=Paper=
{{Paper
|id=Vol-3158/paper3
|storemode=property
|title=Awareness and Development of Industry 4.0: Case of Latvia
|pdfUrl=https://ceur-ws.org/Vol-3158/paper3.pdf
|volume=Vol-3158
|authors=Sintija Petrovica,Maija Strautmane,Alla Anohina-Naumeca
|dblpUrl=https://dblp.org/rec/conf/balt/PetrovicaSA22
}}
==Awareness and Development of Industry 4.0: Case of Latvia==
https://ceur-ws.org/Vol-3158/paper3.pdf
Awareness and Development of Industry 4.0: Case of Latvia
Sintija Petrovica 1, Maija Strautmane 1 and Alla Anohina-Naumeca 1
1
Riga Technical University, Zundas krastmala 10, Riga, LV-1048, Latvia
Abstract
Industry 4.0 technologies are rapidly penetrating manufacturing and social spheres, causing
irreversible changes in the procedural and organizational structures of individual organizations
and society. To cope successfully with current and future changes, countries must create the
necessary preconditions, which include political will expressed in legislative initiatives and
strategic plans, public awareness of new technologies, modernization of the educational
process and active research activities directed towards the creation of innovative solutions
based on Industry 4.0 technologies. This paper presents the results of desk research made to
understand the current situation of awareness and development of Industry 4.0 in Latvia. It
covers aspects related to statistics and economic indicators of digitalization level, national
strategic planning and policy documents, educational events and projects relevant in the
context of Industry 4.0. Moreover, the paper summarizes knowledge and skills that should be
purposefully developed to support the successful introduction of Industry 4.0 into the
economics and the industrial competitiveness of the country.
Keywords 1
Industry 4.0, Digitalization, Digital Skills, Advanced Technologies
1. Introduction
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Industry 4.0, also referred to as the fourth industrial revolution, is a new but fast-penetrating term in
political, industrial, and educational discourse. It is associated with the introduction of automation and
intelligent technologies into manufacturing and social processes and changing of usual business models
or ways of performing certain tasks. The nine pillars of Industry 4.0 include big data, autonomous
robots, simulation, horizontal and vertical system integration, Internet of Things (IoT), cloud
computing, additive manufacturing, augmented reality, and cyber security [1]. Authors of [2] have
gathered evidence that Industry 4.0 also known as smart manufacturing can be a source of increase of
productivity, reduced maintenance costs, shortened downtime by identifying early non-conformities,
faster manufacturing value-added growth, energy saving, reduced amount of waste, it can create more
jobs than it would replace, and other positive tendencies. Industry 4.0 aims to increase the
competitiveness of industries, companies, and even countries through increased efficiency, real-time
optimization, improved service, and faster responsiveness to customer needs.
According to [2], the main industries engaged in Industry 4.0 in Latvia are telecommunications,
electronics, logistics, smart mobility, and biotechnology and some of the key networks involved in the
Industry 4.0 innovation ecosystem are IT Cluster, Latvian Information and Communication Technology
Association (LIKTA), European Digital Innovation Hubs (EDIH), and Annual 5G Techritory –
Europe's Leading 5G Ecosystem Forum. Companies from the IT, electronics and telecommunications
sectors actively engage in digitalization, automation, robotization, and data-driven analysis of business
processes. They offer a range of services and solutions in data analytics and visualization, intelligent
Baltic DB&IS 2022 Doctoral Consortium and Forum, July 03-06, 2022, Riga, Latvia
EMAIL: sintija.petrovica@rtu.lv (S. Petrovica); maija.strautmane@rtu.lv (M. Strautmane); alla.anohina-naumeca@rtu.lv (A. Anohina-Naumeca)
ORCID: 0000-0002-7670-638X (S. Petrovica); 0000-0003-0685-6240 (M. Strautmane); 0000-0001-7993-5842 (A. Anohina-Naumeca)
©️ 2022 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
automation, cybersecurity, IoT, cloud computing, artificial intelligence and augmented reality for
enterprises of different sizes and industrial fields. The most powerful player definitely is LMT, a mobile
telecommunications operator and market leader in Latvia [3]. The enterprise participates actively in
projects directed towards developing and introducing technologies of Industry 4.0 and collaborates with
government, industrial and academic institutions. It is also involved in explanatory activities regarding
Industry 4.0, its influence, and requirements. Enterprises in the metalworking industry are greatly
supported by the Association of Mechanical Engineering and Metalworking Industries of Latvia which
organizes educational and experience exchange events actively participates in projects related to
Industry 4.0 and has also developed training materials in the Latvian language for the implementation
of Industry 4.0 in the metalworking industry.
The changes associated with the implementation of Industry 4.0 require changes in the educational
context: new students must acquire knowledge and skills necessary for successful professional activity
in the new realities, while those who already have got their degrees must have the opportunity for
reskilling. This is reflected in the introduction of a new concept "Education 4.0" that emphasizes the
need for digital transformation in the educational field in order to provide students with the necessary
technical skills.
The goal of the research presented in this paper was to identify the current state of awareness and
development of Industry 4.0 in Latvia and to find out what skills and knowledge are demanded to meet
the challenges. The following aspects were addressed:
national support for the concept in terms of policy and strategic planning documents;
raising the general level of awareness of the concept through educational campaigns and events;
scientific advancements in the country through the creation of solutions in the field of Industry 4.0;
integration of the concept into the study process of higher education institutions.
The research applied a desk research method by analyzing online information sources published
between 2017 and 2022 in a systematic way. The following information sources were identified as
being of interest for the current research:
websites of companies, higher education institutions, government institutions, and projects;
Latvian strategic planning documents and legal framework;
articles in the media;
project reports;
books;
scientific publications.
The search of information sources was performed both on Google and in scientific databases such
as IEEE Xplore, Science Direct, SCOPUS, and Web of Science. The paper's authors used the
combination of the terms “Industry 4.0” and “Latvia” as the main keywords for searching information
sources. However, terms combinations that cover the main pillars of Industry 4.0 (IoT and Latvia, cloud
computing and Latvia, robotics and Latvia, big data and Latvia, augmented reality and Latvia, cyber
security and Latvia, additive/advanced manufacturing and Latvia) were also used to extend search
results.
The structure of the paper is as follows. Section 2 describes Latvian statistics and economic
indicators related to the level of digitalization and digital skills. Section 3 presents national strategic
planning and policy documents relevant to the promotion of Industry 4.0. Section 4 provides an insight
into raising the level of awareness about Industry 4.0 through educational events. Section 5 summarizes
international and local scientific and educational projects that are related to Industry 4.0 and involve
representatives of Latvia. Section 6 discusses the integration of the concept Industry 4.0 into higher
education. Section 7 addresses the skills and knowledge demanded by the field. Finally, conclusions
are given at the end of the paper.
2. Indicators on digitalization and digital skills
In general, Latvia has the advanced coverage of high-speed internet and, as a result, almost all
enterprises and most householders have access to the Internet [4]. At the same time, Latvia ranked 20th
among the 27 EU countries (below the EU average) in terms of digital skills at all levels, from basic
skills to advanced levels, in 2021 [5]. Although an increasing number of Latvians engage in online
activities, Latvia’s level of digital skills is one of the lowest in the EU [6]. Only 43% of the population
aged from 16 to 74 have at least basic digital skills, versus the EU average of 56% [5]. According to
[6], the lack of digital skills is identified as a factor hindering the introduction of innovations. Improving
the digital skills of the population is a precondition for creating and ensuring an environment conducive
to digitalization, improving business productivity, and promoting Latvia's progress and investment in
new digital technologies [7]. Also, regions have an unused potential for broadband optical internet
access, providing a reliable and fast digital infrastructure for enterprises and remote working
possibilities for employees [8].
In terms of the integration of digital technologies in companies, Latvia ranks 23rd among EU
countries, which is still rather below the EU average level. The share of SMEs with at least a basic level
of digital technologies is 42%, while the EU average is 60% [5]. The proportion of companies that
acquire cloud services is 18%, only 9% use big data and 19% use social media to popularize their
activities [5]. Latvian enterprises have to adapt to the reality of Industry 4.0 and should be able to
integrate these new technologies [9]. Currently, greater efforts are needed to promote the use of digital
technologies in small businesses. At present, Latvia is focusing on improving digital skills, but there is
a lack of a policy to expand the use of digital technologies in small companies, as well as a strategy for
the digitalization of the private sector [10].
Significant factors limiting the international competitiveness of Latvian companies are
administrative burdens (e.g., labor taxes), general business costs (e.g., electricity costs, real estate taxes,
etc.), and incompleteness of laws and regulations that govern the employment relationship [11].
3. National strategic plans, policy documents, and support programs
One of the priorities of the Ministry of Economics of the Republic of Latvia is to improve the
business environment. The vision of the Ministry is to create an excellent business environment and
move towards an innovative economic model [12]. Therefore, for further work on the improvement of
the business environment, five priority directions of action have been defined and digitalization of
public services and industry (Industry 4.0) is one of them [12]. Digital transformation as a fundamental
principle of Latvia’s economic development is included in a number of state government planning
documents for the next policy development period 2021-2027 [13], for example, the National
Development Plan of Latvia 2021-2027, National Industrial Policy Guidelines 2021-2027, Digital
Transformation Guidelines for 2021-2027, Guidelines for Science, Technology Development and
Innovation 2021-2027 and other binding strategies and guidelines, e.g., Research and Innovation
strategy for Smart specialization of Latvia, Implementation strategy of Platform “Industry 4.0”, Cyber
Security Strategy, Guidelines for the Development of Education for 2021-2027 “Future Skills for the
Future Society”.
In general, innovations do not play a large role in Latvian companies, however, Latvia is taking steps
to increase the number of companies involved in innovations through regional and ERDF-funded
programs. During the analysis of information sources (e.g., [10, 13]), it was identified that Latvia has
introduced different support programmes and initiatives that allow companies, government and local
municipalities, business startups, public research organizations, merchants, and others to get funding
for digitalization and innovation introduction initiatives. Financial support is provided through the
National Recovery and Resilience Plan, Innovation Motivation Programme, Business Incubators,
Start-up support programmes, Innovation vouchers and support for attraction of highly qualified
specialists, Support for science result commercialization, International competitiveness development,
Support for staff training, Norwegian Financial Mechanism, Acceleration funds and other programs
[14, 15, 16].
Law on aid for the activities of start-up companies has initiated several aid programmes to attract
highly qualified employees, reduce taxes, and introduce fixed payments [17]. In addition, subsidies and
loans are available to business start-ups in rural areas to promote digital innovation or the development
of new products and services in the agricultural, rural, and fisheries sectors [5]. Latvia continues to use
the Competence Centre and other complementary programmes such as the technology transfer
programme to promote innovation in SMEs [13]. Other support initiatives aimed at the digitalization of
enterprises include training programmes intended for the acquisition of knowledge and skills related to
digital technologies and innovation [5]. The Ministry of Environmental Protection and Regional
Development and the Ministry of Economics have also approved two Digital Innovation Hubs (Latvian
IT Cluster and Digital Accelerator of Latvia) [5] that focus on the digital transformation of enterprises
and R&D and innovative digital solutions. Latvian Investment and Development Agency plays an
important role in the management of the most available support programmes for entrepreneurs [8]. It
manages Technology Transfer Programme, the Innovation Motivation Programme, and the Business
Incubators Programme, as well as supports foreign direct investment [15]. There are also three digital
innovation centers in Latvia, which act as centers of digital excellence and single digital transformation
contact points [13].
4. Educational events related to Industry 4.0
Even though information on possible Industry 4.0 educational events for 2017-2021 is incomplete
and includes only those events, information about which is available on the web, it can be concluded
that opportunities for training in new technologies and developing an understanding of digitalization
processes are extensive. They include:
short, one-time local and international events (seminars, forums, conference sections, etc.) like
the conference „Getting Ready for INDUSTRIE 4.0: Transformations Needed” (2017) [18], II
European-Latvian Forum "Industrial revolution 4.0: Digital Economics, Data protection and
Compliance Best-Practice" [19], Section "Industry 4.0: Opportunities and Challenges" of the 78th
International Scientific Conference of University of Latvia (2019) [20];
recurring exhibitions of technological achievements like Business Technology Exhibition and
Conference RIGA COMM [21] or International Exhibition “Tech Industry” [22];
long-term training programs within the framework of ERAF and ESF projects, like Training of
ICT professionals for promotion of innovation and development of the industry (2016-2019) [23],
Training of small and micro entrepreneurs for the development of innovations and digital
technologies in Latvia (2016-2023) [24], Training for ICT professionals (2020-2023) [25],
Improvement of professional competence of employed persons (2017-2023) [26].
Furthermore, educational events are offered to academic staff and staff of state institutions and
enterprises in specific industries and any working or self-employed person. In 2019, the Latvian
Information and Communication Technology Association together with industrial partners started an
educational campaign "Smart Latvia" to educate managers of Latvian SMEs about the latest IT solutions
and encourage them to use these solutions in their business environment [27]. Furthermore, some of the
events found by the authors are dedicated to Industry 4.0 and digitalization, while others focus on
individual Industry 4.0 pillars such as cybersecurity, artificial intelligence and data analysis, cloud
computing, and others. In the context of education, it is worth mentioning that according to [8], Ministry
of Economics developed an investment plan for 2021-2027 to improve the digital skills of company
employees and it is planned to divide the investments into three parts:
Massive Open Online Courses on topics such as the basics of UX/UI, e-commerce, data analysis
and visualization, database development and maintenance, programming, business intelligence
system development;
European Digital Innovation Hubs offering advanced digital skills development through
training on topics such as cybersecurity, artificial intelligence and high-performance computing;
cooperation with industry associations to support the development of digital skills of employees
in areas such as online information storage, use of websites/social portals, software configuration,
online sales, image, video and audio processing, presentation preparation, and others.
5. International and local projects on Industry 4.0
Analyzing local and international projects linked to Industry 4.0 and its main pillars where partners
from Latvia are participating, a wide range of projects were found and 38 of them are represented in
this publication. All projects can be divided in five main categories and some of them can be categorized
in more than one of these categories:
1. Projects that aim at developing some legal and regulatory framework for the further progress
of Industry 4.0 and related technologies by gathering best practices [28, 29, 30], generating policies
[30], formulating action plans [31, 32, 33, 34], making guidelines [35], developing standards [9, 7,
30], or issuing recommendations [29, 37];
2. Projects whose goal is to raise awareness and the level of knowledge in topics related to
Industry 4.0 through free access online courses [38, 39, 40], study programs [36], demonstrators [41,
42, 43], educational events [29], training and consultations [31, 37, 44, 45, 46], tools for
digitalization assessment [29, 32, 47], or a framework of necessary skills for cybersecurity
specialists [48];
3. Projects that aim at developing specific technological solutions and architectures that could
bring Industry 4.0 to life i.e.: various kinds of sensors and sensor networks [42, 49, 50, 51],
technologies for augmented reality headset [52, 53], technologies for building [54] and testing IoT
[52], computer vision-based methods for traffic analysis [52, 55] and manufacturing [52], an
optoelectronic system for analysis of microbiological pollution [52], multiple robot cooperation
software framework [52], methods for using computer vision and machine learning for
automatization of industrial processes [52], eCMR indexing prototype [56], technologies for
autonomous robots [52, 57, 58], autonomous microrobots [59], integrated and modular architecture
for drones [60], communication systems for drones [60] and autonomous vehicles [34, 61],
autonomous vehicles and linked technologies [61, 62];
4. Projects that strive for implementing Industry 4.0 in a particular field like: agriculture [28, 52,
57, 63, 64], food and beverage production [43], food retail [52], automotive industry [43, 65],
industrial machinery [43], transportation [43];
5. Projects that create communities, clusters, and networks for promoting Industry 4.0 [30, 41, 44,
48, 64].
Most of the described projects correspond to the categories of raising awareness and knowledge (17
projects) and developing specific technical solutions (16 projects). There are few organizations from
Latvia that operate as partners in several projects identified during this study: EDI – Institute of
Electronics and Computer Science, LMT, and Lightspace technologies.
Out of 38 analyzed projects, 11 belonging to the 1st, 2nd and 5th of mentioned categories concentrate
on Industry 4.0 as a whole while other projects focus on one or several of its pillars. There are 13
projects concerning IoT, 11 – autonomous robots, 9 – big data and analytics, 7 – cybersecurity, 4 –
augmented reality, 2 – horizontal and vertical system integration, 1 – additive manufacturing, and 1 –
simulation.
6. Industry 4.0 and higher education
Unfortunately, at the moment, the concept of Industry 4.0 is poorly integrated into the discourse of
higher education institutions in Latvia. Both the general search on Google and specific searches on the
websites of Latvian higher education institutions yield almost no results. An exception is rare references
to the professional growth of academic staff through their participation in various events (like
conferences and mobility programs) covering some aspects of Industry 4.0, for example, [66, 67, 68].
The only university that addresses the necessity of educational changes in the context of Industry 4.0 is
the Latvia University of Life Sciences and Technologies. It emphasizes the need to modernize study
programs of the Faculty of Information Technologies by including courses on Industry 4.0 and
programs of other faculties by incorporating topics on Industry 4.0 in their courses [69].
An important factor that could indicate that higher education institutions are aware of the inevitable
need to change their study programmes under the influence of Industry 4.0 is that, between 2017 and
2021, several higher education institutions developed new study programmes covering one or more
pillars of Industry 4.0. A summary of these programs is given in Table 1 based on the register of study
programmes of the Higher Education Quality Agency in Latvia [70].
Table 1
New Latvian study programs covering technologies related to Industry 4.0
Title Higher Education Study level Study courses included
institution
Cybersecurity Vidzeme University of Professional master Courses cover different
Engineering [76] Applied Sciences study programme aspects of cybersecurity
and corresponding
technologies [77]
Cyber Security Riga Technical Academic master Courses cover different
Engineering [78] University study programme aspects of cybersecurity
and corresponding
technologies
Mechatronics [79] Vidzeme University of Professional Courses, among others,
Applied Sciences bachelor study include IoT and sensor
programme networks, robots and
robot control systems,
sensors and their use
[77]
Robotics [80] Transport and Professional Courses cover many
Telecommunication bachelor study topics related to the
Institute programme development of
robotics systems
Smart Electronic Riga Technical Professional Courses, among others,
Systems [81] University bachelor study include IoT
programme technologies, signal
processing, smart
embedded systems
Smart Technologies University of Liepāja Professional Courses, among others,
and Mechatronics [82] joint programme with bachelor study include IoT, artificial
Ventspils University of programme intelligence, robot
Applied Science control, cybersecurity,
cloud computing
Virtual reality and Vidzeme University of Professional master Courses cover topics of
smart technologies Applied Sciences study programme machine learning, 3D
[83] graphics, virtual and
augmented reality,
computer vision [77]
Computer Science [84] University of Latvia Academic bachelor Courses cover topics of
study programme embedded systems,
wireless sensor
networks, IoT, and
robotic basics
Computer Science [85] University of Latvia Academic master Courses cover topics of
study programme embedded systems,
wireless, sensor
networks, big data
Geoinformatics University of Latvia Professional Courses cover topics of
[86] bachelor study sensors and remote
programme sensing in various areas,
e.g., agriculture,
forestry, etc.
At the same time, the Transport and Telecommunication Institute advertises two study programmes
that at present are not included in the previously mentioned register but can be attributed to Industry
4.0. They both provide a double degree with the University of the West England:
Data analytics and artificial intelligence (academic master study programme) that includes
courses on intelligent data processing, cybersecurity, machine learning, and data analytics [71];
Artificial intelligence (academic bachelor study programme) that contains many courses related
to developing intelligent systems and understanding the concept of artificial intelligence [72].
Furthermore, there are also two programs in Latvia offered by Riga Technical University that were
developed more than ten years ago and seem relevant to the context of Industry 4.0:
Smart Electronic Systems (professional master study programme, license year – 2009) that
includes, among others, courses on signal processing systems, 5G wireless technologies, data
transmission in wireless sensor networks [73];
Intelligent Robotic Systems (academic bachelor and master study programme, license year –
2010), which mainly contains courses related to robotics [74, 75].
Separate courses addressing pillars of Industry 4.0 can also be included in other study programmes
as mandatory or free electives.
7. Skills and knowledge required for Industry 4.0
It is obvious that the nature of many jobs will change due to digital innovations such as machine
learning, big data, and artificial intelligence. With regard to economic trends, the demand for labor in
low-skilled occupations and occupations where routine activities can be automated is expected to
decline [7]. Trends show that, on average, around 14% of existing jobs could disappear as a result of
automation in the next 15-20 years, but another 32% are exposed to significant changes in their job
responsibilities due to automation of individual tasks [87].
In [7], it was indicated that in the period until 2027 there will be an excess of the labor force with
secondary general education, basic education, and a lower level of education. In turn, a deficiency in
the labor force will be observed with vocational secondary education, especially in engineering and
manufacturing [7]. There is also a forecast of a shortage of highly qualified specialists in natural
sciences, ICT, and engineering (the shortage in STEM fields may increase to ~14 thousand) [7].
According to forecasts, the growth of the Latvian economy will be mainly determined by the use of
new technological processes, digitalization (the concept of Industry 4.0), and process optimization [7,
10]. Consequently, the fastest job growth is expected in high- and medium-high-tech sectors, such as
ICT, as well as in high-skilled professions, such as managers and senior professionals [7, 10]. Future
professions are primarily based on the so-called "digital" and "human" factors, namely skills in working
with data, artificial intelligence, new technologies, and professional skills in technical fields, especially
automation, robotics, control and programming of complex technologies [10, 11], as well as skills for
successful process management and human interaction [7, 10].
Skills such as creativity, problem-solving, negotiation, critical thinking, teamwork, empathy and
emotion management, intercultural communication, and the ability to adapt and lead changes will be
relevant [7, 88]. Besides the collected information on knowledge and skills from the analysis of various
Latvian economic indicators and documents relevant to Industry 4.0, the analysis of educational events
allows concluding that knowledge and skills in the following fields are also vital:
general understanding of Industry 4.0 (opportunities, challenges, requirements, benefits,
importance);
latest technologies for digitalization and automation (IoT, artificial intelligence and machine
learning, cloud computing, data analytics, and cybersecurity).
In Latvia, employers are spending relatively little money on employee training compared to other
EU countries. The share of training expenses from total labor costs in Latvian enterprises is only 0.8%,
but in the EU on average – 1.7% [7]. The main obstacles to employees’ growth are their inability to
combine training with work schedules and insufficient support from their employers [7]. Overall, only
11% of Latvian companies provide training to their employees in ICT skills compared to the EU average
(23%) [7]. Therefore, it is necessary to strengthen the cooperation between educational institutions and
industry in order to improve the content of study programs and align it with the development needs of
the industry, especially by promoting the acquisition of competencies necessary for the development of
Industry 4.0 [7, 11]. With the digitalization of different sectors and the emergence of new technologies
and knowledge, the higher education sector should be more flexible in transferring this new knowledge
and skills to the population [7]. Also, recently developed study programs in higher educational
institutions indicate the need to develop skills in the fields of cybersecurity, robotics, artificial
intelligence, smart technologies, and virtual/augmented reality [11].
Skills and knowledge necessary for the current and future workforce are largely dependent on the
demand from the employers and their willingness and ability to adopt new ways of working. Three of
the reviewed projects during their research conducted also studies to elicit companies' opinions
regarding Industry 4.0 and intentions on digitalizing their business. In 2019, the DIGINNO project and
the Women4IT project both conducted studies asking respondents about the importance of various
digital technologies in their business. The sample is rather limited: the DIGINNO survey [89] had 18
respondents from Latvia while the Women4IT survey [90] gathered responses from 34 companies.
Nevertheless, both surveys reveal similar tendencies: Latvian respondents of the first survey indicated
automation, database, wireless, security and encryption, and cloud computing technologies as most
useful, while drones, blockchain, machine learning, and augmented reality technologies were marked
as less important. In the Women4IT survey, from all respondents of this survey, 76% marked mobile
services, 63% cybersecurity, 62% big data and analytics, 61% cloud technologies, 57% enterprise
systems, and 56% IoT as very useful for their businesses. Only 3D printing was considered less useful-
marked as very important only by 22% of respondents.
Expected tendencies of the use of digital technologies in the nearest future (in 3-5 years) were studied
in surveys conducted within DIGINNO [89], Woman4IT [90] as well as DigiBEST projects which
conducted a survey [91] in 2020 gathering responses from 51 Latvian companies. Answers to this
question in all three surveys coincide as well: companies express their intent to invest in wireless,
database, automation, security and encryption, cloud computing, big data and analytics, data
visualization technologies, and robotics.
During the research, several projects were found that strive to define sets of skills needed for certain
areas. One of the deliverables of project ITSVET was a standard for ICT security specialists [92] which
describes the knowledge and skills needed for such professionals in great detail. The standard demands
professional as well as general skills. 4CHANGE project has created VET programs [93] for CNC
machine operators of various qualification levels working in enterprises aligned with Industry 4.0.
Cybersecurity skills framework [94] that was developed during the SPARTA project describes skills
needed for various roles at the company to ensure its cybersecurity. These frameworks are intended to
provide a basis for a discussion between academia, industry, policymakers, specialists, and others.
Therefore, specific skills and knowledge that will be demanded in the future from employees depend
largely on company size (SME or large company) and targeted market (local or international),
company's digital maturity, and strategic vision of the business. However, the general trends indicate a
necessity to develop the following skills and knowledge:
general digital competence (effective use of software and hardware, searching and evaluating
the reliability of the information, etc.);
soft skills and transversal competences (creativity, problem-solving, critical thinking,
teamwork, intercultural communication, emotional intelligence, etc.);
general knowledge of Industry 4.0 (opportunities, challenges, requirements, benefits,
importance);
awareness of and skills in using the latest technologies for digitalization and automation (IoT,
artificial intelligence and machine learning, cloud computing, automation, robotics, big data
analytics and cybersecurity, smart technologies and virtual/augmented reality).
8. Conclusions
Even though Latvia has been popularizing itself as one of the leading countries in terms of Internet
speed and even five years ago was among the Top 10 countries worldwide [95], the digital skills of the
country’s citizens are below the EU average. Latvia is also still rather below the EU average level in
terms of the integration of digital technologies in companies (e.g., cloud technologies, big data, artificial
intelligence solutions, etc.).
The introduction of Industry 4.0 technologies in the main processes and daily activities of companies
is unavoidable if the companies want to improve their work efficiency and remain competitive. The
Latvian government must also be involved in promoting the introduction of these technologies, as they
will also have an impact on the development of the Latvian economy. At present, Latvia has developed
a number of strategic plans and policy documents that can help integrate and develop Industry 4.0.
However, the government should not only develop a vision to create an excellent and innovative
business environment and propose various strategic plans but also take measures to support the
introduction of innovative solutions in companies. Despite the fact that various short-term and long-
term training opportunities are provided, companies are quite reluctant to use them for the improvement
of the digital skills of their employees. Therefore, cooperation between the companies and educational
institutions should be encouraged and more information should be provided on the available support
programmes to get funding for digitalization activities and the improvement of digital skills for
employees (both basic and advanced skills). Only by improving the digital skills of the population, it is
possible to create conditions for the acceptance of digital innovations, improvement of business
productivity, and promotion of Latvia's progress on a global scale.
9. Acknowledgements
The paper is based on the research results funded by the Erasmus+ Programme project “Digital
Transformation, Industry 4.0 and Human Resources Management: Innovative skills to enhance HE
students employability, flexibility and transversal capabilities” /DigiWork/, Ref. No. 2021-1-PL01-
KA220-HED-000032182.
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https://unctad.org/system/files/information-document/CSTD2021-
2022_Issues01_Industry4.0_en.pdf.
[3] LMT, About LMT, 2022. URL: https://bizness.lmt.lv/en/about-lmt.
[4] Official statistics portal, Use of computers and internet, 2022, URL: https://stat.gov.lv/en/statistics-
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