LAUSR

ABSTRACT Industry 4.0 is a name used to indicate a ‘fourth industrial revolution’, characterised by the emergence of smart factories in which cyber-physical systems monitor physical processes and communicate with each other and human beings in real time. European Member States and regions are committed to adapt their innovation systems to the trends of Industry 4.0 and Europe as a whole is facing the challenge of finding a balance between promoting research and innovation excellence and putting less advanced regions in the position to benefit from the ongoing industrial revolution. However, relatively little is known about the magnitude of this economic phenomenon, the comparative advantages of countries and regions and their technological specialisation. We use data from European regions’ participation in collaborative research projects promoted by the 7th Framework Programme for research and innovation to investigate relative and absolute advantages in the enabling technologies of Industry 4.0. Data are regionalised and categorised on the basis of an original taxonomy of technologies developed with the support of a team of European experts in each technological domain. The article also explores regional networks promoted by the Framework Programme and draws policy indications to support the competitiveness of European manufacturing.