The Post-Baumol Research Challenge

Industrial Transformation to 2030

We help construction and manufacturing companies build core competence in Applied AI and human amplification—solving the 50-year productivity crisis through Frascati-compliant R&D&I programs.

Our focus is Europe, but we work where our clients have locations. With 10+ years supporting industrial innovation, we help companies build legitimate AI capabilities that naturally qualify for national incentives.

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Why Industrial Productivity Stopped in 1970

The Problem

Manufacturing productivity: 3-4% annual improvement since 1970

Construction productivity: 0.4% annual improvement since 1970

Heavy industrial operations: 1-3% annual gains maximum

This isn't incompetence. It's Baumol's Cost Disease—labor-intensive sectors cannot eliminate coordination overhead using conventional methods.

The Threat to 2030

By 2030, this productivity gap threatens:

  • Industrial competitiveness in advanced economies
  • Margin viability for construction and manufacturing
  • Ability to deliver infrastructure and industrial programs on time
  • Workforce retention as coordination overhead overwhelms value work

Applied AI and Human Amplification—Not Technology Deployment

The Post-Baumol framework doesn't deploy AI tools. It restructures physical operations to achieve manufacturing-grade certainty through:

Coordination Elimination

Augment human coordination with computational inference systems that resolve uncertainty before execution begins—freeing humans from repetitive administrative overhead to focus on strategic decisions and creative problem-solving.

Human Amplification

Augment skilled workers with decision intelligence—not replacing expertise but amplifying it through real-time computational support.

Manufacturing-Grade Certainty

Transform project-based delivery to manufacturing process discipline—predictable, repeatable, scalable outcomes.

This is core competence transformation, not technology adoption.

The Inference Distributed Network

Global Reach. Asynchronous Velocity. Industrial Expertise.

Inference Innovation operates as a remote-first, distributed intelligence network. We eschew the slow, centralized office model in favor of a dynamic grid of expert nodes. Our network of domain specialists, engineers, and digital workers spans time zones to ensure continuous delivery for global infrastructure projects.

1. The Applied Engineering Pod

The Builders

The heavy lifters who translate code into industrial capability:

  • Senior ML Operations (MLOps) Engineers
  • Agentic Systems Architects
  • Full-Stack Industrial Developers
  • Vector Database Administrators

2. The Domain Bridge

The Translators

Civil and Mechanical Engineers retrained in Data Science:

  • BIM Integration Specialists
  • Digital Twin Structural Engineers
  • Process Mining Analysts
  • Site Context Mappers

3. The Frascati Compliance Cell

The Auditors

The team ensuring every line of code is recoverable revenue:

  • Technical R&D Authors
  • Innovation Data Controllers
  • Regulatory Analysts

4. The Data Sovereignty Unit

The Protectors

Ensuring client IP never leaks:

  • Data Lineage Officers
  • Security Architecture Leads
  • IP Governance Officers

The "Digital Worker" Force

Beyond our human experts, Inference Innovation is building a fleet of Autonomous Digital Workers (AI Agents) that handle repetitive data ingestion, pattern recognition, and routine compliance checks 24/7/365. This eliminates repetitive cognitive overhead, allowing our human engineers to focus on high-value strategic reasoning, creative problem-solving, and client relationships—work that requires human judgment and expertise.

Why This Structure Delivers

Scale without Bloat: Robust capabilities (~30 specialists) without organizational overhead

"Follow the Sun" Delivery: Continuous progress across time zones ensures velocity

Hybrid Workforce: We use the AI we build—digital workers prove the model

Domain Credibility: Engineering-native specialists who speak your language

Building Permanent Applied AI Capabilities

We work with industrial clients on multi-year R&D&I programs that develop proprietary Applied AI systems, build internal human amplification competencies, create defensible competitive advantages through IP, and eliminate coordination overhead permanently—not project-by-project.

Frascati & Oslo Methodology

All programs follow Frascati Manual and Oslo Manual frameworks:

  • Scientific rigor in experimental development
  • Documentation of technical uncertainty resolution
  • Verification of innovation outcomes
  • Audit-defensible research processes

This methodological discipline ensures programs qualify for national R&D incentives and reliefs—because they're legitimate industrial research, not paper exercises.

We Deliver Outcomes, Not Consulting Hours

Traditional consultancies optimize what exists. We industrialize what's possible.

Frascati-Compliant Innovation Programs

Research programs structured to meet government R&D standards from inception.

Verified Productivity Transformation

Measurable, documented improvements in operational efficiency and throughput.

IP Assets & Core Competence Development

Proprietary technologies and capabilities that create sustainable competitive advantage.

Multi-Jurisdiction R&D Incentive Optimization

Proper access to national reliefs across operating territories when programs qualify.

We assume execution risk. You receive manufacturing-grade outcomes—or we don't invoice.

10+ Years Supporting Pillar 1 & Pillar 2 MNCs

EU
Focus
10+
Years
IP Box
Regimes
F&O
SMEs

European focus with presence where our clients operate. Working with government innovation agencies and revenue authorities to support legitimate industrial R&D&I transformation.

Ready to Build Post-Baumol Capabilities?

Schedule a strategic review to assess your organization's readiness for Applied AI transformation.