Smart factories, interconnected cities, and fifty billion objects hooked up to the internet by 2020: these were some of the facets of the digital revolution flagged by the roundtable participants as transforming the economic and social fabric of both advanced and developing countries. This ramping-up of technology was regarded as a game-changer, opening the doors to Industry 4.0, the promised benefits of which are manifold, including maximum volume flexibility, faster transition from prototyping to mass production, increased productivity, and reduced waste.
The transformation underway was hailed as unprecedented. Unlike the industrial revolutions of the past, the digital revolution is not based on any single enabling technology, such as the steam engine or electrification, but on a set of innovations that, thanks to the internet, are systemically coalescing into new production paradigms. Currently, around 14 billion sensors are connected to warehouses, road networks, factory production lines, the electricity supply grid, offices, and homes. Estimates were cited predicting that, by 2030, over 100 billion sensors will link the human and natural environment in a smart and distributed global network. The line between industry and services will become increasingly blurred, with manufacturing companies increasingly engaged in service activities.
It was stressed, however, that it is not just modes of production that are changing: so too are organizational models, the methods used to interact with clients, and ways of working. To survive in such a dynamic environment, firms – regardless of their size or sector of operation – must adapt before being swept away by the technological wave. New market strategies are needed for an economy that is becoming increasingly more circular and given over to sharing rather than to individual ownership.
Italy is the second-largest manufacturing country in Europe and the third in the world. By fully seizing the potential and opportunities created by new digital technologies, Italian firms could win new market shares abroad and create major employment opportunities. In this regard, Italy’s Industry 4.0 National Plan was held up as a step in the right direction. The policy mix adopted, with its package of incentives and relief measures for businesses (including hyper-depreciation, super-depreciation, and tax credits for research) will help facilitate the uptake of latest-generation digital technologies.
It was suggested, however, that there is currently an insufficient focus on training in necessary skills for the economy of the future, as well as a lack of a strong network of partnerships between universities and industry for the creation – rather than just the assimilation – of new technologies. Finally, it was lamented that those sectors in which Italy boasts a comparative advantage over the rest of the world, such as art and tourism, have not been effectively singled out for full-scale deployment of new technologies.
The participants also pointed to a problem of entrepreneurial culture: as yet, few Italian firms have a concrete grasp of the potential of Industry 4.0. There is a lack of best practice circulation and familiarity with technology. Moreover, the crisis has changed the rules of the game such that being a domestic market leader is no longer enough. To contend with global competitive scenarios and not miss out on the opportunities offered by growing markets, Italy needs an integrated industrial policy, called upon to support businesses in their digitalization and internationalization strategies, thereby enabling digital transformation to spread to all sectors of the economy.
In conclusion, it was observed that, slowly but surely, the Fourth Industrial Revolution is taking off in Italy as well. Yet there is cause for greater haste: Germany and Japan are already discussing possible partnerships for Industry 5.0, and Italy cannot afford to be left behind.