Making in America:

From Innovation to Market

Massachusetts Advanced Manufacturing Summit

April 29, 2014
Elisabeth B. Reynolds, Ph.D.
MIT Industrial Performance Center
Innovation remains strong in the US

What manufacturing do we need

in order to get full value from our
innovation?

4
Spectrum of Innovation

Innovation is not only about patents. There is innovation in

process, business organization, and manufacturing across
America in firms of all sizes, 3M (Minneapolis-Saint Paul), to
Modern Manufacturing (Gilbert, Arizona)
5
The Transformation of U.S. Corporate Structures
1980s
Vertically-integrated firms
Integrate research, development,
design, production and marketing
to promote innovation, quality and
efficiency
Locate core firm activities close
to lead customers and best
suppliers to promote JIT & mutual
learning
TODAY
Core-competence firms
Massive fragmentation of
production systems
Functions distributed between
home societies and host
societies (globalization)
Networks of production chains
link brands, product definition
and design, contract
manufacturers, assemblers,
distributors, retailers
 Holes in the Industrial Ecosystem

1. When innovation grew out of large firms, they had the resources
($$, skills, plants) for scale up. Where do those resources come
from today?

2. Main Street manufacturers are innovators and critical enablers of

innovation. They used to be able to access complementary
capabilities from the ecosystem. Today they need to generate
them internally.

3. Large employers used to provide skills and training. How do we

educate the workforce we need?

4. There is transformative manufacturing technology on the horizon

but how is it adopted by and diffused into the firms who might
use it?

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Critical Case of 150 Start-Up Firms
Started with MIT Licensed Technology (1997-2008)

By Industry By Current Status

10% 10%

21%
17%

3% 39%

21% 20% 59%

Advanced Materials and Energy

Biopharma Operating Closed Merged
Medical Devices
Robotics
Semiconductors and Electronics
Other

6
 Summary of Findings from MIT Survey on Most
Promising New Manufacturing Technologies
Nano-engineering of Materials and Surfaces
Synthesis of multi-functional materials at the nano-scale from the ground up
Additive Precision Manufacturing
Building up components by adding layers of material in complex 3D shapes
Robotics, Automation and Adaptability
Using robotics to substitute for or complement human labor in new ways
Next Generation Electronics
Next generation circuits using non-Si materials,
using mask-less processes and flexible substrates
Reynolds, MIT Industrial Performance Center
Bio-manufacturing / Pharmaceuticals
Continuous manufacturing of small molecules,
turning cells/ organisms into programmable factories
Distributed Supply Chains / Design
Enabling flexible and resilient decentralized supply
chains, new approaches to web-enabled mfg
Green Sustainable Manufacturing
New manufacturing processes that use minimal energy,
recycle materials and minimize waste and emissions
7
 What is Advanced Manufacturing?

Traditional
raw materials parts Assembly finished
Manufacturing from nature
Fabrication products
(20th century)
raw materials
from nature

Material services Integrated

software Bundling solutions
Design

Advanced synthetic parts finished

Fabrication Assembly
Manufacturing materials
continuous
products

(21th century)
recovered Recycling
materials

Advanced Manufacturing is the creation of integrated solutions that require the

production of physical artifacts coupled with valued-added services and software,
while exploiting custom-designed and recycled materials using ultra-efficient
processes.
Reynolds, MIT Industrial Performance Center
 Where/how do the 7 technology areas impact this
expanded view of advanced manufacturing?

Advanced
Electronics
raw materials
from nature
Materials &
Nano-Technology Additive and
Material services Integrated
Precision Mfg Bundling
Design software solutions

synthetic parts Assembly finished

Fabrication
materials products
continuous

recovered Recyclin
materials g
Supply Chain
Robotics Design
Pharmaceuticals Automation
Bio-manufacturing Adaptability Green / Sustainable
Manufacturing

Reynolds, MIT Industrial Performance Center 9

 Making the New Industrial Ecosystems

1. The most urgent challenge for US innovation

and production is to rebuild the capabilities in
the industrial ecosystem

2. The goal: raise the rate and speed of innovation

to market across America

3. Build institutions for convening, coordinating,

risk-pooling, risk-reduction and bridging

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