The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union

The adoption of Industry 4.0 technologies supports the digital transformation of production processes, making them more efficient. This study examines how digital infrastructure, digital skills, and the use of cloud technologies influence labor productivity in European Union countries. Using econome...

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Main Authors: Ofelia Ema Aleca, Florin Mihai
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/13/2/113
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author Ofelia Ema Aleca
Florin Mihai
author_facet Ofelia Ema Aleca
Florin Mihai
author_sort Ofelia Ema Aleca
collection DOAJ
description The adoption of Industry 4.0 technologies supports the digital transformation of production processes, making them more efficient. This study examines how digital infrastructure, digital skills, and the use of cloud technologies influence labor productivity in European Union countries. Using econometric methods, including linear regressions and fixed-effects panel regressions, the analysis highlights the important role digital skills play in boosting productivity. It also identifies the adoption of cloud solutions as a catalyst for process efficiency, while widespread high-speed internet coverage supports the connectivity of smart systems. However, variations in the development of digital infrastructure and workforce readiness across EU member states present challenges to overall labor productivity. The study concludes that strategic investments in automation and digital infrastructure, along with improving the workforce’s digital skills, are essential to making Industry 4.0 a key pillar of economic competitiveness. By examining how workforce digital skills and certain Industry 4.0 technologies affect labor productivity, this research adds valuable insights to the specialized literature.
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spelling doaj-art-822e10ce77e543b19a6449b037a714b42025-08-20T03:12:01ZengMDPI AGSystems2079-89542025-02-0113211310.3390/systems13020113The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European UnionOfelia Ema Aleca0Florin Mihai1Management Information Systems Department, Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies, 010552 Bucharest, RomaniaManagement Information Systems Department, Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies, 010552 Bucharest, RomaniaThe adoption of Industry 4.0 technologies supports the digital transformation of production processes, making them more efficient. This study examines how digital infrastructure, digital skills, and the use of cloud technologies influence labor productivity in European Union countries. Using econometric methods, including linear regressions and fixed-effects panel regressions, the analysis highlights the important role digital skills play in boosting productivity. It also identifies the adoption of cloud solutions as a catalyst for process efficiency, while widespread high-speed internet coverage supports the connectivity of smart systems. However, variations in the development of digital infrastructure and workforce readiness across EU member states present challenges to overall labor productivity. The study concludes that strategic investments in automation and digital infrastructure, along with improving the workforce’s digital skills, are essential to making Industry 4.0 a key pillar of economic competitiveness. By examining how workforce digital skills and certain Industry 4.0 technologies affect labor productivity, this research adds valuable insights to the specialized literature.https://www.mdpi.com/2079-8954/13/2/113Industry 4.0labor productivitydigital infrastructuredigital skillscloud technology adoptioninternet coverage
spellingShingle Ofelia Ema Aleca
Florin Mihai
The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
Systems
Industry 4.0
labor productivity
digital infrastructure
digital skills
cloud technology adoption
internet coverage
title The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
title_full The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
title_fullStr The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
title_full_unstemmed The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
title_short The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
title_sort role of digital infrastructure and skills in enhancing labor productivity insights from industry 4 0 in the european union
topic Industry 4.0
labor productivity
digital infrastructure
digital skills
cloud technology adoption
internet coverage
url https://www.mdpi.com/2079-8954/13/2/113
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