Fostering innovation by complementing human competences and emerging technologies: an industry 5.0 perspective

Abstract

This paper explores the human-centric orientation of manufacturers within Industry 5.0 (I5.0), emphasising the synergy between competence management practices and emerging technologies in fostering capabilities for product innovation. The study places specific emphasis on ecological and digital product innovations, viewing them as crucial components of the I5.0 approach. By leveraging data from the German Manufacturing Survey 2022, which includes responses from 1,334 manufacturing firms, quantitative empirical analyses yield valuable insights for production system research. The findings indicate that a human-centric I5.0 approach enhances a manufacturer's capability to generate product innovations, with employee involvement reinforcing this effect. Eco-oriented product innovations, however, exhibit threshold effects, underscoring the importance of achieving specific levels of human-centric I5.0 orientation before witnessing an augmented capability for eco-innovation. On the contrary, regarding digital innovation, our results indicate a lack of correlation between a human-centric I5.0 approach and the generation of digital-oriented product innovations. However, in terms of digital-oriented product innovations, our analyses again show that employees’ involvement plays a significant role. From a practical standpoint, this research offers valuable insights for managers in manufacturing companies into establishing and implementing human-centred I5.0 strategies, as well as leveraging them to enhance product innovation outcomes.