COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms

Academic studies prior to the pandemic rather emphasized that the progression towards Industry 4.0 happened in an incremental manner. However, the extraordinary circumstances of the pandemic have led to considerable investments that were widely interpreted as a (generalized) digitalization push. How...

Full description

Bibliographic Details
Main Authors: Florian Butollo, Jana Flemming, Christine Gerber, Martin Krzywdzinski, David Wandjo, Nina Delicat, Lorena Herzog
Format: Article
Language:English
Published: MDPI AG 2023-07-01
Series:Sci
Subjects:
Online Access:https://www.mdpi.com/2413-4155/5/3/28
_version_ 1797577134018920448
author Florian Butollo
Jana Flemming
Christine Gerber
Martin Krzywdzinski
David Wandjo
Nina Delicat
Lorena Herzog
author_facet Florian Butollo
Jana Flemming
Christine Gerber
Martin Krzywdzinski
David Wandjo
Nina Delicat
Lorena Herzog
author_sort Florian Butollo
collection DOAJ
description Academic studies prior to the pandemic rather emphasized that the progression towards Industry 4.0 happened in an incremental manner. However, the extraordinary circumstances of the pandemic have led to considerable investments that were widely interpreted as a (generalized) digitalization push. However, little is known about the character of such investments and their effects. The goal of this contribution is to provide an empirically based overview of recent investment in digital technologies in six economic sectors of the German economy: mechanical engineering, chemicals, automotives, logistics, healthcare, and financial services. Based on 36 case studies and a survey at 540 companies, we investigate the following questions: 1. How much did the COVID-19 pandemic reduce existing obstacles for investments in digitalization measures? 2. Is there a universal digitalization push due to the COVID-19 pandemic that differs from the trajectory before the pandemic? The results show that the pandemic affected investment in an unequal manner. It was driven by the immediate need to sustain business operations through the virtualization of communication among employees and with external partners. However, there was less dynamism in shop-floor-related digitalization, as it was less related to epidemiological concerns and is more long-term in nature.
first_indexed 2024-03-10T22:04:45Z
format Article
id doaj.art-cb84253ad0714404a1c07d54c5be8342
institution Directory Open Access Journal
issn 2413-4155
language English
last_indexed 2024-03-10T22:04:45Z
publishDate 2023-07-01
publisher MDPI AG
record_format Article
series Sci
spelling doaj.art-cb84253ad0714404a1c07d54c5be83422023-11-19T12:51:55ZengMDPI AGSci2413-41552023-07-01532810.3390/sci5030028COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German FirmsFlorian Butollo0Jana Flemming1Christine Gerber2Martin Krzywdzinski3David Wandjo4Nina Delicat5Lorena Herzog6Weizenbaum Institute for the Networked Society, 10623 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyBerlin Social Science Center, 10785 Berlin, GermanyAcademic studies prior to the pandemic rather emphasized that the progression towards Industry 4.0 happened in an incremental manner. However, the extraordinary circumstances of the pandemic have led to considerable investments that were widely interpreted as a (generalized) digitalization push. However, little is known about the character of such investments and their effects. The goal of this contribution is to provide an empirically based overview of recent investment in digital technologies in six economic sectors of the German economy: mechanical engineering, chemicals, automotives, logistics, healthcare, and financial services. Based on 36 case studies and a survey at 540 companies, we investigate the following questions: 1. How much did the COVID-19 pandemic reduce existing obstacles for investments in digitalization measures? 2. Is there a universal digitalization push due to the COVID-19 pandemic that differs from the trajectory before the pandemic? The results show that the pandemic affected investment in an unequal manner. It was driven by the immediate need to sustain business operations through the virtualization of communication among employees and with external partners. However, there was less dynamism in shop-floor-related digitalization, as it was less related to epidemiological concerns and is more long-term in nature.https://www.mdpi.com/2413-4155/5/3/28Industry 4.0digitalizationremote workCOVID-19investment
spellingShingle Florian Butollo
Jana Flemming
Christine Gerber
Martin Krzywdzinski
David Wandjo
Nina Delicat
Lorena Herzog
COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
Sci
Industry 4.0
digitalization
remote work
COVID-19
investment
title COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
title_full COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
title_fullStr COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
title_full_unstemmed COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
title_short COVID-19 as a Jump Start for Industry 4.0? Motivations and Core Areas of Pandemic-Related Investments in Digital Technologies at German Firms
title_sort covid 19 as a jump start for industry 4 0 motivations and core areas of pandemic related investments in digital technologies at german firms
topic Industry 4.0
digitalization
remote work
COVID-19
investment
url https://www.mdpi.com/2413-4155/5/3/28
work_keys_str_mv AT florianbutollo covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT janaflemming covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT christinegerber covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT martinkrzywdzinski covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT davidwandjo covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT ninadelicat covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms
AT lorenaherzog covid19asajumpstartforindustry40motivationsandcoreareasofpandemicrelatedinvestmentsindigitaltechnologiesatgermanfirms