Innovation Depends on a Robust Manufacturing Sector

When too many companies outsource their manufacturing, the industrial ecosystem can suffer long-term consequences.
It's called moving up the economic value chain: U.S. companies are increasingly conceiving and creating products that are built elsewhere. Prosaic manufacturing, with its razor-thin profit margins and ruthless competition, has been outsourced to Asia. But researchers who study innovation are starting to see a worrisome after-effect: the ability to innovate sometimes disappears with the manufacturing.
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