Knowledge sources for Industry 4.0 technologies in European regions: the role of inward FDIs

Bello, M., Castellani, D., Damioli, G., Marin, G. and Montresor, S. (2025) Knowledge sources for Industry 4.0 technologies in European regions: the role of inward FDIs. Industry and Innovation. ISSN 1366-2716 doi: 10.1080/13662716.2025.2542901

Abstract/Summary

This study investigates the extent to which inward innovative FDIs can contribute to European regions’ potential to access external knowledge useful for the development of Industry 4.0 (I4.0) technologies. By contributing to recent research on regional I4.0, we maintain that incoming multinational companies enable regions to access knowledge generated abroad that is usable for local I4.0 inventions. Using citation data about I4.0 patent applications and innovative FDIs, we estimate a gravity model that supports this idea. The knowledge base of I4.0 technologies developed in European NUTS 3 regions positively correlates with innovative inward FDIs. The correlation is driven by both greenfield FDIs and cross-border M&As, with FDIs originating outside Europe providing the greatest contribution to knowledge transfer. The findings are consistent with the relative weakness of Europe in the development of I4.0 technologies and suggest that placed-based FDI policies could help European regions to overcome this gap.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/124213
Identification Number/DOI	10.1080/13662716.2025.2542901
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Routledge
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