Manufacturing going digital Anu Kull Ministry of Economic Affairs and Communications 06.12.2018

Vision of industrial policy to raise the industrial added value per person employed to the European Union average based on purchasing power parity by 2030 Green Paper on Industrial Policy: globalization, smart manufacturing, Industry 4.0, logistics & infrastructure, better regulation, circle economy, labour force & skills

GDP by Economic Activity, 2017 *Manufacturing includes mining and quarrying Source: Statistical Office of Estonia

Challenge of Estonian manufacturing industry Low productivity Average added value 54% from EU average level (place 24-25): Level of digitalization too low More high value products needed Added value of exported products per employee, thousand USD (OECD 2017)

From challenge to change If Estonian worker 2030 were as productive as EU-28 worker, GDP were 7,5 bill € higher Current added value is on 54% of EU-28 average Added value in manufacturing per person employed from EU-28 average, PPS corrected

Labour productivity of Manufacturing per person employed Successful policies *Manufacturing includes mining and quarrying Source: Statistical Office of Estonia

Support to SMEs and small mid-caps Access to finances, incl immaterial assets Digitalisation readiness auditing (4.3 mill EUR) Digitalisation pilots (1.1 mill EUR) Awareness (0.2 mill EUR)

Digitalization readiness auditing Target group: manufacturing and quarrying industry Process: estimation of current level of digitalisation & automatisation Form: questionnaire, analyze Company benefit: digitalisation & automatisation roadmap Industry benefit: raising awareness

Impact to SME ? SME as smart customer to education system State as a smart manager SME profitising from servitisation

Anu Kull Anu.Kull@mkm.ee Thank you! Anu Kull Anu.Kull@mkm.ee