2011   Index   of the   Massachusetts   Innovation   Economy
The Index of the Massachusetts Innovation Economy,published annually since 1997, is the premier fact-basedbenchmark for me...
Dear Friends,     It is my pleasure to welcome you to the 2011 Index of the Massachusetts Innovation Economy. The     Inde...
2011        Index                                                     of the                                              ...
The Massachusetts Technology Collaborative    The Mass Tech Collaborative is the Commonwealth’s    economic development en...
Table of Contents Highlights.................................................................................................
Highlights    The Index                                                R&D performed as a percent of GDP, international an...
HighlightsMassachusetts’ universities and colleges are dynamic       and early stage businesses in Massachusetts reached i...
Highlights                       continuedMassachusetts’ appropriations for public higher                                 ...
IntroductionMASSACHUSETTS IS ONE OF THE WORLD’S LEADING                   and add or subtract measures and whole indicator...
analysis section whenever pertinent. Many emerging         In the pages that follow five individuals share withtrends, opp...
knowledge and technology into established processes                                        communities, and launch project...
Island of Misfit Toys     Edward “Ted” Acworth, Ph.D., Founder and CEO, ARTAIC – Innovative Mosaic                   efore...
Our most valuable asset is people. A benefit     the Robotics Cluster organized by the Mass.             of Artaic’s uniqu...
Manufacturing Innovation     Richard S. Himmelwright, Ph.D., Cold Spring Technology, Inc. & 27 Gaylord LLC                ...
being utilized in many varied production          process industries. Our project was possible             environments, b...
Intersections that Matter     Elisabeth Reynolds, Ph.D., Executive Director, MIT Industrial Performance Center            ...
Two current projects at the IPC highlight the     across industry clusters. Creating the space             value of this k...
Roll-to-Roll Innovation     James J. Watkins, Ph.D., Director, NSF Center for Hierarchical Manufacturing, University of Ma...
such as continuous nanoscale patterning              right time for this technology. For American             at the devic...
Integration through Design     Richard Watson, Partner and Co-Founder, Essential                  assachusetts has innovat...
component in the portfolio of most major          here creates a tremendous opportunity for             healthcare provide...
Massachusetts Innovation EcosystemTaken together, the 25 indicators in the Index examine       Researchthe performance of ...
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
MassTech's 2011 Annual Index of the Innovation Economy
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MassTech's 2011 Annual Index of the Innovation Economy

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The Index of the Massachusetts Innovation Economy, published annually since 1997, is the premier fact-based benchmark for measuring the performance of the Massachusetts knowledge economy.

The Index is an annual opportunity to assess the Commonwealth’s economic progress and its changing competitive position. Through 25 indicators, the Index gives a comprehensive view of several dimensions of the innovation ecosystem. Using a rich set of US-based data sources, the Index benchmarks Massachusetts against nine Leading Technology States (LTS) to reveal relative strengths and weaknesses. The nine LTS chosen for comparison in the 2011 Index are California, Connecticut, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, and Virginia.

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MassTech's 2011 Annual Index of the Innovation Economy

  1. 1. 2011 Index of the Massachusetts Innovation Economy
  2. 2. The Index of the Massachusetts Innovation Economy,published annually since 1997, is the premier fact-basedbenchmark for measuring the performance of theMassachusetts knowledge economy.
  3. 3. Dear Friends, It is my pleasure to welcome you to the 2011 Index of the Massachusetts Innovation Economy. The Index, published annually by the Massachusetts Technology Collaborative (MTC), is the Commonwealth’s instrument for assessing the performance of the state’s innovation ecosystem and the key industry sectors of the innovation economy. The Index highlights key trends and themes affecting the state’s Innovation Economy and helps inform fact-based decision-making among Massachusetts’ policymakers, industry practitioners, and academic leaders. Since 1997, the MTC has produced the Index report analyzing the innovation process, and capital and human resources that grow and sustain the Innovation Economy in the Commonwealth. This report, based on a set of 25 quantitative indicators, examines not only the strengths of the Massachusetts Innovation Economy, but also areas of concern that need to be addressed by the state if it is to remain at the forefront of innovation and economic development. The Index is a key tool for state leaders, public and private, to align our resources with the innovation process to meet emerging challenges and opportunities. The Massachusetts Innovation Economy is one of the state’s key advantages in the global economy and an engine of prosperity for our citizens. It is also a source of resilience amidst national and global economic uncertainty. While the state continues to face challenges in these tough economic times, this edition of the Index shows that the Commonwealth, under the Patrick-Murray administration, has been able to maintain its leadership in the Innovation Economy. The Commonwealth retains its status as one of the most R&D intensive economies in the world. The Commonwealth is also among the leaders in attracting federal R&D dollars to its universities and nonprofit research institutes. I invite you to read the Index, add your thoughts, and join our collaborative efforts to enhance Massachusetts as a leading center of the world’s innovation revolution. Gregory P. Bialecki, Secretary Executive Office of Housing and Economic Development Commonwealth of Massachusetts2011 Index of the Massachusetts Innovation Economy 1
  4. 4. 2011 Index of the Massachusetts Innovation Economy2011 Index of the Massachusetts Innovation Economy 3
  5. 5. The Massachusetts Technology Collaborative The Mass Tech Collaborative is the Commonwealth’s economic development engine for facilitating and catalyzing innovation throughout Massachusetts. The Mass Tech Collaborative bolsters innovation and job growth in the private sector for the good of the Commonwealth, providing a standard for government agencies by employing the collaborative model to create public benefit. It fosters collaborations among John Adams Innovation Institute industry, government, and academia to sustain a thriving innovation economy in Massachusetts and strengthen the state’s competitiveness globally. The John Adams Innovation Institute, an operating division of the Mass Technology Collaborative, is dedicated to fostering The rich history of The Mass Tech Collaborative reaches back to collaboration among business, government, universities, and 1982, when the Legislature created the Massachusetts Technology other economic and civic institutions to improve the conditions for Park Corporation to develop a “partnership of government and economic growth and job creation in the technology sector. Using industry and education” for the tech sector. As the state’s economy industry clusters as an organizing concept, John Adams contributes evolved during the past thirty years, the Mass Tech Collaborative its expertise, investment-making, problem-solving, and access to adapted and accommodated a changing marketplace by creating a thought leaders and decision makers, to support innovation and foundation of collaboration, flexibility, and independence. technological changes in the marketplace. John Adams promotes innovation and economic growth through advancement of the following program objectives: 1. enhance and improve our collective understanding at the intersection of economic development and innovation 2. convene industry, government and academia as a primary means to enhance the economic competitiveness of recognized economic sectors 3. strengthen and support institutions focused on growing the innovation economy 4. support and sponsor civic entrepreneurs 5. intervene opportunistically in close collaboration with industry, academia and public sector stakeholders, especially in instances where, but for the intervention, a competitive advantage for the Massachusetts economy could be diminished.4 John Adams INNOVATION Institute
  6. 6. Table of Contents Highlights................................................................................................................................................................................................ 4 Introduction............................................................................................................................................................................................ 7 Island of Misfit Toys, Ted Acworth................................................................................................................................................... 10 Manufacturing Innovation, Richard S. Himmelwright....................................................................................................................12 Intersections that Matter, Elisabeth Reynolds................................................................................................................................ 14 Roll-to-Roll Innovation, James J. Watkins....................................................................................................................................... 16 Integration through Design, Richard Watson................................................................................................................................. 18 The Massachusetts Innovation Ecosystem.......................................................................................................................................... 20 Indicators Construction of the Indicators...................................................................................................................................................... 23 ECONOMIC IMPACT 1. Industry Cluster Employment and Wages..................................................................................................................... 24 2. Occupations and Wages................................................................................................................................................. 25 3 Household Income.......................................................................................................................................................... 26 4. Productivity..................................................................................................................................................................... 27 5. Industry Output and Manufacturing Value Added...................................................................................................... 28 6. Manufacturing Exports................................................................................................................................................... 29 RESEARCH 7. Research and Development Performed ....................................................................................................................... 30 8. Performers of R&D.......................................................................................................................................................... 31 9. Academic Article Output................................................................................................................................................ 32 Patenting......................................................................................................................................................................... 33 10. 11. Patenting by Field........................................................................................................................................................... 34 TECHNOLOGY DEVELOPMENT 12. Technology Licensing...................................................................................................................................................... 35 13 Small Business Innovation Research Awards................................................................................................................. 36 14. Regulatory Approval of Medical Devices and Pharmaceuticals.................................................................................. 37 BUSINESS DEVELOPMENT 15. Business Formation......................................................................................................................................................... 38 16. Initial Public Offerings and Mergers and Acquisitions................................................................................................. 39 CAPITAL 17. Federal Funding for Academic, Nonprofit, and Health R&D....................................................................................... 40 18. Industry Funding of Academic Research........................................................................................................................41 19. Venture Capital............................................................................................................................................................... 42 TALENT 20. Education Level of the Workforce................................................................................................................................. 43 21. Education................................................................................................................................................................. 44 K-16 22. Public Investment in K-16 Education.............................................................................................................................. 45 23. Science, Technology, Engineering and Math Career Choices and Degrees................................................................ 46 24. Talent Flow and Attraction............................................................................................................................................. 47 25. Housing Affordability..................................................................................................................................................... 48 Appendix A: Data Sources for Indicators and Selection of LTS......................................................................................................... 49 Appendix B: Industry Cluster Definitions........................................................................................................................................... 542011 Index of the Massachusetts Innovation Economy 5
  7. 7. Highlights The Index R&D performed as a percent of GDP, international and Massachusetts, 2002-2007Through 25 indicators, the Index of the Massachusetts 7.0%Innovation Economy provides a comprehensive view of 6.5%the performance of the Commonwealth’s innovation 6.0% MA Israelecosystem and its impact on the state’s economic 5.5% Swedenprosperity. Using a rich set of data sources, the Index 5.0% Finland Japanbenchmarks Massachusetts against nine Leading 4.5% Iceland USTechnology States (LTS) to reveal relative strengths 4.0% S. Koreaand weaknesses and compare the state’s competitive 3.5% Denmark Germanyposition. Appendix A describes the LTS selection criteria. 3.0%The nine LTS chosen for comparison in the 2011 Index 2.5%are California, Connecticut, Maryland, Minnesota, New 2.0%Jersey, New York, North Carolina, Pennsylvania, and 2002 2003 2004 2005 2006 2007Virginia. Source: United Nations Educational, Scientific and Cultural Organization (UNESCO) and the National Science Foundation (Updated data for 2008 will be released by the National Science Foundation during the first quarter of 2012.) HighlightsThe share of Massachusetts’ total employmentconcentrated in the eleven key sectors of the Federal funding is a key enabler of research andInnovation Economy increased to 38.4% in 2011. development in Massachusetts.Typically, these sectors provide some of the highest Whether in total dollars or on a per capita basis,paying jobs in Massachusetts. Total wages paid in these universities and nonprofit research institutes inkey sectors were 23% higher in 2010 than in 2005, Massachusetts were among the top in the LTS fora larger increase than the 15% gain in the economy attracting federal R&D dollars. Academic and nonprofitas a whole. The largest employer in these sectors in research institutes in the Commonwealth received $2.82010 was Healthcare Delivery, with more than double billion federal R&D dollars in 2008, accounting for 8.9%the employees than the next closest sector, Financial of the US total. At $435 per capita, federal expendituresServices. The Bio-pharma & Medical Devices sector saw for academic and nonprofit R&D were more thanthe largest percent change in employment from 2006 to four times larger in Massachusetts than in the United2010 with a 27.0% increase. States as a whole (per capita). The Commonwealth also maintained its leadership position among all LTS in funding from the National Institutes of Health (NIH)Massachusetts is a national and global leader in in 2010. Massachusetts’s small businesses attractedresearch and development. 12.2% of all federal funding invested in 2010 through the Small Business Innovation Research (SBIR) Program,R&D represents a vital segment of the Massachusetts which funds proof-of-concept research and prototypeeconomy. As documented in previous editions of the development.Index, the Commonwealth has the most R&D intensiveeconomy of the LTS and one of the most R&D intensive economies in the world. In Israel, for example—theleader among countries—R&D accounted for 4.7% ofGDP in 2007, while R&D represented 2.7% of GDP in theUnited States as a whole. Massachusetts has also led theLTS in industry-performed R&D as a percent of privateindustry output.6 John Adams INNOVATION Institute
  8. 8. HighlightsMassachusetts’ universities and colleges are dynamic and early stage businesses in Massachusetts reached itscontributors to the state’s Innovation Economy. highest level since the height of the 2000 tech bubble, with $1.7 billion invested.Universities and colleges attract and educate thehighly-skilled and creative talent that gives the state a key competitive advantage in the global Jobs created in the Massachusetts economyeconomy. Universities and colleges also contribute to increasingly require advanced degrees.employment, knowledge creation and dissemination,and new business formation. With approximately Compared to the 2006 average, the Massachusetts140,200 employees (Q1 2011), the postsecondary economy as a whole showed a net loss of 88,600education sector was the third largest employer jobs in the first quarter of 2011. In the same periodamong the 11 key sectors. Universities and colleges in employment in the key sectors of the InnovationMassachusetts performed nearly $2.17 billion dollars Economy had a net increase of 24,100 people.of R&D in 2007, or 43 % of all non-business R&D in the Employment gains specific to these sectors suggestCommonwealth. In 2008 Massachusetts led the LTS in that jobs are being created in industries thatthe amount of industry funding of academic research normally require associate’s degrees or other higher.per capita, with a narrow lead over North Carolina. Not surprisingly, full-time employment rates inIn 2009, universities in Massachusetts reached a 14- Massachusetts show that more highly educatedyear high in licensing and options revenue, bringing individuals are more likely to be employed. Betweenin $162 million. While university spin-outs account for 2005 and 2010, the full-time employment rate of theonly a small fraction of overall new business formation, working-age population in Massachusetts hovered atMassachusetts’ universities perform exceptionally well around 76% for individuals with a bachelor’s degree orin this measure. Forty-nine businesses spun out from higher. At the other end of the spectrum, the full-timeuniversities in Massachusetts in 2009, second only to employment rate for individuals without high schoolCalifornia with 84. Per capita, Massachusetts maintains shows a downward trend over the same period.a substantial lead. Full-time employment rate by education, Massachusetts, 2005, 2009, 2010Entrepreneurship has remained vibrant and well 2005 2009 2010 77.0% 75.8% 80.0% 73.7%supported in Massachusetts even amidst economic 69.9% 68.0% 65.9%uncertainty and a slowdown in business establishment 70.0% 63.8% 61.7% 60.1%openings. Employment rate of population ages 25-65 60.0% 47.1%In 2010, the number of business establishments opening 44.8% 50.0%in Massachusetts fell to its lowest level since 1995, 40.0% 34.2%reflecting the slow economic recovery from the recent 30.0%recession. Four of the LTS, including Massachusetts, hadfewer business establishments opening in 2010 than 20.0%2009. Yet, entrepreneurial activity, estimated by the 10.0%Kaufman Foundation as the percentage of businesses 0.0%started by people who did not previously own a No high school High school or Some college, less than Bachelors degree diploma equivalent 4-year degree or higherbusiness, increased in Massachusetts and nationwide.This estimate increased nationally from 0.28% of the Source of all data for this indicator: US Census Bureau, Current Population Surveypopulation during 1998-2000 to 0.33% during 2008-2010, while it increased in Massachusetts from 0.16% to0.29% during the same time periods. New businesses inMassachusetts were also being relatively well funded. In2009 and 2010, venture capital going to startup, seed,2011 Index of the Massachusetts Innovation Economy 7
  9. 9. Highlights continuedMassachusetts’ appropriations for public higher Interest in Science, Technology, Engineering, and Matheducation continue to decline, whether viewed per (STEM) fields is increasing among Massachusetts’ highstudent, per capita, or relative to the size of the school students, but the state is still 8.7% below theeconomy. national average.Massachusetts’ appropriations per student in public In science and mathematics, Massachusetts’ highhigher education are now 6.9% below the US average, school students outperform their US peers and arecompared to 2003 when they were 23% above. From highly competitive internationally. Their interest in2009 to 2010 appropriations fell 2.2% while enrollment STEM careers had remained notoriously low whenrose 6.3%, resulting in a 8.0% decline in appropriations compared to the LTS, but a comparison between 2006per student. Among the fifty states, the size of this gain and 2011 shows the gap between ability and interestis in the middle of the pack being 28th overall. has narrowed. While in 2006 the percent of high school students intending to major in STEM fields was lowest in Massachusetts among the LTS, by 2011 the state had moved up the rankings to sixth out of ten. Also in 2011,Intended major of high school seniors, Massachusetts, 2002-2011 the percentage of Massachusetts’ high school students5,000 intending to major in STEM fields reached the highest4,500 Engineering & Engineering level since record keeping began eleven years ago. This Technologies4,000 increase was driven largely by interest in engineering &3,500 Biological Sciences engineering technology majors and biological sciences3,000 majors. Interest in computer and information sciences Computer &2,500 Information Sciences declined steadily between 2003 and 2008, but has2,000 Physical Sciences started to rebound since 2008.1,5001,000 Mathematics & Statistics 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: The College Board8 John Adams INNOVATION Institute
  10. 10. IntroductionMASSACHUSETTS IS ONE OF THE WORLD’S LEADING and add or subtract measures and whole indicators. Ourinnovation economies, and one of its most distinctive Advisory Committee strives to preserve independencecharacteristics is its ability to continuously reinvent and long-term thinking, seeking to inform policyitself. Throughout its history, the state has excelled— priorities without inferring conclusions or makingand often has led the nation and the world—in pushing recommendations that follow what is fashionable inthe frontiers of science and creating new domains of policy and management circles. The Index highlightsresearch and technology. The innovation that takes the multiple dimensions of the ecosystem, but refrainsplace here has fueled the rise of new industries such as from suggesting simplistic causal relationships anddigital technology, biotechnology and medical devices recommendations for complex problems. We offerand transformed established industries with new interpretations but leave the conclusions to an informedprocesses, practices, and tools, like the machinery of audience.mass production and the analytical instruments servingtoday’s research enterprises. This year the Index once again documents the commanding position of the Massachusetts InnovationThe self-renewal capacity of our economy rests Economy nationally and worldwide. Massachusettsupon individual creativity and is amplified by a rich continues to be a global leader in research andinnovation ecosystem. Thousands of entrepreneurial innovation. Eighty measures within the 25 indicatorsand creative people choose Massachusetts to learn, examine and benchmark our innovation economyinnovate, work, and live, and they benefit enormously along multiple dimensions in five categories: research,from our vibrant environment of universities, technology and business development, capital, andlaboratories, companies, hospitals, private and public talent. We hold leadership positions—sometimesinvestment, and diverse business services. globally—in many measures. Relative to the size of our economy we attract a disproportionate amountSince its first release 15 years ago, in 1997, the Index of of federal research dollars. We publish more academicthe Massachusetts Innovation Economy has examined publications per capita than anywhere else in theand benchmarked the state of our innovation world. In our most prized natural resource, our people,ecosystem. With the guidance of the Index Advisory Massachusetts excels by having the most educatedCommittee, the Index has established a national and workforce in the country and we continue to attractglobal standard for quality and objectivity among the highly educated individuals. By other measures theuniverse of publications that seek to measure regional picture is not as good. While we rank first in ourinnovation-based economic trends. In Massachusetts, amount of Small Business Innovation Research (SBIR)the Index helps inform evidence-based decision-making dollars per capita, attracting nearly three times morein industry, academia and government. As a data- than our next closest competitor, our share of nationaldriven communications tool, it signals the importance SBIR awards has declined since 2000, though this declineof innovation in our economy and triggers attention, appears to have stabilized. Similarly, we lead in ventureconversations, and media references. capital (VC) investment per capita, but our share of national VC investment is declining as other states catchThe Index focuses on data that highlights what merits up. We also face the ever-present challenge of findingthe attention of policy, academic, business and civic ways for the un- and underemployed and less-educatedleaders in the state, including both emerging strengths to acquire the skills necessary to work in our innovationand opportunities and worrisome trends and current economy industries.challenges. We update indicators every year in responseto the evolution of our economy and new or more While quantitative assessments are at the core ofprecise knowledge about the innovation process. We the Index, we recognize that not all truths can bebring additional or more accurate data sources to bear, measured. That is why the Index incorporates a special2011 Index of the Massachusetts Innovation Economy 9
  11. 11. analysis section whenever pertinent. Many emerging In the pages that follow five individuals share withtrends, opportunities and concerns in our innovation us concrete examples of innovation and businesseconomy escape easy categorization and require special opportunities at the intersections of innovationattention. They are hard to quantify and only become in Massachusetts. Ted Acworth shares with us anevident through in-depth exposure to our regions and inspiring example of what happens when advancedour research, innovation, and industry communities and technology intersects with design and the arts toare captured best through a combination of anecdotes, reinvent an ancient art and build a successful business.stories, and empirical evidence. Richard Himmelwright discusses the potential of digital printing to revolutionize the textile and apparelIn this year’s special analysis section, we examine a industries and James Watkins discusses roll-to-rollphenomenon, interdisciplinary innovation, made technology as an emerging example of technologypossible by a distinctive feature of the Massachusetts borne out of nanomanufacturing research. Both ofInnovation Economy: its diversity. these technologies use cutting-edge research and new technology in revolutionary applications to enhanceUnlike other regions and emerging innovation the competitiveness of old process-based industries.ecosystems elsewhere, which may have one or two Building on her experience at MIT, Liz Reynoldssuccessful industries, Massachusetts’ universities, describes how universities perform interdisciplinarycompanies, and entrepreneurs excel in numerous fields, research to respond to the world’s most pressingfrom design and architecture to biopharmaceuticals, challenges while reflecting on ways to facilitate thisrobotics, and social media. They embody a staggering type of research. Richard Watson reflects on howarray of research, innovation, and entrepreneurship design can play a key role in helping businesses bettercapabilities that have been developed and leveraged link technology, markets, and users and reminds us thatsince the Industrial Revolution—and at an accelerated understanding people and culture is often as importantpace since World War II. In recessions, this diverse as technical expertise in order to innovate successfully.portfolio of industries and capabilities dampens theeffects of downturns in our economy. In times of Together, these five voices reflect on the organizational,major industrial restructuring or decline, capabilities talent and funding challenges of research andare redistributed and recombined in surprising ways, innovation at the intersections and on the possibilitiesfueling the rise of novel business segments and to accelerate and amplify what happens there. Theysometimes of whole new industries that lay new remind us that connecting the dots in our diversifiedfoundations for prosperity. and ever-changing portfolio of research, innovation, and business capabilities in Massachusetts offersIn good and bad times, conversations that cross the numerous opportunities for innovation. Just lookboundaries of the diverse fields and industries in our at what already is emerging. Systems biology andeconomy lead to the discovery and pursuit of some bioinformatics thrive where biology and computingof the most exciting and promising innovation and blend. Mobile computing is transforming a vastbusiness opportunities. For decades, these interactions swath of life and business, from marketing andat the intersection of disciplines, industries, business entertainment to medicine. Advanced materials andsegments and technology domains have been a key digital technologies are driving incremental anddriver of technological, business and industrial change radical innovation in energy generation, storage, andin our economy. The medical devices industry, for transmission. Design is transforming how we thinkexample, emerged at the intersection of medicine and and organize for innovation in industries like financialanalytical instrumentation. And yet what happens services and healthcare. They also remind us of theat the intersections of innovation is often poorly enormous potential for innovation by integrating newunderstood.10 John Adams INNOVATION Institute
  12. 12. knowledge and technology into established processes communities, and launch projects. They are precursorsand business segments that sustain and create jobs of innovative action.right now in existing industries. From construction and manufacturing to textiles, innovation in what As the Index enters its 15th year, business, policy,exists already is as important as developing completely and academic leaders in Massachusetts are morenew products and industries. Himmelwright writes aware than ever before about the importance ofsuccinctly: “Everything we do does not have to be research, innovation, and entrepreneurship capabilitiesbrand new.” as foundations of our economy. Similarly, our understanding of the innovation process and its impactBuilding collaboration and promoting the emergence on the economy continues to increase. In the upcomingof new relationships and communities that cross the year, the Index Advisory Committee will lead an effortboundaries of disciplines and industries is a powerful to envision and implement ways to make the Indexcatalyst of discovery and innovation. How do we do more useful, more relevant and more inspiring. Wethis? One way is through the provision, maintenance, need, for example, to gain a deeper understanding ofcreation, and management of opportunities and spaces emergent phenomena that escape easy quantification,for dialogue and exploration among specialists and such as how our diversified technological and industrialexperts from different fields and industries. capabilities recombine and lead to novelty at the intersections of innovation.We find explicit or implicit references to this ideain the commentaries. Liz Reynolds introduces the Complex sociotechnical phenomena like innovationconcept of “public space” to highlight its significance.1 require multiple lenses to be understoodWe find these spaces in our universities, in research comprehensively. Inevitably, many aspects cannotcenters such as James Watkins’ Center for Hierarchical be measured easily or at all. That is the case of whatManufacturing at UMass Amherst and Liz Reynolds’ happens at the intersections of innovation, but weIndustrial Performance Center at MIT. There, can still take action to seize the new opportunitiesinterdisciplinary teams engage in research that we see and sense. To do so, we must use every tool atcombines multiple science and engineering disciplines our disposal and sometimes we need to invent newwith an understanding of business, society, and politics ones. We need to embrace novel ways to promoteto examine big issues like energy innovation, climate innovation and industry clusters—such as throughchange, and nanoscale science and engineering. We the preservation, creation, and management offind these public spaces throughout regions and public space. And in our economic developmentindustries in the state, in regular meetings such as policy and practice, we need our industry executives,Mobile Mondays and Mass Innovation Nights. We find academic leaders, and government policymakersthese spaces in the hallways, kitchens, and seminar to balance coordinated activity with decentralizedrooms of the Cambridge Innovation Center, where creativity; a focus on existing markets with new andentrepreneurs bump into each other and talk. We find unexpected ones; and an emphasis on urgent currentthem in conferences, such as MassTLC’s Unconference, needs with longer-term concerns. It is in the crevicesTedX Boston, and IdeaMill in Holyoke. We find them and intersections of our innovation ecosystem, andin entities like the Robotics Cluster and the Design the countless conversations at the margins, whereIndustry Group of Massachusetts that Ted Acworth the future of our economy is emerging. Freedommentions. All of these are public spaces where of exploration, ambiguity, variety, serendipity andmeetings, dialogue, and exploration help combine surprise: These are the sources of innovation.knowledge, generate new ideas, build interdisciplinary1 The concept of public space was introduced a few years ago at the MIT Industrial Performance Center as a conceptual device to apprehend a “missing dimension” of theinnovation process. See Lester, Richard K. and Michael J. Piore, Innovation: The Missing Dimension. Harvard University Press, (2004). See also Breznitz, Dan “Collaborative publicspace in a national innovation system: a case study of the Israeli military’s impact on the software industry,” in Industry and Innovation Vol. 12 No.1 (2005).2011 Index of the Massachusetts Innovation Economy 11
  13. 13. Island of Misfit Toys Edward “Ted” Acworth, Ph.D., Founder and CEO, ARTAIC – Innovative Mosaic efore becoming a full-time on Earth to start and grow our business. entrepreneur I spent most of We operate at the intersection of some my life in academia in New York of the world’s most powerful innovation City, Palo Alto and the two clusters. We manufacture our product in Cambridges (Massachusetts and Boston for customers locally, in the US, and England). Everywhere, promising abroad, benefiting from the state’s rich and research was happening at the intersections diverse history in manufacturing and its of disciplines. Think about robotics, which concentration of advanced manufacturing can combine mechanical engineering, capabilities. It’s little known today that electronics, control systems, software, vision Massachusetts is where the American and artificial intelligence. I have always been industrial revolution began in the 19th excited by bridging “stove-piped” disciplines. century, and that today 8,000 Massachusetts Throughout my life this inclination has led manufacturing companies make it the 4th me to look for opportunities where few largest sector in the State. Massachusetts people have. Interdisciplinary niches are manufacturing is a $40B growth industry. Our novel and exciting, full of opportunities to process is automated with robotics, and we create breakthrough products, often less benefit from our $1B robotics cluster—one competitive, tap (and create) big markets, of the strongest in the world—growing and make unexpected contributions to at 17% per year. And we also benefit society. from Massachusetts’ world-class cluster of excellence in design. We have a large Artaic was born out of a search for concentration of architecture firms and opportunities between disciplines. Founded around 45,000 architects, graphic designers, in 2007 as an MIT spinout, we are now product designers, and other creative an early growth stage company based in professionals. Boston’s Innovation District. Artaic aims to revolutionize the ancient mosaic art form Like any start-up here, Artaic benefits by through “mass customization.” Just as being part of Greater Boston’s innovation custom print technology transformed the ecosystem. We have cutting-edge research, carpet industry 30 years ago and spawned education, and many entrepreneurial support a multibillion-dollar industry, Artaic aims to resources such as venture capital. And yet, transform the $76 billion global tile industry. it was not easy to fund the launch of Artaic. We create beautiful custom tile mosaics using We defy categorization. Our business does our proprietary technologies that combine not fit into the standard pattern recognition robotics, advanced manufacturing, and of venture capital. We do not fall into any computer aided design systems, and our of the usual venture capital focus areas such access to artists and design professionals. as IT, biotech or medical devices. Venture Our customers now include Sheraton, Hyatt, capitalists invest where their funding model and Tropicana, and locally our mosaics are makes sense, and it was hard to make sense on display at Salem Five Bank, MIT, Legal Sea of our market and business model. Moreover, Foods, G2O Spa, the Cambridge Innovation manufacturing and robotics are perceived Center, Boston Children’s Hospital and many as capital-intensive and not explosive- other commercial and residential locations. growth, venture-grade investments. “Maker” Last year we piloted a residential e-commerce companies have a hard time raising capital. sales channel with the first-ever customizable But Artaic has found funding from a variety product at The Home Depot. of sources: founder investment, sweat equity, friends and family, loans, grants from the Given what Artaic is, what disciplines and National Science Foundation, prize money skills we draw upon and what markets we tap from MassChallenge, barter. And best of all: into, Massachusetts is arguably the best place Revenue.12 John Adams INNOVATION Institute
  14. 14. Our most valuable asset is people. A benefit the Robotics Cluster organized by the Mass. of Artaic’s uniqueness has been that Technology Leadership Council, and more finding qualified employees has not been recently the Advanced Manufacturing a challenge. Massachusetts and Boston Collaborative. In addition to bringing visibility concentrate some of the most talented to our many innovation communities, scientists, engineers, designers, artists, and they create spaces to build relationships, business professionals in the world. We identify common issues, connect with look for people with a mix of technical, art, other entrepreneurs and with educational business and making—polymaths and life- institutions, discover business opportunities, long learners used to change, with multiple and launch collaborative projects. experiences and careers, and respectful of Importantly, these spaces help connect across other disciplines and approaches. STEM is industries and disciplines, and foster ideas not enough for us. One of our employees and successful high-growth businesses at the double-majored in art and math. Another intersections of innovation, like Artaic. started school in engineering and then switched to graphic design while continuing Artaic is somewhat of a misfit, as are most to take courses in economics, engineering, businesses at the intersections of innovation. and advertising. Yet one more started These businesses are crucial to build the in architecture, moved to sculpture and future of our economy, but it takes time materials, and after school acquired for others and for markets to make sense management experience as a professional of them. Our funding community and set builder. For our production group we policymakers would do a great service to have partnered with Artisan’s Asylum to hire entrepreneurs and businesses like mine, artists and makers. if they remained attentive to emerging innovation and business opportunities Massachusetts has plenty of resources outside of traditional focus areas. In Artaic available to help young businesses get off we embrace diversity, embrace the misfits, the ground. I have been pleasantly surprised and encourage multidisciplinarity. Maybe at the number of public initiatives and quasi- Massachusetts is, and should be, like an Island public agencies. But there is little public of Misfit Toys—a sanctuary where winged awareness about what is available. When lions fly, cowboys ride ostriches, and robots I was looking to locate the Artaic facility make art. Imagine the possibilities. I searched for months until I stumbled across the artist loft space newsletter. From there I stumbled onto Create Boston, and that led to the City of Boston helping us Ted Acworth, Ph.D., founded Artaic LLC in locate at 21 Drydock Avenue and a Boston 2007—a groundbreaking provider of “mass Redevelopment Authority loan. I wish there customized” artistic mosaics for the $76B had been a single place or web resource global tile market. Artaic’s innovative design to point me in the right direction quickly. software and robotic manufacturing systems Making the array of currently available enable the creation of unique tile solutions resources more findable to entrepreneurs with short lead times and exceptional value. would make a real difference, as would connecting and mutually reinforcing these resources. Massachusetts also has myriad opportunities to connect through initiatives such as Design Museum Boston, the Design Industry Group of Massachusetts (DIGMA), MassChallenge,2011 Index of the Massachusetts Innovation Economy 13
  15. 15. Manufacturing Innovation Richard S. Himmelwright, Ph.D., Cold Spring Technology, Inc. & 27 Gaylord LLC ver the last year, I have been new technology enabling existing businesses encouraged by how business, and improving manufacturing processes. academic, and policy leaders are However, it seems this often does not receive recognizing that Massachusetts the focus needed to allow the significant and the United States cannot progress to be realized. maintain our leading position in the global economy without a solid One example that we have worked on manufacturing base. Innovation is essential to over the past several years is directed at maintain our strength in manufacturing and bringing innovation to the Massachusetts regain what we have lost. textile industry. At the start of this project I was surprised to learn that there was still I have been fortunate to grow up in a Massachusetts textile printing industry Massachusetts. Here, I had the privilege of in existence. Well, there is. A driven group working in Edwin Land’s Polaroid when it was of people is working hard to maintain a still a major force in our state. At Polaroid competitive position in a difficult worldwide I learned that innovative manufacturing is marketplace. as important as new product development. Polaroid was a vivid example of how The textile printing industry is a process- innovation in manufacturing was the based manufacturing industry with well- engine for a large part of the success of established processes in place. The need for a Massachusetts industries. But we have missed competitive advantage to help maintain and some key opportunities to bring innovation grow business volume is at a critical point. to existing industries. To be sure, we The Massachusetts Office of Technology constantly need to push the limits of science Assistance, working with MTC’s John Adams and technology and develop totally new Innovation Institute, has put energy and products and processes, but we can have a resources into understanding this industry tremendous impact on existing industries by segment and identifying areas of potential infusing innovation to established processes investment. My company has worked on and businesses. this project now for a few years, and we started with a simple question: Can high- My personal focus and source of pride speed digital ink jet printing impact the and accomplishment has come from the textile printing industry? We discovered that commercialization of technology in very the answer is yes. After working through large and small companies. I worked in the a detailed collaborative process, we found chemicals and coatings industry for almost that this technology can make a huge thirty years, and I have devoted much of difference in the textile printing process. my career to bring new technology to Implementing high-speed digital ink jet process-based manufacturing businesses. printing in the textile and apparel industry While leading research and development will allow economic and profitable short at a large paper and film coating company runs, near-zero inventory, very rapid new based in Western Massachusetts, we brought product development cycles and an improved substantial innovations to the imaging, competitive position for the industry. medical, electronics and other industry segments while dramatically reducing the The key step in the project required a team impact on the environment. The introduction of individuals with broad experience in of water-based and 100% solids radiation- many technologies. The use of digital ink cured processes advanced manufacturing jet printing has transformed many printing capabilities and also reduced the industry segments. However, even though environmental impact substantially. Like this ink jet printing has become one of the experience, there are numerous examples of most advanced industry processes currently14 John Adams INNOVATION Institute
  16. 16. being utilized in many varied production process industries. Our project was possible environments, bringing digital ink jet printing thanks to a strong collaboration between to high speed textile printing required government, academia and industry that one key innovative step. Recognizing that we would like to build on in the future. The there was a stabilized web carried in the potential is enormous, and I believe it can existing rotary screen press was the single make a difference for manufacturing in major breakthrough in the project. This Massachusetts. There are many examples of understanding allowed the team to realize very large investments in specific technology that a printing unit could be constructed segments such as biotech and energy and retrofitted onto existing, expensive production; which are indeed necessary for hardware, thereby enhancing the capabilities our country to move forward. However, of textile printing companies. in many instances these huge investments have yielded very little in overall economic The project will also bring radiation curing or job growth. Further, the focus on large capability to the high-speed textile printing “home run” investments, I believe, has driven machines. This cure technology is advancing funding away from more modest investment at a very rapid rate. The benefits include opportunities that could enhance, grow and reduced solvent use, dramatically reduced sustain existing manufacturing sectors. energy use and improved product quality. In the most advanced state of this technology Bringing innovation to established the use of blue-light cured inks, being industries is as important as establishing developed at UMass Dartmouth, could new industry segments for Massachusetts’ potentially reduce energy demands further continued economic strength. And there is and eliminate the dangers of UV radiation a very satisfying feeling of accomplishment from the process. associated with seeing products that are already utilized by people and The hurdle for acceptance of new technology businesses in various applications being and taking the risk involved with being the manufactured more efficiently, safely and first to adopt new technology is always in an environmentally friendly manner. This high, particularly in an economic downturn. example shows that the development of all Training manufacturing technicians to run new technology is critical to our success, but and maintain somewhat more sophisticated not the only thing we need to drive forward. equipment is also challenging. However, the Enhancing established processes with new basic elements of a manufacturing process technology and with alternative processing require focus on product quality, efficiencies steps is vital to the prolonged success of and high yield. These characteristics are manufacturing in our state and our economy generally part of a company’s manufacturing as a whole. Everything we do does not have culture if the company has existed for any to be brand new. length of time. Providing adequate training and hands-on run experience will be a critical element in achieving ultimate success from this project. Richard Himmelwright, Ph.D., a Massachusetts native, is the founder of Cold Massachusetts is fortunate to have a stronger Spring Technology, Inc., a company that economy than many other states as we develops materials and coatings for a variety navigate a difficult economic environment. of applications. He also co-founded a new Massachusetts is also fortunate in that venture, 27 Gaylord LLC, that is focused on there are many opportunities to expand developing manufacturing technology for the type of collaborations required to innovative new products. generate true competitive advantage for our2011 Index of the Massachusetts Innovation Economy 15
  17. 17. Intersections that Matter Elisabeth Reynolds, Ph.D., Executive Director, MIT Industrial Performance Center oday we take for granted airplanes, the complexity of the challenge the idea that innovation has increased as has the knowledge required is enhanced by a diverse to tackle it. As the level of specialization range of perspectives and needed to understand a particular issue has multidisciplinary teamwork. deepened, research in teams rather than This was not always the by individuals has become the norm, teams case. In the 1940s, MIT built Building 20, that often represent diverse backgrounds a warehouse of sorts for the growing and training. It also turns out that some Radiation Laboratories that were acting as of the best research (as measured by the Defense Department’s research center citations) is conducted by teams that work during World War II. After the war, Building near each other, i.e., collaboration within 20 became the destination for a hodgepodge close proximity produces some of the best of departments and campus activities that work. This last point seems out of step needed space: electronics, nuclear science, with a world in which global connectivity is linguistics, acoustics. There was no rhyme or increasingly enhanced and communication reason to which researchers or departments across distances practically frictionless. Yet, were located in the building, and therein lay the value of face-to-face interactions and the beauty of it. The juxtaposition of various collaborations persist. departments and teams of researchers crammed together produced an enormously If interdisciplinary teams working in close creative and innovative environment that led proximity are a critical component to to many postwar scientific breakthroughs. the innovation process, how can we best promote this? One important element is the Seventy years later, research teams, creation of “public spaces” that allow for the departments and buildings, whether in a kinds of discussions that lead to innovative university or company setting, are expressly breakthroughs. Based on work conducted created with this interaction of diverse at MIT’s Industrial Performance Center (IPC), perspectives in mind. The Broad Institute, Faculty Co-Chairs Richard Lester and Michael created in 2004, focuses on issues related Piore describe the innovation process as to the biological sciences bringing together comprised of two dimensions1—analysis, researchers from a wide variety of fields, and which focuses on specific problem solving, in addition, from two separate institutions, and interpretation, an open-ended process Harvard and MIT. The recently-opened Koch that allows for exploration and ambiguity Institute for Integrative Cancer Research around a common area of interest. While also is designed for maximum interaction many teams and organizations can excel at between diverse teams of researchers the analytic process, the interpretive process that cross the boundaries of engineering, is more challenging to develop and sustain. medicine and the life sciences to focus on Creating “public spaces” where teams can curing one of society’s deadliest diseases. engage in the interpretive process, whether within a company, a university or a regional As has been suggested elsewhere, the “community of practice”, is a critical part most interesting questions and challenges of building an environment that supports that exist today are at the intersections interdisciplinary, innovative work. of disciplines. Whether it is curing cancer, developing renewable energies or building 1 Innovation: The Missing Dimension, Harvard University Press, 2004.16 John Adams INNOVATION Institute
  18. 18. Two current projects at the IPC highlight the across industry clusters. Creating the space value of this kind of space, both addressing for these conversations requires incentives to complex issues facing the country today. bring individuals to the table. In universities, MIT’s Production in the Innovation Economy interdisciplinary research often does not project is an institute-wide Commission reward academics as much as individual work, begun in 2011 to look at the relationship while companies can be concerned about between innovation and production, and protecting intellectual property. Financial whether there are ways the U.S. can gain resources can support and encourage these more of the downstream benefits from its conversations, for example, with funding for innovative capacity. The research team draws collaborative research centers and projects from several departments in engineering and shared infrastructure. (aerospace, electrical, mechanical, nuclear) as well as political science, economics, and All of this requires a culture conducive management. This allows for inquiry not to the open, interactive, cross-cutting only into new technologies and how they conversations required to spark ideas and are changing manufacturing processes sustain collaboration at the intersections of across industries, but also the economics of innovation. This point might be the most manufacturing, the management of supply challenging to address because culture is not chains and global operations, and the role easily fixed with money—though that helps— public policy plays in affecting firm decisions or public policy. But the building blocks for about production. Without this multi-faceted the culture we’d like to foster are already approach to the topic, there would be an here. They are in the networks of people who incomplete picture of the importance of share common and complementary interests, manufacturing to the U.S. economy. a high level of mutual trust, and that engage in collaborative, often risky, activities. Likewise, the IPC’s Energy Innovation Nurturing these “trust networks” takes time Project necessarily takes an interdisciplinary but the rewards can be significant, and the approach to the challenge of clean energy process itself an exciting one. and energy independence in the U.S. The project assesses the strengths and weaknesses of the US energy technology innovation system, considering the complexity of Elisabeth Reynolds, Ph.D. is the Executive government incentives, regulations, markets, Director of the MIT Industrial Performance and public and private institutions. Again, Center (IPC), a multi-disciplinary research understanding the energy industry and how center dedicated to the study of innovation, to build a system less dependent on fossil productivity and competitiveness in the U.S. fuels cannot be understood or addressed and around the world. from just one discipline or perspective. We have many examples in Massachusetts where this kind of interdisciplinary approach and “public space” exists—within innovative companies, universities, and within and2011 Index of the Massachusetts Innovation Economy 17
  19. 19. Roll-to-Roll Innovation James J. Watkins, Ph.D., Director, NSF Center for Hierarchical Manufacturing, University of Massachusetts – Amherst assachusetts has been the for progress in printed electronics, this home of many manufacturing intersection of two technologies—volume innovations over the years production on continuous rolls of film, in which basic materials are and nanofabrication technology—brings transformed into sheets, many opportunities to the fore. The diverse rolls, spools, reams and product applications of roll-to-roll range even featherweight wisps of technically high on the value chain and match well with sophisticated products. The textile industry Massachusetts’ advanced manufacturing gave Massachusetts its legendary fabric companies and our state’s skilled work force. mills. Our paper industry, with nearly three They include not only electronic and energy dozen mills in the Bay State today and dozens devices such as solar cells, sensors, antennas, more paper-converting and nonwovens memory, displays, capacitors and batteries, companies has historically been innovative at but also many other functional materials such transforming ordinary materials into high- as barrier layers, security films, transparent value sheet products. These papermaking conductor layers, magnetic metamaterials, origins, often in combination with chemical chem/bio shielding, water-repellent surfaces, and material technologies, have given rise to filtration/separation membranes and other successful technology-based Massachusetts products incorporating nanomaterials-on- businesses in diverse fields such as instant film. photographic film, separation membranes, filtration media, advance printing and Roll-to-roll nanomanufacturing comes with holographic coatings, polymer anti-shatter many benefits. These include low unit costs, films for car windshields, and flexible solar high-volume rates of production, efficiency panels. through sequential application of successive layers on a web, energy and materials We are now at a new intersection of efficiency, versatility in the types of devices technologies that can potentially spur that can be made, form-factor benefits of innovation and economic growth. Thanks flexibility and low weight, and relatively to a global trend toward mass production benign and plentiful constituent chemicals of flexible electronic displays, solar cells and and materials. many other thin-film materials and devices, manufacturers are looking for innovative During the past twenty years, many in continuous-feed processes for printing the nanotechnology research community devices on flexible substrates. To meet have strived to achieve production-ready industry needs and consumer demand, roll- solutions from the promise of materials to-roll technology is moving in the direction and device technology at the nanoscale. At of extreme miniaturization of critical feature the University of Massachusetts Amherst’s sizes to the nanoscale. Many of the new Center for Hierarchical Manufacturing, techniques of roll-to-roll nanomanufacturing supported by the National Science involve using chemical and materials Foundation, we are creating roll-to-roll technology to print devices with features nanomanufacturing advances that open the smaller than 1/1000 of the width of a human door to true high-volume printed nanoscale hair on thin, flexible film on a moving web. device production on a moving web. Our scientists tackle industry-relevant problems Seen by industry as a game-changer18 John Adams INNOVATION Institute
  20. 20. such as continuous nanoscale patterning right time for this technology. For American at the device level, achieving nanometer- competitiveness in printed electronics and scale smoothness in the device layers, and nanotechnology-enabled products, the printing or coating of hybrid polymer- development of industrial ecosystems at the nanoparticle materials for desired device regional level can be an effective strategy. performance. In contrast to the deposit- Roll-to-roll technology and tools are in many and-etch-away approach typical of silicon ways high-tech extensions of techniques that wafer fabs, we focus on the chemical and are already used in the advanced coatings, material interactions between components, printing and flexible electronics industries. It creating active nanohybrid layers in which is possible for Massachusetts companies that the system spontaneously assembles itself are engaged in these sectors to readily climb into predictable and adjustable nanoscale the product and device value chain, creating structures as the coating process proceeds. jobs and opportunity. R&D partnerships with This research effort originating in UMass institutions such as UMass Amherst, MIT Amherst’s Polymer Science and Engineering and others working in this area can catalyze Department is one of the few in the world further advances. where nanoscale fabrication techniques meet roll-to-roll platform technology. In The Patrick Administration has been partnership with Massachusetts companies, strongly supportive of innovation in this national center has designed and built advanced manufacturing. It is my hope several roll-to-roll pilot tools to demonstrate that Massachusetts’ industry innovators how the advances produced by the CHM can will converge around opportunities such as be scaled to viable manufacturing platforms. printed electronics and roll-to-roll processing for the economic betterment of our state. Research and development in the US of Academic research centers like ours are ready roll-to-roll nanomanufacturing is modest to work with industry to translate laboratory compared to more vigorous technology proof-of-concept to scaled high-rate development in Asian and European integrated processes, and thus contribute research centers and companies. Significantly to Massachusetts’ innovation ecosystem for more emphasis has been placed on advanced manufacturing. nanomanufacturing of devices using a semiconductor production paradigm. However, when costs of up to $25,000 per square meter for fab-built chips are compared James J. Watkins, Ph.D. is Professor of with target costs of $25 per square meter for Polymer Science and Engineering at the roll-to-roll device processing, it is logical that University of Massachusetts Amherst and over time more products will gravitate to the Director of the NSF Center for Hierarchical low-cost process. Manufacturing. Massachusetts is in the right place at the2011 Index of the Massachusetts Innovation Economy 19
  21. 21. Integration through Design Richard Watson, Partner and Co-Founder, Essential assachusetts has innovation several others—who are creating exciting in its DNA. Our history is tied new product and service solutions. With to a culture of innovation roots in interdisciplinary design, Essential that has transformed over started 10 years ago, and has evolved from time adapting to changing a product development focus to a wider economic environments, creating set of capabilities that help create human- some of the most disruptive technologies, centered solutions and experiences across products and systems in the world. As our many industries and contexts. We bring innovation culture evolves, our rich science together a multidisciplinary community of and technology clusters, higher education researchers, industrial designers, interface system, financial sector and creative economy designers, mechanical engineers, and others. continue to inspire entrepreneurs to grow a An interdisciplinary culture and approach myriad of new businesses. helps us reveal hidden market opportunities and deliver compelling solutions that bring Massachusetts consistently targets its together technology, business and the human innovation culture to unexpected areas when experience. others have not even seen the opportunity. Today a revolution is unfolding enabled by One of our past clients MeYou Health, a the ability to connect quickly and simply with local healthcare start-up that was founded our social networks through technology. This to engage, educate and empower people to revolution of social interconnectedness is pursue healthy lifestyles. MeYou Health is combining new strengths of Massachusetts’ successfully combining social gaming, which innovation (such as cloud computing, digital builds on Massachusetts’ long history in game gaming, social networking, and mobile development, with new applications that communications), with established industries change how we think about and manage in which the state has a longstanding our health. The same game mechanics, now reputation. Unexpected combinations evolved beyond an entertainment focus, are are expanding the ways we think about being deployed in social networks to create healthcare, mobility, education, energy products that promote sustained healthy management and the way we live in our change and well-being and engage with homes, creating new user experiences and people across a vast range of interests and business models along the way. Cloud- needs. For example “The Daily Challenge” based social interconnectedness is opening a utilizes email and apps to connect people whole new set of user-driven innovation and with achievable daily tasks. The social value business opportunities. of the design is a feeling of more control and convenience over maintaining a positive sense To capture these opportunities requires of wellbeing. By empowering individuals entrepreneurs to "connect the dots" between to make small-but-positive steps on a daily diverse emerging technologies and cultural basis, it is helping individuals and their social trends to create new business models that are networks achieve better and longer-term increasingly defined by an enhanced human well-being outcomes. connection. Our innovation and design consultancy, Essential, operates in this space. MeYou Health is not alone. Several other We partner with entrepreneurs and business local innovators such as Healthrageous and leaders to help them connect ideas with Patients Like Me are all creating compelling business needs, understand what is possible connected health solutions driven by the with technology, and how it all relates to ability to not only analyze data, but to dissect users. We are part of a local community of it, visualize it, and present it in a way that design and innovation consultancies that enables compelling new patient experiences. includes IDEO, Continuum, Mad Pow—among Connected health platforms are now a central20 John Adams INNOVATION Institute
  22. 22. component in the portfolio of most major here creates a tremendous opportunity for healthcare providers. These technologies are the Massachusetts economy. From the tech not only transforming healthcare delivery, sector, to life sciences to clean energy to but are also being applied to workflow manufacturing, the design community is a productivity, disease management and massive resource. patient compliance. They will play a major role in reshaping our healthcare system. I am encouraged by the efforts of Massachusetts’ colleges and universities The same social interconnectedness that that are bringing together engineers, is driving connected health is fueling designers, and artists in projects that innovation elsewhere. One example is intersect technology and society. Such the contagious explosion in traditional learning experiences help our future sharing, bartering, lending, renting, and professionals, employees and leaders to swapping, now reinvented through online develop the integrative capacity to connect social networks. An early success story was across disciplines, appreciate different ways Zipcar, now global but founded and based of thinking, and reinforce the collaborative in Cambridge. Based on old European car spirit necessary for human-centered sharing models, ZipCar focused on students innovation. Beyond our schools, we need and young professionals who didnt own a more spaces and more opportunities to build car but needed one occasionally for errands connections between the design community and short trips. In 1999 connecting the dots in and industry. With our strengths in design, this way was visionary. Now companies such science, and technology, Massachusetts has as Relay Rides, which focuses on neighbor-to- a unique opportunity to lead the new wave neighbor car sharing, and the Hubway bicycle of technological, human-centered, and sharing initiative, are further reinforcing connected innovation. the momentum behind this movement. And this model is rapidly spreading to other activities. TaskRabbit allows you to connect with people who can help fulfill basic tasks As a founding partner at Essential, a design such as picking up the groceries and house and innovation in company in Boston, Richard cleaning. ThredUP allows you to buy, sell, Watson is a leading advisor to companies trade or share kids clothing, toys and books. on product innovation and an authority in These are just the tip of the iceberg in a new the field of design strategy. He is also an interconnected and more social approach to accomplished designer of award-winning online commerce that is riding what has been products and services. described as major behavioral shifts among a new generation who doesn’t necessarily value ownership in the same way as past generations. Why own a car? It can be such a burden. Discovering opportunities and making connections at the intersections of innovation between technologies and users requires bringing together science and engineering expertise coupled with a deep understanding of people and culture. With so many science and technology based industries in Massachusetts, the cluster of excellent design professionals that are also2011 Index of the Massachusetts Innovation Economy 21
  23. 23. Massachusetts Innovation EcosystemTaken together, the 25 indicators in the Index examine Researchthe performance of the Commonwealth’s innovationecosystem through several lenses. To help organize and The massive and diversified research enterprisenavigate these indicators, the Index classifies them in concentrated in Massachusetts’ universities, teachingthree categories: economic impact, innovation activities, hospitals, and government and industry laboratoriesand innovation capacity. The sequencing and logic of [Indicators #7 and #8] is a major source of the newindicators suggest how performance in one arena may ideas that fuel the innovation process. Research activityaffect performance in others, as well as overall results. occurs within a spectrum that ranges from curiosity- driven fundamental science, whose application often Economic Impact becomes evident once the research has started, to application-inspired research which starts with betterA key goal of the Index is to convey how innovation defined problems or commercial goals in mind.impacts the state’s economy. One way innovation Academic publications [Indicator #9] and patentingcontributes to economic prosperity in Massachusetts activity [Indicators #10 and #11] reflect both theis through employment and wages in the key industry intensity of new knowledge creation and the capacityclusters [Indicator #1]. Jobs created in the innovation of the Massachusetts economy to make these ideaseconomy are often high paying [Indicator #2], which available for dissemination and commercialization.directly and indirectly sustains a high standard ofliving throughout the Commonwealth [Indicator #3]. Technology DevelopmentThis capacity hinges on the ability of individual firmsto utilize innovative technologies and processes that In close interaction with research activities, but withimprove productivity [Indicator #4] and support the a clearer application as a goal, product developmentcreation and commercialization of innovative products begins with research outcomes and translates themand services. Industry output is a measure of economic into models, prototypes, tests, and artifacts thatactivity [Indicator #5]. An export-orientation is help evaluate and refine the plausibility, feasibility,becoming an increasingly important driver of business performance, and market potential of a researchand overall economic growth [Indicator #6]. Success outcome. One way in which universities, hospitals, andin the national and global marketplaces brings in the other research institutions make new ideas available forrevenue that enables businesses to survive, prosper, and product development by businesses and entrepreneurscreate and sustain high-paying jobs. is through technology licensing [Indicator #12]. Small Business Innovation Research (SBIR) grants Innovation Activities enable small companies to test, evaluate, and refine new technologies and products [Indicator #13]. InIn the Index, innovation is defined as the capacity the medical device and biopharma industries, bothto continuously translate ideas into novel products, significant contributors to the Massachusetts Innovationprocesses and services that create, improve, or expand Economy, regulatory approval of new products is anbusiness opportunities. The Index assesses innovation important milestone in the product developmentby examining three categories of activities that underlie process [Indicator #14].this complex and interactive process. Business Development 22 John Adams INNOVATION Institute

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