Redefining Economic Growth: the Review of Industry 4.0 and Industry 5.0 Progress

Abstract

The current definition of the Gross Domestic Product (GDP) is based on industrial sectors and technological advancement correlated with Industry 1.0, Industry 2.0, and Industry 3.0. Considering that the economics sectors have shifted towards Industry 4.0 and Industry 5.0 there is a necessity to redefine a key economic development indicator to match the current imperative of the economy. The research question is: How can the Gross Domestic Product (GDP) definition be improved to address the current imperative of economy to be consistent with the technological advancement of Industry 4.0 and Industry 5.0? The summary, evaluation, and analysis of the existing literature in the emerging field of advanced manufacturing was used to address this research question. The updated definition of GDP was developed because of this review: the Sustainable GDP is the standard measure of the value added created through the production of goods and services determining the proportional value of goods and services produced employing renewables, the proportional value of goods and services produced applying digitisation, and the proportional value of goods and services produced using inputs into production from recycling and remanufacturing in a country during a certain period.