From MAGNET: New Research Supports toe Positive Effect of Co-locating Production and Innovation

This post originally appeared on MAGNET’s  Manufacturing Success blog and is reposted with permission. New Research Supports the Positive Effect of Co-locating Production and Innovation The preliminary results of a new research report on innovation in manufacturing caught our eye here at MAGNET recently. In 2010, MIT’s President, Susan Hockfield, launched the MIT Production in the Innovation Economy (PiE) research group  to answer the question: “What kinds of production do we need–and where do production facilities need to be located–to sustain an innovative economy?” The PiE group also worked to answer these questions: “How do production capabilities here and abroad contribute to sustaining innovation and realizing its benefits within our own society?” “How did this new global economy of fragmented research, development, production and distribution come into being? And what does this mean for the future of the U.S. economy?” The group analyzed these questions in relationship to large U.S. corporations, start-ups companies that had achieved commercialization, and small- and mid-sized U.S. manufacturers (referred to as “Main Street Manufacturers”). In late February, the group released its thought-provoking preliminary report (the final report will be published in the fall). The report’s conclusion: “What’s held manufacturing in the United States…was the advantage firms gain from proximity to innovation and proximity to users. Even in a world linked by big data and instant messaging, the gains from co-location have not disappeared.” Since the U.S. share of the world market has declined from 34 percent in 1998 to 28 percent in 2010, the PiE group identifies a key danger point to be the declining weight of the U.S. in the global economy, even though the output of U.S. high-tech manufacturing is still the largest in the world. The group also reports it’s fear that “the loss of companies that can make things will end up in the loss…read more >