POLICY BRIEF #5: Directing business policies. The challenges to Industry 5.0. Karolien Lenaerts, Steven Dhondt, Peter Totterdill, Peter Oeij (October 2023).


In recent years, the EU has embraced Industry 5.0 as a key paradigm in its industrial policy. Whereas Industry 4.0 was primarily driven by productivity and technological considerations, in the last decade it has been clearly demonstrated that a wider perspective is necessary in order to make the digital transformation work. Industry 5.0 brings such a perspective by adding sustainability, resilience, and human-centricity into the mix. Compared to Industry 4.0, the transition towards Industry 5.0 is policy- and values-driven. In short, Industry 5.0 will need to be a strategic choice for companies, one in which boards and senior teams align organisational values, purpose, strategy, structures and culture with the goals of human-centricity, sustainability and resilience. The task for policymakers is to create the incentives, resources and regulatory context within which the right strategic choices can be made.

One Comment

  1. Rui Mendonça 01/11/2023 at 20:27 - Reply

    Good work !

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