Industry 4.0 in a dualistic manufacturing sector – qualitative experiences from enterprises and their environment, Eastern Hungary

Keywords: Industry 4.0, manufacturing, dualistic economy, enterprises, economic geography, semi-periphery, Hungary

Abstract

Industry 4.0 developing on the basis of digitalisation is gradually transforming production, the conditions of competition and relationships in global industry, affecting its interpretation and expanding its limits. This paper attempts to explore changing economic geographical context with the revaluation of comparative and competitive advantages in a semi-peripheral area of the EU. Based on company interviews, the effects of the new technologies of Industry 4.0 on the dual Hungarian manufacturing industry and its spatial structure are studied, and that whether they contribute to the reduction of duality and geographical polarization. In Eastern Hungary – just like in most areas in East-Central Europe – internationally competitive manufacturing companies emerged almost exclusively as a result of foreign direct investment, while domestic companies are forced into secondary or dependent roles. The empirical research has revealed significant differences in the progress of companies in Industry 4.0. Hungarian-owned companies evolve in a specific way from several aspects and face many difficulties. In contrast, enterprises with foreign interest continue to be the engine of development, driven from the “outside”. Duality is also reflected in the corporate structure, in space and in the realisation of Industry 4.0.

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Published
2020-06-30
How to Cite
NagyC., MolnárE., & Kiss Éva. (2020). Industry 4.0 in a dualistic manufacturing sector – qualitative experiences from enterprises and their environment, Eastern Hungary. Hungarian Geographical Bulletin, 69(2), 157-174. https://doi.org/10.15201/hungeobull.69.2.5
Section
The fourth industrial revolution in economic geographical approach