Placing Bets on the “Industrial Internet”: U.S. Industry 4.0 Focuses on “Soft” Power

　　In the United States, the concept of “Industry 4.0” has largely been replaced by “Industrial Internet.” Although the terms differ, the underlying philosophy of these two concepts is essentially the same: to connect virtual networks with physical entities, thereby creating more efficient production systems.

　　From a policy perspective, after the financial crisis, the U.S. government elevated the development of advanced manufacturing to a national strategy, aiming to reshape the manufacturing sector through new, revolutionary production methods. From an industry standpoint, the establishment of the Industrial Internet Consortium—a trade association—marks the official start of the business community’s march into the era of Industry 4.0. Unlike Germany, which places great emphasis on “hard” manufacturing, the United States—where software and the internet economy are highly developed—focuses more on driving a new round of industrial revolution through “soft” services, hoping to leverage the internet to revitalize traditional industries and sustain the long-term competitiveness of its manufacturing sector.

　　Government strategy drives innovation.

　　To respond to the new technological industrial revolution and gain a stronger voice in international industrial competition, the United States has made revitalizing its manufacturing sector a top strategic priority in recent years. Following the financial crisis, the U.S. government introduced a series of legislation aimed at establishing manufacturing innovation research centers, with the goal of transforming traditional manufacturing through advanced technologies and guiding the U.S. economy once again onto a path of sustainable growth.

　　In April 2009, just after taking office as U.S. President, Obama delivered a speech proposing the revitalization of manufacturing as a major long-term strategy for the U.S. economy. In December of the same year, the U.S. government released the "Framework for Revitalizing American Manufacturing," which provided a detailed analysis of the theoretical foundations and advantages of reviving manufacturing and served as a strategic guide for the development of U.S. manufacturing. Subsequently, the Obama administration gradually rolled out its plans—from strategic positioning and development pathways to specific measures—completing the deployment of the Manufacturing Innovation Initiative.

　　In June 2011, the United States officially launched the “Advanced Manufacturing Partnership,” aimed at accelerating its efforts to secure a leading position in advanced manufacturing for the 21st century. In February 2012, the country further introduced the “National Strategy for Advanced Manufacturing,” which, through proactive policies, encourages manufacturing companies to return to U.S. soil. These initiatives revolve around two main pillars: first, restructuring and enhancing the competitiveness of traditional manufacturing sectors; and second, fostering the development of high-tech industries. The strategy also emphasizes advancing cutting-edge digital manufacturing technologies, including advanced production technology platforms, sophisticated manufacturing processes, and design and data infrastructure.

　　In March 2012, Obama first proposed the establishment of a “National Network for Manufacturing Innovation,” aiming to set up up to 45 research centers and strengthen the close integration of industry, academia, and research among higher education institutions and manufacturing enterprises. In January 2013, the Office of the President’s Executive Office, the National Science and Technology Council, and the Office of the National Program for Advanced Manufacturing jointly released the “Preliminary Design for the National Network for Manufacturing Innovation,” announcing an investment of 1 billion U.S. dollars to establish the National Network for Manufacturing Innovation (NNMI). This initiative will focus on driving innovative development in advanced manufacturing fields such as digital manufacturing, new energy sources, and new materials applications, and will foster a group of innovation clusters with advanced manufacturing capabilities.

　　The key research areas of this innovative network include: developing lightweight materials such as carbon-fiber composites to enhance the fuel efficiency, performance, and corrosion resistance of next-generation vehicles—including cars, airplanes, trains, and ships; refining standards, materials, and equipment related to 3D printing technology to enable low-cost, small-batch production using digital design; and creating frameworks and methodologies for smart manufacturing that allow production operators to gain real-time access to “big data streams” from fully digitized factories, thereby improving production efficiency, optimizing supply chains, and enhancing the efficiency of energy, water, and material usage.

　　Over the past two years, the aforementioned plans have been gradually implemented. In August 2012, the U.S. government and the private sector jointly invested $85 million to establish the “National Additive Manufacturing Innovation Institute.” In May 2013, the U.S. government announced the allocation of $200 million in federal funding to set up three manufacturing innovation centers: the “Lightweight and Advanced Metal Manufacturing Innovation Institute,” the “Digital Manufacturing and Design Innovation Institute,” and the “Next-Generation Power Electronics Manufacturing Institute.” Another center—the Composites Manufacturing Institute—was established this February.

　　According to the “Global Trends in Advanced Manufacturing” report released by the U.S. think tank the Wilson Center, the United States ranks first in the world in terms of R&D investment, with three-quarters of that investment directed toward manufacturing. The U.S. enjoys significant advantages in advanced manufacturing fields such as synthetic biology, advanced materials, and rapid prototyping. Analysts believe that, driven strongly by both government and private-sector initiatives, the U.S. is likely to usher in a new wave of technological innovation characterized by ubiquitous wireless network coverage, extensive adoption of cloud computing, and large-scale development of smart manufacturing.

　　Industry alliances break down technological barriers.

　　Unlike Germany’s Industry 4.0, which emphasizes “hard” manufacturing, the U.S.—with its highly developed software and internet economy—places greater emphasis on driving a new round of industrial revolution through “soft” services, aiming to leverage the power of the internet and data to enhance the entire industry’s value-creation capabilities. In fact, the U.S. version of Industry 4.0 can be described as an “Industrial Internet” revolution. Throughout this process, in addition to policy support from the U.S. government, the early formation of industry alliances has played a crucial role as a key driver of development.

　　The concept of the “Industrial Internet” was first proposed by General Electric in 2012. Subsequently, five leading U.S. industry giants joined forces to establish the Industrial Internet Consortium (IIC), thereby giving significant momentum to the widespread promotion of this concept. In addition to manufacturing giants like General Electric, IT companies such as IBM, Cisco, Intel, and AT&T have also joined the consortium.

　　The Industrial Internet Consortium adopts an open membership model and is committed to developing a “common blueprint” that enables data sharing among devices from different manufacturers. This blueprint’s standards cover not only Internet network protocols but also metrics such as data storage capacity in IT systems, power levels of interconnected and non-interconnected devices, and data traffic control mechanisms. The goal is to break down technological barriers by establishing universal standards, leveraging the internet to revitalize traditional industrial processes, and further promoting the integration of the physical and digital worlds.

　　Although it may take several years to establish and finally approve the above-mentioned standards, once these standards are in place, they will help hardware and software developers create products that are fully compatible with the Internet of Things. The ultimate outcome could be the comprehensive integration of sensors, networks, computers, cloud computing systems, large enterprises, vehicles, and hundreds of other types of entities, thereby driving a holistic improvement in efficiency across the entire industrial value chain. (Yang Bo)