Innovation is the engine of economic and social growth in Mexico, as confirmed by Finsa's most recent Industrial Development Index. The analysis reveals which Mexican states are best aligned with the Industry 5.0 model, and integrate technological evolution with social development and sustainability.
Unlike Industry 4.0, which focused on automation, the Internet of Things (IoT) and artificial intelligence to optimize production, Industry 5.0 seeks to balance technological efficiency with creativity and human talent. This paradigm drives a more agile, sustainable and resilient manufacturing, where collaboration between humans and machines allows generating greater added value, innovation and product customization.
Nearshoring has made Mexico a key relocation destination for companies seeking to reduce their dependence on Asia and move closer to the North American market. However, the country's competitiveness should not be based solely on labor costs or geography, but on the ability to offer advanced manufacturing, with intelligent, sustainable and highly specialized processes.
Mexico on the road to Industry 5.0: The adoption of Industry 5.0 will allow Mexico not only to assemble products, but also to participate in the design, customization and development of technological solutions that respond to market needs. This will boost the diversification of the economy and attract high-value investments.
Industry 5.0, defined by the European Union, represents an evolution of Industry 4.0 by complementing industrial innovation with social progress and sustainability. To measure how aligned Mexican states are with this model, Finsa's Industrial Development Index used three key pillars:
Innovation (Industry 4.0): Number of researchers in STEM fields and invention applications relative to the population.
Social development: Average income and average schooling.
Sustainable development: Weighted average of environmental indicators.
Leading states in the Industry 5.0 model
The study highlights five states with the best balance between innovation, social development and sustainability:
Mexico City
Querétaro
Jalisco
Nuevo León
Aguascalientes
Main findings
Imbalances in the Industry 5.0 model: Although several states lead in innovation, they lag behind in social development and sustainability. Examples are Morelos, Guanajuato, Jalisco and Mexico City, which fall more than ten positions in social development compared to their leadership in innovation. Likewise, Yucatán, Chihuahua, Nuevo León and Querétaro show falls of more than ten positions in the concept of sustainable development.
San Luis Potosí and Coahuila stand out for maintaining balanced positions in innovation, social development and sustainability.
Some states have made significant progress in social and sustainable development, although they do not lead in innovation:
Aguascalientes climbs from 15th place in innovation to 4th place in social development and 3rd place in sustainability. Tlaxcala, meanwhile, climbs from 26th in innovation to 9th in social development and sustainability.
“To fully capitalize on nearshoring we must not only rely on infrastructure and geolocation, although the Finsa Industrial Development Index underscores the need for public policies and business strategies that strengthen balanced growth in the three pillars of the Industry 5.0 model. To consolidate a more robust and sustainable industrial ecosystem, it is crucial that technological innovation goes hand in hand with improvements in quality of life and environmentally responsible development,” added Sergio Arguelles, CEO and president of FINSA.