**2. Industry 4.0 as a framework for regional development**

The term "Industrie 4.0" was initially originated in Germany [1]. Industry 4.0 is a policy framework that defines and describes how new technologies should be adopted to renew manufacturing. The renewal is expected to bring major boost in competitiveness. It provides the framework for different kinds of policy initiatives. From the regional development perspective it can also be used as a guideline for steering research and development activities [2].

Digitalization will bring new business opportunities and increasing competition. Companies are forced to renew their processes and activities, and at the same time restructure their business processes and models. Regions and areas are forced to plan and redesign services in their business environments as well. In order to see the development needs for attractiveness and welfare, but also to use the development resources in the best possible way, the key research

Renewing a University to Support Smart Manufacturing Within a Region

http://dx.doi.org/10.5772/intechopen.72115

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**3.** How structure and curricula of university could be renewed in order to support adapta-

**4.** What issues to consider while applying Industry 4.0 to increase competitiveness of a region?

The changes created by Industry 4.0 are not only technological but also organizational [7]. More network-oriented operations are emphasized instead of a perspective of one single economic unit like one factory. The competence development activity, that is required to fully internalize Industry 4.0, is a major task. It should be implemented both on the societal level implemented for example by higher education institutions as well as on private enterprises. It is possible that productivity improvement perspective, which on the short to medium term, may lead to layoffs of workers regarding their current work positions is not necessarily welcomed by representatives of trade unions. However, on longer time frame, the competiveness of European manufacturing-related industries is beneficial for all members of the society [1].

It is assumed that European manufacturing industry has to radically renew itself. Industry 4.0 provides guidelines on how to make this renewal ambition a reality. The adaptation of new technologies that can be interconnected provides major opportunities. While large-scale utilization of sensors that are connected by wireless networks as well as further adapting robotics provide potential to gain major leaps in productivity. Analytical methods that can be utilized on big data provide further insights on managing a network of producers and suppliers. Mass customization becomes a reality. The overall productivity increase is due to increased speed, improved quality, better utilization of existing resources, and so on. However, the manufacturing firms should be prepared to make required investment on both hardware (equipment and computers) as well as on software (competence development and applications) [8].

Digitization is an increasingly relevant option while companies are trying to renew themselves and their operations to remain competitive. However, digitization is not only a shortterm project; it is a long term transformation that should be lead. The leadership perspective is very important in this change management initiative. Such technologies like cloud computing, wireless networks, and big data can be adapted. However, the main question remains,

**1.** How Industry 4.0 could be used as a framework for regional development?

**3. Adaption of new technologies supporting Industry 4.0**

**2.** What are issues affecting competitiveness of regions?

questions related to this paper are:

tion of Industry 4.0 in the region?

Industry 4.0 describes how machines, and other technologies adapted in manufacturing communicate with each other. The major importance is on a networked perspective, i.e., how different companies within a value chain communicate each other. The intention is such that computerized systems control and monitor physical processes. Industry 4.0 takes manufacturing-related industries to the next level in adapting and utilizing digitization. In networked environment machines and physical objects are linked with each other. This allows decentralized production and real-time adaptation to the changes on the level of demand in the future [2].

The characteristics of Industry 4.0 is that it promotes computerization of manufacturing. Industry 4.0 is closely linked to Cyber-Physical Systems (CPS) [3]. They can be defined as transformative technologies which manage interconnected systems between its physical assets and computational capabilities [4]. We are increasingly using the concepts of the Internet of Things, the Internet of Everything and the Industrial Internet. The widespread adoption of information and communication technology (ICT) is increasingly accelerating and blurring the boundaries between the real physical world and the virtual one. The linkage is becoming increasingly smart [5].

Industry 4.0 is made possible through the development of the industrial Internet of Things [4]. New ICT-related technologies make Industry 4.0 development possible and give opportunities to re-engineer value chains and create new business models. Internet of Things (IoT) is one of the core technologies for Industry 4.0. The growth of connections brings the new possibilities and solutions for business. On the other hand, exponential growth brings also new challenges for education, R&D&I, and regional development activities. The exponential growth of IoT connections indicates the birth of new business models and new kind of business environments. This "smartness" requires greater connection and collaborations. This is where the "explosion" of platforms and ecosystems is occurring. An attempt to connect the Internet of Things, services, data, and people need radical redesigns within industries and the participants to connect up this all. Presently, Industry 4.0 is more industrial driven, but this will change and broaden out [6].

Industry 4.0 is about increasing productivity and competitiveness. One perspective how this increase in productivity takes place is increase in the efficiency and speed of processes within a company or a value network. Basically, utilization of Industrial Internet makes it possible to optimize the activities and resource utilization in entire value network. Also, material and energy efficiency can be improved, which is important from the perspective of sustainable operations. Large sets of accumulated and real-time data can be applied to forecast or process development purposes. In addition, digitization provides opportunities for new start-ups and may create further prosperity [1].

Digitalization will bring new business opportunities and increasing competition. Companies are forced to renew their processes and activities, and at the same time restructure their business processes and models. Regions and areas are forced to plan and redesign services in their business environments as well. In order to see the development needs for attractiveness and welfare, but also to use the development resources in the best possible way, the key research questions related to this paper are:


**2. Industry 4.0 as a framework for regional development**

134 Digital Transformation in Smart Manufacturing

The term "Industrie 4.0" was initially originated in Germany [1]. Industry 4.0 is a policy framework that defines and describes how new technologies should be adopted to renew manufacturing. The renewal is expected to bring major boost in competitiveness. It provides the framework for different kinds of policy initiatives. From the regional development perspective it can also be used as a guideline for steering research and development activities [2]. Industry 4.0 describes how machines, and other technologies adapted in manufacturing communicate with each other. The major importance is on a networked perspective, i.e., how different companies within a value chain communicate each other. The intention is such that computerized systems control and monitor physical processes. Industry 4.0 takes manufacturing-related industries to the next level in adapting and utilizing digitization. In networked environment machines and physical objects are linked with each other. This allows decentralized production and real-time adaptation to the changes on the level of demand in the future [2].

The characteristics of Industry 4.0 is that it promotes computerization of manufacturing. Industry 4.0 is closely linked to Cyber-Physical Systems (CPS) [3]. They can be defined as transformative technologies which manage interconnected systems between its physical assets and computational capabilities [4]. We are increasingly using the concepts of the Internet of Things, the Internet of Everything and the Industrial Internet. The widespread adoption of information and communication technology (ICT) is increasingly accelerating and blurring the boundaries between the

Industry 4.0 is made possible through the development of the industrial Internet of Things [4]. New ICT-related technologies make Industry 4.0 development possible and give opportunities to re-engineer value chains and create new business models. Internet of Things (IoT) is one of the core technologies for Industry 4.0. The growth of connections brings the new possibilities and solutions for business. On the other hand, exponential growth brings also new challenges for education, R&D&I, and regional development activities. The exponential growth of IoT connections indicates the birth of new business models and new kind of business environments. This "smartness" requires greater connection and collaborations. This is where the "explosion" of platforms and ecosystems is occurring. An attempt to connect the Internet of Things, services, data, and people need radical redesigns within industries and the participants to connect up this all. Presently, Industry 4.0 is more industrial driven, but this

Industry 4.0 is about increasing productivity and competitiveness. One perspective how this increase in productivity takes place is increase in the efficiency and speed of processes within a company or a value network. Basically, utilization of Industrial Internet makes it possible to optimize the activities and resource utilization in entire value network. Also, material and energy efficiency can be improved, which is important from the perspective of sustainable operations. Large sets of accumulated and real-time data can be applied to forecast or process development purposes. In addition, digitization provides opportunities for new start-ups and

real physical world and the virtual one. The linkage is becoming increasingly smart [5].

will change and broaden out [6].

may create further prosperity [1].


The changes created by Industry 4.0 are not only technological but also organizational [7]. More network-oriented operations are emphasized instead of a perspective of one single economic unit like one factory. The competence development activity, that is required to fully internalize Industry 4.0, is a major task. It should be implemented both on the societal level implemented for example by higher education institutions as well as on private enterprises. It is possible that productivity improvement perspective, which on the short to medium term, may lead to layoffs of workers regarding their current work positions is not necessarily welcomed by representatives of trade unions. However, on longer time frame, the competiveness of European manufacturing-related industries is beneficial for all members of the society [1].
