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Industry 4.0 in Central and Eastern Europe: Is Romania Ready to Embrace the Fourth Industrial Revolution?

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  • Nedelcu Mihai-Răzvan

    (1 Bucharest University of Economic Studies, Bucharest, Romania ; This paper was co-financed by the Bucharest University of Economic Studies during the PhD, Program)

Abstract

This research paper analyses the opportunities for the possible implementation of the latest technological innovations in the Romanian manufacturing industry. The latest trends in technology can be summed up by the term “Industry 4.0”, or the “Fourth Industrial Revolution”, which brings unprecedented levels of automation, thanks to recent breakthroughs in Artificial Intelligence (A.I.), robotics and much more. However, manufacturing sectors are not created equally and some are more susceptible to implementing new technologies than others. The industrial situation in Eastern and Central Europe is highly debated and complex. During the Cold War, most of the Warsaw Pact and COMECON countries were characterized, economically speaking, by rapid industrialization, be it heavy or light industry. This is also the case in Romania, as it saw an increase in industrial output during the communist era. After the dissolution of the Soviet Union and the collapse of the collectivist ideology, some manufacturing sectors collapsed, while new ones appeared, the case of deindustrialization in Central and Eastern Europe still being under scrutiny, as the industrial output has been more stable than we tend to believe. However, a shift did occur, especially in Romania. Following the transition to a market economy, industrial output suffered a metamorphosis, exchanging some sectors (such as the textile one) for new ones (such as the automotive one, following an increase in foreign direct investments from the West). These shifts in the manufacturing sector have an advantage in the unfolding context, as the new industries (such as auto-manufacturing) are more inclined to adopt Industry 4.0. These factors, in combination with the recent trend of reshoring, are prone to positively influence the future economic environment of Romania.

Suggested Citation

  • Nedelcu Mihai-Răzvan, 2023. "Industry 4.0 in Central and Eastern Europe: Is Romania Ready to Embrace the Fourth Industrial Revolution?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 618-629, July.
    • Handle: RePEc:vrs:poicbe:v:17:y:2023:i:1:p:618-629:n:11
    DOI: 10.2478/picbe-2023-0058
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    References listed on IDEAS

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    1. Adrian Curaj & Mihai Paunica & Andreea Popa & Cosmin Holeab & Octavian-Dragomir Jora, 2020. "Sustainability Through Directed Change in the Visionary University: From Predicting to Producing the Future," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 905-905, August.
    2. Naudé, Wim & Surdej, Aleksander & Cameron, Martin, 2019. "The Past and Future of Manufacturing in Central and Eastern Europe: Ready for Industry 4.0?," IZA Discussion Papers 12141, Institute of Labor Economics (IZA).
    3. Komarčević, Miodrag & Dimić, Milovan & Čelik, Petar, 2017. "Challenges and impacts of the digital transformation of society in the social sphere," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 20(1), pages 31-48.
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