Innovation Performance And Adaptation Of Industry 4.0: Evidence Of European SME’s

Purpose:The aim of this study is to examine the relationship between Industry 4.0 and innovation performance. Method: The relationship between Industry 4.0 and innovation performance was examined using the observations of 16365 companies in the Eurobarometer-SMEs, Start-ups, Scale-ups, and Entrepreneurship database carried out in 2020. In addition to descriptive statistics, the Probit method was used in the study due to the categorical variables of the dependent variables. Results: The relationship between Industry 4.0 and innovation performance is positive for all innovation types. Originality: The number of studies examining the relationship between innovation performance and circular economy in the current literature is limited. Existing studies were conducted at a single country level due to data constraints. Differently, a current dataset including both EU countries and candidate countries was used in this study. In addition to the frequently used types of innovation, environmental innovation and social innovations are also included in the study.