Technology diffusion of Industry 4.0: an agent-based approach

Governmental interventions, such as public policies and programs, play a vital role in innovation diffusion, particularly if the application area is heterogeneous, like the German federal high-tech approach of Industry 4.0. Interventions can thus inhibit market failure and negative externalities or disseminate the technology and promote positive externalities. To analyse the impact of governmental intervention, considering the particularities of the Industry 4.0 approach, an agent-based model (ABM) is proposed, particularly to test the sensitivity of Industry 4.0 innovation diffusion speed and degree due to interventions such as promotion, educational support, technology networks (hubs), technology standardisation, and financial aid among manufacturing small and medium size enterprises (SMEs) in Germany. This paper describes a conceptual model structured along the overview, design concept, and details framework. Grounding and calibration of input parameters and agent behaviour are based on firm characteristics and adoption determinants (technology-organisation-environment model) from survey data and Industry 4.0 case studies.