Professur für Policy Analyse und Politische Wirtschaftslehre. Industry 4.0. Smart Factory Workshop. Tübingen, August 29, 2016 / Daniel Buhr

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1 Professur für Policy Analyse und Politische Wirtschaftslehre Industry 4.0 Smart Factory Workshop Tübingen, August 29, 2016 / Daniel Buhr

2 What is Industry 4.0? What impact does it have on certain industries and companies? What demands does Industry 4.0 place upon research and technology, society and policy? And how can we ensure that as many people as possible benefit from these developments and not just a small group? 2 Daniel Buhr 2016 Universität Tübingen

3 Vision. 3 Daniel Buhr 2016 Universität Tübingen

4 4 Daniel Buhr 2016 Universität Tübingen

5 5 Daniel Buhr 2016 Universität Tübingen

6 6 Daniel Buhr 2016 Universität Tübingen

7 A cyber-physical system (CPS) is a mechanism controlled or monitored by computer-based algorithms, tightly integrated with the internet and its users. In cyber physical systems, physical and software components are deeply intertwined, each operating on different spatial and temporal scales, exhibiting multiple and distinct behavioral modalities, and interacting with each other in a myriad of ways that change with context. (US National Science Foundation; IEEE)

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10 Source: Daniel Buhr 2016 Universität Tübingen

11 Polarisation? Frey/Osborne 2013: 47% of the jobs in the US are under risk of automatisation and digitisation 11

12 More or less? Quelle: Suchy/DGB Daniel Buhr 2016 Universität Tübingen

13 13 Daniel Buhr 2016 Universität Tübingen

14 Humans and Machines the future? Automation scenario: Hybrid scenario: Specialisation scenario: systems direct humans. Monitoring and control tasks are taken over by technology. It prepares and distributes information in real time. Employees respond to the needs of cyberphysical systems (CPS) and take on primarily executive tasks. The abilities of lesser skilled workers are thereby devalued. monitoring and control tasks are performed via cooperative and interactive technologies, networked objects and people. The demands on employees increase because they have to be considerably more flexible. people use systems. CPS is a tool to support decisionmaking. The dominant role of the qualified workers is maintained. 14 Daniel Buhr 2016 Universität Tübingen

15 15 Daniel Buhr 2016 Universität Tübingen

16 Click-Worker and Crowd-Worker Daniel Buhr 2016 Universität Tübingen

17 Degree of Digitisation / Industry 4.0: ZEW 2015: IKT-Report Oktober 2015

18 Industry 4.0 Opportunities: Real-time networking of industrial processes makes production cheaper, sustainable and efficient. Digital networking allows the direct involvement of customer demands and the cost-effective customization of products and services. The world of work could be made more humane. Beyond all that, Industry 4.0 could provide enormous potential for new products, services and solutions that could enrich people s everyday lives. 18 Daniel Buhr 2016 Universität Tübingen

19 Industry 4.0 Risks: increasing concentration of data in the hands of a few monopolies able to evade state control; loss of a whole range of abilities and skills (physical, manual but also intellectual); acceleration and intensification of work and more stress; intensification of the digital divide and the polarisation of society, the continuing erosion of jobs but also of the boundaries between work and private life 19 Daniel Buhr 2016 Universität Tübingen

20 (Innovation) Policies for Industry Daniel Buhr 2016 Universität Tübingen

21 TEN POINTS REGARDING INNOVATION POLICY FOR INDUSTRY 4.0 Point 1: Industry 4.0 needs the promotion of systems Point 2: Industry 4.0 is not just about high-tech Point 3: Industry 4.0 should lead to social progress Point 4: Industry 4.0 should also be understood as social innovation Point 5: Industry 4.0 should be embedded in a coordinated market economy Point 6: Industry 4.0 is not just about machines but people Point 7: Industry 4.0 needs Europe Point 8: Industry 4.0 needs better data privacy, protection and security Point 9: Industry 4.0 is also about the Small Point 10: Industry 4.0 needs policy coordination. 21 Daniel Buhr 2016 Universität Tübingen

22 TEN POINTS REGARDING INNOVATION POLICY FOR INDUSTRY 4.0 Point 1: Industry 4.0 needs the promotion of systems Point 2: Industry 4.0 is not just about high-tech Point 3: Industry 4.0 should lead to social progress Point 4: Industry 4.0 should also be understood as social innovation Point 5: Industry 4.0 should be embedded in a coordinated market economy Point 6: Industry 4.0 is not just about machines but people Point 7: Industry 4.0 needs Europe Point 8: Industry 4.0 needs better data privacy, protection and security Point 9: Industry 4.0 is also about the Small Point 10: Industry 4.0 needs policy coordination. 22 Daniel Buhr 2016 Universität Tübingen

23 Innovation 23 Daniel Buhr 2016 Universität Tübingen

24 Invention Innovation Diffusion 24 Daniel Buhr 2016 Universität Tübingen

25 Invention Social Innovation Diffusion 25 Daniel Buhr 2016 Universität Tübingen

26 INDUSTRY 4.0 SHOULD ALSO BE UNDERSTOOD AS SOCIAL INNOVATION Why? Social innovations have crucial influence on whether a technological invention will become a widespread innovation (Schumpeter s distinction), on the channels it is diffused through and what effects unfold in the process (Franz 2010: 336) A social innovation is a targeted reconfiguration of social practices with the aim of better solving problems or satisfying needs than is possible on the basis of established practices (Howaldt et al. 2008) and thus makes a contribution to social progress. Better: for whom? Social Innovations arise through interactive learning processes in systems of actors and institutions (Blättel-Mink/Ebner 2009: 11) How?: Broader understanding of innovation Education and qualification Promotion of networks and interdisciplinary collaboration 26 Daniel Buhr 2016 Universität Tübingen

27 Source:Digital Economy and Society Index 2016

28 Thank you. Daniel Buhr Professor for Policy Analysis and Political Economy Melanchthonstr. 36, Tübingen Telephone: Telefax: Daniel Buhr 2016 Universität Tübingen

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