The Harvard Business Review published an article last year that focuses on how production is closely related to innovation. However, companies fail to see the connection and largely view manufacturing as a cost center. The article highlights the benefits of keeping manufacturing and R&D near each other, as well as provides a framework that helps managers assess the consequences of geographically separating the two.
“Part of the problem is that it’s devilishly difficult to determine when manufacturing is critical to innovation and when it can be safely outsourced to lower costs and reduce capital outlays. In this article we’ll provide a framework that will help business leaders and government policy makers navigate this issue. Our hope is that it will lead to better sourcing decisions that will reinvigorate America’s innovation-driven economy.”
To access the entire article, please visit hbr.org.