The importance of digitalization and robotization in vehicle production in the European Union

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Vehicle manufacturing is an industry in which the technologies used by Industry 4.0 and their evolution can best be traced. Digitalization-robotization is paramount to the technical methods used in the Fourth Industrial Revolution. The question is how close a correlation between productivity and digitalization robotics in vehicle production is in the Member States of the European Union. I perform the relationship between the two variables by correlation calculation. Then I classify the member states according to the closeness of the relationship between the two variables using the method of hierarchical cluster analysis. Empirical results show a robust relationship, with the highest per capita production value in those Member States with the highest degree of digitalization-robotization in vehicle production. In conclusion, the countries in Central and Eastern Europe and the end of the productivity rankings need to increase the degree of digitalization of their vehicle production to increase their productivity and competitiveness.

Industry 4.0, European Union, vehicle manufacturing, digitalization-robotization, correlation, cluster analysis