Exploring regional vulnerability to the Fourth Industrial Revolution: a European perspective

As the Fourth Industrial Revolution (4IR) continues to reshape economies, understanding regional vulnerabilities is crucial to ensuring equitable development. This study investigates regional vulnerability to the 4IR across 236 European regions, emphasising the interplay between exposure and adaptability in shaping the impacts of new technologies’ integration, specifically in the labour market. Using a comprehensive framework, we classify EU regions into four categories based on their levels of exposure and adaptability, revealing distinct patterns of vulnerability and opportunity. Regions with high exposure and adaptability, predominantly in Northern and Western Europe, are positioned to leverage the 4IR for economic growth and innovation. Conversely, areas with high exposure but low adaptability, particularly in Eastern and Southern Europe, face heightened risks of job displacement and economic instability. Regions with low exposure and high adaptability present untapped potential, while those with low exposure and low adaptability risk falling behind in the 4IR-driven transition. Our findings built on the notion of vulnerability, through the lens of exposure and adaptive capacity, highlight significant disparities rooted in sectoral structures, workforce composition and innovation capacity, underscoring the need for tailored, region-specific policies not only for adapting to new technological landscapes, but also for leveraging new opportunities for regional development.