Hi David,

In terms of institutions, The Tangible Media group led by Hiroshi 
Ishii of the MIT Media Lab is probably at the top of the list. Their
work in tangible computing has a long history. 

http://tangible.media.mit.edu/

For plenty of examples (including MetaDESK and phicons from MIT), two
of the best books to read are:

Where the Action Is: The Foundation of Embodied Interaction
by Paul Dourish

Everyware: The Dawning Age of Ubiquitous Computing
by Adam Greenfield

Tangible interaction is still a niche and not many consultancies are
focusing on it exclusively but a couple worth checking out include: 

ThingM
http://thingm.com/

Schulze and Webb
http://schulzeandwebb.com/

See also:
http://nearfield.org/

Two companies that are providing frameworks for experimentation in
tangible interaction (via physical computing) are:

Tinker.it
http://tinker.it/

Phidgets Inc.
http://www.phidgets.com/

Finally, check out the presentations from Sketching in Hardware 2007.
It's a who's who of the people working on the front lines. Camille
Moussette's presentation on haptic interaction is especially good.

http://www.sketching07.com/participants.html

// jeff


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