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AdvancedManufacturingandSustainableInnovation:

TheThirdWaveofIndustrialandUrbanEconomicGrowth

forMinasGerais

AReporttotheFederationofIndustriesofMinasGerais(FIEMG)

byGlobalUrbanDevelopment(GUD)

October2012

ExecutiveSummary

MinasGeraishassucceededinitsfirstcentury‐longwaveofeconomicgrowth

throughindustrializationandurbanization,madegreatstridesoverthepastdecade

inthesecondwaveofeconomicgrowththroughrisingincomesandgrowing

consumerdemand,andisnowpoisedforathirdwaveofgloballycompetitive

prosperityandproductivitydrivenbySustainableInnovation.MinasGeraisalready

hasdevelopedseveralnewSustainableInnovationPipelines,frombiomedicalto

informationtechnology.ThenextgreatsurgefortheThirdWave,thenewestand

mostdynamicandproductiveSustainableInnovationPipelineforMinasGerais,will

beinAdvancedManufacturing.BrazilcancompetedirectlywithAdvanced

Manufacturingpublicpoliciesandprivatecompaniesthroughouttheworld;and

MinasGeraiscanbecomeoneofBrazil’snationalleadersinthisrapidlygrowing

industrialtechnologyfield.

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GUDrecommendsthatFIEMGcollaboratewithCETECandSENAI,focusingonthe

CETECanditssurroundingarea,includingCarlosPratesAirport,asakeyanchorfora

statewideAdvancedManufacturingSustainableInnovationStrategy,tobe

implementedthroughthesixkeyinitiatives:

1) AdvancedManufacturingSustainableInnovationCenter

2) AdvancedManufacturingBusinessAccelerator

3) AdvancedManufacturingTechnologyIndustrialPark

4) AdvancedManufacturingBusinessAdvisoryServices

5) AdvancedManufacturingSkillsTraining

6) AdvancedManufacturingSustainableInnovationZone

Inthefollowingpages,GUDprovidesadetailedexplanationofthepossibilitiesand

opportunitiesofanAdvancedManufacturingSustainableInnovationStrategy;an

overviewofthestrategicimplementationframeworkforeachofthesixkey

initiatives;andnumerousinternationalbestpracticesandothermajorexamples.In

addition,GUDbrieflyhighlightstwootherpotentialinitiativestobeconsideredinthe

nearfuture:GlobalBranding,andGiftsofNature.

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Introduction

InJune2011,membersofFIEMG’sYouthCouncil,representingFIEMGPresident

OlavoMachadoJunior,askedGlobalUrbanDevelopment(GUD)toprovidestrategic

adviceforthe“Innovation‐LedEconomicTransformationofMinasGerais”overthe

nextseveraldecades.GUDagreedtoassist,andincollaborationwithFIEMG’s

EuvaldoLodiInstitute(IEL),beganworkontheYouthCouncilinitiativeinMarch

2012.Overthenexthalfyear,GUD’steamcarefullyrevieweddozensofdocuments

andreportsfromFIEMG,ACMinas,andotherbusinessorganizations,fromtheState

Governmentandotherpublicagencies,fromconsultants,academics,international

entities,andcivicgroups.Inaddition,overafive‐weekperiodofvariousGUDexperts

visitingMinasGeraisandinthemonthsthatfollowed,wehavemetwithand

interviewedmorethan100keyleadersandstakeholdersfromthroughoutMinas

Gerais,includingmanypeopleinBeloHorizonte.

Byengaginginthesenumerousinterviews,theGUDteamlearnedmanyimportant

lessonswithrespecttothevitalindustrialleadershiproleofFIEMG,andwelearneda

greatdealofinformationaboutawiderangeofrecenteconomicdevelopment

initiatives,includingtheeffortstostrengthenindustryclusters,buildinganew

IndustrialAirportandTechnologicalIndustrialParkattheTancredoNeves

InternationalAirportinConfins,investinginmajormetropolitanandstatewide

transportationinvestments,promotingthe2014WorldCupandinternational

tourism,andmuchmore.Inaddition,weanalyzedthe20thcenturyevolutionof

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economicdevelopmentofMinasGerais,throughdetailedhistoricalstudiessuchas

TropicalCapitalism:TheIndustrializationofBeloHorizonte,Brazil.

ThisreportwaswrittenbyDr.MarcWeiss,GUDChairmanandCEO:NancySedmak‐

Weiss,GUDSecretary‐TreasurerandChiefLegalOfficer;andIanBromley,GUDSenior

Fellow.MembersoftheGUDteamdoingresearchandparticipatingininterviewsand

sitevisitsincludedPaulKrutko,GUDSeniorFellow;JamesNixon,GUDPresident;

EmiliaQueiroga,GUDSeniorFellow;ErnaniMachado,GUDDirectorofTechnology

Research;Dr.ElaineYamashitaRodriguez,GUDSeniorFellow;EllyaJeffries,GUD

Fellow;AlexandreMichalick,GUDFellow;CelesteFarias,GUDFellow;andBrittany

Jenkins,GUDFellow.

WewanttothankFIEMGPresidentOlavoMachadoJr.;IELDirectorMauricio

Tiburcio;FIEMGYouthCouncilPresidentDanielJunqueira(andtheentireYouth

Councilleadership);FabioVeras,DeputySecretaryofEconomicDevelopmentforthe

StateofMinasGerais;andMauroBorgesLemos,PresidentoftheBrazilianAgencyfor

IndustrialDevelopment(ABDI).

AdairMarques,IELExecutiveAdviser,organizedallofthemeetings,accompaniedus,

introducedus,andtranslatedforus.Hehasbecomeourspecialcolleagueand

collaborator,andweareverygratefulforhiswiseadvice,graciousassistance,and

warmandcaringfriendship.

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TheFirstWave:IndustrializationandUrbanizationThroughthisintensiveresearchprocesswehavelearnedagreatdealaboutthe

strongbusiness‐governmentcollaborationthatgeneratedsubstantialeconomic

growththroughindustrializationandurbanization,whichwecalltheFirstWave,

datingbacktotheplanningandbuildingofBeloHorizonteasanewstatecapital

beginninginthe1890s,butespeciallysincethe1940sand50s,whenJuscelino

KubitschekservedfirstasMayorofBeloHorizonte,thenasGovernorofMinasGerais,

andfinallyasPresidentofBrazil.ThisFirstWavewasdrivenbymanykeystrategic

publicandprivateinvestmentsandactions,including:

Creatingamajorenergycompany,CEMIG,togenerateanddistributehigh

volume,low‐cost,hydropower‐basedelectricity.

EstablishingtheDevelopmentBankofMinasGerais(BDMG),toprovidecapital

forattractingandexpandingmanufacturingindustries.

Designingastatewideeconomicdevelopmentsystem,includingINDIand

FundacaoJoaoPinheiro,topromotedomesticandinternationalprivate

investmentingrowingMinascompanies.

Buildingatransportationinfrastructureofmajorroadsandhighwaysforcars

andtrucks,andafreightrailsystemfortransportingironoreandother

minerals,whichinadditiontopromotingexportstotherestofBraziland

aroundtheworld,alsohelpedfosterandsupportalocalironandsteel

industry.

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DevelopingBeloHorizonteasamoderncityandmetropolitanregion,bothfor

manufacturingandforbusinessservices,includingthepioneeringCidade

Industrial,whichgavebirthtoamajorindustrialcenterspreadingwestfrom

thecitytoBetimandContagem.

Creatinganadvancedhighereducationsystem,withleadingengineeringand

industrialdevelopmentexpertsgraduatingfrommanykeyinstitutions,

includingtheSchoolofMinesattheFederalUniversityofOuroPreto(UFOP)

andtheFacultyofEconomicScienceattheFederalUniversityofMinasGerais

(UFMG).

AttractingamajorFiatassemblyplantandcreatingasubstantiallocalsupply

chainofautopartsmanufacturers.Buildingonthisstrongfoundation,

expansionofthemotorvehiclesindustryinMinasGeraiscontinuestoday,

includingtherecentrecruitmentofMercedes‐BenztoJuizdeFora.

Attractingseveralmajormultinationalsteelproducers,enablingMinasGerais

tomoveupthevaluechainbyusingironoretoexpandmetal‐basedindustries,

insteadofexportingalloftherawiron.

Expandingagricultureandminingproductivityandtechnologywiththehelp

ofadvancedresearchthroughMinasGeraisuniversities,EPAMIG,CETEC,and

otherinstitutions.

Growingbusinesses,jobs,andincomesincement,chemicals,foodand

beverageprocessing,clothingandtextiles,leathergoodsandfootwear,wood

andmetalfurniture,electricalandmechanicalequipment,andother

manufacturedproducts.

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Improvingskillstrainingandworkforcedevelopmenttohelpsupportindustry

expansionthroughSENAI,SESI,andrelatededucationalorganizations.

TheSecondWave:RisingIncomesandGrowingConsumerDemand

StrategicinvestmentsmadeduringtheFirstWaveeventuallyborefruit,suchthatby

the1990s,onceBrazil’snationalcurrencyanddebtproblemsfinallystabilized,Minas

Geraiswaspoisedforamajorgrowthspurt.ThisbroughtontheSecondWaveofthe

pastdecade,whenBrazilhasexperiencedmajoremploymentandincomegrowth.An

export‐ledboomofironore,soya,coffee,andothercommoditieshasincreased

overallincomes,plusvariousfederalgovernmentinitiativeshavehelpedto

substantiallyraisethestandardoflivingforlowerincomefamilies.Suchdramatic

changehasresultedinrisingconsumerspendingforagrowingrangeofproducts,

includinglocallyproducedgoodsandservices,furthercontributingtobusinessand

employmentexpansion.RealaverageincomeintheBeloHorizontemetropolitan

regionroseby46percentfrom2006through2010.AsasymbolofthisSecondWave

boostindisposableincomeandconsumerdemand,BeloHorizonterecentlyopened

BoulevardShopping,athrivingmulti‐levelretailmall.

TheThirdWave:AdvancedManufacturingandSustainableInnovation

HavingsuccessfullynavigatedtheFirstandSecondWavesofindustrialandurban

economicgrowth,MinasGeraisisnowrapidlymovingforwarddownthepathofthe

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ThirdWaveofenhancedprosperityinthe21stcentury,drivenbySustainable

Innovation.SustainableInnovationisthekeytopromotingadvancedtechnologies,

laborandenergyproductivity,andglobalcompetitivenesstoexpandbusinesses,

increasejobs,raiseincomes,strengthenfamilies,andimprovecommunities.

SustainableInnovationwillenableMinasGeraisto“moveupthevaluechain”by

producingandsellinghighervalue‐addedgoodsandservicesthatwillgenerate

greateradditionalrevenues,incomes,andprofits.GUDusestheterm“Sustainable”to

reflectbothofitsmeanings:1)creatingaself‐sustaining,momentum‐building

dynamicofpositive,continuous,long‐term,andbroad‐basedeconomicgrowthand

prosperity;and2)generatingprosperityandqualityoflifebyconservingandreusing

resourcesmuchmoreefficientlyandinfargreaterharmonyandbalancewith

ecosystemcyclesandthenaturalenvironment.

MinasGeraisalreadyhasdevelopedandiscurrentlyimplementingaSustainable

Innovationeconomicgrowthstrategy,whichisthoroughlysummarizedinthe58‐

pagepublication,InnovateinMinas,publishedin2010bytheSecretaryofStatefor

Science,Technology,andHigherEducation,andtheSecretaryofStateforEconomic

Development.TheInnovationInstitute,onemanynewstart‐upcompaniesspawned

byUFMGresearchers,producedthisexcellentandcomprehensivereportasa

consultanttotheStateGovernment.InnovateinMinasprovidesdetailedinformation

aboutwhatGUDcallsthe“FundamentalAssets”–inparticularthemanyinstitutions

andinitiativesthataretheenginesofSustainableInnovationforMinasGerais,

including11federaluniversities,twostateuniversities,ninetechnologicalinstitutes,

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11advancedtechnologyindustrialparks,25businessincubators,47technological

vocationalcenters,appliedresearchandR&DfundingfromFAPEMIGandother

agencies,financialsupportfromBDMGaswellasfromtheFederalGovernment

throughFINEPandBNDES,early‐stageventurefinancingfromlocalfirmssuchasFIR

CapitalandInseedInvestments.Allofthesediverseactivitiescomewithagreatdeal

ofprivatesectorparticipationandresourcesprovidedthroughanextensivesystemof

collaborativepartnerships.

ThemainpurposeofalltheseactivitiesistocreateacomprehensiveSustainable

InnovationPipelinethatmovescontinuouslythroughallofthestagesofinnovation:

basicandappliedresearch,researchanddevelopment(R&D)andprototyping,

patentingandtechnologytransfer,commercializationofnewproductsand

productionprocesses,formationofnewbusinessstart‐ups,dynamictransformation

ofexistingcompanies,businessandemploymentexpansionandincomegrowth.

SustainableInnovationPipelinesaremosteffectivewhentheyfunctionasongoing

andlong‐termnon‐linearcircularfeedbackloops,withinnovativeideasand

informationflowingback‐and‐forthcontinuouslybetweenindustrialandcommercial

producersandacademic,business,andgovernmentresearchers.Also,whileitis

importantforSustainableInnovationtohelpcreateandgrownewbusinesses,itis

evenmorevitalforSustainableInnovationtomodernizeandstrengthenexisting

companies,especiallysmallandmedium‐sizedenterprises(SMEs).ForSustainable

InnovationPipelinestosucceed,theyrequiresubstantialpublicandprivateresources

foradvancedresearch,forbusinessfinancing,forkeyinfrastructureinvestmentsto

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facilitatemarketaccess,forqualityeducationandworkforcetraining,forsupportive

regulatoryandtaxpolicies,andformanyothervitalneeds.

Fortunately,MinasGeraisalreadyisdevelopingseveralSustainableInnovation

Pipelines.Oneofthemostdynamicisthepipelinethatstartswithfaculty,staff,and

studentresearchatUFMG,whichisoneofthetopgraduateresearchuniversitiesin

BrazilandLatinAmerica.ThetwoprincipalstreamsoftheUFMGpipelineareinthe

biomedicalandsoftwarefields,orbiotechnologyandinformationtechnology(IT).

ThisSustainableInnovationPipelineincludesUFMG’sOfficeofInnovationand

TechnologyTransfer,theInovabusinessincubator(on‐campus),theBiominas

HabitatandFUMSOFTbusinessincubators(off‐campus),andtherecentlylaunched

businessaccelerator,theBeloHorizonteTechnologyPark(BH.Tec),attheedgeof

UFMG’scampus.

UFMG’sSustainableInnovationPipelinealreadyhashelpedgeneratemanynew

companies,suchasLabtest,arapidlygrowingfirminthebiomedicaldiagnostic

testingfieldwithresearchactivitiesnewlylocatedatBH.Tec,andmuchlarger

productionfacilitiesinVespasianoneartheairport.Anothersuccessfulspinofffrom

UFMGisAkwan,aninnovativesoftwarebusinessinBeloHorizonte.Googleacquired

Akwanin2005andconvertedittoGoogle’sBrazilianResearchandDevelopment

centerandLatinAmericanNewBusinessDevelopmentheadquarters.

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NearGoogleis“SanPedroValley”withmorethan50newtechnologycompaniessuch

asSambaTech,developerofthelargestonlinevideoplatforminLatinAmerica.Belo

Horizonte’sSaoPedrodistrictisbecomingamagnetforyoungITentrepreneurslike

SambaTech’sfounderandCEO,GustavoCaetano,whoisPresidentoftheBrazilian

AssociationofStartups.

InadditiontotheUFMGpipeline,thereareotherSustainableInnovationPipelines

centeredaroundmajoruniversitiesandnearbytechnologyparksthroughoutMinas

Gerais,includingVicosa,Lavras,Uberlandia,JuizdeFora,OuroPreto,andItajuba.

ThispipelinealsoincludestheInatelandProintecbusinessincubatorsinSantaRita

doSapucai,focusingonelectronics,telecommunications,informationtechnology,and

relatedfields.Italsoincludesmanyadditionalinstitutions,suchasthe

internationallyrecognizedbusinessschool,FundacaoDomCabral(FDC)inNova

Lima,theFerrous‐InhotimEnvironmentalResearchandEducationCenterin

Brumadinho,Fiat’sGiovanniAgnelliDevelopmentCenterinBetim,Embraer’snew

CenterforAerospaceTechnology(CCTA)inLagoaSanta,FiocruzinBeloHorizonte,

theplannedTechnologyCity(CITAT)inAraxa,theproposedMedicalCityprojectin

SantaLuzia,andJMMTech’sMinasGeraisStateGovernment‐fundedprojectin

Aracuaidesigningandassemblinginnovativenewsustainabletechnologiesto

improveagriculturalproductivityintheJequitinhonhaValley,amongothers.

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AdvancedManufacturing:TheNextSustainableInnovationPipelineforMinas

Gerais

GiventhelargenumberofMineiromanufacturersandrelatedbusinessesinthe

manufacturingsupplychain,especiallyinmetal‐mechanical‐electrical‐electronic

machinesandequipmentindustries,thenextmajorSustainableInnovationPipeline

forMinasGeraisshouldbeintheleading‐edgetechnologyfieldsofAdvanced

Manufacturing.FIEMGisparticularlywellsuitedtoprovideexcellentleadershipfor

AdvancedManufacturing,givenitsextensiveengineeringandindustrialexpertise,

anditssubstantialmembershipofmanufacturingandrelatedbusinesses.Advanced

ManufacturinginMinasGeraiswillbecomeoneofthemainenginesofSustainable

Innovation,bothintermsofnewhigh‐valuetechnologiesthatcreatesuccessfulstart‐

upcompanies,andmoreimportantly,bydynamicallyimprovingtheinnovation

capacity,productivity,globalcompetitiveness,andsustainabilityofthousandsof

existingfirms.AfocusonAdvancedManufacturingwillbeavitalinvestmentin

growingbusinesses,jobs,andincomesforMinasGerais,anditwillenablethestate’s

economy,especiallyitsindustrialbase,tobecomemuchstrongerandmore

competitiveoverthelongterm.

AccordingtotheUSPresident’sCouncilofAdvisorsonScienceandTechnologyand

theExecutiveOfficeofthePresident,“Advancedmanufacturingisafamilyof

activitiesthat(a)dependontheuseandcoordinationofinformation,automation,

computation,software,sensing,andnetworking,and/or(b)makeuseofcuttingedge

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materialsandemergingcapabilitiesenabledbythephysicalandbiologicalsciences,

forexamplenanotechnology,chemistry,andbiology.Itinvolvesbothnewwaysto

manufactureexistingproducts,andthemanufactureofnewproductsemergingfrom

newadvancedtechnologies....Advancedmanufacturingencompassesallaspectsof

manufacturing,includingtheabilitytoquicklyrespondtocustomerneedsthrough

innovationsinproductionprocessesandinnovationsinthesupplychain.As

manufacturingadvances,itisincreasinglybecomingknowledge‐intensive,relyingon

informationtechnologies,modeling,andsimulation.Manufacturersarealso

increasinglyfocusingonenvironmentallysustainablepracticesthatleadtoimproved

performanceandreducedwaste….Alreadytoday,weseeexamplesofnew

manufacturingtechnologiesemergingfromresearchlaboratoriesthatwillhavea

disruptiveeffectonthewaythingsaremade.Examplesincludenovelnano‐

manufacturingtechnologiesthatreducethecostofcapitaldramatically,bio‐

manufacturingandseparationmethodsthatlowertheenergyconsumptionof

conventionalprocesses,innovativeadditiveprocessesandmaterialsthatreduce

waste,andintelligentmanufacturingtoolsandmethodsthatreducehazards,

optimizesupplychains,andmaximizeyields.”

Advancedmanufacturingisnowthe“nextbigthing”inhightechnology,amajorfocus

ofnationalSustainableInnovationpolicyinitiativesinmanycountriesthroughoutthe

world.InGermany,advancedmanufacturingispartoftheappliedindustrialR&D

agendaofthenumerousFraunhoferInstitutesthatarefinanciallysupportedby

privateindustryandbytheFederalandStateGovernments.Othernationalmodelsof

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thistypesofengineeringandscienceadvancedtechnologyappliedindustrial

researchandbusinessdevelopmentincludeDenmark’sGTSAdvancedTechnology

Group,Japan’sNationalInstituteofAdvancedIndustrialScienceandTechnology

(AIST),France’sCarnotInstitutes,SouthKorea’sElectronicsandCommunications

ResearchInstitute(ETRI),Finland’sVTTTechnicalResearchCentre,Sweden’s

GovernmentalAgencyforInnovationSystems(VINNOVA),China’sTorchHigh

TechnologyIndustryDevelopmentCenter,andTheNetherlandsOrganizationfor

AppliedScientificResearch(TNO).

IntheUK,thenationalgovernment’sTechnologyStrategyBoardispromotingand

investinginaHighValueManufacturingCatapult,which“providesanintegrated

capabilityandembracesallformsofmanufactureusingmetalsandcomposites,in

additiontoprocessmanufacturingtechnologiesandbio‐processing.Itdrawson

excellentuniversityresearchtoacceleratethecommercializationofnewand

emergingmanufacturingtechnologies.”

ThroughtheUK’sHighValueManufacturingCatapult,whichwaslaunchedinOctober

2011,“sevenpartnersareworkingtogethertoformthenewCatapultcentre,bringing

togethertheirexpertiseindifferentandcomplementaryareasofhighvalue

manufacturing.”TheUKGovernmentisinvesting200millionGBPintheseven

partners,includingtheAdvancedManufacturingResearchCentrewithBoeingatthe

UniversityofSheffield,focusingonhighperformancemachining,automated

assembly,advancedcompositesandautomatedprocesses,structuralintegritytesting,

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andvirtualrealitymodelingofprocessesandsystems;theNuclearAdvanced

ManufacturingResearchCentreattheUniversitiesofSheffieldandManchester,

focusingonfabricationofnuclearenergycomponents;theManufacturingTechnology

CentreinCoventry,focusingonnetshapemanufacture,intelligentautomation,

advancedtoolingandfixturing,advancedjoiningtechniques,systemmodelingand

operationalefficiency,andelectronicsassembly;theAdvancedFormingResearch

CentreattheUniversityofStrathclydeinGlasgow,focusingonbilletforging,sheet

forming,andprecisionforging;theNationalCompositesCenterattheUniversityof

Bristol,focusingondesignandmanufactureofcomposites;theCentreforProcess

InnovationinWiltonandSedgefield,focusingonchemicalprocessing,biotechnology,

andprintableelectronics;andtheWarwickManufacturingGroupattheUniversityof

WarwickinCoventry,focusingonlightweightproductsystemoptimization,energy

storageandmanagement,anddigitalverificationandvalidation.

TheAdvancedManufacturingprocessesthatarepartoftheCatapultareusedina

varietyofindustriesincludingaerospace,automotive,energy,biotechnology,and

electronics.TheUKGovernmentforecaststhattheirstrategicinvestmentwill

leverageanaddition2billionGBPinAdvancedManufacturingR&Doverthenext

decade,andthecreationof3,000newengineeringresearchpositionsattheseven

centers.Intheyearsahead,theCatapultalsowillbeconductingR&Donhigh‐

performancebatteriesforelectricvehicles,off‐shorewindturbines,anewgeneration

ofnuclearpowerplants,andanewgenerationoffuel‐efficientpassengerairplanes.

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PerhapsthemostambitiouscurrenteffortisintheUS,wherePresidentObama’s

Administrationhasengagedinanextensivetwo‐yearprocessledbytheWhiteHouse

OfficeofManufacturingPolicy,co‐chairedbytheDirectoroftheNationalEconomic

CouncilandtheSecretaryofCommerce,bytheWhiteHouseOfficeofScienceand

TechnologyPolicyandthePresident’sCouncilofAdvisorsonScienceand

Technology/President’sInnovationandTechnologyAdvisoryCommittee,and

especiallybythenewlyestablishedAdvancedManufacturingPartnership,co‐chaired

bythePresidentofMITandtheChairmanandCEOofDowChemical,withmany

distinguishedcorporateCEOsanduniversitypresidentsservingontheSteering

Committee.Inaddition,manyscientists,engineers,professors,industrial

researchers,andmanufacturingentrepreneursandsuppliersfromlarge,medium‐

sized,andsmallbusinessesareparticipatinginthisimportantandinnovative

advancedtechnologyinitiative.ItalsoinvolvestheAdvancedManufacturingNational

ProgramOfficeattheNationalInstituteofStandardsandTechnology(NIST)and

relatedprogramsattheDepartmentofEnergy,DepartmentofDefense,National

AeronauticsandSpaceAdministration(NASA),SmallBusinessAdministration,

NationalScienceFoundation,andseveralotherfederalagencies,includingthe

EconomicDevelopmentAdministration’sJobsandInnovationAcceleratorChallenge.

AccordingtoDr.PhillipSingerman,NIST’sAssociateDirectorofInnovationand

IndustryServices,NIST’sAdvancedManufacturingNationalProgramOffice“was

establishedtocoordinatefederalagencyeffortstoacceleratethepaceofinnovation,

promotetechnologytransfer,andmorerapidlyintegratetechnologybreakthroughs

intothecommercialmarket.”

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Duringthepastyeartherehavebeentwomajorreportsemergingfromthispublic‐

privatepartnershippolicyprocess:ReporttothePresidentonCapturingDomestic

CompetitiveAdvantageinAdvancedManufacturing(July2012),andANational

StrategicPlanforAdvancedManufacturing(February2012).Thesereports

emphasizethevitaleconomicroleofmanufacturinginpromotinginnovation,

productivity,andcompetitiveness,duetothemajorcontributionofmanufacturing

firmstoindustrialandcommercialR&D(70percentofallprivatesectorresearchand

developmentspendingcomesfrommanufacturers),andespeciallybecauseofthe

veryhighmultiplierimpactsofmanufacturingingeneratingmuchlargerincreasesin

overallemploymentandoutputthroughoutthenationaleconomy,including

suppliers,services,andsales.Thereportshighlight“Theimportanceof

manufacturingtoemploymentisnotmeasuredbysimplycountingthenumbersof

productionworkers.Theproductionstageaffectsemploymentthroughoutlong

productvaluechains,fromtheinnovationandinputstagesforproductdesignand

productionincludingresources,components,andsuppliers,totheoutputstages

includingdistribution,sales,andthemaintenanceandrepairlifecycleforthe

product.Totalemploymentformanufacturing,andthereforeitseconomicimpact,is

muchbiggerthansimplythoseengagedattheproductionmomentitself.”

Further,thereportsarguethatinordertoobtainthehighestpossibleeconomic

benefitsfromSustainableInnovation,itisnecessarytolocatemanufacturingresearch

anddevelopment(R&D)activitiesincloseproximitytofactoriesandindustrial

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productionfacilities,inordertomaximizethedirectinteractionandtwo‐wayflowof

informationandideasthatwillgeneratenewinnovationsbothinproduction

processesandinnewtechnology‐basedproducts:“Productinnovationismost

effectiveandefficientwhencoupleswithintimateknowledgeandcontroloverthe

manufacturingprocess.Hence,thedesignoftheproductinherentlyinvolvesthe

designofthemanufacturingprocessbywhichtheproductwillbemade.Thetwoare

inseparable:severingthem,asisbeingdoneincreasinglyoften,hasaveryadverse

effectoneachbecausetheyaresointerdependent.”AsNISTSeniorEconomist

GregoryTasseyarguesinTheTechnologyImperative:TheFutureofR&DPolicy,“The

issueofco‐locationofR&Dandmanufacturingisespeciallyimportantbecauseit

meansthevalue‐addedfrombothR&Dandmanufacturingwillaccruetothe

innovatingeconomy,atleastwhenthetechnologyisinitsformativestages.”

TheAdvancedManufacturingPartnership(AMP)intheUSengagedwithmanykey

groups,includingtheCouncilonCompetitiveness,InformationTechnologyand

InnovationFoundation,NationalAssociationofManufacturers,andInternational

EconomicDevelopmentCouncil,tonamejustafew.Moreimportantly,theAMP

conductedextensiveoutreach,boththroughamajornationalsurveyofexperts,and

throughhighlyparticipatoryregionalexpertmeetings,toidentifythemost

technologicallysignificantandeconomicallyrobustfieldsofadvancedmanufacturing

topromoteandsupportwithgreaterpublicandprivatefinancialresources.In

particular,threemajornationalorganizationsencouragedtheirmemberstoprovide

answerstothesurveyquestions:theManufacturersAllianceforProductivityand

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Innovation,representinglargeprivatemanufacturers;theNationalCenterfor

ManufacturingSciencesrepresentingsmallandmedium‐sizedmanufacturing

enterprises(SMEs);andtheAssociationofPublicandLand‐GrantUniversities,

representingprofessorsandacademicresearchers.Theresultsofthesurveys,

interviews,andregionalmeetingswasclearagreementaboutthe11mostpromising

andimportantareasofAdvancedManufacturingtobeemphasized,andsomeofthese

thataremostrelevanttothecurrentcapabilitiesofMinasGeraisshouldbethe

startingpointforFIEMG’sAdvancedManufacturinginitiatives.Whatfollowsisavery

longanddetailedquotefromtheJuly2012report:

“AdvancedSensing,Measurement,andProcessControl(includingCyber‐Physical

Systems):Thissetoftechnologieshasapplicabilityacrossalmostallindustry

domains.Thesetechnologiesarecriticalforenhancingtradabilitybywayofend‐to‐

endsupplychainefficiency(e.g.,lowcostandpervasivesensorsinplantsand

logisticssystems,automaticcontrolandcoordinationofsystems‐of‐systems).In

addition,megatrendsofenergyandresourceefficiency,bettersafety,andhigher

qualityalsodependhighlyonadvancesinsensingandautomaticprocesscontrol.

Finally,emergingtechnologiessuchasnanomanufacturingandbiomanufacturing

needspecializedsensorsandcontrolmodels.”

“AdvancedMaterialsDesign,Synthesis,andProcessing:Thesetechnologiesincludethe

designandsynthesisofsmallmolecules,nanomaterials,formulatedsolutions,

coatings,composites,andintegratedcomponents(e.g.,photovoltaicdevices).They

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entailintegrationofcomputationalmodeling,state‐of‐the‐artsynthesistools(e.g.,

highthroughput),andadvancedresearchanalytics(e.g.,materialsgenome).Almost

allthemegatrendsforthefuture—energyefficiencyoralternateenergydevices,new

materialstocounterresourceshortages,next‐generationconsumerdevices,andnew

paradigmsinchemicalsafetyandsecurity—dependheavilyonadvancedmaterials.

Advancedmaterialswillfuelemergingmulti‐billiondollarindustries.”

“Visualization,Informatics,andDigitalManufacturingTechnologies:Thisareaentails

researchfocusedonembeddedsensing,measurementandcontrolsystemsforhighly

corrosive,hightemperatureprocessesimpactingeverythingfromchemicalsynthesis

tolightweightmaterialstoaircraftengines.Italsoincludescontrolsystemsenabling

manufacturingofhighperformance,highlycontrolledstructuresanddevices.Finally,

itentailsmodeling,simulationandvisualizationtechnologiesthatcanoptimizea

productanditsmanufacturinginvirtualspacebeforeactualphysicalproductionis

started(thereforebypassingtime‐consumingandexpensivephysicaltestingand

experimentation).Thedatageneratedcanalsopotentiallysupportconclusions

regardingproductwarrantiesandproductreliability.Examplesofthesetechnologies

includeintegratedenterprise‐levelsmartmanufacturingmethodologies,e.g.,moving

directlyfromcomputational/digitaldesigntochemicalandmaterialsplanning,

purchasing,anddeliverytomanufacturingofcustomizedproductsandcomponents.

Oneaspectdealslargelywithmanufacturingcompetitivenessthroughend‐to‐end

supplychainefficiency—reducedmanufacturingcycletime,lowerworkerinjuryand

illnessrates,higherprocessyields,higherenergyefficiency,etc.—broughtaboutby

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morenetworkedinformation,andthecontrolandmanagementofinformationacross

variousentitiesinthevaluechainspanningmultipleenterprises.Theotheraspect

dealswiththespeedwithwhichproductsaredesigned,manufactured,andbrought

tomarket,whichwillbeakeydifferentiator.”

“SustainableManufacturing:Thisapproachaimstomaximizeeveryatomofmatter

andjouleofenergy.Asakeynationalneed,sustainablemanufacturinginvolves

technologiesandsystemsthatenableoptimalrawmaterial,energy,andresource

utilization,includingareasasdiverseashighperformancecatalysis,novel

separations,andnewreactorandwastemanagementsystems.Amajorareaoffocus

willbeenergyefficientmanufacturing—wherehighenergy‐consuming

manufacturingprocessesneedtobesubstitutedbylowerenergy‐consuming

alternatives.Areassuchasre‐manufacturing(i.e.,usingrecycledcomponents)also

needtoberesearched.Inadditiontosavingsinenergyconsumptionandhigher

profitability,manyaccompanyingbenefitscanaidthecompetitivenessofindustry.”

“Nanomanufacturing:Nanomanufacturingareforecastedtoplayagame‐changing

roleinapplicationsrangingfromhigh‐efficiencysolarcellsandbatteries,

environmentalcontrolthroughnanotech‐basedfilters,andnano‐biosystem‐based

medicalapplicationstonextgenerationelectronicsandcomputingdevices.Similarly,

microstructuresondeviceswillplayakeyroleindeliveringnewfeaturesor

enhancingcurrentfunctionality.Thepossibilitiesarelimitless,butprocessesand

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qualitycontrolsystemsmuchbedevelopedtoreachthefullpotentialof

nanomanufacturing.Thechallengewillbetoscaleupandreducecosts.”

“FlexibleElectronicsManufacturing:Technologiesforflexibleelectronics

manufacturingwillbemajordifferentiatorsinthenextgenerationofconsumerand

computingdevices.Someofthesedevicesareexpectedtobeamongthefastest

growingproductcategoriesoverthenextdecade.”

“BiomanufacturingandBioinformatics:Technologiestoimprovehealthcarewill

requirenewer,moreeffective,andcheapermolecules.Foodsecurityisakeyconcern

ofthefuture,wherebiomanufacturing,proteomics,andgenomicswillplayacritical

role.Inaddition,thistechnologyhastheinherentpotentialtoenableenergy

efficiencyinmanufacturing.Forinstance,itoffersroom‐temperaturesynthesisroutes

thatcanpossiblyreplacecurrenthigh‐temperatureprocesses.Innovationsinthebio‐

nanointerfacesuchasbio‐inspiredmanufacturingusingself‐assemblyhavethe

potentialtosimplifyandscaleupmanycomplexandexpensivenano‐manufacturing

technologiesandmakethemeconomicallyviable.”

“AdditiveManufacturing(including3‐DPrinting):Agrowingapplicationof

manufacturingistheproductionofhighlycustomizedandpersonalizedproducts.

Additivemanufacturing(e.g.,three‐dimensionalprinting)isakeytechnologythat

holdsthispromise.Inaddition,thetechnologyhasseveralcharacteristicsthatenable

uniquecapabilitiesandfeatures.Forexample,multiplematerialscanbeprocessed,

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enablingsmartcomponentstobefabricatedwithembeddedsensorsandcircuitry.

Internalfeaturescanbeproducedthatsignificantlyenhanceperformanceand

thereforedifferentiateproducts(e.g.,internalcoolingchannelsthatareoptimizedfor

thermalperformancethatarenotpossiblewithcurrentmanufacturingtechniques.)

Also,materialscanbeprocessedefficientlywithlittlewaste,enhancingthe

sustainabilityoforganizationsthatadoptadditivemanufacturingtechnologies.”

“AdvancedManufacturingandTestingEquipment:Advancedmanufacturingtakes

placeworldwide.Inthosecaseswhereitoccurs…localfirmscanmaintainsignificant

globalcompetitiveadvantagethroughtheproductionandsupplyofhigh‐value

manufacturingequipment,suchasbioreactors,CNCmachinetools,orotherhigh‐

technologyproductiontools.Beingthesupplierofchoiceforadvancedcapital

equipmentwillcontinuetoyieldadvantagesintermsofinnovationandadvanced

engineering,aswellaseconomicbenefits.”

“IndustrialRobotics:Automationanduseofindustrialrobotsinlabor‐intensive

manufacturingoperations,suchasassembly,productinspection,andtestingcan

enablehighendurance,speed,andprecision.Equallyimportantistheirusein

processinghightemperature,corrosiveandtoxicsubstances,andmaterials.This

technologyhasgreatpotentialtoenhancesafetyandproductivityofthe

workforce…tocompetewithlow‐costeconomies,bothfordomesticandexport

markets.Futureneedsinthisareaarebeingdrivenbytheintersectionofbio‐

nanotechnologiesandtheirassociatedmanufacturingneeds.”

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“AdvancedFormingandJoiningTechnologies:Mostcurrentmechanical

manufacturingprocessescontinuetodependlargelyontraditionaltechnologies,

mainlyformetals,suchcasting,forging,machining,andwelding.Thesetechnologies

willcontinuetobemainstaysoffutureproductionprocesses.However,therearenew

andexpandingneedsforjoiningawidervarietyofmaterialswithgreaterenergy

conservationandresourceefficiency.Inaddition,improvedperformancerequires

continuedinnovationandthesearchfortransformativetechnologiesthatwillhelp

maintaincompetitivenessinindustriesrangingfromtransportationto

infrastructure.”

CETEC‐SENAI‐FIEMGAdvancedManufacturingSustainableInnovationStrategy

FIEMG,incollaborationwithCETEC(TechnologicalCenterofMinasGerais),SENAI

(NationalIndustrialTrainingService),andCNI(NationalConfederationofIndustry),

shouldprovideleadershipforanAdvancedManufacturingSustainableInnovation

StrategyforMinas,basedattheCETECsiteinBeloHorizonte.Thisnewinitiativewill

bedesignedtosafelyandeffectivelyguideappliedresearchpasttheso‐called“valley

ofdeath”tosuccessfultechnologycommercializationandlarge‐scalemanufacturing.

Thegapfromideastoactionandfromresearchtoproductionisthemainchallenge

facedbymanyresearchersandentrepreneurs,especiallyforsmallerbusinessesthat

oftendonothavesufficienttechnicalandfinancialresourcestomovenew

innovationsandtechnologiesallthewaythroughthepipelinetosuccessfullarge‐

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scaleandlong‐termgrowth.CETEC‐SENAI‐FIEMGwillenableallcurrentandfuture

manufacturers,bothlargeandsmall,tobenefitfromtheresearch,learning,testing,

commercializationandscaling‐upprocessesthatwillhelpcreateanddevelopnew

SustainableInnovationtechnologiesbothfornewstart‐upsandforexisting

businesses.

TheAdvancedManufacturingSustainableInnovationStrategyincludessixkey

initiatives:

1) AdvancedManufacturingSustainableInnovationCenter

2) AdvancedManufacturingBusinessAccelerator

3) AdvancedManufacturingTechnologyIndustrialPark

4) AdvancedManufacturingBusinessAdvisoryServices

5) AdvancedManufacturingSkillsTraining

6) AdvancedManufacturingSustainableInnovationZone

TheStateGovernmentofMinasGerais,aswellastheBrazil’sFederalGovernment,

canworkcloselytogetherwithCETEC,SENAI,andFIEMGtomaketheAdvanced

ManufacturingSustainableInnovationStrategyamajorsuccess,byproviding

directfundingandin‐kindresources,aswellasvarioustaxandregulatoryincentives

andtargetedprocurement,toenablenewtechnologiesandstrongerbusinessesto

growandthrivefromthisnewSustainableInnovationPipeline.

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AdvancedManufacturingSustainableInnovationCenter

SimilartothesevencentersintheUK’sHighValueManufacturingCatapult,orthe15

proposedUSnationalnetworkofManufacturingInnovationInstitutes,thepurposeof

theCETEC‐SENAI‐FIEMGinitiativewillbetocreateadynamicSustainableInnovation

PipelineforAdvancedManufacturing.ThismeansthatinadditiontoSENAI’smajor

infusionofbudgetresourcescurrentlyplannedforCETECtohostnewTechnology

andInnovationInstitutes,includingthenewBIOERGInstituteforenergyefficiency,

renewableenergy,sustainablebuildings,andelectricmobility,andtheSENAI

InstituteofInnovationandSurfaceEngineeringinpartnershipwithGermany’s

FraunhoferInstitute,CETECshouldestablishanAdvancedManufacturing

SustainableInnovationCenter.ThisCenterwillconductandpromoteapplied

researchandtechnologydevelopment,softwaredevelopment,andprototype

developmentandtestingofmachinesandequipmentandnewofproduction

processesandproducts.FacilitiesattheAdvancedManufacturingSustainable

InnovationCenterwillincludelaboratories,industrialworkshopareas,andother

newlybuiltornewlyrenovatedresearchandtestingfacilities.

AccordingtotheInternationalEconomicDevelopmentCouncil’srecentreport,Jobsin

theMaking:EconomicDevelopmentStrategiestoGrowManufacturing,“Intoday’s

complexinnovationworld,itisoftencriticaltocreateresearchorganizationsthatare

specificallydesignedtofacilitatecooperativeinnovation.Advancedmanufacturing

parkshaveemergedasoneoftheleadingmodelsfordrivingcooperativeresearch

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anddevelopment.Drawingontheknowledgeandresourcesoffirmsthatshare

interestinspecificlinesofresearchandusuallyengagingtheexpertiseofpublic

researchinstitutions(e.g.,universities),advancedmanufacturingparksaddressa

varietyofthecoordinationandfundingissuesthatstandinthewayofeffective

collaborativeresearchanddevelopment.”

ActivitiesoftheAdvancedManufacturingSustainableInnovationCentercan

include:

Manufacturingengineers,operationsmanagers,andscientistswillcollaborate

toundertakeappliedprimaryandsecondaryresearchprojectsdesignedto

developanddisseminatenewproductionprocessesinhighvalue‐added

manufacturing.

Manufacturingengineersandoperationsmanagerswillreceivehigherand

continuingeducationandtraininginnewapproachesincomputer‐aided

design,logisticsmanagement,manufacturingprocessesandglobalbest

practicesinAdvancedManufacturing.

Engineersandproductionworkerswillgettrainingandhands‐onexperience

withthelatestequipmentandmachineryusedinAdvancedManufacturing

globally.

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Companieswillexperimentwithnewtechniquesandtechnologiespriorto

introducingthemintotheirproductionprocesses,andworkwithengineers

andscientiststomaximizetheireffectiveness.

Companieswillworkwithscientistsandengineerstodevelopandtestnew

productprototypes,andnewmaterialsandtechniquesforupgradingof

existingproducts.

SuppliersofAdvancedManufacturingequipmentandmachinerywill

demonstratetheirlatestproductofferingstopotentialbuyers.

TheAdvancedManufacturingSustainableInnovationCenterwillinvolveCETEC’s

currentresearchstaff,anditmayalsobenecessarytorecruitadditionalfull‐timeand

part‐timeresearchersfromuniversitiesandindustry.Also,itwillincludeaffiliated

researchersandexpertsonmanyaspectsofAdvancedManufacturingfrommany

otherpublicandprivateinstitutions,suchasengineers,scientists,professors,

businessexecutives,universitystudentresearchers,consultants,andadvisers.Much

oftheR&Dwillbeopentoallbusinesses,especiallytosmallercompaniesthatcan

benefitthemostfromthesharedresources,facilities,andideas.Thisinformationwill

bewidelysharedwithentrepreneursinMinasGeraisthroughtheAdvanced

ManufacturingBusinessAdvisoryServices.

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SomeoftheR&DconductedthroughtheAdvancedManufacturingSustainable

InnovationCenterwillbecontractresearch,proprietaryandconfidentialfor

individualcompanies.Inadditiontoappliedresearchanddevelopmenton

SustainableInnovationinAdvancedManufacturing,therewillbeaveryactivefocus

technologytransferandcommercialization.Someofthisworkcandirectlysupport

thegrowthofinnovativestartupsandnewfirmsparticipatingintheAdvanced

ManufacturingBusinessAccelerator.

ThisnewCETEC‐SENAI‐FIEMGAdvancedManufacturingSustainableInnovation

Centercanengageinpublic‐privatepartnershipswithUFMG,thePontificalCatholic

UniversityofMinasGerais(PUC‐MG),andotheruniversities,withmajorcompanies

suchasEmbraer,Fiat,Vale,andCEMIG,andwiththenewlyadjacentFAPEMIG

headquartersoffices,tohelpcoordinatemajorfundingbyFAPEMIGforapplied

researchonAdvancedManufacturing.SimilarcooperationwithEPAMIGto

encourageresearchonAdvancedManufacturingopportunitiesandapplications

relatedtoagriculturalproductioninMinasGeraisshouldbepursued.Statistical

analystsatthenearbySERPROofficesmightalsobeabletoprovidesomeresearch

supportwithrespecttotheFederalGovernment’sdatasources.

Asanexampleofthistypeofapproach,PresidentObamaannouncedinAugustthe

creationoftheNationalAdditiveManufacturingInnovationInstitute(NAMII)in

Youngstown,Ohio.NAMIIwasthewinnerofanationalcompetitiontocreatea“pilot

institute”demonstratingwhatwilleventuallybecomeanationalnetworkof15

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ManufacturingInnovationInstitutesthatwillbeorganizedandoperatedas

partnershipsbetweenindustry,government,academia,andothers,partlysupported

byonebilliondollarsincompetitivegrantfundsfromtheUSGovernment.

TheUSGovernmentcommitted$45millionforNAMIIfromtheDepartmentsof

Defense,Energy,Commerce,NASA,andtheNationalScienceFoundation,andthis

commitmentwasmatchedbyanadditional$40millionfromaconsortiumof40

companies,includingBoeing,GeneralDynamics,GE,Honeywell,IBM,Johnson

Controls,LockheedMartin,NorthropGrumman,andWestinghouse,plusseveral

innovativesmallcompaniessuchasM‐7Technologies,AppliedSystemsand

TechnologyTransfer(AST2),andExOne.NAMIIwillbemanagedbytheNational

CenterforDefenseManufacturingandMachining,andtheNCDMMwillrelocatesome

ofitsstafffromitsheadquartersinLatrobe,PennsylvaniatothenewNAMIIfacilities

inYoungstown.

TheNAMIIconsortiuminvolvesninemajorresearchuniversitieslocatedinthe“Tech

Belt”ofnortheasternOhioandwesternPennsylvania:CarnegieMellonUniversity,

CaseWesternReserveUniversity,KentStateUniversity,LehighUniversity,PennState

University,RobertMorrisUniversity,UniversityofAkron,UniversityofPittsburgh,

andYoungstownStateUniversity.Inaddition,theNAMIIconsortiumincludesfive

communitycollegesand11non‐profittechnologyresearch,engineeringprofession,

andeconomicdevelopmentorganizations,includingtheYoungstownBusiness

Incubator,wheretheNAMIIfacilitieswillbelocated.TheYoungstownBusiness

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Incubatorwasrenovatedwitha$450,000grantfromtheUSDepartmentofHousing

andUrbanDevelopment,withnewadvancedmanufacturingmachinesand

equipment,asoftwarecenter,andresearchlaboratoriesforaninitialstaffofupto20

people.

AccordingtotheWhiteHouse,“TheNAMIIwillprovidetheinnovationinfrastructure

neededtosupportnewadditivemanufacturingtechnologyandproductsinorderto

becomeaglobalcenterofexcellenceforadditivemanufacturing.Thepilotinstitute

willbridgethegapbetweenbasicresearchandproductdevelopmentforadditive

manufacturing,providesharedassetstohelpcompanies,particularlysmall

manufacturers,accesscutting‐edgecapabilitiesandequipment,andcreatean

environmenttoeducateandtrainworkersinadvancedadditivemanufacturing

skills.”

“Additivemanufacturing,oftenreferredtoas3Dprinting,isanewwayofmaking

productsandcomponentsfromadigitalmodel,andwillhaveimplicationsinawide

rangeofindustriesincludingdefense,aerospace,automotive,andmetals

manufacturing.Likeanofficeprinterthatputs2Ddigitalfilesonapieceofpaper,a

3Dprintercreatescomponentsbydepositingthinlayersofmaterialoneafteranother

usingadigitalblueprintuntiltheexactcomponentrequiredhasbeencreated.The

DepartmentofDefenseenvisionscustomizingpartsonsiteforoperationalsystems

thatwouldotherwisebeexpensivetomakeorship.TheDepartmentofEnergy

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anticipatesthatadditiveprocesseswouldbeabletosavemorethan50percent

energyusecomparedtotoday’s“subtractive”manufacturingprocesses.”

TheUSSecretaryofCommerce,whoparticipatedintheannouncementin

Youngstown,explainedthat“Additivemanufacturingallowscompaniesto

manufactureacomponentwithintricateshapesandtighttolerancesbyusingasingle

sourcematerialandbuildthecomponentuplayerbylayer.Ifmoretraditional

manufacturingtechniqueswereused,thesamecomponentwouldrequiremethods

commonlyusedinsubtractivemanufacturing.Thatis,essentiallycarvingpartsoutof

thematerialandoftenhavingtomanufacturesmallerpiecesseparatelyandthen

assemblethemintoalargercomponent.Additivemanufacturingprocessesare

becomingincreasinglyimportantfordefense,aerospace,andbiomedicalapplications.

Thetechnologyhasthepotentialtoeliminatetoolingcosts,reducematerialwaste,

andcreatecomplexcomponents.Companiescanthereforesubstantiallyreduce

productioncostsandbecomemorecompetitiveintheglobalmarket.”

AnotherexcellentmodelfortheCETEC‐SENAI‐FIEMGAdvancedManufacturing

SustainableInnovationCenteristheAdvancedManufacturingResearchCentreat

theUniversityofSheffield,describedbelow.Germany’sFraunhoferInstitutealsois

goodexampleofindustry‐orientedappliedresearchonSustainableInnovation.

RecentlyFraunhoferhasstartedcreatingcentersinseveralothercountries,including

atotalofsixintheUS,suchastheFraunhoferCenterforMolecularBiologyatthe

UniversityofDelaware’sTechnologyPark.,which,accordingtoFraunhofer‐

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Gesellschaft’s2011AnnualReport,“wasthebestperformingFraunhofercenterinthe

USA”withannualrevenuesofmorethan$20million.“Thesuccessfultrackrecordof

theFraunhoferCenterforMolecularBiologyinrecentyearspromptedtheUSStateof

Delawaretorenewitsfinancingcommitmenttothecenterforafurthersixyears.The

center’stiestotheUniversityofDelawarehavebeenformalizedsince2011,enabling

jointappointmentsofstaffandtheutilizationoftheuniversity’scomprehensive

resources.”LastyearFraunhoferopeneditsfirstcenterinLatinAmerica,the

FraunhoferCenterforSystemsBiotechnologyinSantiagodeChile,andnextyear,in

partnershipwithSENAI‐MG,FraunhoferwillhelpopentheSENAIInstituteof

InnovationandSurfaceEngineeringatCETEC.

AdvancedManufacturingBusinessAccelerator

Inordertomaximizebusiness,employment,andincomegrowth,anAdvanced

ManufacturingBusinessAcceleratorshouldbebuiltandestablishedattheCETEC

site.Itspurposewillbetoenablenewstart‐upandearlystageAdvanced

Manufacturing‐relatedcompaniestoobtainaccesstolow‐costsharedfacilitiessuch

asreceptionarea,officespace,laboratories,workshops,meetingandconference

rooms,computerandsecurityservices.Thiswillenablenewcompanieswith

innovativetechnologiesandviablebusinessstrategiestobenefitnotonlyfromthe

sharedfacilities,butfromtheintellectualandtechnicalresources,andfromsynergy

offrequentlyinteractingwithrelevantexpertsandentrepreneurs,toobtainventure

capitalandearlystagefinancing,togainaccesstopotentialmarketsfromother

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businessesandgovernmentagenciesparticipatingintheAdvancedManufacturing

SustainableInnovationStrategy.ForAdvancedManufacturingbusiness

opportunitiesthataredirectlyrelatedtomedicalequipmentandhealthcaredevices,

theAdvancedManufacturingSustainableInnovationCenterandtheAdvanced

ManufacturingBusinessAcceleratorcancollaborateandcoordinateitsactivities

withthenearbyBiominasHabitatbusinessincubator.

TheAdvancedManufacturingBusinessAcceleratorcanprovidethecompaniesit

housesandtheentrepreneursitworkswithavarietyofimportantservices,including

advancedtechnologyscienceandengineeringadviceandfeedback,strategicbusiness

marketresearchandadvice,professionalandtechnicalassistance,legalandfinancial

services,andmanyothervitalneeds.Theseservicescanincludecoursesandtraining

programsforthebusinessowners,accesstomentors,helpindevelopingbusiness

plans,accesstospecializedprofessionalservicessuchasintellectualproperty

lawyers,andaccesstoangelandventurecapitalinvestors.Whileregularaccessand

useofthefacilitiesprimarilywillbeforthefirmsrentingandoccupyingitsspace,

someoftheservicescanbeprovidedtootherearlystageentrepreneursand

companiesinMinasGeraiswhoarenotphysicallylocatedattheAdvanced

ManufacturingBusinessAccelerator.

TheAdvancedManufacturingBusinessAcceleratorcanhelpaccomplishtwo

importantobjectives:

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DevelopentirelynewAdvancedManufacturingcompaniestosupplykey

productstofillgapsinsupplychains,possiblywithequityinvestmentsfrom

thecustomersthemselves.

Incubateandacceleratethegrowthofnewbusinessesspunofffromexisting

largeindustrieswherethosecompanieshaveanewproductortechnology

theywouldliketodevelopseparatelyfromtheircoreoperations.

AsthecompaniesintheAdvancedManufacturingBusinessAccelerator“graduate”

andseekmorelandandbuildingspacetobeginengaginginlargerscaleproductionof

components,equipment,machines,andotheraspectsoftheAdvancedManufacturing

valuechain,someofthesecompanieswillbeabletolocatetheirfactories,workshops,

labs,andofficesintheAdvancedManufacturingTechnologyIndustrialPark.

AnexcellentexampleofadynamicandthrivingbusinessacceleratoristheMaRS

(MedicalandRelatedSciences)DiscoveryDistrictinToronto,Canada.MaRSbegan

whenakeyhistoricpropertyatthecornerofCollegeStreetandUniversityAvenuein

downtownTorontowastobesoldoffbyitsownertheUniversityHealthNetwork

(hospital).Thesitewasbothhistoricandstrategicallylocated.Itwasthehistoric

researchwingoftheTorontoGeneralHospital–aplacewheremedical

breakthroughssuchasinsulin,theartificialkidney,andthepacemaker,were

developed.Itwasalsolocatedattheepicenterofsixteachinghospitalsandthe

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UniversityofToronto–whichtogetherundertakeoverabilliondollarsofmedical

researcheachyear.

JohnEvans,acorporatechairmanandPresidentEmeritusoftheUniversityof

Torontoconvincedanumberofprivateindividualstoeachcontributeonemillion

dollarstoseedanotforprofit,charitableorganizationtosecurethebuildingsiteand

developaconceptandbusinessplanforamajorurbaninnovationcenter.Withthis

privatesectorleadershipinplace,provincialandfederalgovernmentscontributed

over$100milliontobuythepropertyandredevelopit.

MaRSopenedinSeptember2005with750,000squarefeetofspace–labs,office

space,andmeetingrooms.Theinitialplanwastoco‐locatetechnologyrelatedstart‐

upandearlystagebusinessesalongwiththesupportservicesbusinesses(legal,

financial,consulting)thatthosecompaniesneeded.Thecenterwassoonfilledwith

tenantspayingonaverage$45persquarefoot–thehighestrentsinToronto–and

planningbeganforPhaseTwo,whichinlate2013willprovideanadditional1.5

millionsquarefeetofspace.

MaRSprovideseducation,information,advice,andaccesstoearlystagecapitalboth

directlyandthroughserviceprovidersandpartners.Itprovidesbroadeducationon

startingabusinessthroughitsEntrepreneurship101classes.Promisingstart‐upsor

justpeoplewithgoodideascanapplytobecomeMaRSclients(whetherornotthey

arelocatedintheMaRScenter).BecomingaclientprovidesaccesstoaMaRSadviser

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aswellasmarketresearchmaterialsandprofessionalandtechnicalassistance

providedprobonobycompaniessuchasForrester,comScore,MedTrack,and

Gartner.

Today,MaRSDiscoveryDistricthasanannualoperatingbudgetofapproximately$40

million,ofwhichabout$5millionisprovidedbygovernmentgrants.Thevast

majorityofthebudgetisderivedfromrent,feesforeventsandeducationprograms,

corporatesponsorship,andclientfees.Evenifthegovernmentgrantsweretoend,

MaRSisnowafinanciallysustainablecharitableinstitutionthatwillcarryonwithits

missiontosupportthecreationandgrowthoftechnologybusinessesinTorontoand

Ontario.

AnothergoodexampleisSPARKinAnnArbor,Michigan,whichoperatesthree

regionalbusinessincubatorstogetherwitharangeofadvancedinnovation‐oriented

businessaccelerationservices.Theseincludea“BootCamp”forentrepreneurial

training,andaccesstobusinessfinancing.AccordingtoPaulKrutko,SPARK

PresidentandCEO,InternationalEconomicDevelopmentCouncilChair,andGUD

SeniorFellow,“TheAnnArborregionisripewithexamplesofcompaniesthatare

innovatinginthemanufacturingspace,andusingthatsuccesstocreatejobs.Hyundai,

andtherecentexpansionofitsfacilityinSuperiorTownship,isagreatexampleof

howmanufacturingresearchandeconomicdevelopmentgohandinhand.”

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AdvancedManufacturingTechnologyIndustrialPark

EversincetheStanfordIndustrialParknearStanfordUniversityinPaloAlto,

CaliforniaplayedsuchamajorroleinthegrowthofSiliconValleyduringthe1960s

and70s,andRoute128nearBoston,Massachusetts,andResearchTriangleParknear

Raleigh‐Durham‐ChapelHill,NorthCarolina,andsimilarplacesservedassuccessful

economicdevelopmentcatalystsduringthatsametimeperiod,high‐technology

industrialparkshavebecomeamajorfocusofeffortsbygovernments,businesses,

anduniversitiestopromotecommercialinnovationandmanufacturing

competitiveness.SirPeterHall,aGUDViceChair,andManuelCastells,describedand

analyzedthisglobalprocessnearlytwodecadesagointheirinsightfulbook,

TechnopolesoftheWorld:TheMakingof21stCenturyIndustrialComplexes.

CETEC‐SENAI‐FIEMGshoulddevelopanAdvancedManufacturingTechnology

IndustrialParktoeffectivelycreatearobustanddynamicAdvancedManufacturing

IndustryNetworkinMinasGerais.Themainpurposewillbetoacceleratethegrowth

ofaregionalclusterofinterrelatedgrowingproductioncompaniesbuildingand

marketingtechnologicallyinnovativeAdvancedManufacturingproducts,including

forinternationalexports.Thiswillprovidetheopportunitytoinvolvemanylocal

firmsinthesupplychainofequipmentandcomponentsthatcanaccelerateoverall

industrialgrowthinMinasGerais.Byconcentratingmultiplemanufacturersand

suppliersnearcutting‐edgeresearchandR&Dactivities,theeconomicbenefitsof

synergyandagglomeration,ofspecializationanddiversity,andofexperimentation

39

andinteractionwillmultiplyexponentiallyfortheBeloHorizonteMetropolitan

Regionandforthroughoutthestateintermsofbusiness,employment,andincome

growth.

ThefirststageofthisprocesswillbetodevelopaportionofthecurrentCETECsite

forarelativelymodest‐sizedAdvancedManufacturingTechnologyIndustrialPark,

bothforgraduatesoftheAdvancedManufacturingBusinessAcceleratortolocate

theirindustrialproductionoperationsastheybeginscalinguptheAdvanced

Manufacturingofnewcommercialproducts,andtoattractAdvancedManufacturing

companiesfromelsewhereinthestate,nation,andworld.Asthedemandforspace

quicklyoutgrowstheavailablelandattheCETECsite,FIEMGshouldworkwithCNI,

SENAI,andCETECtobuildanewerandmuchlargerAdvancedManufacturing

TechnologyIndustrialParkatthenearbyCarlosPratesAirportinBeloHorizonte,to

bemanagedbyCETEC‐SENAI‐FIEMGaspartoftheiroverallAdvanced

ManufacturingSustainableInnovationStrategy.

Brazil’sFederalGovernmentshouldbestronglyencouragedtopermanentlyclose

CarlosPratesasanairfieldandtransferallofitsscheduledflightsandtraining

activitiestootherMinasGeraisregionalairports.Thenthismajorpieceofland,oneof

thebestsitescurrentlyavailableinBeloHorizontethatiswelllocatedinrelationto

CETEC,PUC‐MG,andUFMG,canbecomeaworld‐classproductioncenterandan

internationalmagnetforAdvancedManufacturers.

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ThecloseinterrelationshipbetweentheAdvancedManufacturingSustainable

InnovationCenterandtheAdvancedManufacturingTechnologyIndustrialParkis

similartotherelationshipbetweentheUniversityofSheffield’sAdvanced

ManufacturingResearchCentre(AMRC)andthenearbyAdvancedManufacturing

Park(AMP)inSheffield.IanBromley,GUDSeniorFellowandformerInternational

EconomicDevelopmentCouncilChair,servedasCEOoftheSheffieldCity

DevelopmentCompanyandCreativeSheffieldfrom2006‐2009,andheisquite

familiarwithSheffield’sAMRCandAMP.

ThenewCommonwealthCenterforAdvancedManufacturing(CCAM)inPetersburg,

Virginia,isfollowingtheSheffieldmodel.CCAMisapartnershipbetweentheRolls‐

RoyceCorporation,theVirginiaPolytechnicInstituteandStateUniversity(Virginia

Tech),andtheUniversityofVirginia,conductingR&Dandtestingonadvanced

surfaceengineeringfortheaerospace,energy,semiconductor,chemical,and

shipbuildingindustries.AkeyfeatureofCCAMwillbetheconstructionofatest

factoryfloorwithinthecenter.Thiswillallowtestingofmoreadvancedandefficient

productiontechniques,reducetestingcosts,andenablepractical,hands‐ontraining

totakeplaceseparatelyfromtheactualfactoryproductionfacilities.

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CaseStudy:UniversityofSheffieldAdvancedManufacturingResearchCentre

withBoeingandAdvancedManufacturingPark

TheUniversityofSheffieldAdvancedManufacturingResearchCentre(AMRC)with

Boeingisaninternationallyrecognizedcenterforadvancedmachiningandmaterials

researchforaerospaceandotherhighvaluemanufacturingindustries.

AMRCisbecominganinnovativemodelforAdvancedManufacturingresearchcenters

worldwide.In2011,AMRCwithBoeing,andtheUniversityofSheffield’sNuclear

AMRC,becamepartnersintheHighValueManufacturingCatapult,withfundingfrom

theUKGovernment’sTechnologyStrategyBoardintendedtocreateanewnational

networkofadvancedtechnologicalinnovation.

AMRCidentifies,researches,andresolvesadvancedmanufacturingproblemson

behalfofitsindustrialbusinessmembers.Over65companieshavejoinedas

members,fromglobalaerospacecorporationstolocalsmallandmedium‐sized

enterprises.Morethan200researchersworkwithindividualcompaniesonspecific

projects,andcollaborateongenericprojectsforthebenefitofallmembers.The

industrialmembersselectAMRC’sR&Dprojects.Thisensuresthatworkisfocusedon

highpriorityindustrialandcommercialrequirements.

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AMRChasfourareasofcoreresearch:

MachiningResearch–TheAMRCProcessTechnologyGroup(PTG)develops

innovativetechniquesandoptimizedprocessesforthemachiningofhigh

performancematerials.Withinthatscope,PTGfocusesonprocessmonitoring,

machinabilityofmaterials,machiningdynamics,processautomation,process

modeling,chipmachiningfundamentals,non‐conventionalmachining,andintegrated

manufacturing.

AdvancedManufacturingAssembly–TheAMRCIntegratedManufacturingGroup

(IMG)specializesinsolvingproblemsinlowvolume,highvalueassemblyand

difficult‐to‐handlecomponents.IMGfocusesonmeasurement‐assistedassembly,to

developnewwaysofautomaticallyassemblingcomplexsystemsforaerospaceand

otherlowvolumemanufacturingindustries.TheGroupbringstogethercore

expertiseinrobotics,metrology,anddesignofautomationsystems.

CompositeMaterials–AMRC’sCompositeCentreisastate‐ofthe‐artfacilityfor

advancedcompositemanufacturingresearchanddevelopment,extendingAMRC’s

traditionalexpertiseinmetalsproductionintothenewgenerationofcarbonfiber

compositematerialsincreasinglyusedinaerospace,marine,automotive,andother

industries.Withthenewcompositematerials,theCompositeCentrefocuseson

automatedproduction,machining,andadvancedcuringtechnologies.

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StructuralTesting–TheAdvancedStructuralTestingCentre(ASTC)isAMRC’stesting

andcertificationcenter.Productcertificationiscriticaltoenteringthesupplychain

withnewmethodologiesandmanufacturingmaterialsinsafety‐criticalcomponents.

Researchprojectsfallintothreecategories:

GenericresearchisconductedonbehalfofAMRC’sindustrialmembers,withresults

distributedtoeverycompany.

Specificresearchisconductedforindividualmembers.Themembersinvestdirectlyin

theresearchandhaveexclusiveaccesstoanyresultingintellectualproperty.

Innovationresearchisconductedonbehalfoftheentireindustrialmembership,with

resultspresentedtoallmembers.Theseprojectsareusuallyfundedbythe

EngineeringandPhysicalSciencesResearchCouncil(EPSRC),themainUK

governmentagencyforfundingresearchandtraininginengineeringandthephysical

sciences,bytheEuropeanCommission’sFrameworkProgram,orthroughother

externalgrants,andtheseprojectssometimesincludecollaboratingwithother

researchcentersandcorporations.

InadditiontoitsEuropeanpartnerships,AMRCispartoftheBoeingCorporation’s

GlobalNetgroupofindustry‐orientedresearchcenters,andtheRolls‐Royce

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Corporation’sAxRC,aninternationalnetworkofAdvancedManufacturingresearch

centers.

TheAMRCalsoprovidestechnical,analytic,andmanagementservicestosupportthe

activitiesofitscoreresearchgroups.Researchsupportteamsincludemicroscopy,

metrology,qualitycontrol,andvirtualreality.

BackgroundHistory

Sheffield’sAdvancedManufacturingPark(AMP)islocatedintheSouthYorkshire

regionthatoncewasamajorareaforsteelmanufacturing.Withthedeclineofsteel

productionduringthe1980s,SheffieldandSouthYorkshirewentintoadecade‐long

slumpassteelfactoriesandcoalminesinadjacentcommunitieswereclosed.Asa

resultofitseconomicchallenges,SouthYorkshirebecameaEuropeanUnion

“ObjectiveOne”region,becomingeligibleforonebillionGBPinEUfundingtoenable

theregiontoregenerateitseconomy.Oneoftheprojectslocalgovernmentsinvested

inwasajointventureofUKCoal(whichownedmuchofthecontaminatedformer

coalminesacrosstheUK)andYorkshireForward,theRegionalDevelopmentAgency,

todevelopthe100‐acreAdvancedManufacturingParknearSheffield.

TheAMRCwasestablishedin2001asapartnershipbetweentheUniversityof

SheffieldandBoeing,withadditionalfundingfromYorkshireForwardandthe

EuropeanRegionalDevelopmentFund.Thetotalinitialpublic‐privateinvestment

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was15millionGBP.TheUniversityofSheffieldhasastrongfocusonmetallurgyand

engineeringresearch,andatraditionofworkingcloselywithlocalindustryto

developnewmanufacturingtechnologiesandprocesses.Universityexecutivesand

professorscollaboratedwithBoeingtodevelopaconceptfortheAdvanced

ManufacturingResearchCentredesignedtopartnerwithbusinessesinfindingnew

solutionsforaddressingtheultra‐hightoleranceprecisionrequiredinadvanced

technologyaerospacemanufacturing.

In2004,AMRCmovedintoacustom‐designedfacilityastheanchortenantforthe

AdvancedManufacturingPark.AMRCgrewrapidlyand,aftersecuringadditional

funding,in2008officiallyopenedthe4,500square‐meterAMRCRolls‐RoyceFactory

oftheFuture.In2012,AMRC’sCompositeCentremovedtoanexpanded1,800

square‐meterfacilityintheFactoryoftheFuture.TheRolls‐RoyceFactoryofthe

FutureisbuiltaccordingtohighlysustainableBuildingResearchEstablishment

EnvironmentalAssessmentMethod(BREEAM)standards.Thebuildingisdesignedto

makemaximumuseofnaturallighting,heating,andventilation,andfeatures

significantrenewableenergycapabilitiesincludinggroundsourceheatpumpsand

windturbines.

Theoriginal2004AMRCbuildingcurrentlyfeaturestheAdvancedStructuralTesting

Centre,andwillsoonundergoamajorupgradeandexpansiontocreateanewDesign

PrototypingandTestingCentre.

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Governance

AMRCisamembership‐basedorganizationwithtwotiersofmembership:

Tier1membershipcosts200,000GBPperyear.Tier1membersgetanindividual

voteontheboardofmembersthatmakeskeydecisionsaboutresearchpriorities.

Tier1membersparticipateinandobtaintheresultsofallgenericprojects(distinct

fromseparatelyfundedproprietaryresearchprojects).Tier1membersalsohavethe

opportunitytorecommendspecificprojectsthatarepresentedtotheboardofTier1

membersforrankingandapprovalasfundsbecomeavailable.Therearecurrently20

Tier1membersincludingBoeing,Rolls‐Royce,BAESystems,Alcoa,andNikon.

Tier2membershipcosts30,000GBPperyear.Tier2membersparticipateinand

obtaintheresultsofallgenericresearchprojects,andhaveprivilegedaccessto

AMRC’sresourcesandcapabilities.Tier2partnerscollectivelygetonevoteonthe

boardofmembers.Therearecurrently47Tier2members,includingABB,Volvo

Aero,MitsubishiElectric,andAeroEngineControls(ajointventurebetweenRolls‐

RoyceandGoodrich).

OtherAMRCandAMPFacilities

TheAMRCnowformsthecoreoftheUniversityofSheffieldAMRCgroup,together

withtheNuclearAMRC,whichisapplyingthesamecollaborativeindustrialmember

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R&DmodeltomodernizingandimprovingthenuclearenergyAdvanced

Manufacturingsupplychain.

TheUniversityofSheffieldisbuildingonthesuccessofitsAMRCwithBoeingby

developingalargergroupofindustry‐focusedmanufacturingR&Dcentersand

supportingfacilities.TheUniversityofSheffieldAMRCincludes:

NuclearAMRC

Establishedin2009incollaborationwiththeUniversityofManchester,theNuclear

AMRCisapplyingtheUniversityofSheffield’sAMRCmodelofcollaborativeresearch

tothenuclearenergyAdvancedManufacturingsupplychain.TheNuclearAMRC

combinesuniversityinnovationandindustryexpertisetohelpUKmanufacturers

competegloballytomanufacturenewnuclearstate‐of‐the‐artnuclearpowerplanes,

aswellasotherinnovativeenergytechnologies

TheNuclearAMRChasover35membercompanies,includingreactorproviders

ArevaandWestinghouseandleadingsupplierssuchasRolls‐RoyceandSheffield

Forgemasters.ItisbasedatanewR&DfacilityinSheffield’sAdvancedManufacturing

Park,withanadditionallaboratoryattheUniversityofManchester’sDaltonNuclear

Institute.

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Namtec

Establishedin2002,theNationalMetalsTechnologyCentre(Namtec)provides

trainingandengineeringadvicetotheUKmetalsmanufacturingsupplychain.

NamtecjoinedAMRCin2012tohelppromoteAdvancedManufacturinginnovation

andimprovecompetitivenessfortheUKmetalsindustry.

KnowledgeTransferCentre(KTC)

OpenedinMay2012,theAMRCKnowledgeTransferCentre(KTC)providesdedicated

conference,meeting,andtrainingspacetohelpengagebusinessesinvolvedinthe

AdvancedManufacturingsupplychain.Thebuildingisbasedaroundalargetraining

workshopwherevisitorscanexperiencenewAdvancedManufacturing,machining,

andassemblytechniquesdevelopedatAMRC.TheKTCalsooffershighlyflexible

meetingandteachingrooms,equippedwiththelatestpresentationandnetworking

technology,anditsfacilitiescanhostlargeconferencesofupto300participants.

AMRCTrainingCentre

Openinginlate2013,theAMRCTrainingCentrewillfocusonhigh‐levelapprentice

traininginAdvancedManufacturing,includingmechanicalengineering,electricaland

electronicengineering,fabricationandwelding,engineeringmaintenance,and

engineeringtechnicalsupport,forindustriessuchasaerospace,automotive,and

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energy.Itwilltrainupto250apprenticesperyearfrommembercompaniesand

otherlocalbusinesses,incooperativepart‐timeprograms.TheAMRCTrainingCentre

willbehousedinanew5,000square‐meterbuildingattheAdvancedManufacturing

Park.

IndustrialDoctorateCentre

TheIndustrialDoctorateCentre(IDC)inMachiningScienceoffersgraduatestudents

theopportunitytolearnaboutcutting‐edgeAdvancedManufacturingengineering.

TheIDCisoperatedjointlybyAMRCtogetherwiththeUniversityofSheffield’s

FacultyofEngineering.Itprovidesafour‐yearEngineeringDoctorateprogramthat

includesappliedR&Daddressingreal‐worldAdvancedManufacturingbusiness

challenges.

AdvancedManufacturingBusinessAdvisoryServices

FortheAdvancedManufacturingSustainableInnovationStrategytosucceed,it

willbeimportanttoactivelyinvolvethethousandsofmanufacturersandtheirsupply

chaininMinasGerais,butprovidingentrepreneurialtraining,strategicadvice,and

technicalassistancetosmallandmedium‐sizedengineeringandindustrial

companies.ThiscanbeaccomplishedthroughtheAdvancedManufacturing

BusinessAdvisoryServices.

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TheAdvancedManufacturingBusinessAdvisoryServiceswilloffercourses,

seminars,andtrainingprogramsforbusinessesatCETEC,atthenearbySENAIfacility

intheHortoareaofBeloHorizonte,andatmanyotherFIEMGandSENAIlocationsin

MinasGerais.Inaddition,theAdvancedManufacturingBusinessAdvisoryServices

willmanageanextensionservicewherebymentors,consultants,andtechnical

specialistswillvisitacompany’sproductionfacilitiesandprovideon‐sitestrategic

adviceabouthowtoreduceexpensesbyeliminatingandrecyclingwaste,enhancing

speedandtimeliness,expandingmarkets,andincreasingsalesrevenuesandprofit

marginsthroughspecificimprovementsininnovation,productivity,resource

efficiency,andsustainability.ThroughtheAdvancedManufacturingBusiness

AdvisoryServices,manyenterpriseswillbeabletomodernizetheirfacilities,

machinesandequipment,andoperationsandprocessesbylearninghowtoutilize

newAdvancedManufacturingtoolsandtechniques.Thiswillhelpopenupnew

marketsforinnovativefirmsintheAdvancedManufacturingBusinessAccelerator

andtheAdvancedManufacturingTechnologyIndustrialPark,generatinga

virtuouscycleofwidespreadinnovation,productivity,andgrowthamongawide

rangeofindustriesinMinasGerais.

OneveryusefulandhighlyrelevantmodelistheManufacturingExtension

Partnershipprogram,operatedbyNISTandtheUSDepartmentofCommerce,and

involvingstateandlocalgovernments,privatecompanies,universitiesand

communitycolleges,andotherkeyinstitutions.AccordingtoDr.PhillipSingerman,

NIST’sAssociateDirectorforInnovationandIndustryServices,“TheMEPisa

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longstandingpublic/privatepartnershipwhoseworkleadsmanufacturerstonew

sales,newproductdevelopmentandmarketexpansion,thatinturnleadsdirectlyto

theretentionandcreationofmanufacturingjobsintheUnitedStates.”Thereare

MEPCentersinall50statesandinPuertoRico.TheMEPpageonNIST’swebsitelists

allofthecentersanddescribestheireffectiveworkinworkingwithmanySMEsto

generateefficiencyandsustainabilitysavings,innovativeproductivityimprovements,

andsalesandincomegrowth.EachoftheMEPCentersprovidescasestudyexamples

ofsuccessfulcollaborationwithmanufacturerstoimprovetheir“bottomline.”

OnesuchexampleisfromtheDelawareManufacturingExtensionPartnership

(DEMEP).DEMEPworkedcloselywithEasternIndustrialServicesInc.(EISI)and

PTMManufacturing,whosecustomersincludeDuPont,AstraZeneca,Verizon,

ChristianaHealthCareSystem,andtheUniversityofDelaware.EISIandPTM

obtainedsupportfromtheDelawareEconomicDevelopmentOfficetoincrease

resourceefficiency,productivity,andcompetitiveness.Theyreceivedsubstantial

trainingandadvicefromDEMEPon“leanmanufacturing”toreducesevenwaste

streams:over‐production,waitingtime,transportation,processing,inventory,

motion,andscrap.DEMEPprovidedadviceonhowtostreamlinetheproduction

process,includingcompiling“meticulousvaluestreammapsonsuchkeyprocessesas

estimatingandbiddingjobs….Inthenew,moreefficientsystematthefacility,EISI

andPTMhaveformulatedauniqueprocessthathelpsidentifyandassignestimatesin

awaythatbalancesresourcesandworkloads.”ThenetresultofDEMEP’sadvisory

servicesisthatEISIandPTMcreated15newjobs,cutestimatingandbiddingtimeby

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20percent,andsignificantlyreducesenvironmentalwastebyrecyclingscrap

materials.

OthermodelsfortheAdvancedManufacturingBusinessAdvisoryServicesinclude

theBenjaminFranklinTechnologyPartnersofPennsylvaniaandtheMaryland

TechnologyDevelopmentCorporation,whichalsohelpearlystagetechnology

companiesobtainfinancingandconnectthemwithbusinessincubatorsand

accelerators.Inaddition,TriodosFacetinTheNetherlandsandTheNaturalStepin

Swedendoexcellentinternationalwork.Bothorganizationsadvise,train,andassist

SMEsinmanycountriesaroundtheworld,includinginBrazil.TriodosFacetfocuses

onentrepreneurship,andTheNaturalStepemphasizessustainability.

AdvancedManufacturingSkillsTraining

InthesamewaythattheAdvancedManufacturingBusinessAdvisoryServiceswill

offereducationandtrainingformanufacturersandsuppliers,theAdvanced

ManufacturingSkillsTrainingwillprovidevitallyneedededucationandtrainingfor

skilledjobsintheAdvancedManufacturingfield.SENAIandFIEMGalreadyhave

considerableexpertiseandalongtrackrecordofgoodexperienceprovidingbasic

andadvancedskillstrainingtoworkersforawidevarietyofindustrialoccupations,

andtheyshouldtaketheleadinoperatingtheAdvancedManufacturingSkills

Training.

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InadditiontousingtheSENAItrainingcenternearCETECasavenueforcoursesand

trainingprograms,theotherSENAIfacilitiesinBeloHorizonteandaroundthestate

canalsobeeffectivelyutilizedforthispurpose.Someofthetrainingcantakeplaceat

theCETECsite,incollaborationwiththeAdvancedManufacturingSustainable

InnovationCenter,AdvancedManufacturingBusinessAccelerator,Advanced

ManufacturingTechnologyIndustrialPark,andtheAdvancedManufacturing

BusinessAdvisoryServices.Employerswillbeabletointeractwithinstructorsto

helpdesignthebestpossibleeducationandtrainingprograms,andthegraduatesof

thesecoursesandprogramscanthenbecomeahighqualityskilledpoolofwell

trainedworkerswhocanbehiredtoworkforAdvancedManufacturingcompaniesin

MinasGeraisthroughouttheentirevaluechain.Essentially,theAdvanced

ManufacturingSustainableInnovationStrategywillbestrengtheningand

increasingthestatewideskilledlaborsupplyinwhatwillbecomerapidlygrowing

sectorsoftheSustainableInnovationeconomyinMinasGerais.

ThenewcampusoftheStateUniversityofMinasGerais(UEMG)underconstruction

inwalkingdistancefromCETECpresentsanexcellentopportunitytodirectlyinvolve

UEMGinAdvancedManufacturingSkillsTraining.CETEC‐SENAI‐FIEMGcanwork

withUEMGtodevelopcertificateanddegreeprogramsinvariousaspectsof

AdvancedManufacturing.

UEMGcanlearnfromothersimilareffortselsewhere,suchastheGreen

ManufacturingSpecialistCertificateprogramofferedbyPurdueUniversity’s

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ManufacturingExtensionPartnershipCenterandTechnicalAssistanceProgramin

Indiana,workingtogetherwiththeSocietyofManufacturingEngineers,with

workshopsonEnergyManagement,MaterialUseandSolidWasteManagement,

WaterSupplyandWasteManagement,AirEmissionsandClimateImpact,Managing

ChemicalUseandHazardousWaste,andEnvironmentalBusinessManagement.This

programoffersitscoursethroughcommunitycolleges,professionalassociations,

laborunions,utilitycompanies,andeconomicdevelopmentorganizations.

Anotherinterestingmodelisthe79/SeventyManufacturingCertificationProgram

operatedbytheCareerandTechnologyEducationCenters(C‐TEC)inOhio.This

trade‐specifictrainingprogramisofferedattheCentralOhioAerospaceand

TechnologyCenter,withBoeing,Goodrich,andothermajorlocalmanufacturers

participatinginthe79/SeventyAdvancedMaterialsCorridorinitiative.These

manufacturershelpidentifyandprovidethetrainingmaterials,andensurethatthe

graduatesofthecertificationprogramaredirectlyconnectedwithemployment

opportunities.Forexample,Goodrich’squalitycontrolmanagerteachesacourseon

hisareaofexpertise.Manufacturerswhoteachinthisprogramalsobringthe

studentstotheirfactories.

GraduatesofOhio’s79/SeventyManufacturingCertificationProgramalsoareeligible

fortheNationalCareerReadinessCertificaterecentlydevelopedbytheNational

AssociationofManufacturers,TheManufacturingInstitute,andACT.Thisnewly

designedManufacturingSkillsCertificationSystem,alsoinvolvingtheManufacturing

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SkillsStandardsCouncil,NationalInstituteforMetalworkingSkills,American

WeldingSociety,andSocietyofManufacturingEngineers,canserveasaninstructive

modelfortheworkoftheAdvancedManufacturingSkillsTraining.Thisfollowsone

ofthekeyrecommendationsoftheAdvancedManufacturingreportsfortheUS

President.Oneofthesixkeystrategiesfor“SecuringtheTalentPipeline”isto

“DevelopPartnershipstoProvideSkillsCertificationandAccreditation.”

TheAdvancedManufacturingSkillsTrainingalsocanworkwiththeE.E.Professor

FontesTechnicalHighSchoolneartheCETECsitetooffercertificateprogramsin

AdvancedManufacturing.Currently1,200studentsatthisindustrialeducation

centerarebeingtrainedinmechanics,electronics,computers,andrelatedfields.The

schoolmaybeabletodrawsomelessonsfromChicago’sAustinPolytechnical

Academy(APA),foundedin2007bytheChicagoManufacturingRenaissanceCouncil

toprovidestate‐of‐the‐artcurriculumandinstructionfocusingonscientific,

technological,engineering,mathematical,andmechanicalskillsneededinmodern

manufacturing.TheAPAworkscloselywiththe60industrialpartnersonits

ManufacturingAdvisoryCommittee,andtheCenterforLaborandCommunity

Research,toofferpracticalhands‐onmanufacturingexperiencessuchaspartnering

withalocalbrewerytoproduceasodafrominceptiontofinalproduct.APAhas

establishedaManufacturingandTechnologyCentertoteachstudentshowtooperate

manualanddigitalmillingmachines,and73studentsalreadyhavecompleted

certificationprogramsofferedbytheNationalInstituteforMetalworkingSkillsin

metalformingandinmachinemaintenance,service,andrepair.Thisentry‐level

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credentialcertifiesthatthesestudentshavethebasicskillsinoperations,machining,

inspection,andsafetynecessaryforfull‐timeemploymentinmanufacturing

industries.

AdvancedManufacturingSustainableInnovationZone

OneofthespecialopportunitiesoftheAdvancedManufacturingSustainable

InnovationStrategyistocreateCETECandtheimmediatesurroundingareaasa

veryspecialplace,aworldwidedestination.Tobecomesuchaninternationalmagnet,

beingasinnovativeandsustainableaspossiblewillbecomeavitalpartofthevision

andofthereality.Innovationandsustainabilitywillrunthroughtheresearch,

development,andproduction,theteaching,andtraining,theentrepreneurshipand

thehardwork,andtheyalsocanbeaveryattractiveaspectofthelook,feel,anddaily

lifeandactivitiesoftheplaceinwhichAdvancedManufacturingSustainable

Innovationisoccurring.

CETEC’slocationintheHortoneighborhoodofBeloHorizonteisamajorphysical,

economic,andculturalasset,whichiswhythenewFAPEMIGheadquartersandthe

newUEMGcampuswillbecomeimmediateneighborsofCETEC.Theareais

attractiveandinteresting,servedbytwomajorMetrotrainstations,JoseCandidoda

SilveiraandSantaInes.LastyeartheSecretaryofStateforScience,Technology,and

HigherEducationofficiallydeclaredthisareaasa“CityofScienceandKnowledge,”

recognizingandcelebratingthereinvestmentbySENAIandFIEMGinCETEC,thenew

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UEMGcampus,thenewFAPEMIGheadquarters,andalloftheotherinstitutions:

BiominasHabitat,EPAMIG,SERPRO,SENAI,InstitutoAgronomico,NaturalHistory

Museum,UFMGBotanicalGardens,PlugMinas,E.E.ProfessorFontes.Secretary

NarcioRodriguesrecruitedprofessionalarchitect,formerCuritibaMayorandParana

Governor,andGUDViceChairJaimeLernertoadviseonurbandesigntoimprovethe

area’squalityoflifeandvibrancy.Thisapproachtosustainableurbandesignand

mixed‐usedevelopmentmightincludepromotingwalkabilityandpublictransit,

attractingstoresandservices,buildingcommercialandcommunityamenities.

GUDrecommendsthatCETEC‐SENAI‐FIEMGorganizealocalgreentransportation

system,theSustainableShuttleService,thatwillinvolvesolar‐poweredmultiple‐

passengerlow‐speedelectricvehiclesrunninginthreecontinuousloops:1)thefirst

routewouldrunfrequentlyback‐and‐forthbetweenCETECandtheJoseCandidoda

SilveiraMetroStation;2)thesecondroutewouldruncontinuouslybetweenSENAI

andtheSantaInesMetroStation;3)thethirdroutewouldcirclearoundtheCityof

Knowledgestoppingatallofthemajorinstitutionsandactivitycenters.Inaddition,

wesuggestthatCETECbecomethehostvenueforanoriginallargemetalsculpture

honoringthespiritofSustainableInnovation,speciallydesignedbythewell‐known

Mineiroartist,VirginiaFerreira.

InthespiritoftherecentSustainableBHSealcertificateawardsprogrambythe

MayorofBeloHorizonteforgreenbuildings,especiallyforbuildingssubstantially

reducingenergyandwaterconsumption,includingFIEMG’snewheadquarters,and

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thecity’srecenthostingoftheWorldCongressofICLEI‐LocalGovernmentsfor

Sustainability,the“CityofScienceandKnowledge”aroundtheCETEC‐SENAI‐FIEMG

sitecanbecomeamajorinternationaldestinationshowcasingstate‐of‐the‐art

featuresofSustainableInnovationindevelopingandmanagingurbancommunities.

Suchactivitiesinvolverenewableenergyproduction,energyandwaterconservation

andefficiency,reducingwastestreams,materialsrecyclingandreuse,andmany

othercreativesolutions,suchassolarrooftops,solarcanopiesinparkinglots,and

solarLEDlighting.

TheAdvancedManufacturingSustainableInnovationZoneinBeloHorizontecanjoin

togetherwiththeotherwell‐knownglobalurbanSustainableInnovationbest

practices,includingVaubaninFreiburg,Germany;SongdoinSouthKorea;Hammarby

SjostadinStockholm,Sweden;MasdarCityinAbuDhabi,UAE;TotnesintheUK;and

theEcoDistrictsofPortland,OregonintheUS,amongothers.

TheAdvancedManufacturingSustainableInnovationZonecanbeamagnetfor

economicandcommunitydevelopment,jobcreation,businessandincomegrowth,

andahigherqualityoflifefortheneighborhoodanditsworkers,residents,and

visitors.ItcouldbeamajortouristattractionforBeloHorizonteandMinasGerais.

Andfinally,itcanbecomeareplicablemodelfortherestofMinasGerais,including

developmentintheNorthVectorandtheWest,South,andEastVectorsoftheBelo

HorizonteMetropolitanRegion.

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FutureInitiatives:GlobalBrandingandGiftsofNature

TwofutureinitiativesforFIEMGtoconsiderareGlobalBrandingandGiftsof

Nature.GlobalBrandingisneededtocreateandmarketanewinternationalimage

forBeloHorizonteandMinasGeraisasaworldcenterforSustainableInnovation,

withtheAdvancedManufacturingactivitiesinandaroundCETECbeingoneofthe

centerpiecesofthesepublicrelationsefforts.Otheractionscanincludeinternational

marketingof:

Minascheese,includingpaodequeijo,

Minascoffee,

Minascachaca,

Minasfashionanddesign,

Mineiroculture,includingapotentialEstradaRealBicycleRaceasanew

Februaryeventintheannualworldwideprofessionalcompetitioncircuitthat

culminateswiththeTourdeFrance.

Theotherpossibleinitiative–GiftsofNature–involvespromotingSustainable

Innovationbyidentifyinghighervalue‐addedandadvancedtechnologyusesof

traditionalresources.Newusesformineralsincludeinnovativetechnologieslike

lithium‐ionbatteries,andtitaniumformedicalprosthesesandorthopedicimplants.

Newinnovativeusesfortreesandplantsincludedevelopinginsulinandother

medicinalsubstancesandpharmaceuticals.

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Conclusion

ThisreporthasoutlinedforFIEMGacomprehensiveAdvancedManufacturing

SustainableInnovationStrategyinpartnershipwithCETECandSENAI.GUDbelieves

thatthiswillbeoneofthemosteffectiveeconomicdevelopmentleadershipactivities

forFIEMG,andthatitcanenableMinasGeraistotakemajorstepsforwardonthe

pathof“Innovation‐LedEconomicTransformation.”