Firm adoption of Industry 4.0 technologies in times of economic turmoil: the role of enabling factors

In this study, we examine the complementary role of enabling technologies and techno- logical skills in the adoption of Industry 4.0 (I4.0) technologies in firm production, and how this complementarity evolves following a significant economic shock. Our analysis leverages original data from a two-wave survey conducted on a representative sample of Italian firms, both before and after the outbreak of the Covid-19 pandemic. Our findings reveal that prior investments in antecedent technologies and closely related skills—defined here as enabling factors for new technology adoption—enhance each other, significantly increasing the likelihood that firms will adopt transformative technologies such as indus- trial robots, IoT, big data analytics, additive manufacturing, etc. Notably, this comple- mentarity intensified after the pandemic, suggesting that economic shocks can drive firms to pursue crisis-induced innovation strategies that strengthen their existing technological capabilities.