Smartest Places on Earth presentation 4.6.16

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Looking in the rearview mirror

Looking in the rearview mirror

U.S. Employment in Manufacturing Industries (in millions)

10

20

15

1980 1985 1990 200520001995 2010

Reversal

7 million jobs lost

Looking in the rearview mirror

Automation 2008 CrisisCompetition

Not the whole story

The American (and Northern European) economies are NOT on the decline but

regaining competitiveness

The new paradigm

The era of cheap is over

Manufacturing is not coming back…

The era of “smart” has begun

…it is being reinvented

The new paradigm

Sharing brainpower

Two pillars

The new paradigm

1.

Sharing brainpower

Hierarchical

Closed/IP-oriented

Siloed

Top-down

Lone ranger

Suburban, isolated research labs

Collegial

Open

Multidisciplinary

Collaborative

Urban innovation districts

In the past Today

Bottom-up

A new branch of the economy

2.

Sharing brainpower1.

Two pillars

The new paradigm

Sensor technology

Wireless IT

New materials

Big Data

A new branch of the economy

New discoveriesNew production methods

Old industrial expertise

The future is all about connecting and connectedness

A new branch of the economy Smart products

New production methods are reinvigorating old industries

A new branch of the economy New production methods

From Rustbelts to Brainbelts

A life threatening challenge

From Rustbelts to Brainbelts

Akron, Ohio — From rubber capital to polymer city

A connector: Luis Proenza World-class research on polymers stayed

From Rustbelts to Brainbelts

What makes a brainbelt?

Universities performing world-class research

Openness to sharing brainpower

A connector and supportive local officials

Infrastructure that attracts and retains top talent

A life-threatening situation

Access to venture capital

Complex, expensive challenges requiring a multi-disciplinary approach

From Rustbelts to Brainbelts

Albany, New York — Nanotechnology

From Rustbelts to Brainbelts

Research Triangle Park, North Carolina

From Rustbelts to Brainbelts

Portland, Oregon

From Rustbelts to Brainbelts

Eindhoven — From lightbulbs to the world’s smartest city

From Rustbelts to Brainbelts

From Rustbelts to Brainbelts

From Rustbelts to Brainbelts

Rustbelt cities are building on forgotten strengths, transforming

themselves into brainbelts

They are creating the smart products that the 21st century demands

Policy recommendations

Policy recommendations

Stop mismeasuring productivity

Develop work-study programs (on German model)

Reward sharing of brainpower

Support and build innovation districts

Build political support for more basic research

Give venture capitalists the leeway to invest in advanced manufacturing