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Industrial Policy for the Manufacturing Revolution

Perspectives on Digital Globalisation

Patrizio Bianchi and Sandrine Labory

This book offers a critical reflection on the meaning and expected impact of the fourth industrial revolution, and its implications for industrial policy. Industrial revolutions are considered not only in terms of technological progress, but also in the context of the changing relationship between market and production dynamics, and the social and political conditions enabling the development of new technologies. Industrial Policy for the Manufacturing Revolution aims to increase our capacity to anticipate and adapt to the forthcoming structural changes. A concrete illustration of this industrial policy is provided through an experience of its implementation at regional level.
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Index

Patrizio Bianchi and Sandrine Labory

3D printing 612, 689
Abo, T. 32
Acemoglu, D. 34, 146
Acxiom 97
adaptability 139
adaptation 13940, 1435
additive manufacturing 613, 69
Adjerid, I. 95
advertising 73, 81, 856, 92, 95100
AEG 29
agricultural revolution 36
agriculture 34, 20, 33, 36, 110
Airbnb 13, 7980, 868, 91, 94
algorithms 58, 923, 96
Alibaba 82, 85, 87, 90
Alphabet 84, 87, 912
see also Google
Amazon 13, 54, 76, 79, 82, 869, 912, 95, 97
Amazon Robotics 54
American Revolution 467, 155
Amsden, A.H. 152
Ancien Régime 35
Android 75, 845, 87, 90, 92, 95
antitrust 4, 6, 89, 91, 99100, 104, 149, 154, 156
Apple 13, 75, 84, 86, 912
Arkwright, Richard 39
Armani 81
Armstrong, M. 90
artificial intelligence 45, 5051, 556, 589, 92, 97
ASIMO 55
AT&T 29
Audi 129
Auerbach 30
automation 12, 2930, 50, 52, 545, 6062, 69, 130
automobiles see cars
autonomous vehicles 55
back shoring see reshoring
Bacon, Francis 34
Baidu 82, 85, 87
Baldwin, R. 68
Bank of England 20
Barilla 52
barriers to entry 61, 83, 98
see also ease of entry
BCG 52, 70
Belgium 24
Bell, Alexander Graham 30
Bell Laboratories 29
Bessemer, Henry 22
Bianchi, Patrizio 5, 13, 1045, 110, 112, 147, 154
big data 512, 589, 724, 767, 813, 889, 967, 105, 117, 120, 127, 13032, 135, 156
analytics see data analytics
as collective asset 1012
and market power 93100
biofuels 49, 56
biomedical sector 72, 11011, 1289, 1435
biotechnologies 5, 27, 49, 58
BlackBerry 845
BlueKai 97
book industry 745, 88
Boston Consulting Group 61
Boyer, Herbert 50
Brazil 68
see also BRIC countries
Brexit 9, 107
BRIC countries 58
see also individual countries
Bristow, G. 137, 140
broadband 3031, 77, 135
Brusco, S. 109
Caillaud, B. 89
capitalism 20
cars 5, 12, 15, 18, 212, 278, 33, 512, 54, 59, 61, 74, 110, 1279
Chandler, A. 25
Charlemagne 44
Charles II 41
Charlier, Joseph 45
chemical industry 5, 212, 27, 33, 40, 44, 49, 54, 568, 89, 130
Chesbrough, H.W. 72
China 810, 52, 56, 635, 67, 7072, 82, 85, 90, 147, 155
see also BRIC countries
CISCO 1011, 82
climate change 13, 589, 136, 141, 147
cognitive sciences 50, 55
Cohen, Stanley N. 50
Cold War 155
combustion engine 5
Comenius, John Amos 41
communism 5
comprehensive industrial policy 2, 14, 1048, 146, 149, 153
computer and data sciences 5
computer chip 289
Condorcet, Nicolas de 45
connecting technologies 5
cookies 967, 99
cost-per-click 95, 100
Cromwell, Oliver 41
Cromwell, Thomas 40
culture 1516, 1920, 26, 28, 338, 41, 109, 111, 11314, 135, 140
cyber-physical systems (CPS) 61
data analytics 589, 73, 76, 813, 889, 967, 101, 117, 127, 134
de Tocqueville, Alexis 37
DEC 29
DeepMind 92
Deezer 97
deindustrialisation 6373
Dellarocas, C. 93
Diderot, Denis 45
Diesel 81
digital globalisation 1, 4, 1014, 59, 147, 1556
digital manufacturing 60
digitalisation 737, 96, 123, 127, 135, 154
division of labour 1516, 18, 312
Dolce & Gabanna 81
drones 55
Ducati 1278
ease of entry 868
see also barriers to entry
eBay 79, 86, 9091, 93
economies of scale 22, 32, 59, 63, 80, 90, 94, 142
economies of scope 32, 59, 63, 80, 94
Edison, Thomas 24
education and training 45, 1516, 256, 3547, 712, 101, 1045, 11112, 11415, 11827, 131, 141, 15052
in France 446
in Germany 434
in the UK 4043
in the USA 467
electricity 17, 216, 289, 33, 38, 40, 47, 50, 52, 54, 128, 154
Electronic Commerce Directive 93
Emilia-Romagna region 2, 1314, 77, 81, 101, 1045, 10849, 153
earthquakes 11213, 128, 138, 1435
enabling technologies 5160
see also individual technologies
ENI 133
entitlement 1056
entrepreneurship 34, 43, 105, 109, 116, 124
entry barriers see barriers to entry
ePrivacy Directive 97
Ericsson 3, 12
Esteves, R-B. 99
European Centre for Medium- Range Weather Forecasts (ECMWF) 13031
European Commission 71, 99, 131
European Patent Office (EPO) 10910
European Union 910, 59, 67, 6972, 935, 97, 10910, 115, 130, 134, 140, 1467
eXelate 97
Expedia 94
Facebook 13, 74, 86, 90, 92, 96, 98
factory system 1415, 1920, 25, 31, 337, 42, 153
Ferrari 1278
Ferry, Jules 46
financial crisis 1, 610, 52, 65, 112, 125, 145, 150
financialisation 65
Finland 84
first mover advantage 83
Fisher, A.G.B. 3
Fitbit 89
Fleming, John Ambrose 289
flexible production 14, 33, 613, 153
Ford 15, 32, 70
foreign direct investment 5, 129
fourth industrial revolution 12, 46, 10, 1214, 16, 27, 39, 4951, 79, 1045, 120, 124, 127, 136, 1467, 149, 1536
digitalisation and hyperconnection 737
see also hyperconnectivity
enabling technologies 5160
impact on deindustrialisation and global value chains 6373
and smart manufacturing see smart manufacturing
Foxconn 54
France 234, 26, 35, 4041, 44, 645, 712, 100, 146
education and training 446
Franklin, Benjamin 21, 24
free trade 38
Freeman, C. 6
French Revolution 26, 35, 44
GAFA companies see also individual companies
GAFA/GAFAM companies 92, 100
GDP 68, 646, 70, 109, 1423
GE Aviation 70
genomics 45, 27, 4950, 56
Germany 223, 256, 2930, 35, 39, 412, 52, 645, 7072, 146, 155
education and training 434
Gillard, D. 40
Gille, B. 17
globalisation 1, 5, 75, 77, 118, 127, 1367, 1479, 1546
after the financial crisis 610
digital 12, 4, 1014, 59, 147, 1556
of the exchange data worldwide 1014
Gmail 85, 92, 95, 98
Goodyear, Charles 22
Google 13, 55, 76, 79, 845, 878, 912, 956, 98100
see also Alphabet
Google Maps 92
Google Street View 98
GPS 12, 97
Great Britain see UK
Haas 128
Hartlib, Samuel 41
Hassink, R. 137
Haucap, J. 90
health care 49, 51, 568, 89, 101, 111, 128, 131, 135, 144
Healy, A. 137, 140
Henry VIII 40
Hertz, Heinrich 28
high power computing 4
Holkeri 84
Honda 55
Horizon 2020 125
Hpe Coxa 128
HTC 85
human capital 4, 14, 54, 6970, 73, 77, 101, 112, 117, 124, 127, 154
human–robot interaction 556
see also robotics
Humboldt, Wilhelm von 434
Hyatt, John Wesley 22
hyperconnectivity 2, 6, 5051, 58, 68, 727, 79, 1546
IBM 75, 88, 101, 134
ICTs 2, 17, 2631, 33, 51, 57, 123, 129, 1312, 1345
image recognition 55
IMF 2, 68
Immelt, Jeffrey 63
India 95
see also BRIC countries
Industrial Internet 12, 612
industrial policy as a comprehensive process 14953
industrial policy, definition of 4
industrial revolutions 46, 12, 1416, 47, 73, 104, 1078, 147, 153
1 first industrial revolution 1415, 1821, 256, 31, 334, 369, 42, 1535
2 second industrial revolution 5, 1415, 18, 216, 313, 367, 3940, 47, 63, 153, 155
3 third industrial revolution 5, 14, 2631, 33, 47, 50, 63, 153, 155
4 fourth industrial revolution see fourth industrial revolution
changes embedding 338
and education systems 3847
and manufacturing regimes 313
and technological systems 1719
and transitions in production systems 1534
Industrie 4.0 programme 70
information and communication technologies see ICTs
innovation 4, 12, 14, 1625, 28, 3031, 334, 41, 47, 51, 55, 67, 6970, 72, 75, 79, 814, 86, 89, 913, 1047, 109, 11120, 12332, 1356, 13941, 14650, 152, 154
Instagram 90
integrated computational materials engineering (ICME) 60, 67, 70, 127
Intel 29
intellectual property rights 4, 152
Internet of Things 6, 12, 31, 51
iOS 75, 84, 87, 90
iPhones 54, 84
see also smartphones
Italy 2, 13, 25, 29, 40, 52, 645, 71, 81, 101, 104, 10910, 12830, 143, 155
see also Emilia-Romagna region
Japan 29, 323, 52, 55, 645, 678, 155
Jenner, Edward 36
Jobs, Steve 75
Johnson, N.L. 84
Jullien, B. 89
kaizen 32
Kay, John 39
Kelly, K. 96
Keyhole 92
Kindle 74
Labory, Sandrine 5, 1045, 110, 147, 154
Labour Pact 11236
laissez-faire policies 38
Lamborghini 1279
Large Hadron Collider (LHC) 133
lean production system see flexible production
Lin, J. 151
LinkedIn 92
living conditions 17, 26, 34, 37, 113, 121
Louis Vuitton 129
Louis XVI 45
Lourça, F. 6
Luther, Martin 43
Lutheranism 43
Machado, Antonio 148
Machine-to-Machine devices 12
management practices 23, 25
manufacturing regimes 4, 6, 14, 3033, 47, 50, 77, 1489, 153
see also individual regimes
manufacturing revolution 5, 77, 105, 127, 136, 145, 149
see also fourth industrial revolution; industrial revolutions
Marchetti, Federico 81, 83
Marconi, Guglielmo 29
market economies 5
market power 93100
marketing 735, 79, 142
Marks, G. 140
Maserati 1278
mass customisation 14, 60, 623, 69, 745, 153
mass production 6, 14, 17, 24, 26, 323, 35, 63, 153
Maxwell, James Clark 28
Mayzlin, D. 94
McAdam, John 20
McKinsey 51
Metcalf, John 20
microcomputers 2930
Microsoft 92
Mikians, J. 99
Minecraft 92
Moazed, A. 84
Mojang 92
Mokyr, J. 19
Molins 30
Monsanto 89
Montulli, Lou 96
Moore, Gordon 28
Moore’s law 28
Morse, Samuel 40
Motor Vehicle University of Emilia-Romagna (MUNER) 1278
Motorola 85
Mowery, D. 21
multi-homing 90
Musson, A.E. 24
MySpace 90
nanotechnologies 45, 27, 4950, 578, 111
National Robotics Initiative 55
NBIC technologies 49
see also individual elements
NCD&BD 50, 756
see also individual elements
Nelson, R. 17
Net-a-Porter 823
Netflix 97
Netherlands 36, 42, 54
Netscape 96
network effects 8991
new materials 4, 27, 49, 58
Newcomen, Thomas 39
Newman, N. 95
news 100
newspapers 100
Newton, Isaac 34
Nokia 84, 90
Nutmeg 89
Obama, Barack 55
O’Brien, P. 234
Oculus VR 92
offshoring 63, 65, 69
oil 13, 26, 47
Open Handset Alliance (OHA) 85
Opium Wars 155
Pasteur, Louis 36
patents 19, 22, 24, 28, 39, 67, 70, 72, 10910
Patto per il Lavoro see Labour Pact
PayPal 86
Perkin, William 22
personal data 13, 59, 78, 80, 92, 946, 99100
see also privacy
Philip Morris 129
Philips 54
plastics 22, 278, 54
platforms 6, 50, 74, 76, 7981, 836, 978, 104, 155
see also individual platforms
definition and characteristics 8693
Poland 146
pollution 28, 59
population ageing 13, 55, 59
population growth 13
Porter model 73, 76
Portugal 40
poverty 59, 107, 120, 126
price discrimination 94, 99
privacy 6, 13, 59, 80, 86, 934, 98100
see also personal data
privacy paradox 945
product personalisation see mass customisation
Putnam, R. 109
quantum computing 50
R&D 1, 10, 21, 29, 52, 56, 63, 6570, 723, 75, 91, 96, 105, 109, 112, 118, 133, 141, 144, 146
Rapleaf 97
RCA 29
regional development agencies 111
renewable energy 27, 4950, 57
rent seeking 1512
Renzi, Matteo 112
Resende, J. 99
reshoring 1, 63
resilience 13645
concept of 1369
factors of 13942
Robina 55
Robinhood 89
Robinson, J. 34, 146
robotics 45, 49, 516, 60, 69, 97, 127
Rochet, J-C. 90
Rodriguès-Pose, A. 107
Rosenberg, N. 21
Russia 68, 38, 155
see also BRIC countries
Russian Revolution 155
Sabel, C. 109
Sachs, B.R. 94
Safari 99
Samsung 845
sanctions 26
Sawyer, William 24
schools see education and training
Schumpeter, Joseph 17
search rankings 80
Sematech project 29
semiconductors 29, 49, 57, 85
sensors 5
serfdom 33, 38
Shimuzu, K. 32
Siemens 29
Simon, H. 107
Siri 55
skills development 10, 3847, 712, 104
see also education and training
slave economy 378
smart factories 60, 67, 69, 767
smart manufacturing 5051, 6063, 6770, 74, 76, 127, 153
smart specialisation 117, 123, 125, 1478
smartphones 10, 12, 5051, 59, 837, 92
Smeaton, John 20
SMEs 10910, 112, 124, 126, 132, 142, 1456, 150
Smith, Adam 16, 20, 34, 76
Snapchat 90
social data 59
socialism 38
South Africa 147
South Korea 52, 67, 7072, 155
Spain 40
spam filtering 55
Spotify 97
Standard Oil 13
standards of living see living conditions
start-ups 72, 81, 87, 912, 112, 125, 135
steam engines 23, 33, 39
Stühmeier, T. 90
sundial 1059, 11112, 114, 136, 147
supercomputers 568, 130
Supple, B.E. 34
Switzerland 42
Symbian 845, 90
tablets 1112, 74, 100
Taiwan 54
Taobao 85, 87, 91
tariffs 22
technological transfer 112, 1289
telecommunications sector 2831
Telefunken 29
Telford, Thomas 20
Tennant, Charles 3940
Tirole, J. 90
Toyota 32, 55, 71
training see education and training
TripAdvisor 94
Tumblr 92
Twitch 92
Twitter 74, 90, 100
Uber 13, 7980, 868, 91
UK 9, 1920, 225, 30, 339, 43, 645, 712, 107
education and training 4043
unbundling 689
unemployment 23, 108, 120, 126
UNIPOL 133
United Nations 59
urbanisation 13, 367, 59, 117
US National Science Foundation 49
US Patent Office 24
USA 910, 224, 2830, 35, 3740, 42, 52, 545, 59, 61, 645, 67, 7072, 82, 84, 87, 89, 91, 95, 98, 147, 155
education and training 467
vaccination 36
value added 910, 645, 114, 120, 124, 133
value chains 767, 81, 88, 109, 135
global 1, 31, 6273, 127
value creation 679, 867
van Musschenbroek, Pieter 21
Vanguard Initiative 1467
Versailles Treaty 26
Volta, Alessandro 21, 24
Voltaire 45
voting 26, 42, 112
Walmart 867
Watt, James 39
Waze 92
welfare state 26
WhatsApp 90, 92, 98
Wheatstone, Charles 23
Whereto 92
Whitney, Eli 40
Whole Foods 889
Wikipedia 88
Williams, R. 41
winner takes all 868
Winter, S. 17
Wireless Telegraph Company 29
Womack, J.P. 32
Wood, C.A. 93
working conditions 26, 35, 117
World Bank 712
World War I 26
World War II 267, 29, 152
Yahoo 92
Yoox 73, 80, 88
YouTube 74, 95
Zipdash 92