The effect of industry 4.0 on competitiveness: Analysis of Turkey's economy

Humanity stands at the brink of a new revolution known as Fourth Industrial Revolution. This revolution connects the physical and virtual worlds to realize the digital transformation of production. With the fourth revolution, the competitive environment is getting harder and more ruthless than before. Industry 4.0 adds a new dimension to competition, but it also affects the factors that determine the competitive power. Therefore, it is very important to understand the impact this transformation will have on countries' competitiveness. Industry 4.0 will provide new ways of doing business, but will offer new ways to create and produce new products and services. All this is important to adapt to changing economic conditions, to cope with changing market demands and to create industries that can compete with rapidly growing international competitors. In the coming years production will switch to production with smart and flexible production systems. The products, machines and production facilities will be connected in a highly detailed manner across the value chain. In this study, the effect of Industry 4.0 on competitiveness is being investigated. In this context, first information was given about Industry 4.0 and its applications in the world were mentioned. Then, the competitiveness relations of Industry 4.0 were put forward by mentioning competitiveness theories. Finally, described Turkey's competitiveness in this process and policy recommendations.