The idea and the manufacturing associated to the idea: “All iPhone parts are produced by independent companies but Apple takes the largest slice of the profit.”
Tweet by Brookings on 2015-06-30 https://twitter.com/BrookingsInst/status/615712614341935104
"In our 21st Century Knowledge Economy, it is the individuals and their ideas that are the key drivers of the growth. Good ideas add the most value—whether they are for a new service, product design, or episode of a popular TV series. Consider the iPhone, which Apple itself does not manufacture. All of its parts-processors, screens, RAMs, batteries, cameras, etc. are produced by other independent companies, but Apple, takes the largest slice of the profit - slightly less than 50 percent of the profit from selling an iPhone for its design, that is, for the idea of an iPhone. The important factor in this new economy is not the land, the factories, or the high-tech infrastructure and equipment, but innovative and creative ideas developed by people—people who still need face-to-face contact to maximize trust and collaboration."
Aligning education and innovation institutions, industry and economic development
Harvard Business Review: Industrial Commons: “R&D know-how, advanced process development and engineering skills, and manufacturing competencies related to a specific technology.”
Newark is at the center of the New York/New Jersey metropolitan area industrial economy.
Excerpts from the article by Nisha Mistry published on 2015-06-24 in the Metropolitan Innovation Series at the Brookings site
Title: "In Newark, higher ed’s renewed focus on manufacturing aims to reclaim Edison’s legacy"
Newark area: 800 manufacturers, small and mid-sized businesses, largely serving regional markets
Small-sized business sector: next-generation design startups, manufacturing startups, retooling businesses
(400 city manufacturers employ 10,000 workers)
“knack for scientific discovery and making things”
Invention: “Numerous products of global importance were invented in the Newark area, including Thomas Edison’s light bulb and air conditioning.”
Making things – Manufacturing and Industrialization: “For over a century, the city was a pioneer in America’s adoption of new industrialized methods and a production-based economy.”
Regulation Policy: “favorable policy and regulatory conditions contributed to rising incomes and improved economic security for a growing, skilled middle class.”
Advantages: “density, ample industrial building stock, proximity to markets and service providers, and enviable logistical assets, including a globally connected airport and the largest maritime complex on the East Coast, Port Newark-Elizabeth.”
Current Problems: “Underperforming on employment and output metrics, as well as on the assimilation of appropriately skilled workers and tools that support product and process innovation.”
Solutions by (Higher) Education and Industrial Institutes:
University Heights—home to the Rutgers Business School as well as New Jersey Innovation Institute (launched in 2014) — Essex County College, Newark Tech High School
next-generation design, research and development, production,
manufacturing-career readiness: (a) robotics and digital design, (b) technical operations management, (c) market analysis.
“Perhaps the boldest example of this activity is the launch last year of NJIT’s New Jersey Innovation Institute, which strives to align industry, educational, and economic development goals through partnerships and strategic clusters.”
“initiatives and collaborations to reach the area’s neighborhoods and residents, including through the reactivation of older industrial sites and locally embedded training options”,
“stemming the brain drain of qualified students out of the area”