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 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

5. 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? 17

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

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

8. Traditional Manufacturing (20 th century) raw materials from nature parts finished products Fabrication Assembly Advanced Manufacturing (21 th century) raw materials from nature partsfinished products Fabrication Assembly Material Design synthetic materials Bundling Integrated solutions services software continuous Recycling recovered materials What is Advanced Manufacturing? 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? Material Design synthetic materials Bundling Integrated solutions services software continuous Recyclin g recovered materials raw materials from nature partsfinished products Fabrication Assembly Additive and Precision Mfg Materials & Nano-Technology Green / Sustainable Manufacturing Robotics Automation Adaptability AdvancedElectronics Supply Chain Design Pharmaceuticals Bio-manufacturing Reynolds, MIT Industrial Performance Center 9

10. 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 19