Connecting Industry 4.0, Servitisation and Sustainability: Territorial Implications for Global Value Chains

ABSTRACT Globalisation has deepened the integration of international production within global value chains (GVCs), where the various stages of the manufacturing process are dispersed across countries. In today's volatile business environment, characterised by rapid technological advances (Industry 4.0) and evolving consumer preferences towards use‐based models (servitisation), firms are compelled to adapt swiftly to maintain competitiveness and environmental performance. However, existing research has paid limited attention to how the combined dynamics of Industry 4.0 and servitisation reshapes GVCs in spatial terms and influence proximity constraints and sustainability outcomes. This paper addresses this research gap by examining how digital and servitised production models affect the reconfiguration of GVCs and contribute to the transition towards more circular and sustainable production systems. The study follows a mixed theoretical‐empirical approach, combining an extensive literature review with 23 semistructured interviews conducted with executives and experts from industrial firms, technology centres and cluster organisations in the Autonomous Community of the Basque Country (Spain). Findings indicate that the technological adaptation challenges of Industry 4.0 and the growing cognitive complexity of servitised solutions reinforce spatial concentration dynamics, leading to reshoring and regionalisation processes in high‐tech environments. These dynamics may contribute to reducing the ecological footprint, enhancing resource efficiency and facilitating circular economy practices. The paper provides new insights into the territorial implications of the joint deployment of Industry 4.0 and servitisation, contributing to a more comprehensive understanding of the emerging geography of sustainable global production.