The Fraunhofer Institute for Mechatronic Systems Design IEM is an expert in intelligent mechatronics in the context of Industry 4.0. Scientists from the fields of mechanical engineering, software engineering and Electrical Engineering work together across disciplines at the Paderborn site. With its focus on "Advanced Systems Engineering", Fraunhofer IEM researches innovative methods and tools for the development of intelligent products, production systems and services. Its core competences are intelligence in mechatronic systems, systems engineering and virtual prototyping.

The Fraunhofer IEM, which currently has 96 employees, is managed by a three-member board of directors: Prof. Dr.-Ing. Ansgar Trächtler (Institute Director), Prof. Dr.-Ing. Roman Dumitrescu and Prof. Dr. Eric Bodden.

The Fraunhofer IEM started in 2011 as a project group of the Fraunhofer Institute for Production Technology IPT in Aachen. With the help of start-up funding from the state of North Rhine-Westphalia, the scientists developed a market-orientated research profile based on strong cooperation with regional industry.

In 2016, just five years after the project group was launched, the Fraunhofer IEM was incorporated into the Fraunhofer-Gesellschaft's federal and state funding programme as an independent institution. It has officially held the title of institute since 1 January 2017.

Fraunhofer IEM works closely with the basic research-oriented Heinz Nixdorf Institute at Paderborn University and contributes to technology transfer in the it's OWL leading-edge cluster with numerous projects. In the German research landscape, the Fraunhofer IEM is involved in numerous activities of the Academy of Engineering Sciences (acatech) and is active in a large number of joint projects.