Federal and private R&D portfolios are investing heavily in designing and refining the key innovation components of the transition to cyber-physical systems of production: artificial intelligence, automation, IoT, advanced materials, and dynamic, decentralized decision making to name a few elements. There also is a fair amount of buzz about Industry 4.0 from the big manufacturing consultants and around industry trade shows. Innovation and optimization, however, appear to be two very distant points on a continuum for both U.S. companies’ implementation of Industry 4.0 and public policy response to the opportunities and potential socio-economic impacts.