Making Things and Innovating Go Together: John Liu on MIT's Role in American Manufacturing

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Overview

What happens to a country's capacity to innovate when it stops making the things it designs? On an episode of Manufacturing Happy Hour, host Chris Luecke asked that question of Dr. John Liu, principal investigator of MIT's LEAP (Learning Engineering and Practice) Group. They recorded at Miracle of Science, a bar two blocks from MIT's campus whose menu is laid out as a giant periodic table. Liu argues that manufacturing is a source of innovation and not only a downstream activity. In his view, the US has spent two decades focused on product innovation at the expense of process innovation, and universities have a role in rebuilding that capacity through research and through education aimed at very different kinds of workers.

22 min read
3:10

A Researcher of How People Learn Engineering

Liu describes the "principal investigator" title as less grand than it sounds. It means he is the person responsible for a research group, the one who applies for grants and leads projects. What sets the LEAP Group apart from most MIT labs is its subject. Rather than doing engineering or science research directly, the group studies how people learn engineering and science.

Luecke asked whether manufacturing or MIT came first for Liu. MIT came first. As an undergraduate studying physics at Caltech, Liu researched microfluidics: how to work with a drop of blood, run diagnostics on it, and control its flow. At MIT he moved into medical device design. His PhD sat at the intersection of mechanical design, fluid dynamics, and biomedical applications, focused on needle-free drug injection, a technology he notes has existed longer than most people assume.

The turn to manufacturing came only after the PhD, during a postdoctoral position under Professor Dave Hardt, an expert in process control and in applying statistics to control and optimize processes on the factory floor. Liu says manufacturing came "more out of left field." The real draw was education. He had fallen in love with teaching as a graduate student, and the postdoc was his first full-time chance to work in education. The subject happened to be manufacturing. In his words, the order was MIT, then education, then manufacturing. Luecke connected this to a pattern he sees among guests: careers rarely follow a plan made far in advance.

6:46

MIT's Long History in Manufacturing

Liu offered several examples of MIT's influence on industry. The first iteration of CNC (computer numerical control) machining, he says, came out of Building 35 at MIT in the 1950s, the building he works in. Before that, machining was entirely manual, and the MIT work introduced analog controllers.

The second example is the 1990 book The Machine That Changed the World, written by MIT faculty, which Luecke credited with bringing lean manufacturing into wide use. Liu explained what prompted the work. In the 1980s, some MIT faculty observed that US and European automakers were competing with Japanese companies mainly by lobbying governments to put up competitive walls, possibly tariffs. Liu noted that this is relevant again today. The professors argued that if companies kept building walls, they would never learn and innovate. They asked how to reach across those walls and learn from what was happening in Japan.

That question led to a five-year study of the practices now called lean manufacturing, then known in Japan as the Toyota Production System. According to Liu, the book's central concern was how to move away from the mass-manufacturing paradigm of Ford's Model T era, which he calls an incredible innovation for its time, toward lean production. The data then suggested that a traditional automobile factory implementing lean could cut waste roughly in half, double efficiency, and halve downtime. Liu is careful to say that James Womack and his MIT colleagues did not invent lean manufacturing. It was a Japanese innovation, and it was being implemented in ad hoc ways. MIT's contribution was to study it, formalize it, and work out how companies could actually make the transition. Liu calls this a very practical kind of work that MIT may not be known for, but says that the globalization of lean, and the knowledge of how to implement it, came from MIT.

10:21

Two Lessons From the Lean Era

Asked what 2025 can learn from that 1980s study, Liu offered two lessons. The first follows from the origin story: instead of relying on walls, learn from the best, adopt their practices, and win by being competitive. He thinks many people are asking this question today, and that it should push the industry further.

The second concerns automation. Liu points to studies showing that automation can eliminate middle-skill work while increasing low-skill work. Against that backdrop, he sees lean manufacturing as "a bit of a lighthouse example," because it pushes decision-making and innovation down to the lowest rungs of the organization. Everyone is involved in recommending ways to reduce waste in a just-in-time system. Liu finds it compelling that a paradigm now 40 or 50 years old involves people so fully. With AI and automation arriving, his question is how to use what is most human, the creative and innovative capacities of workers, to bring productivity and flexibility to the factory floor. Luecke summarized this as decision-making being pushed to the front line, a theme many of the podcast's guests raise, and Liu agreed with that framing.

12:38

3D Printing and the MIT Startup Ecosystem

Liu also described MIT's contributions to additive manufacturing. A search for the origins of 3D printing, he says, leads to a 1990s patent naming Emanuel "Ely" Sachs, who is still on MIT's faculty with an office down the hall from Liu. Liu still sees him in the machine shop, working with his hands. Liu says the term "3D printing" itself was coined by Sachs at MIT, while acknowledging there have been various earlier forms of the technology.

He listed Desktop Metal and Formlabs as MIT startups. He also said he believes, while noting he would need to check his sources, that Massachusetts has the highest density of venture funding in additive manufacturing of any state, and that many of those startups come from MIT. Luecke mentioned Natan Linder, a co-founder of Formlabs and a past guest who now runs Tulip Interfaces nearby. Liu called Linder a close colleague with whom his team works on several projects. Both connected Tulip's focus on empowering frontline workers to the lessons drawn from lean.

14:21

"We Innovate Here and We Produce There"

The conversation then turned to Making in America: From Innovation to Market, an MIT study from around 2013 that Luecke described as a critique of globalization in which technologies developed in the US were commercialized abroad. Liu framed it carefully. He says globalization has great advantages, and he thinks the study's lead authors would agree that the goal was not to abandon it. But in his view, one key thing this form of globalization took away was Americans' ability to make things.

At the time, Liu says, this was not on the public's mind or on policymakers' radar. The US government encouraged offshoring, and so did Wall Street. Large companies like Apple were moving manufacturing to Asia and elsewhere. The dominant model was "we innovate here and we produce there." According to Liu, the nation's chief economists in the late 2000s and early 2010s compared manufacturing to agriculture, as something that could be outsourced. Under the president of MIT at the time, whose name he could not recall during the interview, the institute commissioned a campus-wide study to test that assumption. The study was not about international collaboration, which Liu calls a wonderful part of globalization. It asked whether it was good for the country to design a part here and have someone else make it elsewhere. Since the US is known as a nation of innovators, the key question was whether it makes sense for an innovation economy to produce outside its borders.

The multi-year study involved engineering, science, and social science faculty. They interviewed and mapped firms in the US, Europe, and Asia. Against the prevailing view that offshoring was all benefit and no cost, Liu says the study's resounding conclusion was that the country loses its ability to innovate when it produces elsewhere. His explanation is that taking a prototype into production forces the design to change in many ways. Design for manufacturing (DFM) is a whole category of innovation that he says is undercelebrated in the US but essential to the innovation engine. It generates new processes and new ways of making things, which carry patents and significant value. That value is lost when companies simply send CAD files and designs overseas. Liu sums up the past two decades by saying the US has been an economy focused on product innovation, and that there is "so much process innovation that we need to recapture."

18:39

Why Social Scientists Led the Study

Luecke asked why social scientists were involved in a manufacturing study. Liu said the lead researcher, Suzanne Berger, is a social scientist with a background in political science, and that she had studied the French government. In his view, social scientists bring a broader lens on how industries are affected. Their qualitative and quantitative methods can tease out connections across an entire industry. They also ask how governments, agencies, local organizations, companies, and schools do or don't work together to support manufacturing. He added that social scientists at MIT are especially interested in industrialization.

Liu described the study as influential. As he understands it, the work shifted the views of policymakers in the 2010s. Berger presented the findings to President Obama in the Oval Office before the book was published. Liu says the study became associated with the thinking behind setting up the manufacturing institutes and their continuation, though he noted that much of this happened behind the scenes.

19:41

What a 2025 Addendum Would Need to Address

Luecke asked what a second edition would need to cover. Liu said he hadn't thought about the book's shortcomings, but he identified several ways the world has changed.

First, he says, "for better or worse," and explicitly not as a political statement, countries are now more inward-looking. Tariffs are one sign of this. Each domestic economy, perhaps together with a few select partner countries, is increasingly responsible for its own supply chains, which have become more isolated. As a result, much manufacturing is coming back to the US. Liu cited Apple's announcement, a few weeks before the recording, of a $500 billion investment over the next four years, along with announcements from car manufacturers and semiconductor companies. He said he was floored by a post listing all the projects over $1 billion and the new factories planned in the US over the next decade.

His concern is what happens if this reshoring follows the current paradigm. He worries that prices would be very high, that the jobs would still not be good jobs, and that this kind of manufacturing might not contribute well to the climate. That is why MIT is asking what a new manufacturing paradigm should look like.

Liu also pointed to changed corporate structures. In the 1980s and 1990s, firms were vertically integrated. He named Intel, Motorola, and Bell Labs as examples, saying they were able to capitalize on spillover effects. That is no longer the case. Firms have broken up into small, medium, and large companies. The open question, as he puts it, is how to move to a type of manufacturing that provides good jobs, uses the best of technology while keeping humans at the center of the work, and contributes to sustainability. The original book did not set out to answer that.

23:43

An Annual Manufacturing Symposium

When Luecke asked what MIT is doing now, Liu first mentioned an annual manufacturing symposium held each May, which he supports in a helping role. The upcoming one would be the fourth. It showcases how MIT is thinking about manufacturing nationally and globally from research, policy, and industry perspectives, with talks from academia, industry, and often government. Liu says the first one was small, about 150 people, yet the New York Times and Forbes attended. He took that as a sign of more interest in the topic than the event's size suggested.

25:42

MicroMasters: Graduate-Level Principles for Working Engineers

The first education program Liu discussed is the online MicroMasters in manufacturing, which he helped launch about five years earlier. Luecke cited roughly 200,000 participants, and Liu agreed the number was about right, describing hundreds of thousands of unique learners worldwide. In any given course, he says, learners come from about 150 countries. Most are professional engineers who want to apply graduate-level manufacturing principles to their current jobs, and the median age in a class is 29.

That profile follows from the program's design. The MicroMasters is based on MIT's master's program in advanced manufacturing and design, so it assumes a four-year engineering degree, undergraduate-level mechanical engineering, statistics, and probability. Liu says people without that background, such as high school students drawn by the MIT name, often drop out within the first week or two. The intended learners are engineers already in industry who want to become leaders and eventually plant managers. Liu says graduates sometimes become factory managers or start their own manufacturing companies within a couple of years.

27:17

Four Timeless Principles of Manufacturing

At the core of both the master's and the MicroMasters is a set of principles that Liu says MIT has been refining for decades. The premise is that whatever company or era someone works in, from the printing press of the 1800s to the "so-called Industry 5.0," they must understand and apply these principles. Liu acknowledges that calling them timeless and industry-agnostic is a bold claim. He supports it by saying MIT has taught them for two decades, manufacturing has changed considerably in that time, and the principles have not.

According to Liu, there are four things a manufacturer must always control:

  • manufacturing processes
  • manufacturing systems
  • supply
  • people and finances

His reasoning is that people often equate manufacturing with robotics or 3D printing, but those things change, and anything that can change probably isn't at the core. Put process, system, supply, and money together, he says, and you have manufacturing. Luecke asked why people and money share a category, since it feels like five. Liu said the grouping mainly reflects the course structure, in which an engineering management course covers working with both people and money.

30:35

TechAMP and the "Technologist"

The second program, TechAMP (Technologist for Advanced Manufacturing Program), serves a very different audience. Liu began by defining "technologist." In recent years, he says, many manufacturing firms told him they wished engineers had hands-on skills and that technicians and operators had analytical skills. At the same time, he observed that new technologies such as robotics, IoT, big data, and AI are all connected. Implementing one means understanding how it affects processes upstream and downstream and how it communicates with other technologies. Traditional shop-floor workers often have skills tied to one or two pieces of equipment, which creates a disconnect.

Connecting those observations, Liu began to ask whether firms were asking the wrong question and actually needed a new category of worker. That worker would stay on the shop floor and still handle maintenance and equipment operation, but would also have basic engineering skills for integrating and optimizing technology and for seeing how the pieces fit together as a system. His team set out to define that category formally and build a program to produce it. He calls the technologist a technician-engineer hybrid who works on the factory floor.

TechAMP is designed for incumbent workers, not entry-level students coming from vocational high school or community college. The intended participant is a company's star production worker with three to five or more years of experience, someone a company president sees as a future leader. Unlike MicroMasters participants, these workers don't need an engineering background. Liu says rockstar frontline workers are exactly the target, which is why his team works with Tulip.

The program is also not open enrollment. TechAMP launches at a site only when enough companies in a region commit to sending incumbent workers and to giving them a wage increase, more responsibility, and fair compensation after completing it. If a cohort isn't filled, the program doesn't launch.

TechAMP is a 12-month certificate program. For the first nine months, participants keep working while completing a flexible online portion and in-person labs. Schedules such as weekday evenings or weekends are worked out with the company cohort, not only the student cohort. The final three months are a capstone project. Employers, the education site's faculty, and Liu's team identify a real problem on the employer's floor, and the worker applies what they have learned to solve it. Liu likens it to "free consulting hours" from faculty and his team that enable the worker to solve an actual company problem.

36:27

How Pushback From Brazil Changed Liu's Focus

Liu says he doesn't deserve sole credit for looking beyond engineers. He describes himself as having been in a "higher ed bubble." In 2020, SENAI, which he described as Brazil's federally funded training organization, contacted his team about MicroMasters. Its representatives flew to MIT to discuss their challenges. During the conversation they stopped and told Liu that MicroMasters and the master's degree served only the top 5% of their workforce pyramid. They asked about the 7 million people who would never go to university. Liu says this pushback, the argument that making an impact requires caring about the rest of the workforce, first got him thinking in that direction.

37:23

The Defense Connection and Submarine Production

Luecke then asked about MIT's collaborations with the Department of Defense and Manufacturing USA. Liu described the DoD's push to scale up submarine production, which he says must roughly double in the next few years, a task he calls daunting given how few people understand a submarine's scale. He says the Navy is focused on two classes, the Virginia class and the larger Columbia class, and is aiming for what it calls a "two plus one" strategy: two Virginia-class and one Columbia-class submarine per year. He also mentioned a recent federal executive order on rebuilding the maritime shipbuilding base, adding that his sources should be checked. Luecke said shipbuilding comes up constantly in discussions of reindustrialization.

According to Liu, the estimate for the marine industrial base, including its supplier base, is about 100,000 new workers above baseline over roughly the next decade. Some will be engineers, but he believes the three main needs are in the trades: welders, machinists, and fitters. He sees this as closely aligned with TechAMP's focus on shop-floor workers, and his team has spoken with many organizations in aerospace and in what is now called the marine industrial base (MIB), formerly the submarine industrial base.

The concrete link is funding. The DoD's Industrial Base Analysis and Sustainment (IBAS) program funds TechAMP. At the time of recording, Liu said his team was nearly finished with industry mapping and content development, and that the plan, which he stressed was still a plan, was to launch at six sites across New England that fall.

41:00

The Role of Higher Education Alongside the Trades

Luecke closed by asking about higher education's role in reindustrialization at a time when many voices urge young people to go into the trades. He sees the two as complementary. Liu agreed that the trades are critical to the economy and pointed out that much of his own effort goes there. Luecke added that an engineering degree was the right path for him, but that different paths suit different people, and he hopes digital learning and work-and-learn models open more pathways.

Liu named two roles for higher education. The first is research and innovation. State funding, federal grants, and industry money flowing into academic research fuel much of the country's innovation, he says. He mentioned that there is a study he should be able to cite on how strong this relationship is and offered to send it later. Using technology readiness levels, he places universities at TRL 1 through 3, plus some of 4 and 5. He places the manufacturing institutes at 4 through 6, with other organizations carrying technologies through 7 to 9. He gave radar and the internet as examples of technologies that emerged from government-funded university research and later had large-scale impact. The second role is education: preparing leaders in innovation, policy, government, and industry. Liu says the country still needs tradespeople, engineers, and managers, and that they all need to work together.

Luecke tied this back to the episode's examples. CNC machining, lean manufacturing, and 3D printing either began at MIT or entered the industry's vocabulary through it, which he said shows concretely how university research feeds into manufacturing. The conversation ended with Luecke promising to return to MIT, perhaps around the 2026 symposium. The question Liu had raised earlier remained open: how to make the reshoring now underway produce good jobs, affordable products, sustainable operations, and work that keeps humans at the center.