ABSTRACT
Based on automation, digitalization, and robotization, the fourth industrial revolution (Industry 4.0) will bring disruptive changes and will have a great impact on the economy and society. New models of industrial production depend on increasing networking and deepening vertical and horizontal integration. Moreover, Industry 4.0 is expected to be the trigger for the next wave of innovation. Thus, this chapter aims to examine how innovation ecosystems contribute to the development of radical innovations that support enterprises obtain competitive advantages in this new era. We consider five different aspects of such innovations: functions, materials, technology component, appearance, and newness to the firm. The results indicate that the enterprises’ network capabilities are positively related to all five aspects of their innovation outcome. Other firm-level characteristics such as size, export status, foreign technology use, and adoption of Information and Communication Technologies also help firms to tap into advanced technologies and catalyze future technological developments.
