Foresight As a Governance Tool to Help Shape the Next Production Revolution

in: Nováky, E.; Gubik, A. (eds) (2018): A múltból átívelő jövő, VIII. Magyar (Jubileumi) Jövőkutatási Konferencia, 50 éves a magyar jövőkutatás, Győr: Palatia Nyomda és Kiadó Kft, pp. 207–216

12 Pages Posted: 23 Jan 2019 Last revised: 30 Jan 2019

See all articles by Attila Havas

Attila Havas

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS)

Matthias Weber

Austrian Institute of Technology - Foresight & Policy Development Department

Date Written: November 15, 2018

Abstract

The next production revolution (NPR; also called Industry 4.0 elsewhere) is likely to trigger complex changes via the interactions of new technologies, materials, processes, and business models. These changes would affect R&D and innovation activities; the labour market; income distribution and well-being; skill requirements; as well as several fields of regulation. Furthermore, digitalisation can be a major enabler of the circular economy. The policy implications of the NPR are so wide-ranging that it is difficult to mention a major policy domain, which would remain untouched by these sweeping changes.

The need for policy orchestration is, therefore, rather strong. Foresight, a specific type of forward-looking activities (FLA), can assist policy-makers in dealing with these complex changes. First, it facilitates a systemic approach, considers multiple futures and draws on the diverse set of knowledge of participants. Second, a shared vision, developed – and thus ‘owned’ – by the participants, can reduce the uncertainties generated by NPR, and it helps building commitment among participants as an additional factor to keep up the momentum of orchestrated policy design and implementation. Third, a transformative foresight process, considering and assisting systemic changes triggered by NPR, can contribute to reshaping the prevailing power structures and invigorating policy rationales, decision-making processes, and thus improving the efficacy of policies.

FLA projects dealing with NPR issues vary in their thematic coverage (S&T issues vs innovation and production systems) and their breadth of participation (expert-based vs participatory). Combining these distinctions, four different archetypes of FLA are identified – and illustrated by actual cases – in the paper.

The expected impacts on policy-making vary by the type of prospective analyses. Participatory processes mobilise a wider set of knowledge, aspirations, and worldviews compared to an expert-based project. Hence, more novel ideas can be expected, contested from various angles, hence tested more thoroughly, given the diversity of participants. A deeper understanding of major long-term challenges is more likely to stem from participatory processes. Policies, thus, would be better substantiated and their credibility and legitimation strengthened.

FLA projects focusing on innovation and manufacturing systems consider a broader set of issues than S&T-centred projects. Given the complex issues brought about by the NPR, such a systemic approach seems to be more appropriate as a foundation for devising effective policies. In certain contexts, S&T-centred FLA can also be useful, but different and only more limited benefits and impacts can arise from this approach.

Foresight benefits are far from being automatic: the paper considers eight critical factors to achieve those. An astute embedding of foresight into policy-making enhances the likelihood of impact, but foresight recommendations are no substitute for policy decisions and actions.

Keywords: The next production revolution, Typology of FLA, Expected impacts of FLA, Foresight benefits

JEL Classification: O30, O38, O33, O25

Suggested Citation

Havas, Attila and Weber, Matthias, Foresight As a Governance Tool to Help Shape the Next Production Revolution (November 15, 2018). in: Nováky, E.; Gubik, A. (eds) (2018): A múltból átívelő jövő, VIII. Magyar (Jubileumi) Jövőkutatási Konferencia, 50 éves a magyar jövőkutatás, Győr: Palatia Nyomda és Kiadó Kft, pp. 207–216, Available at SSRN: https://ssrn.com/abstract=3295746 or http://dx.doi.org/10.2139/ssrn.3295746

Attila Havas (Contact Author)

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS) ( email )

Toth Kalman u. 4.
Budapest, H-1097
Hungary
+36-30-8164266 (Phone)

HOME PAGE: http://www.mtakti.hu/en/kutatok/attila-havas/8185/

Matthias Weber

Austrian Institute of Technology - Foresight & Policy Development Department ( email )

Donau-City-Strasse 1
Vienna, 1220
Austria

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