Territorial coupling in Industry 4.0: assessing the impact of geographical proximity to automotive industry on the digital entrepreneurs in Poland.

Abstract

There is a vibrant debate within the fields of economic geography and regional studies regarding the mechanisms of industrial upgrading and the creation of new developmental paths. This debate has recently been enriched by discussions on the transformative role of Industry 4.0 (I4.0). A substantial portion of the research dedicated to I4.0 focuses on its demand side, examining the readiness and adoption of I4.0 technologies in manufacturing firms. However, the role of firms that provide services and products aligned with I4.0, referred to here as 'digital entrepreneurs', has not been as extensively explored. Given that the automotive industry is at the forefront of adopting novel digital technologies, this article examines, using Poland as a case study, the extent to which geographic proximity to automotive clients is indispensable for the emergence and development of digital entrepreneurs. To achieve this objective, we employ a comprehensive set of methodologies, ranging from geostatistical analyses, questionnaire surveys, and in depth interviews, to network analyses of managerial flows. Our findings reveal that the strength of territorial coupling varies across different types of digital entrepreneurs, contingent on the specific nature of the solutions they provide. Empirically, our study corroborates the existence of a locational dichotomy be tween IT related and production related Industry 4.0 technologies. Referring to the literature discussing various types of locations for high tech services and digital entrepreneurs, our research predominantly supports the incubation hypothesis, which posi ts that such enterprises are more likely to be found in large metropolitan centres. Conversely, the restructuring hypothesis appears to be applicable only to a very limited number of industrial, medium sized towns with a strong industrial base.