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Advanced Manufacturing Innovation Ecosystems: The Case of Massachusetts

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Industrial Internet of Things

Abstract

This chapter looks at manufacturing companies’ innovation capacity as it relates to cyber-physical production systems from a broader innovation ecosystem perspective. This contribution is guided by the research question which systemic measures need to be implemented to ensure a proper and wider diffusion of such complex systems by the example of Massachusetts and its advanced manufacturing companies that are poised to embrace cyber-physical production systems.

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Notes

  1. 1.

    Small and medium-sized enterprises (SMEs) refer to firms with fewer than 500 employees. Interestingly, the U.S., unlike Europe, does not use revenue to define SMEs [39].

  2. 2.

    Original equipment manufacturers (OEMs) are “firms that […] manufacture […] based on ‘original’ designs” [37]. OEMs either make products directly or act as a system integrator before selling directly to the customer. Throughout this chapter, the term OEMs typically refers to large enterprises, with over 500 employees.

  3. 3.

    We used three filters to help determine which manufacturing sub-industries could be considered especially advanced or innovative, starting with NAICS (North American Industry Classification Systems) codes at the four-digit level, we considered (1) patent data as a proxy for innovation, albeit one that is not particularly well suited for manufacturing; (2) R&D spending per worker and share of STEM (science, technology, engineering, and math) occupations; and (3) employment data. The identified sub-industries this way are Analytical Laboratory Instruments, Detection and Navigation Instruments, Process Variable Measuring Instruments, Semiconductors Machinery, Semiconductors and Related Devices, Electronic Computers, Aircraft Engines, Medical Instruments, Pharmaceuticals, and Machine Shops.

  4. 4.

    Thus far, Massachusetts’ universities, esp. MIT, are participating in three IMIs.

  5. 5.

    The Milken Institute’s State Technology and Science Index 2014 as well as the ITIF’s 2014 State New Economy Index rank Massachusetts as number one. The former analyzes technology and science capabilities of each U.S. state alongside their success at transforming those capabilities into companies [8]. The latter evaluates states’ fundamental capacities in the “new economy” “in terms of knowledge jobs, globalization, economic dynamism, digital economy, and innovation capacity” [13].

  6. 6.

    Generally speaking, firms that license technology through the TLO are less likely to be software-related.

  7. 7.

    In terms of total SBIR and STTR grants, Massachusetts is the second most successful state in the country behind California and is the leading state in the country in terms of SBIR/STTR grants per capita.

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Correspondence to Yilmaz Uygun .

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Uygun, Y., Reynolds, E.B. (2017). Advanced Manufacturing Innovation Ecosystems: The Case of Massachusetts. In: Jeschke, S., Brecher, C., Song, H., Rawat, D. (eds) Industrial Internet of Things. Springer Series in Wireless Technology. Springer, Cham. https://doi.org/10.1007/978-3-319-42559-7_29

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  • DOI: https://doi.org/10.1007/978-3-319-42559-7_29

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