ABSTRACT
This chapter considers some of the challenges and policy options at the European Union level for countries and regions to successfully transition to Industry 4.0 (I4.0). In doing so, it also examines how Slovenia – a middle income country – might be able to exploit the opportunities of I4.0, while mitigating the downside risks. Slovenia is an interesting case since it has designed and implemented more comprehensive smart specialisation strategies referred to as S4. The transition to I4.0 is an irreversible process that countries and regions around the world eventually need to accommodate. The I4.0 transition challenge is reflected in the pace of transformation and particularly the extent to which firms adopt new techniques and can become more productive over time. The difference between ’transition’ and ’transformation’ is the latter is a necessary step in order to achieve the former. For example, a company or a region needs to transform itself in order to make the transition to I4.0.
