How 'smart machines' transform the Austrian economy

FWF-Project P 30434-G27 (2017-2020)

Funding: EUR 402.098,55

Project start: July 1, 2017

Project website: smart.uni-graz.at

Project topic: Technological progress in robotics and artificial intelligence set the stage for a new wave of digitalization and full automatization. The key enabling technology are ‘smart machines’ such as cyber-physical systems (CPS) that allow autonomous interaction between the physical and the digital world and facilitate fully automated production processes. There are clear signs that CPS may become the next general purpose technology (GPT): a technological breakthrough that can be used for a wide range of applications and thus be employed in virtually all sectors of the economy, eventually causing profound structural change and spurring productivity growth. Given the potential of smart machines and their integration into CPS, advances in these technologies very likely also imply substantial effects on the level and structure of employment, as new skills are required and some occupations may become obsolete. Moreover, the transition to the new industrial era depends on the capacity of an economy to adapt to and to diffuse new technologies and therefore on its system of technology diffusion (STD). The latter plays a crucial role for small open economies, such as Austria, that acquire technological innovations to a great extent from abroad. Yet, its relevance has hardly been addressed in the scientific community. Last but not least the role of the institutional and policy framework is of great importance, since the degree of policy intervention and the type of policy measures can be expected to have profound effects on the capacity to develop and absorb new technologies.

This project aims at studying the economic potential and challenges related to the diffusion of smart machines for Austria. By means of a combination of methodological and empirical studies, it scrutinizes Austria’s readiness for the digital transformation. The project topic is highly relevant with regard to the transformation potential of digitalization and full automatization and the related challenges, risks and chances for economic development in Austria.

For detailled information on the project topic and activities related to this research project please visit the project website: smart.uni-graz.at