1. Making in America: From Innovation to Market
Massachusetts Advanced Manufacturing Summit
April 29, 2014
Elisabeth B. Reynolds, Ph.D.
MIT Industrial Performance Center

2. Innovation remains strong in the US
What manufacturing do we need in order to get full value from our innovation? 4

3. 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

4. The Transformation of U.S. Corporate Structures
TODAY
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
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

5. Holes in the Industrial Ecosystem
When innovation grew out of large firms, they had the resources ($$, skills, plants) for scale up. Where do those resources come from today?
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.
Large employers used to provide skills and training. How do we educate the workforce we need?
There is transformative manufacturing technology on the horizon but how is it adopted by and diffused into the firms who might use it? 17

6. Critical Case of 150 Start-Up Firms Started with MIT Licensed Technology (1997-2008)
By Industry
By Current Status 6

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

8. What is Advanced Manufacturing?
Traditional
Manufacturing
(20th century)
raw materials
from nature
parts
finished
products
Fabrication
Assembly
Advanced
(21th century)
Material
Design
synthetic
materials
Bundling
Integrated
solutions
services
software
continuous
Recycling
recovered
The insights we are gaining in module 1 lead us to a much broader definition of what we mean by advanced manufacturing. Traditional manufacturing is shown above and consists of fabrication and assembly and the making of physical artifacts. A broader definition of advanced manufacturing allows us to categorize the promising technologies into 4 areas: material design and synthesis, blurring the boundary between fabrication and assembly, not just for discrete products but also in chemicals and pharmaceuticals. Smart automation also affects this step greatly. Thirdly the products is often not just a physical artifact or widget but an integrated solution that involves bundling of physical products with services and software. Finally the 4th trend is the reuse of recycled materials back to fabrication or even material synthesis. This is a much enhanced vision of what we mean by advanced manufacturing. Read the definition in the red box.
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

9. Where/how do the 7 technology areas impact this expanded view of advanced manufacturing?
Electronics
raw materials
from nature
Materials &
Nano-Technology
Additive and
Precision Mfg
Material
Design
services
software
Integrated
solutions
Bundling
Supply Chain Design
Pharmaceuticals
Bio-manufacturing
synthetic
materials
parts
finished
products
Fabrication
Assembly
continuous
Robotics
Automation
Adaptability
Green / Sustainable
Manufacturing
recovered
materials
Recycling
Reynolds, MIT Industrial Performance Center 9

10. Making the New Industrial Ecosystems
The most urgent challenge for US innovation and production is to rebuild the capabilities in the industrial ecosystem
The goal: raise the rate and speed of innovation to market across America
Build institutions for convening, coordinating, risk-pooling, risk-reduction and bridging 19