Manufacturing and the importance of innovation...

An article in the Autumn 2011 edition of Strategy and Business pointed out not only how important innovation is to the manufacturer itself, but to the U.S. economy. It stated that; In 2008, 67 percent of all private sector RnD was by manufacturing companies, according to the National Science Foundation. Innovation propels improvements in worker output, capital flow, usage of materials and energy among other components of productivity. Increased productivity leads to faster economic growth and higher standards of living. And from 2006 to 2008, 22 percent of U.S. manufacturing companies reported a new or significantly improved product, service or process, compared with only 8 percent of non-manufacturing companies. Trends of this nature are still relevant today.

From my vantage point as a market strategist and a new product development (NPD) process advisor, for a manufacturer that generates all of its revenue through custom contracts, very little investment is required to explore opportunities that leverage its future with either an improved production process or new commercialized product. A flexible NPD process offers a manufacturer the benefits of a "creeping commitment" and strong guidance to accumulate enough data to support the decision to take the leap!

Please share your thoughts with Dennis at dennisparis@tangerinestrategies.com