Industry 5.0 paradigm transformation adoption in developing countries: an analytical game theoretic model

This study presents a novel tripartite game model to investigate the adoption of Industry 5.0 in developing countries. The model incorporates three key stakeholders: Industry, Government, and workforce, each with distinct objectives and strategic decisions. The Industry aim to optimize production efficiency and workforce integration through advanced automation and human-machine collaboration, while Government focus on regulatory frameworks and incentives to foster technological adoption. Workforce aim to enhance the deployment of AI, robotics, and other Industry 5.0 technologies for skill adaptation and job security. By utilizing game theory, this research analyzes the interactions, competition, and cooperation among these stakeholders, exploring the dynamic incentives and trade-offs that influence adoption decisions. The model also considers the socio-economic challenges faced by developing countries, such as limited infrastructure, workforce skills, and financial constraints. Through equilibrium analysis, the study provides insights into the optimal strategies for each stakeholder and highlights the critical factors that drive or hinder the successful implementation of Industry 5.0 in these contexts. The findings offer valuable policy implications for governments and actionable strategies for industries in developing countries seeking to leverage Industry 5.0 technologies for sustainable growth and competitive advantage.