Support of investments to projects which implement Industry 4.0

Projects which implement the technologies of Industry 4.0 are financially very demanding so the Czech Republic, with the support of EU funds, offers financial subsidies to companies investing in innovative solutions together with investments in science, research, education and social care; claim (McCall, Smith, Wunsch, 2016).

Support for Industry 4.0 implementation must be projected into the Innovation Platforms of Research and Innovation Strategy (RIS3) according to the actual calls announced for RIS3 subordinate operational programs due to the increased competitiveness and attractiveness of the national environment created for the investment incentives of a foreign partner. In cooperation with the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Education, Youth and Sports and the Technology Agency of the Czech Republic (TA CR) in the program

period up to 2020, new support tools into applied research and industrial realizations were created in connection with the Industry 4.0 concept, e.g. in the form of subsidy titles and credit financing or through risk capital or revolving financing. Investment support is devoted to innovative and technical solutions in line with Industry 4.0, to training systems for the training of workers with regard to new demands on skills and labour market conditions as well as to systems of social security and social policies.

3. Conclusion

The Industrial revolution brings a complex change which influences all parts of life of the Czech society. The key prerequisite for successful adaptation and implementation of the changes is the use of opportunities as a challenge including the elimination of potential risks with the emphasis of the preventive measures implemented in Industry 4.0 as a consensus of strategic direction and sustainable development of the Czech Republic's competitiveness at the governmental level under the auspices of the Prime Minister and Ministers of the relevant ministries, entities, educational and research organizations and non-governmental and non-profit organizations.

Strengths

Tradition of industrial production oriented mainly to the automotive industry, good technical background, professional skills and employee´s maturity are prerequisites for the comparative advantages of the implementation of the Industry 4.0 concept and its introduction into relevant branches of the market economy, communicate (Kulyk, Škodová Parmová, 2017).

The favourable level of innovation performance of the Czech economy among Central and Eastern European countries shows comparable results with Slovenia and Estonia, which confirms the good strategic starting position and comparative advantage in the system of innovative support for public and private investments, effective innovation partnerships with the academic community whose pillars are education system, science, research and development. Specialization on key basic technologies increases regional innovation performance mainly in fields of advanced materials, industrial biotechnology, photonics and advanced manufacturing technologies, state (Wilker, Meisel, Treytl, et al., 2018). It is expected that the innovation performance of EU will increase during next two years as most of

companies based in Romania, Malta or Ireland, plans to maintain or increase the share of innovative investment in 2019.

The openness of the Czech economy creates an advantage in the preparation and development of Industry 4.0 due to the confrontation with global “best practices”. Education, especially tertiary education, is seen as an added value by the Czech population therefore the interest in obtaining a university degree is constantly increasing with results similar to the achieved level of tertiary education as in developed countries. Choosing the appropriate specialization of professional orientation and improving the quality of tertiary education is a prerequisite for more flexible acquisition of diverse qualifications demanded by younger generations including lifelong learning. The quality level of education especially of technical and science subjects at technical universities in cooperation with foreign research institutes and organizations and partners from technological institutions and corporate bodies of professional practice create conditions for successful implementation of contractual basic to applicable research and experimental development of all stakeholders. The growth of employment in the sectors of the national economy of the Czech Republic has been included among the countries with progressive creation of new jobs in industrial production, technology sectors and services in the last five years. Regular increases in wages are another attraction for future talents and potential employees of the respective sectors of the national economy.

Weaknesses

The low awareness of the Industry 4.0 concept is often misinterpreted by the public with a shift to the term digitization or so-called internalization. The impacts of Industry 4.0 changes are manifested in a wide range and fall into almost all areas of human life.

The introduction of Industry 4.0 into the concepts of the White Paper, Action Plans and other development activities is annual analyses of the implementation of Industrie 4.0 in the Federal Republic of Germany, are estimated at EUR 250 million and are based on the national needs of the state concerned.

The interconnection of manpower in production and low qualified professions performing manually and physically demanding rather routine work endangers the members of the human population due to the automation and digitization of production processes and services demanded in relation to changes in the social status of individuals and

occupational groups as the current specialization of technical and non-technical fields does not cover the future needs of Industry 4.0 consisting of system thinking and an interdisciplinary approach. The tertiary education undergoes a phase of substantial change at the level of multidisciplinary and interdisciplinary interconnection, calling for the support, partnership and cooperation of all stakeholders in the field of technology, social sciences and humanities and other emerging disciplines responding to the labour market´s needs and requirements and development of employment. Funding of the applied research is not long-term, it is spoken mainly about small and short-term projects that are inadequate for Industry 4.0 as a suitably chosen communication strategy calling for speed and volume of data is a prerequisite for the development of Industry 4.0.

Insufficient investment opportunities for small and medium enterprises, limited investment support by the state and banking institutions, low applicability of specific funding instruments most often based on foreign experience e.g. revolving funding, combination of subsidies and loans or inefficient communication and informal support and integration between government authorities, corporate practice and technological institutions oriented on development and education systems, appeal on consensus and united formulation of the goals and tools applied in corporate practice often embedded in personal interpersonal relationships not in a uniform regulatory methodology.

The all-society unpreparedness to the Fourth Industrial Revolution of Society 4.0 is appealing to major changes in the field of industrial production responding to the open challenges of transforming the social status of work into all-community values in accordance with ethics and education to moral behaviour, sharing common principles, norms and values of virtues in communities of society.

Opportunities

The emergence of Industrie 4.0 in the Federal Republic of Germany is an indispensable innovative tool for supporting, strengthening the stability and leading position of Germany as an industrialized country on the European market due to an expensive workforce. In order to strengthen the competitiveness of the Czech Republic or a new form of industrialization by implementing the principles of Industry 4.0, so-called Smart Factory, it is possible to achieve higher production and efficiency of production compared to enterprises focused on cheap labour, express (Sjödin, Parida, Leksell, et al., 2018). Higher industrial

share in GDP creation needs to be transformed into a comparative advantage of a synergistic effect in favour of quality not quantity of all stakeholders and individuals, as the gained added value has a positive impact on other sectors of the national economy, e.g. energy, the environment, transport, health and social services, etc., has a positive impact on the increase of the economic efficiency, the performance of the workforce and the increased standard of living and the quality of the population. Increasing the attractiveness of the Czech Republic for new incoming foreign investors, stimulation of investments of foreign companies in the Czech Republic expanded by a new dimension of research and development character or by investment realization into industrial production ends the stage of so-called fitting shops and creates space for new design, architecture, software engineering and the attractiveness of the new generation according to the vision of Industry 4.0, emphasize (Lee, Chen, Lee, et al., 2017).

With the aimed support of small and medium enterprises to achieve effective growth of competitiveness, the state support to these entrepreneurial as well as non-entrepreneurial entities is necessary as they are pillars of the Czech economy and co-financed from EU funds, Operational Program Entrepreneurship and Innovation for Competitiveness (OP PIK) in the form of the selected operational program under the auspices of the Ministry of Industry and Trade of the Czech Republic.

Improving the quality of the education system opens up space for creativity and initiative of teachers who emphasize talent´s search and development, innovation, critical thinking and imagination. The partnership of educational institutions with business, non-governmental and non-profit entities creates a new space of the fourth generation supported by the development of modern information and communication technologies applied to the teaching process by introducing new disciplines and specializations, educational methods at all levels of education according to the needs of Industry 4.0. The creation of qualified employment opportunities in the professions in the industrial sphere and in other sectors of the national economy generates new employment opportunities in the service sector that are favourably influenced by the growth of the standard of living of the population and the quality of life of individuals in the social, health, leisure and environmental spheres.

Threats

The attractiveness of Industry 4.0 and its positive impacts are a risk of purposeful use of stakeholders. Political misunderstanding of Industry 4.0 and the diversity of policies of Industry 4.0 under the auspices of the Ministry of Industry and Trade of the Czech Republic should not be perceived and judged separately but as a tool of a government program addressed to all stakeholders regardless of political affiliation, engagement or power preference. The broadband coverage of the Czech Republic is a priority of broadband Internet with sufficient capacity without which it is not possible to continue the development of Industry 4.0.

The absence of compact standardization and cyber security has to be in line with world standards and systems that work in neighbouring countries. The development of renewable resources, decentralized energetics and Smart Grids represents a major change in the management and maintenance of a stable energy system. From the point of view of the industrial revolution of the fourth generation, it is essential that newly established decentralized centres have to be able to co-operate with existing systems and available resources, to promote their operational stability and to be used in the case of so-called blackout.

The inadequate structure of research, development and innovation cannot be achieved without a well-prepared and implemented restructuring in the area of applied research which is realized in newly established centres and institutes in which the research and development support of Industry 4.0 can be achieved.

The education and retraining system should be implemented in accordance with the aim of Industry 4.0 so as to avoid diversion from the value chain, skill-intensive investments allocated to other sources, the restriction of creation of new occupational opportunities or the possible loss of jobs in traditional, obsolete processes.

Rapid changes in the range and structure of the workforce and the demands on labour force´s skills can have negative effects on the labour market especially in demanding professions. It is necessary to prepare for the amended changes, to respond adequately to them considering an active employment and social policy.

Low support of social and ethical behaviour and perceptions in modern society leads to the emergence of social barriers, the widening of household incomes´ disparities with limited creation of new opportunities, social frustration and inclusion in society.

In order to sustain sustainable economic growth, cultural and creative industries are an opportunity and a challenge but also a threat in case that the Czech Republic and the EU do not recognize new trends, development changes in systems, do not map the sector and draw the consequences according to the data gathered so that it remains strategically competitive, state (Holátová, Březinová, Kantnerová, 2016).

It is necessary for Czech companies to accept new approaches and standards of the international market, to reduce dependence on German customers and to extend the strategy of economic growth to other economically advanced countries of the international market.

References:

1. Adam, C., Aringer Walch, C., Bengler, K. (2019). Digitalization in Manufacturing - Employees, Do You Want to Work There? Advances in Intelligent Systems and Computing. Issue 825, pp. 267-275.

2. Akopová, E. S., Przhedetskaya, N. V. (2019). The algorithm of managing the process of formation and development of industry 4.0 in the modern economic systems in the conditions of knowledge

economy‘s formation. Studies in Systems, Decision and Control. Issue 169, pp. 201-208.

3. Aksu, V., Jenderny, S., Martinetz, S., Röcker, C. (2019). Providing context-sensitive mobile assistance for people with disabilities in the workplace. Advance in Intelligent Systems and Computing. Issue 776, pp. 3-14.

4. Bauer, W., Moritz, H., Stefan, G., Strölin, T. (2014). Planning flexible human resource capacity in volatile markets. IFAC Proceedings Volumes. Issue 19, pp. 4459-4464.

5. Bendul, J. C., Blunck, H. (2019). The design space of production planning and control for industry 4.0. Computers in Industry. Issue 105, pp. 260-272.

6. Berdal, Q., Pacaux-Lemoine, M. P., Trentesaux, D., Chauvin, C.

(2019). Human-machine cooperation in self-organized production systems: A point of view. Studies in Computational Intelligence. Issue 803, pp. 123-132.

7. Burhan, N. A. S., Sidek, A. H., Kurniawan, Y., Mohamad, M. R. (2015).

Has globalization triggered collective impact of national intelligence on economic growth? Intelligence. Issue 48, pp. 152-161.

8. Caroleo, F. E., Demidova, O., Marelli, E., Signorelli, M. (2017). Young people and the labour market: A comparative perspective. Young People and the Labour Market: A Comparative Perspective. pp. 1-266.

9. Contreras, M., Bonilla, D., Peña Pérez Negrón, A. (2019). Proposal of

a model for the development of labour competencies based on serious games in the context of industry 4.0. Advances in Intelligent Systems and Computing. Issue 865, pp. 80-87.

10. Ĉejka, J., Ĉernohorský, J. (2016). Optimization of robotic workplaces.

Proceedings of the 2016 17th International Carpathian Control Conference, ICCC 2016. pp. 146-150.

11. Diez Olivan, A., Del Ser, J., Galar, D., Sierra, B. (2019). Data fusion and machine learning for industrial prognosis. Trends and perspectives towards Industry 4.0. Information Fusion. Issue 50, pp. 92-111.

12. Dolls, M., Doorley, K., Paulus, A., Siegloch, S., Sommer, E. (2017).

Fiscal sustainability and demographic change: a micro-approach for 27 EU countries. International Tax and Public Finance. Vol. 24, Issue 4, pp. 575-615.

13. Fan, I. S., Oswin, L. (2016). Factory automatization and information technology convergence in complex manufacturing. Advances in Transdisciplinary Engineering. Issue 3, pp. 331-336.

14. Flores Ituarte, I., Chekurov, S., Tuomi, J., Springer, P., Partanen, J.

(2018). Digital manufacturing applicability of a laser sintered component for automotive industry: a case study. Rapid Prototyping Journal. Vol. 24, Issue 7, pp. 1203-1211.

15. Ghobakhloo, M. (2018). The future of manufacturing industry: a strategic roadmap toward Industry 4.0. Journal of Manufacturing Technology Management. Vol. 29, Issue 6, pp. 910-936.

16. Hahm, S. (2018). Attitudes and performance of workers preparing for the fourth industrial revolution. KSII Transactions on Internet and Information Systems. Vol. 12, Issue 8, pp. 4038-4056.

17. Hoffmann, J. (2016). Reengineering of business processes with Industry 4.0 puts employees in focus. ZWF Zeitschrift fuer Wirtschaftlichen Fabrikbetrieb. Vol. 111, Issue 4, pp. 225-227.

18. Holátová, D., Březinová, M., Kantnerová, L. (2016). Strategic management of small and medium-sized enterprises. WSEAS

Transactions on Business and Economics. Vol. 12, Issue 7, pp. 65-73.

19. Charro, A., Schaefer, D. (2018). Cloud Manufacturing as a new type of Product-Service System. International Journal of Computer Integrated Manufacturing. Vol. 31, Issue 10, pp. 1018-1033.

20. Chun, K. W., Kim, H., Lee, K. (2019). A study on research trends of technologies for industry 4.0; 3D printing, artificial intelligence, big data, cloud computing, and internet of things. Lecture Notes in Electrical Engineering. Issue 518, pp. 397-403.

21. Inanc, H. (2018). Unemployment, Temporary Work, and Subjective Well-Being: The Gendered Effect of Spousal Labour Market Insecurity.

American Sociological Review. Vol. 83, Issue 3, pp. 536-566.

22. Karkalos, N. E., Markopoulos, A. P., Davim, J. P. (2019). General aspects of the application of computational methods in industry 4.0.

Springer Briefs in Applied Sciences and Technology. pp. 1-10.

23. Kazancoglu, Y., Ozkan Ozen, Y. D. (2018). Analysing Workforce 4.0 in the Fourth Industrial Revolution and proposing a road map from operations management perspective with fuzzy DEMATEL. Journal of Enterprise Information Management. Vol. 31, Issue 6, pp. 891-907.

24. Klopová, O., Komishová, L., Simonová, M. (2018). Professional development in the field of human resource management of heads and specialists of the innovative organizations. Problems and Perspectives in Management. Vol. 16, Issue 1, pp. 214-223.

25. Kolesnichenko, E. A., Radyukova, Y. Y., Pakhomov, N. N. (2019). The role and importance of knowledge economy as a platform for formation of industry 4.0. Studies in Systems, Decision and Control. Issue 169, pp. 73-82.

26. Krason, P., Maczewska, A., Polak Sopinska, A. (2019). Human Factor in Maintenance Management. Advances in Intelligent Systems and Computing. Issue 793, pp. 49-56.

27. Kulyk, V., Škodová Parmová, D. (2017). E-business development: The comparative study of the Czech Republic and the Ukraine. Deturope.

Vol. 9, Issue 1, pp. 80-110.

28. Lee, C. H., Chen, C. H., Lee, Y. C., Li, F., Zhao, X. (2017).

Accelerating retail-innovation design for smart services via foresight approach and case-based design. Advances in Transdisciplinary Engineering. Issue 5, pp. 813-820.

29. Leso, V., Fontana, L., Iavicoli, I. (2018). The occupational health and safety dimension of Industry 4.0. La Medicina del lavoro. Vol. 110, Issue 5, pp. 327-338.

30. Longo, F., Nicoletti, L., Padovano, A. (2019). Emergency preparedness in industrial plants: A forward-looking solution based on industry 4.0 enabling technologies. Computers in Industry. Issue 105, pp. 99-122.

31. Lotti, G., Villani, V., Battilani, N., Fantuzzi, C. (2018). Towards an integrated approach for supporting the workers in Industry 4.0.

Proceedings - 2018 IEEE Industrial Cyber-Physical Systems, ICPS 2018. pp. 609-614.

32. Lu, Y., Xu, X. (2019). Cloud-based manufacturing equipment and big data analytics to enable on-demand manufacturing services. Robotics and Computer-Integrated Manufacturing. Issue 57, pp. 92-102.

33. Mahmood, M. (2018). The Three Regularities in Development: Growth, Jobs and Macro Policy in Developing Countries. The Three

Regularities in Development: Growth, Jobs and Macro Policy in Developing Countries. pp. 1-316.

34. Martín Gómez, A., Aguayo González, F., Luque, A. (2019). A holonic framework for managing the sustainable supply chain in emerging economies with smart connected metabolism. Resources, Conservation and Recycling. pp. 219-232.

35. McCall, B., Smith, J., Wunsch, C. (2016). Government-Sponsored Vocational Education for Adults. Handbook of the Economics of Education. Issue 5, pp. 479-652.

36. Olaf, J. M., Hanser, E. (2019). Manufacturing in times of digital business and industry 4.0. The industrial internet of things not only changes the world of manufacturing. Lecture Notes in Mechanical Engineering. pp. 11-17.

37. Peßl, E., Ortner, W., Schweiger, J. (2014). Industry 4.0: Information technology fuses with production. Productivity Management. Vol. 19, Issue 1, pp. 59-62.

38. Pianta, M. (2018). Technology and Employment: Twelve Stylised Facts for the Digital Age. Indian Journal of Labour Economics. Vol. 61, Issue 2, pp. 189-225.

39. Rahman, M. N. A., Medjahed, B., Orady, E., Abdullah, R., Jaya, A. S.

M. (2018). A review of cloud manufacturing: Issues and opportunities.

Journal of Advanced Manufacturing Technology. Vol. 12, Issue 1, pp.

61-76.

40. Ruohomaa, H., Salminen, V. (2019). Regional Development in Modern Robotic Education on Industrial and Society Context. Advances in Intelligent Systems and Computing. Issue 793, pp. 159-168.

41. Sjödin, D. R., Parida, V., Leksell, M., Petrovic, A. (2018). Smart Factory Implementation and Process Innovation: A Preliminary Maturity Model for Leveraging Digitalization in Manufacturing Moving to smart factories presents specific challenges that can be addressed through a structured approach focused on people, processes, and technologies. Research Technology Management. Vol. 61, Issue 5, pp. 22-31.

42. Sparrow, P. R., Cooper, C. L., Jones, D. (2012). The employment relationship: Key challenges for HR. The Employment Relationship:

Key Challenges for HR. pp. 1-282.

43. Stadtfeld, H. J. (2015). Industry 4.0 and its implication to gear manufacturing. American Gear Manufacturers Association Fall Technical Meeting 2015, AGMA FTM 2015. pp. 78-101.

44. Tarassov, V. B. (2019). Enterprise total a gentrification as a way to industry 4.0: Forming artificial societies via goal-resource networks.

Advances in Intelligent Systems and Computing. Issue 874, pp. 26-40.

45. Taylor, S. J. E. (2019). Distributed simulation: state-of-the-art and potential for operational research. European Journal of Operational

Research. Vol. 273, Issue 1, pp. 1-19.

46. Tsourma, M., Zikos, S., Drosou, A., Tzovaras, D. (2018). Online task distribution simulation in smart factories. 2nd International Symposium on Small-Scale Intelligent Manufacturing Systems. SIMS 2018, pp. 1-6.

46. Tsourma, M., Zikos, S., Drosou, A., Tzovaras, D. (2018). Online task distribution simulation in smart factories. 2nd International Symposium on Small-Scale Intelligent Manufacturing Systems. SIMS 2018, pp. 1-6.