In the 21st century, “making things” (i.e., the production of physical goods) cannot be considered in isolation from innovation, product design, and the production and bundling of software and services--all are integrated global activities. To succeed in the current complex environment, companies must focus holistically on “making value” by producing positive customer experiences. The purpose of this project is to clearly define this new context by examining business best practices in the integrated innovation-design-manufacturing value chain; identify educational approaches to better prepare the current and future workforce; and provide recommendations to create an effective environment for “making value” in the United States.

The project will consist of a three-part study. The committee may be assisted by separately appointed expert subcommittees/panels as appropriate composed of members of the committee supplemented by additional experts specific to the focus of each part of the study. The three objectives of the study are as follows:

1. Synthesize a set of best practices for the US-based innovation-design-manufacturing value chain. The committee/panel will hold information-gathering meetings and subsequently prepare a foundational report that identifies the factors at play in “making value” with a sustainable business model. The report will consider the global value chain and the implications for the United States, addressing questions such as the following:

• What measures should be used to assess the condition of the value chain(including innovation, product design, and production of goods and bundled software and services) from the perspective of both companies’ competitiveness and national well-being?
  
• What are thetrends of US-based design and developmentactivities? Do trends in employment, productivity, and wealth generation associated with these activities parallel the trends in production, or are there particular strengths or concerns that differ from production activities?
  
• What business practices could improve the condition of the US-based value chain?
  
• What are some areas of the value chain that are likely to perform well in the United States in the future?

The committee will draw on case studies from a breadth of industries and types of business models; discussions with business leaders from both young and mature companies; and industrial organizational research to illustrate best practices for “making value.” It will hold at least one workshop that will feature invited presentations and discussions with industry experts and others.

2. Identify education approaches to prepare the current and future workforce. The committee will identify approaches in higher education (including universities and community colleges) that prepare students and displaced workers to participate in the high-skill workforce required for the innovation-design-manufacturing value chain, including manufacturing and high-technology services. As appropriate, the committee will consider employer approaches to retrain workers internally. Primarily focusing on engineering and engineering technology/technician education, it will consider the following:

• Educational approaches that prepare the workforce to implement the best practices identified above;

• What if any barriers impede wider implementation of these education approaches, and how educational institutions or private companies can implement policies and practices to encourage wider adoption; and
  
• Education approaches that are likely to prepare students and displaced workers for projected future scenarios for the nature of work in the value chain.

3. Provide recommendations to create an effective environment for “making value.” Building on the findings from the preceding two parts of the study and with additional information-gathering and analysis,the committee will prepare a final report that will provide recommendations for private and public actors to create an effective environment for “making value” in the US-based innovation-design-manufacturing value chain. The committee will review existing research and hold information-gathering meetings to identify promising actions for improving the effectiveness of this environment with respect to both companies’ competitiveness and the nation’s welfare (including employment, quality of life, environmental sustainability, and economic growth). It will consider local, state, and federal policy recommendations for infrastructure, research investments, public-private partnerships, and/or other needs to encourage high-value manufacturing and high-technology service businesses in the United States.