Daedalus is conceived to enable the full exploitation of the CPS concept of virtualized intelligence, through the adoption of a completely distributed automation platform based on IEC-61499 standard, fostering the creation of a Digital Ecosystem that could go beyond the current limits of manufacturing control systems and propose an ever-growing market of innovative solutions for the design, engineering, production and maintenance of plants’ automation. The following objectives will be reached: -)Ease the conception, development and distribution of intelligence into CPS for real-time execution of orchestrated manufacturing tasks; -)Foster interoperability of CPS from different vendors at orchestration-level (= “between CPS”); -)Simplify the design, implementation and integration of optimal coordinating control intelligence of CPS; -)Enable near-real-time co-simulation of manufacturing systems as a fully integrated “service” of a CPS; -)Create a Digital Marketplace to simplify the matchmaking between offer and demand within the Ecosystem; -)Conceive a multi-sided business model for the Automation Ecosystem and the corresponding business plans for its Complementors; -)Foster the widespread acceptance of the Ecosystem platform to guarantee success and impact of Daedalus multi-sided market. The project approach is based on 3 technological pillars, one platform pillar and a final ecosystem pillar: 1)IEC61499-based reconfigurable automation platform for distributed orchestration of interoperable CPS; 2)“Simulation-as-a-service” for integrated near-real-time co-simulation of CPS behavioural models; 3)Advanced SDKs for simplified design of hierarchically distributed optimal control applications; 4)Digital Marketplace for the creation of an interdependent ecosystem of automation solutions providers; 5)Proof-of-concept showcases to accelerate the involvement of “complementors” and the maturation of the Ecosystem.