Why Operations Management matters? Support with real business examples. Integrate your answer with the concept of "Industrial Commons" from the article, "Restoring American Competitiveness."

Industrial Commons . The ability of an organization to innovate depends access to skills and capabilities in the "industrial commons" - Component suppliers - Tool & equipment manufacturers - Complementary technology providers - Human resources (engineers, scientists, technicians) - Institutions (universities, research laboratories) - Competitors - Customers A healthy commons creates a platform for innovation and entrepreneurship - Strong "clustering" effects in start-up activityIndustrial Commons . Often have a local character (geography matters) - Life science: Boston, San Francisco, San Diego - Design: Northern Italy - Mechanical Engineering: Germany - Solar panels: China, Taiwan, Korea, Japan . Virtuous cycles and vicious circles (network externalities) - Hard to establish and hard to rebuild - Small decisions build cumulativelyThe Erosion of the US Industrial Commons . Outsourcing (symptom) . Shift in corporate R&D away from "R" (symptom) . Short term management focus . Capital budgeting processes . Management attention and skills (more comfort with branding and marketing than technology) . Corporate governance . Lagging US investment in "applied" research