Manufacturing Startups
This article analyses the reasons and impact of shift of manufacturing startups from the United States to overseas. After years of refining prototypes and perfecting pilot plants, advanced manufacturing startups frequently look overseas when it is time to scale-up for commercial production. Both manufacturing and technology companies go abroad looking for partnerships, because it is easier for investors. When startups scale their manufacturing elsewhere, the United States loses more than a possible return on the research investment that made such breakthroughs possible. The preliminary research suggests that to fully realize the economic gains associated with innovation, new products and services developed by American innovators must be scaled-up within the US economy, as well as in overseas markets. The four suggestions that have been made include the following: increase financing options for later-stage development; create institutions and incentives; change the contours of market demand; and encourage firms to raise capital through initial public offerings.