Faced with the emergence of major social and environmental challenges – such as climate change, growing inequalities, and persistent problems of poverty and social exclusion – the international scientific community has questioned the adequacy of the technological and industrial development paradigm of recent decades. Technological advances are often developed and adopted with the goal of minimizing costs; however, this approach neglects their potential human, social, and environmental impacts and limits their contribution to the industrial and territorial development. Recent European policy-making, such as the ‘Industry 5.0’ model promoted by the European Commission, recognizes these limitations and advocates for a new industrial development model that prioritizes human-centered, resilient and sustainable systems. 

To implement an Industry 5.0 model is necessary to redesign the current production processes and supply chains, placing humans at the center of technological advancements and taking into account social and environmental challenges, as well as resilience ones, in the design of new technologies and systems. 

Digital technologies represent a powerful tool for firms and policy-makers to deal with sustainability and resilience goals (e.g., by saving resources and energy, lower emissions, designing for recycling and managing waste in a responsible way) and, at the same time, increase international competitiveness. However, little is known about the extent to which the Industry 5.0 model has the potential to create positive externalities in local territories, such as through product and process innovations, knowledge diffusion, and inward foreign direct investment attraction. Additionally, the role of local actors in balancing the trade-offs inherent in Industry 5.0 remains unclear.