Innovation and technology-based growth in the framework of industry 4.0

The industrial revolutions that have emerged following great technological discoveries and developments throughout history, have been the commencing point of great transformations both in social and economic grounds. Rapid improvements in information and communication technologies, particularly, after the 1980s when the globalization phenomenon gained momentum, have brought the world to the brink of a new industrial revolution. Unlike previous industrial revolutions, the innovative technologies that have come into our lives along with the new industrial revolution which we witness it in an era when objects have become smart and which is indicated as "Industry 4.0" in the literature, radically transform not only the production relations and economic activities, but also our lifestyles, our consumption habits, and our tastes and preferences. Industry 4.0, which denotes an extensive transformation throughout the value chain, emerges as a paradigm that can potentially transpose global power balances and result in revision of norms of economics and economic growth in particular. This thesis studies the potential impact of Industry 4.0's innovative technologies on the economic growth of the pioneer countries and Turkey. Since Industry 4.0 is a new field of study and due to the lack of sufficient data and publications, qualitative analysis method has been adopted in this study. Using an extensive literature review and most up-to-date data and statistics, this study analyzes major economic impacts of Industry 4.0, particularly on growth. Although the impact of Industry 4.0 on employment is debatable, findings in the study show that due to the productivity rise, high quality and cost effectiveness provided by the pioneer innovative technologies, it will be the driving force for the economic growth of both developed and emerging economies throughout the world.