e69e8553&groupId=10157. Accessed 6 Oct 2017
Evans DS (2011) Platform economics: essays on multi-sided businesses, http://www.marketplatforms.com/wp-content/uploads/Downloads/Platform-EconomicsEssays-on-Multi-Sided-Businesses.pdf. Accessed 23 Sep 2017
Feldman M, Lowe N (2017) Evidence-based economic development policy, innovations: technology, governance, globalization, vol 11, No. 3–4, pp. 34–49
Fontagné L, Mohnen P, Wolff G (2014) Pas d’industrie, pas d’avenir?, Juin 13.Paris: Counseil d’analyse économique, http://www.cae-eco.fr/IMG/pdf/cae-note013v2.pdf. Accessed 05 Oct 2017
Gill KS (2017) Uncommon voices of AI, AI & society, Vol. 32, No. 4, pp. 475–482, https://link.springer.com/content/pdf/10.1007%2Fs00146–017-0755-y.pdf. Accessed 10 Oct 2017
Gordon RJ (2014) The Demise of U.S. Economic Growth: Restatement, Rebuttal, and Reflections, NBER Working Paper 19895, National Bureau of Economic Research, Cambridge: MA
International Institute for Management Development (IMD) (2017) IMD World Digital Competitiveness Ranking, https://www.imd.org/globalassets/wcc/docs/release-2017/world_digital_competitiveness_yearbook_2017.pdf. Accessed 05 Oct 2017
Kagermann H, Riemensperger F, Hoke D, Helbig J, Stocksmeler D, Whalster W, Scheer AH, Schweer D (2014) Smart service welt: recommendations for the strategic initiative web based services for businesses. Federal Ministry for Economic Affairs and Energy, Berlin
Karlsson C, Nyström K (2009) Report to the Swedish government’s globalization council. Ministry of Education, Stockholm
Ketels C (2015) Competitiveness and Clusters: Implications for a New European Growth Strategy, Working Paper No. 84, Brussels: EU
Laur I, Klofsten M, Bienkowska D (2012) Catching regional development dreams: a study of cluster initiatives as intermediaries. Eur Plan Stud 20(11):1909–1921
Lindqvist G, Ketels C, Solvell O (2013) The Cluster Initiative Green Book 2.0. Ivory Tower Publishing, Stockholm
Lucas RE (1988) On the mechanisms of economic development. J Monet Econ 22:3042
Müller L, Lämmer-Gamp T, zu Kôcker GM, Christensen TA (2012) Clusters are individuals: new findings from the European cluster management and cluster program benchmarking, updated report 2012, vol II, Danish Ministry of Science/VDI/VDE, Copenhagen
Obrégon IF (2015) The role of cluster initiatives in strategic alliances: a view from the Basque Country Region. Harvard Deusto Bus Res 4(1):2–16
OECD (2011) An Overview of Growing Income Inequalities in OECD Countries: Main Findings, https://www.oecd.org/els/soc/49499779.pdf. Accessed 27 Sep 2017
Porter ME (1990) The competitive advantage of nations. Free Press, New York
Rebelo S (1991) Long run policy analysis and long run growth. J Polit Econ 99:500–521
Rivera J, van der Meulen R (2014) Gartner’s Hype Cycle for Emerging Technologies Maps the Journey to Digital Business, Newsroom Press Release, Aug. 11, http://www.gartner.com/newsroom/id/2819918, Accessed 4 Oct 2017
Romer P (1986) Increasing returns and long run growth. J Polit Econ 94:1002–1037
Rüssmann M, Lorenz M, Gerbert P, Waldner M, Justus J, Engel P, Harnisch, M (2015) Industry 4.0: the future of productivity and growth in manufacturing industries. The Boston Consulting Group Inc, Boston
Schmitz J (1989) Imitation, entrepreneurship, and long run growth. J Polit Econ 97:721–739
Schmitz H (1997) Collective Efficiency and Increasing Returns, IDS working paper 50. University of Sussex, Brighton
Schumpeter JA (1942) Capitalism, socialism and democracy. Harper & Row, New York
Schwab K (2016) The fourth industrial revolution. World Economic Forum, Geneva
Segerstrom P (1991) Innovation, imitation and economic growth. J Polit Econ 99:190–207
Solvell O, Lindqvist G, Ketels C (2003) The cluster initiative green book. Bromma Tryck AB, Stockholm
Staffen S, Schoenwald L (2016) Leading in the Context of the Industrial Revolution, http://www.de.capgemini-consulting.com
Stanford University (2016) Artificial Intelligence and Life in 2030, One Hundred Year Study on Artificial Intelligence: Report of the 2015–2016 Study Panel, Stanford University, Stanford, September 2016, http://ai100.stanford.edu/2016-report. Accessed 11 Oct 2017
Stiglitz JE, Lin JY, Monga C (2013) The Rejuvenation of Industrial Policy, Policy Research Working Paper 6628, The World Bank Strategic Policy Forum on Digital Entrepreneurship (2015) Digital transformation European industry and enterprises: a report of the strategic policy forum on digital entrepreneurship, Brussels: European Commission
Warwick K (2013) Beyond industrial policy: emerging issues and new trends. OECD science, technology and industry policy papers, No. 2. OECD Publishing, Paris
World Economic Forum (WEF) (2014) The future of manufacturing: driving capabilities, enabling investments, https://www.weforum.org/reports/future-manufacturing-driving-capabilities-enabling-investments/. Accessed 28 Sep 2017
World Economic Forum (WEF) (2016a) Manufacturing our future: cases on the future of manufacturing, WEF, Geneva
World Economic Forum (WEF) (2016b) The future of jobs: employment, skills and workforce strategy for the fourth industrial revolution, http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf. Accessed 26 Sep 2017
World Economic Forum (WEF) (2016c) The global competitiveness report 2016–2017, http://www3.weforum.org/docs/GCR2016–2017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf. Accessed 5 Oct 2017
zu Köcher GM, Müller L (2015) Cluster Programs in Europe, http://www.sgg.si/wp-content/uploads/2015/12/Cluster-Programmes-in-Europe.pdf. Accessed 8 Oct 2017
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Park, SC. The Fourth Industrial Revolution and implications for innovative cluster policies. AI & Soc 33, 433–445 (2018). https://doi.org/10.1007/s00146-017-0777-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00146-017-0777-5