The role of regional policy for Industry 4.0 adoption: A study of Finnish South Karelia

Abstract

This paper explores the critical role of regional policy in facilitating the adoption of advanced technologies, focusing on Industry 4.0 in the South Karelia region of Finland. Drawing on diverse perspectives from managers and regional development experts, the study examines key drivers and barriers to adoption and how the regional context shapes them. The findings highlight that successful adoption requires an approach tailored to regionspecific conditions and supported by a strategic mix of four governance roles: advocacy, ecosystem and network development, targeted funding, and skills and human capital development. These roles influence firmlevel transformation not directly, but by enabling organisational drivers and mitigating barriers, underscoring the importance of context-sensitive, adaptive regional governance in advancing digitalisation.