FOREFRONT: Securing Pittsburgh’s Break-out Position in Autonomous Mobile Systems. Performed for: Regional Industrial Development Corporation and the Greater Pittsburgh Chamber of Commerce, with funding support provided by the Richard King Mellon Foundation Prepared by: TEConomy Partners, LLC September 2021 TEConomy Partners, LLC. Report Authors: Simon Tripp, Joseph Simkins, Deborah Cummings, Martin Grueber, and Dylan Yetter. Project Steering Committee Matt Blackburn, Senior Manager, Government Relation, Aurora Ellie Ezzell, Economic Development Specialist, Regional Industrial Development Corporation Liz Fishback, State and Local Affairs Lead, Argo AI Gabriella Gonzalez, Program Officer, Richard King Mellon Foundation Alan Hall, Communications Director, Argo AI Gerardo Interiano, Vice President, Aurora Timothy McNulty, Associate Vice President, Carnegie Mellon University Patrick Mondi, CEO, Thoro.ai Joel Reed, Executive Director, Pittsburgh Robotics Network Audrey Russo, President and CEO, Pittsburgh Technology Council Don Smith, Jr., President, Regional Industrial Development Corporation Matt Smith, President, Greater Pittsburgh Chamber of Commerce Mark Thomas, President, Pittsburgh Regional Alliance Tim White, Senior Vice President of Development, Regional Industrial Development Corporation TEConomy Partners, LLC is a global leader in research, analysis, and strategy for innovation-driven economic development. Today, we are helping nations, states, regions, universities, and industries blueprint their future and translate knowledge into prosperity. TEConomy Partners, LLC (TEConomy) endeavors at all times to produce work of the highest quality, consistent with our contract commitments. However, because of the research and/or experimental nature of this work, the client undertakes the sole responsibility for the consequence of any use or misuse of, or inability to use, any information or result obtained from TEConomy, and TEConomy, its partners, or employees have no legal liability for the accuracy, adequacy, or efficacy thereof. Contents Executive Summary ............................................................................................................................................................. ES-1 Autonomous Mobile Systems: A Transformational Opportunity ..................................................................................................ES-1 Reaching Critical Mass: The Profile of Pittsburgh’s Autonomy Industry Today .........................................................................ES-3 An Emerging Competitive Landscape: The Need for Bold Action to Secure Pittsburgh’s Position ........................................ES-7 Realizing the Vision:A Strategic Plan for Growing Pittsburgh’s Autonomous Systems Industry ....................................... ES-12 i. Introduction............................................................................................................................................................................1 An Extremely Large-Scale Opportunity .................................................................................................................................................... 3 The Autonomous Mobile Systems Technology Stack ............................................................................................................................ 3 An Unprecedented Opportunity ................................................................................................................................................................. 6 About This Study ........................................................................................................................................................................................... 7 In Summary .................................................................................................................................................................................................... 7 II. Reaching Critical Mass: The Profile of Pittsburgh’s Autonomy Industry Today ...................................................................8 An Organic Innovation Ecosystem Fueled by Research Excellence .................................................................................................... 8 Innovative, Homegrown Companies Driving Signature Investments...............................................................................................12 Advancing a Diversified Set of Technologies and Markets .................................................................................................................14 A National Autonomy Hub Positioned for Growth ...............................................................................................................................18 III. An Emerging Competitive Landscape: The Need for Bold Action to Secure Pittsburgh’s Position ...................................20 Benchmarking the Emerging Industry Footprint ..................................................................................................................................21 States are Increasingly Recognizing the Opportunity .........................................................................................................................22 Competing for a Growing Regional Innovation Driver .........................................................................................................................25 Autonomy Industry Stakeholders Have Identified Risks to Pittsburgh’s Growth Trajectory ......................................................28 What is at Stake: The Impact of Pittsburgh’s Autonomous Systems Industry ..............................................................................31 IV. Strategic Plan .....................................................................................................................................................................34 Strategic Vision............................................................................................................................................................................................34 Strategic Plan Development .....................................................................................................................................................................36 Strategies and Action Summary ..............................................................................................................................................................36 Specific Strategies and Actions ................................................................................................................................................................38 Organization for Strategy Implementation ...........................................................................................................................................65 Estimated Budget for Strategy Implementation ..................................................................................................................................67 In Conclusion ................................................................................................................................................................................................71 Appendices ..............................................................................................................................................................................72 Appendix A ....................................................................................................................................................................................................72 Appendix B ....................................................................................................................................................................................................73 Appendix C: Line of Sight Methodology for Identifying Strategic Opportunity Areas for Pittsburgh’s Autonomous Systems Industry ..................................................................................................................................73 Appendix D: Analyses of Leading Themes Driving Market Pull for Autonomous Systems .........................................................75 Appendix E: Analyses of Pittsburgh’s Core Competencies Driving Technology Push ...................................................................92 Appendix F: Profile of Pittsburgh’s Autonomy-Enabling Talent Base ........................................................................................... 101 Appendix G: Profile of The National Autonomous Mobile Systems Industry .............................................................................. 112 Appendix H: Profile of Pittsburgh’s Current Autonomous Systems Industry and its Economic Impact ................................ 117 Appendix I: Listing of Stakeholder Interviews Conducted by TEConomy ..................................................................................... 121 Appendix J: Benchmarking Other Major Autonomy Initiatives in the U.S. .................................................................................... 122 EXECUTIVE SUMMARY Autonomous Mobile Systems: A Transformational Opportunity Advancements in technology and the forces of convergence are impacting almost every industry and creating significant emerging growth opportunities. Some legacy industries are facing significant change as a result of new business models enabled by convergence of multiple