The 90-year-old Radio Flyer factory in Chicago is an exemplar of onsite innovation. Brainstorming takes place in the Engine Room, which is awash in whiteboards and Post-it notes. CNC machines and 3-D printers chug away in the Prototype Shop. In the bright, airy Play Lab, staff members observe children scooting around on the company's newest children's wagons, trikes, and electric cars. "Our products are very physical," says Robert Pasin, CEO of the business his grandfather founded in 1917. "We need to see and touch them. We need to see kids riding them."