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This chapter deals with the central role of manufacturing in developed and developing countries, assessing how relevant it is from economic and social perspectives. The current international and Italian manufacturing contexts are analysed by highlighting the main criticalities and the impact of relevant global megatrends. Then, the main ongoing industrial research initiatives are presented both at international and Italian level. Based on the elaboration of current context and research initiatives, the Italian Flagship Project Factories of the Future defined five research priorities for the future of the manufacturing industry. Based on these priorities, the flagship project funded a total of 18 small-sized research projects after a competition based on calls for proposals. The results of the funded research projects are analysed in terms of scientific and industrial results, while providing references for more detailed descriptions in the specific chapters. 1.1 The Importance of Manufacturing Industry Manufacturing industry plays a central role in the economy of developed countries for the generation of wealth, jobs and a growing quality of life. Beyond being a sector capable of directly producing wealth and employment, manufacturing industry is a fundamental pillar of the whole economy. In 2016 the value added of manufacturing represented 15.6% and 14.3% of the Gross Domestic Product (GDP) at world and European Union level, respectively. A relevant number of persons are directly