Industry 4.0 programs and other initiatives like the industrial internet are changing the way the industry works today. Cities with existing significant industrial capacities or the ones who want to attract such investments need to prepare for the changing needs of the industry. We expect the the trends of automation and efficiency improvement to continue. The production section of the value chain is becoming more and more competitive and therefore less profitable relative to Research and Development or Product design. We also expect product quality and meeting personal customer needs to become key differentiators in the new area of personalized mass production. Nowadays innovation is happening in ecosystems. We are proposing a measurement system called Smart Collaboration Index to assess innovation capabilities of cities in the new area.