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

Florian Butollo, Jana Flemming, Christine Gerber, Martin Krzywdzinski, David Wandjo, Nina Delicat and Lorena Herzog

EconStor Open Access Articles and Book Chapters, 2023, vol. 5, issue 3

Abstract: 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.

Keywords: Industry 4.0; digitalization; remote work; COVID-19; investment (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:308029

DOI: 10.3390/sci5030028

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