Industry 4.0 and the Solution to the Austrian Knowledge and Calculation Problem: A Grounded Case Analysis

The dissertation consists of five chapters examining the current state of the Austrian knowledge and calculation problems which have long been characterized as indestructible barriers to a functional, state-controlled central planning body. Modern technological advancements in computing and communications have introduced to the market the means with which to have near perfect knowledge of all information at every stage in the supply and demand processes. Related literature does little more than theorize on industry 4.0’s impact while this research seeks to discover the extent to which industry 4.0 has overcome the Austrian knowledge and calculation problem by analyzing specific ground-level applications currently in use through a synthesis of empirical observations and an analysis of up-to-date technological publications. Information will be gathered through store manager and subject matter expert observations and interviews combined with the critical study of leading researchers and developers in the field. Comparative analysis gleaned through the study of five sub-cases is utilized to determine the point at which impossibility occurs through a neo-Popperian falsification model thereby rendering all lesser options feasible. The data will input into a model design aimed at validating the theory through a series of tests seeking to prove confirmation through both empirical discovery and falsifiability. The results of this research will show the extent to which modern technology has overcome the Austrian knowledge and calculation problems as seen through the views, opinions, and experiences of participants working within it. The significance of this study is realized in both the economic and policy realms as well as establishing a template for further research. When analyzed for efficiency within the means of production, the data suggests there is evidenced-based support for potential market reforms toward centrally planned models.