http://www.nwda.co.uk/PDF/Photonics%20Mapping%20Study%2013%20Nov%2007 by Northwest Regional Development Agency

Northwest Photonics Mapping Study

Northwest Development Agency Renaissance House PO Box 37 Centre Park Warrington WA1 1XB

A Mapping Study of the Northwest Region Photonics sector Dr Geoff Archenhold & Neil Haigh of Birmingham Technology Limited

November 2007

Birmingham Technology Limited Faraday Wharf Holt Street Aston Science Park Birmingham B7 4BB Tel: +44 (0)121 250 3502 Fax: +44 (0)121 250 3567

NWDA shall not be responsible for any loss or damage to any party for misrepresentation, misstatement or breach of any agreement into which [this report] is incorporated, whether innocent, negligent or otherwise.

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Northwest Photonics Mapping Study

North West Photonics Mapping Study Table of Contents 1

Introduction ...........................................................................................................................7 1.1

Photonics Technology ...................................................................................................7

1.2

Background to Photonics Mapping Activity..................................................................7

1.3

World Photonics Status .................................................................................................8

NWDA Mapping Study Requirements ............................................................................11 2.1

NWDA Key Business Sectors .....................................................................................13

2.2

NWDA Brief for Mapping Study ..................................................................................13

BTL Mapping Study Methodology...................................................................................15

Northwest UK Photonics Business Analysis......................................................................16 4.1

Regional Overview.......................................................................................................16

4.2

Geographic Analysis....................................................................................................19

4.3

ICT & Consumer Photonics.........................................................................................20

4.3.1

Displays ....................................................................................................................21

4.3.2

Optical Communications .........................................................................................21

4.4

Lighting & Energy.........................................................................................................29

4.4.1

Lighting (Solid state)................................................................................................30

4.4.2

Residential Lighting in the UK.................................................................................31

4.4.3

UK Lighting Market Analysis ...................................................................................39

4.5

Industrial Photonics......................................................................................................43

4.5.1

Overview...................................................................................................................43

4.5.2

UK industrial Photonics Activity ..............................................................................44

4.5.3

Industrial Laser Applications ...................................................................................45

4.5.4

Industrial Laser Processing.....................................................................................48

4.5.5

Sensing & Imaging...................................................................................................49

4.5.6

Nanotechnology .......................................................................................................50

4.6

Photonics in Life Sciences & Healthcare ...................................................................51

4.6.1

Overview...................................................................................................................51

4.6.2

Biophotonic applications and technologies............................................................52

4.6.3

Biophotonic tools......................................................................................................54

4.6.4

Biophotonics Markets ..............................................................................................55

4.6.5

Market drivers for life science and healthcare applications .................................59

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Northwest Photonics Mapping Study 4.6.6

UK Life Sciences and healthcare Photonics Activity ............................................61

4.6.7

Recommendations for Northwest Biophotonics ....................................................62

4.7

Defence & Security ......................................................................................................64

4.7.1

Overview...................................................................................................................64

4.7.2

The defence and security market ...........................................................................65

4.7.3

Key Application Areas .............................................................................................66

4.7.4

Key technologies......................................................................................................68

4.7.5

An analysis of the UK security and defence eco-system .....................................68

4.7.6

Northwest UK Defence & Security Activity ............................................................70

Northwest Clustering Activity ...........................................................................................71 5.1

Northwest Aerospace Alliance (NWAA).....................................................................71

5.2

Northwest Automotive Alliance (NAA)........................................................................72

5.3

Northwest Laser Engineering Consortium (NWLEC)................................................73

5.4

BioNow..........................................................................................................................74

5.5

Northwest Photonics Association (NWPA) ................................................................75

The Northwest Business Support Activity ........................................................................76 6.1

NWDA ...........................................................................................................................77

6.2

Business Link Northwest .............................................................................................77

6.3

Envirolink Northwest ....................................................................................................78

6.4

Northwest Science Council .........................................................................................78

NW Universities - Academic Support ..............................................................................80 7.1

Overview of Northwest University Sector ..................................................................80

7.2

Analysis of EPSRC Grant funding ..............................................................................81

7.3

University Based Photonics Activity Keynotes ..........................................................83

7.3.1

Photon Science Institute, University of Manchester .............................................84

7.3.2

Power Conversion Group, University of Manchester............................................85

7.4

NW Universities - Technology & Business Support.................................................86

7.5

Organic Materials Innovation Centre (OMIC) ............................................................86

UK Photonics Networking & Clustering...........................................................................88 8.1

Photonics KTN .............................................................................................................88

8.2

Welsh Optoelectronic Forum ......................................................................................89

8.2.1

Photonics Cluster (UK)............................................................................................90

8.2.2

Technium OpTIC......................................................................................................90

8.2.3

Photonics Academy (Wales)...................................................................................90

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Northwest Photonics Mapping Study 8.2.4

Photovoltaics Group (Wales) ..................................................................................91

8.3

National Photonics Events ..........................................................................................91

8.4

International Photonics Events ...................................................................................92

Northwest Photonics Mapping Study Consultation.....................................................94 9.1

Northwest Base............................................................................................................94

9.2

Customer Location.......................................................................................................94

9.3

Photonics Supply Chain ..............................................................................................95

9.4

Non-Photonics Supply Chain Spending.....................................................................95

9.5

Perceived Competitive & Business Threats ..............................................................95

9.6

Recruitment ..................................................................................................................96

9.7

Staff Training ................................................................................................................96

9.8

Training Initiatives ........................................................................................................97

9.9

Photonics Skills Needs ................................................................................................97

9.10

Non-Photonics Skills Needs........................................................................................98

9.11

University Collaboration...............................................................................................99

9.12

Grants& Funding ..........................................................................................................99

9.13

Innovation & Business Development .......................................................................100

9.13.1

Fundamental Research.....................................................................................100

9.13.2

SME Based Product Innovation .......................................................................101

9.14

Photonics Patent Issues............................................................................................102

9.15

Workshop on Solid State Lighting & LEDs ..............................................................104

9.16

Exemplar Projects......................................................................................................105

9.16.1 10

Solid State Lighting Showcases .......................................................................106

Conclusions ...................................................................................................................107

10.1

Overview .....................................................................................................................107

10.2

Mapping Study Findings versus NWDA Brief ..........................................................108

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Northwest Photonics Mapping Study

Executive Summary In recent years, photonics has become recognized as an enabling technology that impacts, extends across and underpins a whole host of industrial sectors, from healthcare to security, from manufacturing to telecommunications, from energy to the environment, and from aerospace to biotechnology. In 2005, the worldwide photonics market was reported by the Optoelectronics Industry Development Association (OIDA)1 to be worth £182 billion ($364B), with the UK share worth £10 billion ($20B), and the industry is currently considered to be growing at a rate of around10 to 20% per annum. It is estimated by OIDA that the photonics market will be worth close to 1 trillion US dollars by 2015. This report presents the findings of an in-depth mapping study into photonics activity in the Northwest region of the UK in order that appropriate opportunities for sustainable business development and growth may be identified and implemented through a coordinated effort led by the Northwest Regional Development Agency. The mapping study analysed the Northwest photonics sector for key research activities, manufacturers, suppliers and end users, and compared this activity with equivalent worldwide and UK national photonics performance. The study methodology involved consultation with regional academic, industrial, business support, and technological support organisations in the region and included over 20 face-to-face meetings with industry players, supplemented where possible by focussed industry sector and academic sector based questionnaires in support of the knowledge gathering process. In total, over 260 Northwest scientific companies were assessed of which 188 were identified as working in the photonics sector. Notable within the companies surveyed were 111 companies deemed to be active within the Lighting and Energy applications sector of the photonics industry, chiefly in the innovative area of solid state lighting technology centred on the use of high brightness light emitting diodes (HB LEDs). Overall the NW photonics companies generate annually more than £650 million for the region, employing an estimated 6000 employees. In accordance with this data and the world trend towards‘ knowledge based’ economies, the northwest photonics sector is largely associated with the creation of a proliferation of fast moving, innovative, small to medium sized enterprises (e.g. employing around 5 to 40 people) rather than acting as a source or centre for large scale employment. Accordingly sector support of what is usually quite a widespread activity can prove to be beneficial both for the companies themselves and to the region in which they are located, and so a key point for the study was to identify appropriate photonics business support activities and initiatives where possible. Following on from a recent UK Department of Trade and Industry (DTI) assessment2 of photonics in the UK, the Northwest regional photonics activity was broken down into 5 key application sectors: Information Communications Technology & Consumer Products; Lighting & Energy; Defence & Security; Industrial Photonics and Life Sciences & Healthcare. The worldwide, national UK and regional performance in each of these application sectors

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Northwest Photonics Mapping Study was compared in order to identify opportunities (and any potential business threats) to the Northwest region. The mapping study process generated a list of ‘observations’ (listed in APPENDIX I of this document) which are considered pertinent to the Northwest photonics sector. Some of the key highlights and findings for the mapping study are summarised below, details of which are contained in the study report: •

Photonics should be recognised as a high growth and emerging business sector for the Northwest region.

•

Within the photonics technology umbrella, solid state lighting (SSL) technology is a strongly represented business sub-sector within the region.

•

Biophotonics is another important photonics sub-sector activity that needs to be harnessed with existing Northwest regional strengths in biomedicine.

•

Photonics clustering in the Northwest requires careful, strategic support, with a preference for nationally led initiatives, albeit delivered locally, where possible.

•

Clustering already occurs in the aerospace, automotive, biomedical and advanced laser engineering sectors and now needs to be tuned towards the photonics sector

•

The Northwest universities are popular and growing rapidly in key areas such as biomedicine and photonics: these can and should be stimulated further.

•

Photonics SMEs based in the region are performing well and are highly innovative and yet they face a number of critical business pressures which may inhibit their future growth and indeed survival.

In support of the above findings, over 40 mapping study observations are listed in this report that could be used to support development of a coordinated strategy for sustainable business growth in the Northwest regional photonics sector.

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Northwest Photonics Mapping Study

Northwest Photonics Mapping Study 1 Introduction This report presents the findings of a mapping study into photonics activity in the Northwest Region of the UK commissioned by the Northwest Development Agency (NWDA). The NWDA brief for the mapping study was to: •

Provide a detailed mapping and analysis of the photonics sector in the Northwest region including key research activities, manufacturers, suppliers and end users.

•

Determine the scale and the capacity of the photonics sector in the UK in comparison with the sector internationally, identifying key players, gaps in the market and opportunities for growth.

1.1 Photonics Technology Photonics is a technology that includes light emission, transmission, deflection, amplification and detection by optical components, instruments, lasers, other light sources, fibre optics, electro-optical instrumentation and sophisticated nanophotonic systems. It promises smaller, cheaper, lighter and faster components and products, with greater functionality while often using less energy. A good example of a photonic-enabled product is the DVD player, which relies on a semiconductor laser, optical system and a photo detector as essential elements. One of the most pervasive applications of photonics to date has been in telecommunications, where it can provide enormous traffic volumes within the internet and other data networks coupled with high-speed switching. It is firmly established too in instruments and sensors – no interference or sparking problems - and consumer products. It is estimated that over 35% of all consumer devices can be considered photonic-enabled, illustrating the extent to which the technology has already been embedded within large application based markets. The penetration of display and imaging-based products and technologies into consumer and computer markets - notably LCD TVs and camera phones – is self-evident.

1.2 Background to Photonics Mapping Activity In recent years, photonics has become recognized as an enabling technology that impacts, extends across and underpins a whole host of industrial sectors, from healthcare to security, from manufacturing to telecommunications, from energy to the environment, and from aerospace to biotechnology. In all of these sectors, photonics activity can be recognised via the intelligent application of light (‘optical radiation’) either in an entirely novel context such as a new photodynamic medical treatment, or as a replacement for an older outdated technology such as signage and lighting based on the use of incandescent lamps. Photonics technology has spawned a considerable number of new companies and businesses providing products and services across the industrial sectors outlined above, and there is good reason to believe that the impact of photonics in the 21st century will be as significant as electronics in the 20th, and steam in the 19th. Version 14

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Northwest Photonics Mapping Study

By its nature, photonics is a highly innovative and speculative technology and its industrial growth can be considered to be somewhat organic in nature due to the way in which new applications and capabilities evolve. The Northwest Regional Development Agency (NWDA) requirement for a mapping study of photonics is extremely timely and supports their aspirations within the 2006 Regional Economic Strategy (RES). The mapping study is aligned to the UK Governments focus within the sector recently highlighted by the Department of Trade and Industry’s launch of a national Photonics Strategy entitled “Photonics: A UK Strategy for Success – Painting a Bright Future” in July 2006. A significant outcome of the DTI strategy was to classify photonics activity via an applications based breakdown structure as illustrated in Figure 1.

Defence & Security Industrial Photonics

ICT & Consumer Photonics Life Sciences & Healthcare Lighting & Energy

Figure 1: Photonics Breakdown by Application Sectors

In order to provide a useful comparison with the conclusions drawn from the national strategy and the activities within the Northwest, the above applications structure has been applied where appropriate throughout the study.

1.3 World Photonics Status Worldwide, the photonics industry is considered to be growing at a phenomenal rate somewhere in the range of 10 to 20% per annum. The Optoelectronics Industry Development Association (OIDA) has recently forecasted in its annual optoelectronics (photonics) industry report that the: •

Worldwide photonic market grew to £182 billion in 2005 (UK share £10 billion)

•

Photonic components grew 17 % to £52 billion in 2005

•

Photonic enabled products grew 21% to £130 billion

It is estimated by OIDA that the photonics market will be worth close to 1 trillion US dollars by 2015. The following figure shows the photonics market in relation to the electronic equipment market and UK and World Gross Domestic Product (GDP) for 2004. The pyramid demonstrates that although photonics is an emerging sector it has already grown to quite

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Northwest Photonics Mapping Study a sizeable market and this growth is set to accelerate as new applications start to become commercialised.

Figure 2: The Pyramid of Value for Photonics during 2004

One interesting aspect of photonics is the way in which new entrant technologies can dramatically alter the marketplace, for example in recent years there has been an explosion in the sales of Flat Panel Displays (FPD) as replacements for the traditional cathode ray tube for use in computers and televisions. Flat Panel Displays achieved $74 billion (ÂŁ37 billion) alone worldwide in 2005, growing nearly 20% over 2004. The products with the strongest growth were liquid crystal displays (LCD) TVs up 79% in 2005, and camera phones/PDAs up 41% in 2005. Component sales of solar cells was also up 24% and it can be expected with the current emphasis on the environment and renewable energy schemes that the solar market will continue to expand in forthcoming years. Also of interest is the development of high brightness light emitting diode (HB LED) sources which are providing new market opportunities in large signs, signals, general illumination and automotive applications, and for which consumer appliances such as mobile phones are now quite commonplace. The revenue market for high brightness LEDs has continued to grow over the last decade with a historical CAGR between 1995 and 2004 of 46% and reached $4 billion in 2005. The total worldwide market for HB LED emitters is forecast to grow from $4 billion in 2005 to over $8 billion by 2010 with an ongoing average annual growth rate of 15%. Predicted to be the fastest growing segment over the forthcoming period is the illumination market with an anticipated threefold revenue increase from 2005 through 2009, reaching nearly $800 million in revenues by 2009 with a CAGR of 38%1.

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Northwest Photonics Mapping Study In section 4 of this mapping study the world and UK market aspects of the five DTI photonics application sectors as outlined in Figure 1 are reviewed against the Northwest activity and capabilities identified during the study.

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Northwest Photonics Mapping Study

2 NWDA Mapping Study Requirements This photonics mapping study was commissioned by the Business Relations team in the Enterprise, Innovation and Skills directorate of the Northwest Regional Development Agency. Since the launch of the last Regional Economic Strategy (RES) in 2003, England’s Northwest has made significant progress and during this time, the Agency has done much to provide economic leadership, being accorded the highest rank possible, ‘Performing Strongly’ in the recent National Audit Office assessment. Critical to the recently issued NWDA RES for 20063 are three recognized drivers for creating and sustaining economic growth: •

Improving productivity and growing the market

•

Creating conditions for sustainable growth

•

Growing the size and capability of the workforce

These business drivers were borne in mind during the study, along with the 5 priority themes identified in the NWDA which serve as focus for helping NWDA to achieve their vision of sustainable economic growth for the NW region: •

Business

•

Skills & Education

•

People & Jobs

•

Infrastructure

•

Quality of Life

In the NWDA RES, there exist against each priority theme a number of specific actions which support the overall vision and which are illustrated in Figure 3; highlighted in the figure are those actions which it is believed can be directly influenced by a strategic vision for photonics in the North West. It should be noted that photonics has the potential to impact a good number of the actions in the business theme and so only the keynote actions are highlighted in the figure. In this study report, the various considerations for NWDA to grow and sustain photonics business related activities in the Northwest are linked where possible to these priority themes and their related actions.

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Northwest Photonics Mapping Study BUSINESS

PEOPLE & JOBS

INFRASTRUCTURE

Enterprise

Transport

Job Linkages

Improve the formation, surv ival and growth rates of enterprise

Improve and better manage the road and rail infrastructure

Tackle barriers to work

Improve availability of business finance

Dev elop airports and ports

Link workless people and vacancies to improve employment rates

Influence government policy on small business regulation

Link areas of opportunity and need

Local Employment

Regional Sectors

Land Use

Stimula te economic activ ity in areas remote from growth

Dev elop key internationally competitive sectors

Deliv er high quality employment sites and premises

Dev elop local employment and business start-up opportunities in areas remote from growth and areas with low employment rates

Dev elop sectors with large and wid espread employment

Secure new uses for brownfield land

Support and sustain conditions for growth in areas with strong economic driv ers

Innovation

Housing

Health

Dev elop higher added-valu e activ ity through innovation

Create a high quality and div erse housing stock

Improve the health of (potential) workers and reduce the number of incapacity benefit claimants

Support knowledge transfer

Reduce areas of housing market failure

Population Change

Sci ence/R&D

Planning

Retain and attract people to the region

Exploit the science base and R&D

Ensure planning supports sustainable growth

Respond to an older workforce and fewer young people

International Competitiveness

Ensure appropriate utilities infrastructure

Maximise opportunities from globalisation and emerging markets

Energ y

Realise opportunities from international trade

Dev elop appropriate energy policies and supplies

Realise opportunities from inward investment

Investment

ICT

Encourage, and make better use of, public and private investment in the region

Support ICT usage and digital content development Dev elop ICT infrastructure

QUALITY OF LIFE

Sustainable Consumption and Production

Culture & Image

Dev elop resource efficiency, sustainable procurement and corporate social responsibility

Promote the image of the region

Maximise cultural and major event opportunities

SKILLS & EDUCATION

Dev elop the quality of the visitor experience

Skills and Education

Community

Tackle lack of basic skills / qualifications

Support cleaner, safer, greener communities

Meet skills needs of sectors and growth opportunities

Dev elop community cohesion

Invest in workforce development

Dev elop high quality local serv ices

Dev elop leadership , management and enterprise skills

Reduce health inequalities and social exclu sion

Dev elop education infrastructure, and skills of the future workforce

Environment Realise and nurture the natural and built heritage assets Improve the physical environment

Figure 3: Photonics Mapping Study & NWDA Regional Economic Strategy

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Northwest Photonics Mapping Study

2.1 NWDA Key Business Sectors The NWDA recognise that their regional business activity can be divided into 6 key sectors wherein there lies the potential for further investment to help develop higher value activities, increase business formation, improve productivity and identify future growth opportunities. These key sectors are: Advanced Engineering & Materials

•

Aerospace; Automotive; Chemicals; Advanced Flexible Materials

Biomedical

•

Bionow

•

Business & Professional Services

•

Creative & Digital Industries

•

Energy & Environmental Technologies o

Envirolink Northwest

Food & Drink

•

During the mapping study various photonics related businesses encountered were classified into the 6 key sectors above however it was found that in many cases the structure was not wholly supportive for photonics activities. For example architectural lighting based on solid state (e.g. LED) technology could be defined via either the Creative & Digital sector or the Energy & Environment sector depending on the circumstances. Accordingly, there was no clear ‘fit’ for photonics in the key business sectors as currently defined most possibly resulting in lost economic activity and a reduction in regional competitiveness. Observation 1: Photonics should be recognised as a high growth and emerging business sector for the Northwest region.

2.2 NWDA Brief for Mapping Study The NWDA requirement for the mapping study was to: • Determine the scale of the sector and sub-sectors including where possible regional and sub-regional turnover and employment figures. Key and fastest growing companies should also be identified. The information should be presented graphically and include a geographic map of the distribution of the cluster. • Determine the existence and strength of any supply chain activity in the Northwest.

• Identify the level to which Photonics may be embedded in existing priority sectors identified under Action 8 of the Regional Economic Strategy, through Version 14

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Northwest Photonics Mapping Study reviewing member companies to the North West’s Regional Cluster Management Organisations. • Identify the sub - sectors with the highest growth potential describing the key dynamics and business drivers. This should clearly indicate competitiveness and emerging market opportunities. • Assess where there are business leakages from the North West to other regions or countries. • Determine the strength in photonics of HE and FE institutions in comparison with national and international capabilities. • Determine the level of engagement between the photonics sector with HE/FE institutions. • Determine the existence of existing networking in the photonics sector and the public agencies which support the sector. • Identify the strengths and weaknesses of the various sub-sectors that could be subject to future threats and opportunities. • Identify any gaps in provision in terms of key services should be highlighted and reported, especially if these gaps are in markets with future growth potential and therefore present opportunities for expansion and development of the Northwest photonics sector. • Evaluate the benefits to the North West economy of the NWDA adopting a cluster approach to developing the identified Photonics sector. A summary of the findings of the mapping study will now be presented in detail.

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3 BTL Mapping Study Methodology The mapping study identified key stakeholders for the study and focussed on data gathering through company and university questionnaires, face to face interviews, workshops supplemented by desktop market research and a review of existing documentation. The following methodology was utilised in order to interact with companies and secure study information. • •

•

• • •

•

Contact companies by phone and arrange one to one meetings. There was the opportunity to secure part of the necessary information over the phone. Identify publicly available or utilise in-house databases of companies within the region that cover identified industrial sectors of interest. To minimise the limitations of publicly available databases where possible, more than one database was used to provide an indication of the completeness of coverage in the Northwest Region. Review companies in the database sector by sector, supplementing the data with a review of the companies’ websites. This was used to give an overall level of potential engagement with photonics technology in the Northwest Region. Review any potential suppliers of photonics technology uncovered during the above to identify how they fitted into the photonics supply chain. Complete analysis of potential users of photonics technology to generate summary statistics. Desk research and interviews to identify strengths within academic and research establishment activities in photonics in the Northwest Region in comparison to national and international capabilities. Discuss with the sector stakeholders, such as the DTI, Ministry of Defence, Departments of Energy and Health etc. to determine strategic aims and identify future opportunities. Undertake sector specific workshops to identify industry and research priorities.

The following figure shows a useful cluster mapping methodology which analyses photonics organization by their relevant sector as depicted in the figure, and which allows the overall picture for in this case photonics in the Northwest UK to be placed in perspective. Sector Support Organisations (technology)

Photonics Cluster - defined by product group Main supplier sectors

Added Value basic components

products and systems

Key customer sectors

Sector Support Organisations (business)

Figure 4: Cluster Mapping Methodology Schematic

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Northwest Photonics Mapping Study

4 Northwest UK Photonics Business Analysis 4.1 Regional Overview For the analysis of the photonics sector in the North West, a database of 260 NW companies was studied primarily from in-house Birmingham Technology Limited photonics related databases, via the internet and by using product / company literature. Where possible faceto-face meetings and phone interviews were held to substantiate the information collected. As appropriate, specific breakdown structures were applied to characterise the typical spread of technologies and capabilities of the various companies. Of the 260 companies assessed 188 companies were considered to be active in the photonics field, with an estimated 6000 employees generating more than £650 million for the region per year. Included within the region are 16 companies acting as distributors for national and international photonics companies i.e. these latter companies have no significant product research, development or manufacturing capability based in the North West but instead distribute product (and importantly, product knowledge) throughout the region. Because of the pervasive nature of photonics technology a somewhat loose definition of photonics was used to analysis and breakdown the companies in the database, with the aim being to a get a sketch or rough map of the photonics activity. In this mapping study, a NW photonics company is defined as: • A company that adds value to their products and services via the know-how and/or use of optical technology related skills and processes • A company whose photonics skills base (especially research and development) resides (or at least in part resides) in the Northwest location • Where a company is part of a large UK/international group an attempt has been made to allocate the financial contribution on a regional basis. Typical examples would include: a laser manufacturer developing lasers and laser processes for the healthcare and/or industrial sectors or a solid state lighting company using LEDS in novel architectural and signage solutions. Observation 2: It should be noted that 188 photonics companies reflects a significant proportion of the UK photonics activity and it is recommended that photonics (or a key subsector) becomes a priority focus for the Northwest region to encourage future growth. The various photonics companies were analysed with regard to their appropriate location within the photonics value chain according to their product/service as identified in Figure 5. For simplicity the value chain has been sub-divided into the following 4 areas: •

Technology sector support (6 companies)

•

Basic components (26 companies)

•

Added value (23 companies)

•

Products and systems (133 companies)

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Northwest Photonics Mapping Study The figure highlights the relative dominance of companies tending to work on complete photonics products and systems rather than say at the basic component or material supply level.

6 Sector Support Organisations companies (technology)

Photonics Cluster - defined by product group

Main supplier sectors

basic components

Added Value

26 companies

23 companies

products and systems 133 companies

Key customer sectors

Sector Support Organisations (business)

Figure 5: Cluster Map for North West Photonics Activity

The following figure shows the percentage breakdown for the photonics companies by the application, where it should be borne in mind that the boundaries between the various applications sectors are not clearly defined, and many companies produce products and services whose applications cut across several sectors.

Industrial Photonics 17%

Defence & Security 4%

ICT and Consumer Photonics 14% Life Sciences & Healthcare 6%

Lighting & Energy 59%

Figure 6: North West Photonics Breakdown by Application

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Northwest Photonics Mapping Study Table 1 shows the breakdown of Northwest companies by application sector. Application Sector Defence & Security ICT and Consumer Photonics Life Sciences & Healthcare Lighting & Energy Industrial Photonics Total Photonics Companies

Number 8 26 11 111 32 188

Table 1: Northwest Photonics Companies by Application Sector

The most dominant applications sector is â&#x20AC;&#x2DC;Lighting and Energyâ&#x20AC;&#x2122; reflecting in this case a regional strength in (solid state) lighting products and services, with at least 111 companies identified within the Northwest during the mapping study. Figure 7 identifies the breakdown by photonic specialism however the relative size of the companies is not shown. For example, 11 companies are identified as being LED components suppliers however this includes some dominant UK companies located in the region. Again it should be noted that there are a large number of companies operating in the lighting, lamp and luminaire sector offering a near complete supply chain in the Northwest region.

1 6 9

5 6

Advanced Materials

Aerospace related Automotive

Biomedical based

Displays Fibre Optic Based communications Lamp and luminaire supplier

Lighting & Architectural LED components and modules

Low-energy inc lighting Laser and laser processing based

Optical Design & Support Optical Technology Test & Measurement Systems

Optics and Coatings Supplier Optoelectronics Modules Photonic sensing and detection Security-Surveillance systems Test Equipment Related

Figure 7: North West companies categorised by Photonics Specialism

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Northwest Photonics Mapping Study Observation 3: There is a regional strength in solid state lighting technology as evidenced by the presence of at least 111 companies working in this field across the areas of SSL lamp and luminaire design, and SSL based lighting installation and architectural design.

4.2 Geographic Analysis The following table shows the breakdown of NW based companies surveyed within the mapping study and their geographic region. NW Region

Photonics

Turnover

Employees

Cheshire

£88 million

618

Cumbria

£51 million

663

Greater Manchester

£331 million

3283

Lancashire

£144 million

914

Merseyside

£46 million

523

188

£659 million

6001

Total

Table 2: NW Geographic Breakdown

It should be noted that Table 2 only identifies the minimum number of companies, employees and annual turnover for the Northwest region and in practice there will be many more photonics companies operating within the region but not highlighted during the study. Further analysis of Table 2 reveals: •

In Cumbria the majority of the sub-regional turnover can be assigned to just 4 companies (Tronic, Oxley, Marl and Forge Europa) who contribute approximately £49 million and employ 575 people. There is a natural Solid-State Lighting cluster which has created a number of potentially high growth SSL companies.

•

In Cheshire, 8 out of the 29 photonics companies have a turnover of greater than £1 million. Companies to note include Lynton Lasers, Datalase and Farfield Scientific.

•

In Greater Manchester, 6 companies were identified whose group turnover exceeds £18 million; a further 31 out of the 88 photonics companies have a turnover greater than £1 million. Companies to note include Zetex Semiconductor, Parkersell, Whitecroft Lighting, Cascade Electrolite, Digital Projection, Searchlight Electrical, Laser Quantum, Signature Ltd and Trident Manufacturing.

•

In Lancashire, 8 out of the 34 photonics companies identified have a turnover of greater than £1 million. Large Group companies to note which incorporate significant photonics effort in their work include: Sanko Gosei, Pilkington Technology, BAE Systems and Rolls Royce.

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Northwest Photonics Mapping Study •

In Merseyside, 5 out of the 22 companies identified have a turnover greater than £1 million. Companies to note include: Epichem Group, Dorman and PAV Data.

The following table shows the geographic breakdown when analysed according to the DTI photonics breakdown structure: ICT & Consumer Photonics

Life Sciences & Healthcare

Defence & Security

Lighting & Energy

Industrial Photonics

Cheshire

Cumbria

Greater Manchester

Lancashire

Merseyside

Total Companies

NW Region

Total Turnover Total Employees

Total Turnover

Total Employees

£88 M

618

£51 M

663

£331 M

3283

£144 M

914

£46 M

523

111

188

£131 M

£ 7M

£30 M

£399 M

£92

894

4237

688

Total Companies

£659 M

6001

Table 3: NW Geographic Breakdown by DTI Photonics Breakdown Structure

The following sections review the current world and UK status of photonics using the DTI photonics applications breakdown structure in order to compare Northwest activity for each sector identified.

4.3 ICT & Consumer Photonics ICT and Consumer Photonics activity includes: •

Displays o

•

Optical Communications o

•

Internet; Fibre to the premises FTTx

Optical Data Storage o

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3D television; holography; indoor and outdoor advertising displays

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Northwest Photonics Mapping Study •

Consumer products o

mobile phones, flat panel LCD TVs, digital camera

4.3.1 Displays There are three main approaches for displays technology: cathode ray tube, flat panel displays and projection displays. In recent years, flat panel displays have penetrated strongly into the consumer market, outselling cathode ray tubes in 2005 and arguably is a key technology for the future. Flat panel displays are split into three main types: liquid crystal displays, plasma display panels, and organic LED displays with the key difference being that plasma display panels (PDP) and OLEDS are emissive whereas liquid crystal displays are non-emissive and thus need a backlight to illuminate the display. The emissive nature of OLEDS is an attractive proposition and over time OLEDs are expected to grow to rival LCDs and PDPs competing first with small LCD displays (e.g. mobile phones) as problems of size, scalability and product life improve. The flat panel display component market exceeded $74 billion in 2005 (up 17% on the $62 billion revenue in 2004); with the revenue share split by display type as follows: CRT 12%; LCD 78%; plasma 7%; OLED 1%; other 2% (source OIDA). The market is expected to continue to grow to over $135 billion by 2015 with the following revenue share breakdown: LCD 70%; plasma 7%; OLED 17%; other 2%; CRT 4%. Note that in this projection, the OLED growth is from a 1% share of $74 billion in 2005 to a projected 17% share of $135 billion in 2015.. Observation 4: The photonics mapping study did not identify any significant Northwest activity in display screen technology, including OLED research and although this clearly is a promising photonics technology no obvious exploitation pathways currently exist.

4.3.2 Optical Communications Around the year 2000, the collapse of the ‘internet bubble’ had a dramatic effect on the optical communications industry both worldwide and in the UK – critically, the rapid rise of the internet had led at that time, to a gross overestimation and exaggeration of the market for telecommunications based services. During the bubble period, internet traffic was observed to be doubling almost every month, but only for a short (i.e. a maximum six months) period. Consequently companies working in the photonics area were considered to have high growth potential such that many UK organisations were bought outright by overseas (usually North American) photonics companies. At the same time, new high capacity optical fibre based communications networks were installed worldwide (so called ‘carrier’ networks) in recognition of the perceived demand. Once the internet bubble burst around the year 2000, there was subsequently an over-capacity in the network leading to a dramatic fall in telecommunications revenues, and ultimately the loss (retrenchment overseas) of UK photonics companies, including some major players such as Marconi and the BT Research Laboratories that were sold to Corning. Since the time of the collapse, UK photonics activity has been centred around new startups working in specific niche areas (in many case established by former employees of the larger photonics companies), and the university sector which has continued to recruit students and expand the scope of photonics based research, usually in areas away from Version 14

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Northwest Photonics Mapping Study optical telecommunications. Internet traffic has continued to grow in this timeframe, but more slowly during the â&#x20AC;&#x2DC;bubbleâ&#x20AC;&#x2122; typically doubling every year compared to every month during the boom period. Nationally, there is some precedence of Regional Development Agencies supporting photonics research organisations during the downturn (one example would be the Centre for Integrated Photonics formerly BT/Corning research owned and supported by EEDA) sustaining key skills and national centres of experience. According to OIDA, the global telecoms revenue in 2005 was over $2.5 trillion, up 10% up on the year 2004; the revenue is forecast to be $5 trillion in 2012. Comparing Europe to the USA in 2005, it was observed that the telecoms revenue in the two geographic sectors was broadly comparable, i.e. the European revenue was $930 billion compared to USA revenue of $860 billion. By 2012 it is forecast that telecoms revenues in USA, Europe and Asia-pacific will be roughly equal at around $1.5 trillion each. In terms of UK telecoms activity it is usually relevant to compare the UK scene with equivalent performance in any or all of the above three geographic regions: Europe, Asia-Pacifica and USA. In 2004, UK telecoms based revenue was estimated to be ÂŁ44.6 billion within a report for Walsall Urban Regeneration Company and the UK was ranked 7th worldwide overall. In fact a ranking of around 6th to 7th in communications activity seems to be a useful rule of thumb for the UK when comparing telecoms activity to other players. Presently, the UK can be considered to contain a small and receding part in advanced optical telecommunications research which is mostly taking place offshore; the Northwest does not contain any large scale telecoms companies organisations, although it does contain a fair share of experienced telecoms infrastructure supporting companies who could play a significant part in future Northwest communications activity at the infrastructure level e.g. Corning Cable Systems (Ewloe) and Lythgoes OSP (Leigh). In consideration of Northwest photonics activity in optical communications, it is fair to predict that the most significant role will likely be in the area of provision of broadband communications services to the premises, whether they are office, residential or to the home. Indeed this could be an important activity to focus on in terms of the business drivers recognised in the NWDA RES, wherein there is an overall desire to create, grow and sustain knowledge based activities in the Northwest. Thus it is worthwhile considering the current status of communications services provision, especially broadband to the premises in the UK, and comparing it to the rest of the world performance. According to the OECD, the number of broadband subscribers increased 33% from 136 million in June 2005 to 181 million in June 2006, with the following allocation of broadband take up:

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Total Broadband Subscriptions - Top 5 Countries, June 2006

United States 31%

Rest of OECD 36%

Japan 13%

United Kingdom 6% Germany 7%

Korea 7%

Source: OECD

Figure 8: Worldwide Broadband Take up

The United States has the highest total number of broadband subscribers at 57 million. The typical broadband delivery technology breakdown at June 2006 is reported by the OECD to be as follows: •

DSL: 63%

•

Cable modem: 29%

•

Other technologies (e.g. satellite, fibre and fixed wireless) : 8%

Critical to this analysis is the reflection that the use of a genuine photonics technology i.e. optical fibre to the premises is only a small percentage of the total – this is actually an indication both of the relatively high costs of installing optical fibre in Brownfield sites, and the improving but limited performance of copper based communications cabling (i.e. DSL and CATV). For broadband delivery via fibre-to-the-premises (FTTP), Japan currently leads the way; in June 2006, OECD estimated that there were 6.3 million fibre subscribers in Japan out of a population of around 127 million a fibre take-up of around 5%, and it should be noted that this number of fibre subscribers actually outnumbers the total number of broadband subscribers in 22 of the 30 OECD countries! The following OECD figure shows broadband delivery by technology, wherein Japan’s dominance in fibre delivery (e.g. ‘other’) can be discerned; in terms of European performance Denmark, the Netherlands, Iceland, Switzerland and Finland led the OECD in broadband penetration, each with at least 25 subscribers per 100 inhabitants, the figure for Denmark being 29.3 subscribers per 100 inhabitants, compared to the UK at 19.4. The UK’s reasonable performance in this area has been achieved mostly by DSL and modem – the contribution of fibre-to-the-premises is negligible and it is quickly being left behind on the world stage. Indeed, a report in April 2007 by the Broadband Stakeholders Group highlighted the need for the UK to develop next generation broadband access otherwise “the UK could suffer profound social and economic Version 14

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Northwest Photonics Mapping Study setbacksâ&#x20AC;? in the future. Optical access or FTTx would provide a significant leap in access performance and provide a future proof communications infrastructure.

Figure 9: OECD Broadband Delivery Breakdown by Technology

The following figure shows broadband penetration in relation to the population densities of the OECD countries.

Figure 10: OECD Worldwide Broadband Breakdown by Population Density

Figure 10 helps identify whether a larger penetration figure for broadband deployment has been achieved for a relatively small population density, such as Iceland. Achieving broadband penetration where there are also large populations is thus a notable achievement and in this case highlights the strong performance of Korea, Japan and Belgium. Critical to Figure 10 is the recognition that FTTP can be delivered in high density populations (e.g. Japan) and low density populations (e.g. Iceland) and so there should be no reason why an FTTP initiative cannot be undertaken in the Northwest

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Northwest Photonics Mapping Study region either in the heavily populated city areas or the more rural areas such as Cumbria. The above data also indicates that the UK cannot in any way be described as leading the field in terms of broadband service provision – far from it. However, there is a further issue to consider, that of the definition of broadband itself. Historically broadband services have been defined as any communications scheme that can outperform a dialup modem running typically at 56 kbps maximum, and thus any service exceeding say around 200 kbps would be classified as ‘broadband’. In the UK, the dominant internet access technology for broadband delivery is ADSL delivering typically around 1-2 Mbps over the existing copper phone line. The latter line rate is satisfactory for general webbrowsing and for downloading audio and graphic files up to around 10 Mbs in size, and can be considered acceptable/ borderline for accessing (compressed) video, as witnessed by the phenomenal growth in recent years of the popular video based website www.youtube.com or free telephony services such as Skype. However given that a requirement for broadcast quality TV (i.e. digital video) or high quality business critical telephony can be taken as being from 8 Mbs upwards, it follows that UK broadband provision based on DSL technology is in reality someway below this latter performance metric. The following figure shows the required bandwidth for various internet services and access technologies:

Figure 11: Bandwidth requirements for Internet Services & Access Technologies

Figure 11 demonstrates that DSL based broadband provision of around 1-2 Mb/s is unlikely to meet the future requirements for high performance digital and it is expected there will be more than 4.4 million TV-over internet viewers in Europe by 2008. In the UK alone, the BBC is already offering online access to TV and we can also expect to see Version 14

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Northwest Photonics Mapping Study growth in the near future for HDTV services from service providers such as Sky and Virgin Media. Digital video is just one example of content requiring a reasonable bandwidth drop to the premises, another is online game playing wherein it is expected that by 2009 there will be 230 million players of networked games requiring high bandwidth links. Accordingly it can be noted from the above that the UK will soon be at a disadvantage in terms of access to online content requiring a high access bandwidth. As discussed previously, the internet boom up to the year 2000 created a reasonably strong telecommunications backbone infrastructure based on the deployment of ‘single mode’ optical fibre technology. In many situations, an over-capacity in the backbone was created, which is only now being depleted due to increasing demand for residential broadband type services. Fortunately, increasing load on the backbone network can be readily met by high bandwidth systems such as DWDM and 40 Gb/s technology. However this is not the case for the premises drop which is limited to either a copper pair (phone line) or coaxial cable (CATV). Thus, the remaining areas for photonics growth in communications applications are first of all via penetration to the premises (offices, multidwelling units, residences etc) using optical fibre-to-the-premises (FTTP) cable. Secondly, given the likely proliferation of (flat panel) TVs and computers within the home there will be a need for a convergence on reliable technologies for high bandwidth communications within the home. The UK is well behind the rest of the world and Europe in terms of FTTP and as a follow-on in-home networking. Thus the UK as a whole and of course the Northwest itself, can be considered to be disadvantaged with regard to the deployment of true broadband communications technology to and within the premises. Activity in FTTP worldwide is growing in the USA, is strong in the Far East (Korea and Japan) and occurring in isolated pockets across Europe. The issue in the UK is that there is strong resistance/reluctance concerning FTTP rollout: •

Incumbent telecoms operators are reluctant to deploy fibre due to a potential threat of mandatory ‘unbundling’ which would allow competitors access to any installed high capacity fibre links

•

Local authorities are effectively prohibited from taking initiatives (as occurs in the US via so-called ‘municipality led’ networks) due to a potential concern that this could easily distort a commercial market for high bandwidth services.

FTTP technology, standards and know-how is pretty much in place, and in indeed the Northwest and Northeast UK regions are home to highly experienced players in FTTP technology in Corning Cable Systems and Emtelle respectively. The ‘last’ drop to the premises is now the bottleneck with regard to the provision of high bandwidth communication services and there is a pressing need for an appropriate initiative or initiatives to be taken. Note too that previous UK trials in fibre-to-the-home were largely undertaken before the advent of the internet, home working and a proven demand for video to the home. The demand for all of these services can now be taken as a given, as can the understanding that provision of a high bandwidth services will themselves initiate the advent of new and possible unexpected but successful revenue streams and services e.g. YouTubeTM and SkypeTM.

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Northwest Photonics Mapping Study A recent study undertaken by the Walsall Regeneration Company one of the 24 national regeneration companies has demonstrated that the deployment of FTTx is extremely cost effective on all new regeneration initiatives and can add significant value to a variety of stakeholders from social housing to health and private sector developers to education and enterprise. It has been proposed that a fibre access network infrastructure in Walsall would provide bi-directional broadband access to premises at up to 1.5 Gbits per second or more than 4000 times faster than current broadband capabilities! Observation 5: Whilst beyond the scope of this study, there are a number of possibilities that should be considered for encouraging or stimulating FTTP rollout in the Northwest region including defined ICT, digital media and regeneration support projects. Typical optical broadband support projects that should be considered essential for increasing general regional economic activity include: •

•

A demonstrator ‘Media Hub ‘ to be built as a high bandwidth focal point for a key Northwest city (or cities) o

Provide a super-broadband network capability similar to that proposed within the Walsall Regeneration Company report enabling individuals, businesses and government to operate and communicate efficiently and effectively.

Utilise the framework plans for the Media City in Salford as a Digital Access exemplar project pending the relocation of the BBC. Such a network would provide high capacity data centre access required for modern digital media generation in films and online games.

Develop a framework for creating a mandatory ‘empty’ duct installation for all future Northwest regeneration activities funded by the NWDA and stakeholders o

NWDA could procure or own the ducts enabling access to disadvantaged communities not currently serviced by the private sector. It should be noted that services provided across the infrastructure would be delivered by the private sector on an open access basis.

Optical fibre cable can be inserted into empty ducts any time in the future as demand grows thus minimising infrastructure costs drastically.

•

Support for fibre to the home (or blown fibre) installation for all new housing and social housing projects

•

Early identification of potential fibre ring locations to surround major towns and cities in the Northwest o

•

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Align with planned infrastructure upgrades to rail, road and canal links

Encourage high bandwidth networking as a driver for urban regeneration or high technology working in rural locations. This could include access to high resolution media content development, remote support for software development and test environments and tele-health and remote medicine. 2007

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Northwest Photonics Mapping Study â&#x20AC;˘

Develop intermediate skills through HE and FE training provision in optical fibre cable and network architecture craft skills for FTTP installation

Observation 6: Initiate the development of a skills framework based on the potential requirements for intermediate skills training of FTTx deployment in conjunction with relevant Sector Skills Agency and Learning & Skills Council.

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Northwest Photonics Mapping Study

4.4 Lighting & Energy Photonics will play a significant role in the environment and help reduce global warming effects through the development of new photonic technologies that provide energy efficient lighting to homes, factories and places of work and with environmentally friendly energy generation by harnessing the power of the solar energy through photovoltaic (PV) cells. However, it is the advent of new materials and devices such as light emitting diodes (LEDs) and organic LEDs (OLEDs) and very high-efficient PV cells that are providing the nexus to create new forms of energy-efficient lighting and renewable energy sources. Lighting and Energy includes: •

Solid state lighting o

•

Architectural, signage, messaging systems, OLED technology, Signals, Street Lighting, Backlighting, residential lighting

Photovoltaics o

Solar cells – energy generation

•

Sensing for process optimisation

•

Fuel analysis

•

Energy infrastructure security

The Lighting and Energy sector within photonics is set for explosive growth during the next decade and arguably represents one of the strongest opportunities for the NWDA to take a leading role in its development in both the university and industrial sectors. Solid-state lighting (SSL) has the potential to revolutionize the lighting market through the introduction of highly efficient, long lasting and more versatile light sources. Advancements in SSL technology over the last two decades have contributed to a gradual market penetration in coloured and general white lighting markets. Industrial research and investment continues to improve the performance of LEDs whilst reducing their costs. SSL is expected to create a $155 billion market by 2020 from just $1 billion in 2006. The UK has a strong research pedigree and significant knowledge of inorganic semiconductors, organic electronics, lighting fixture design and luminaire manufacturing providing an opportunistic environment for exploiting solid-state lighting. This opportunity is prevalent throughout the Northwest with many small but highly innovative companies such as NJO Leds, Oxley, Marl International and Luminanz distributed across the region as well as larger organizations such as Whitecroft Lighting, Searchlight and Zetex. It is through the novel and disruptive applications of solid-state lighting that the Northwest could contribute significantly to a high growth, value-added opportunity in the advanced manufacture of next generation lighting solutions for a variety of applications. Energy generation by photonic means has been pursued for many years and has seen relatively slow progress due to low conversion efficiencies (~10-15%) and high costs to manufacture. However new second and third generation photovoltaic devices are being

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Northwest Photonics Mapping Study developed, including organics and III-V quantum-well solar cells which offer significantly higher conversion efficiencies (>30%) and provides the opportunity to improve total cost of ownership. Photonic solar cells offer the opportunity to provide micro-site energy generation at the point of consumption whether in residential or commercial applications to provide a more robust and secure energy network. The increase in carbon-based energy prices and their effect on the natural environment in the future is proving to be a strong political and consumer driver for renewable energy sources where PV cells can play a significant role. Although the growth of PV technology will increase significantly and the demand for PV installations is strong, there is currently little evidence suggesting the Northwest has a strong regional technology presence in this discipline. Areas of activity include the development of printable PV materials at the OMIC centre at the University of Manchester.

4.4.1 Lighting (Solid state) Solid-State Lighting in the form of inorganic compound semiconductors known as Light Emitting Diodes (LEDs) or organic LEDs (OLEDs) are perhaps the most significant advancement in illumination since the invention of the light bulb by Thomas Edison more than a century ago. LEDs are a truly disruptive technology providing a serious alternative to conventional lamp technologies in many applications and provide considerable challenges to traditional lighting companies struggling to understand how to harness the advantages of the revolutionary digital lighting era. The development and adoption of LED lighting within the UK has accelerated in recent years creating new opportunities for highly innovative lighting companies. Since 2000 when the first high-powered LED components (See Figure 12) became readily available a significant number of niche applications have developed from architectural lighting products that can produce more than 16 million digitally controlled colours to high-efficiency traffic signals. The scientific and research communities forecast that as the performance of light emitting diodes (LEDs) and organic light emitting diodes (OLEDs) improves, their costs will simultaneously decrease. Roland Haitz of Hewlett Packard described the advances in solidstate lighting technology by proposing a simple trend reflecting the light output per LED lamp and the cost per LED lumen according to the curves, shown in Figure 14 in blue and red respectively. The trend proposed by Haitz was based upon processes relating to semiconductors similar to those used for microprocessors and demonstrate that both cost and packaging technologies can be significantly improved over many decades and will be expected to improve for LEDs over the next 10-20 years. General LED trends suggest that LED lamp outputs increase by more than 20 times every decade whilst costs reduce by a factor of 10 however, due to investment through US and Japanese government SSL programmes advances in LED chip, packaging design and phosphor technology (used in White LEDs) have dramatically altered the slope of these curves providing significant acceleration in lumens per LED lamp and corresponding increases in lumens per dollar. It is predicted that this increase in lumen output per LED lamp seen during 2006 will be quickly followed by a sharp decrease in LED emitter costs over the next five years making solidstate lighting comparable in cost to fluorescent technologies by 2012 and stimulating a significant market demand. An analysis of the global SSL industry has indicated that there are significant drivers for growth of the SSL market including some key barriers that need to

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Northwest Photonics Mapping Study be overcome in order to achieve rapid market penetration. The key drivers and barriers are outlined in Figure 13. Lighting needs energy to function and it is estimated that more than 30 billion electrical lamps operate worldwide everyday consuming more than 2,100 TWh per year (10-15% of the global energy production worldwide).

Figure 12: A typical cross section through a High Power LED

Figure 13: Main drivers and challenges facing the LED and SSL industry, 2005/6

4.4.2 Residential Lighting in the UK There were approximately 25.6 million households in the UK in 2005 and the residential electricity consumption accounted for approximately 112 TWh (Terra Watt Hours) or more appropriately 112,000,000,000,000 Watt Hours. It has been estimated by the European Commission â&#x20AC;&#x201C; DG Joint research Centre that 17.9 TWh is used for lighting consumption within the UK residential market making lighting represent approximately 16% of the total domestic electricity consumed. This residential lighting energy consumption is the CO2 equivalent of driving an average car more than 21,927,500,000 miles! Both the number of households and the number of lighting fittings within each household are projected to rise in the future due to government policies to create affordable housing and Version 14

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Northwest Photonics Mapping Study the consumer trend for multiple light sources within a room. This will lead to an increase in electricity usage unless more energy efficient lamps are adopted within the home. The percentage of UK households that contain at least one, energy efficient light source is estimated to be approximately 50% and the light source is usually a compact fluorescent lamp (CFL) type. On average there are approximately two CFL’s per household (including households without CFL’s) out of an average of 22 lamps per household. Therefore, the penetration of energy efficient light sources within the UK home is about 9% providing a significant potential for energy savings. For example, if an additional 3 LED-based light bulbs were to be placed in every home in the UK it would generate a market for more than 68.4 million LED-based light bulb replacements! An OECD estimation shows that in the near future the need for lighting will increase very rapidly (a factor of 2 is a realistic estimation within the next two decades). The energy worldwide used for lighting per annum is valued at about €250 billion (of which 25% amounts for Europe). However, light sources also find wide spread application in several important industrial domains. For example consider projection, reprography, entertainment, surface treatment, water and air purification, curing or process monitoring and control. If these additional applications are taken into account the total worldwide turnover of light source related technology is 2-3 times higher than the estimations provided above. The UK and Europe has an important industrial stake in this major global industry.

Flux/lamp (lm) and cost ($/lm)

10000 1000 100

Acceleration of LED flux output

x10 decrease per decade

MW LEDs

flux/lamp (lm) x20 increase per decade

10 1 0.1 0.01

cost ($ / lm) MW LEDs

0.001 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year

Figure 14: Changes to the LED performance/cost ratio according to LED industry trends

The annual greenhouse gas (CO2) due to the energy production for illumination is estimated to be in the order of 900 million tons worldwide. Huge energy savings can be realized when replacing the current incandescent and discharge lamps by efficient SSL sources. Version 14

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Northwest Photonics Mapping Study That corresponds to 750 TWh global energy savings per year as well as 300 million tons less greenhouse gas in the atmosphere. It is estimated that by 2025 SSL could reduce the global amount of electricity used for lighting by 50%. The reduction in CO2 pollution is not the only environmental impact SSL will deliver. Traditional light sources such as fluorescent tubes contain small amounts of toxic and expensive raw materials, mercury and rare earth elements are common examples. As a consequence, at the end of life a considerable amount of “Undesirable” waste is generated. SSL light sources are free of mercury and as a consequence are much easier to dispose of as for example, gas discharge lamps. Furthermore, SSL will use LEDs that are expected to reach lifetimes exceeding 100,000 hours. This considerably reduces the waste issues related to the short-life incandescent light bulbs. Additional advantages of solid-state lighting include:

• • • • • • • • • • • • • • • •

Long life times (LED 20,000 to 100,000+ hours and OLED 1,000 to 10,000+ hours); LEDs have small form factors for improved design flexibility; OLEDs emit diffuse light over large areas Robust to thermal and vibration shocks; Environmentally friendly – no hazardous materials e.g.; mercury; Rapid-on and restrike times (<100nS); Digital control with 100% dimming capability; Highly energy efficient; (LEDs >60 lumen/Watt, OLED >10 lumen/Watt) No IR or UV in beam output; Low DC voltage operation; LEDs provide directed light output for increased system efficiency; Lower overall total cost of ownership (TCO); Vivid saturated colours without filters; Dynamic colour control – white point tuneable; Cold start capable down to - 40°C; LEDs have high temperature operation up to 185°C junction temperature.

Figure 15 highlights the increasing energy requirements for domestic lighting with more than 19.4 million tonnes of oil equivalents required to light UK homes. It is predicted by the Market Transformation Programme operated by DEFRA that UK domestic lighting demands will reach nearly 20 TWh by 2020, an increase of 3TWh, unless drastic market penetration of energy efficient lighting occurs.

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Million Tonnes of Oil Equivalent

20.0

19.5

19.0

18.5

18.0

17.5

17.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year

Figure 15: Domestic Energy Consumption of Lighting since 1990

4.4.2.1 HB LED and Solid-State Lighting Market High Brightness Light Emitting Diodes (HBLED) have successfully penetrated many markets over the last decade and LEDs for consumer appliances have become commonplace. Today, high brightness LEDs are used in backlights for LCD monitors in mobile phones and LCD TVâ&#x20AC;&#x2122;s; and are increasingly being used for traffic signals, signage and general lighting applications. The revenue market for high brightness LEDs has continued to grow over the last decade with a historical CAGR between 1995 and 2004 of 46% and reached $4 billion in 2005. Figure 16 shows the total HB LED emitter revenue forecast by application segment for the period 2004 to 2009. The total worldwide market for HB LED emitters is forecast to grow from $4 billion in 2005 to $8 billion in 2010 with an ongoing average annual growth rate of 15%.

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8000 Mobile

Signs/Displays

Automotive

Illumination

Other

7000

Traffic Signals 90

HB LED Revenues ($ millions)

700 6000

94 98

615

541

661

475 360

494

5000 4000 3000

1019

63 383 174 472

418 252 519

650

500

552

631

2095

1997

2061

2174

2229

2300

2004

2005

2006

2007

2008

2009

2000 1000

857

905

766 758

1835 1073

Figure 16: HB LED emitter forecast revenue by application segment for period 2004 to 2009 High brightness LED emitters are expected to grow over the next 5 years based primarily on the product uptake in consumer appliances and new applications such as automotive front lighting, white lighting for general illumination and backlighting for LCD TVs. During the period 1995 to 2005 HB LED emitter revenues grew between 290% and 660% but it was the mobile appliances segment, which demonstrated the strongest growth of 57% in both 2003 and 2004. The driving factors in that market were the use of LEDs as backlights and flash for mobile phones, PDAâ&#x20AC;&#x2122;s and other mobile products. Looking ahead over the next five years revenues are expected to grow an average of 15% per year with revenues forecast to exceed $7 billion by 2009. All segments of the market are expected to grow as shown in Figure 16 with the mobile appliance market contributing the largest share. The fastest growing segment over the period is the illumination market with an anticipated three-fold revenue increase from 2005 through 2009, reaching nearly $800 million in revenues by 2009 with a CAGR of 38%. The second largest growth rate for LED emitters occurs within the sign and display market with a near 30% CAGR and revenues of ÂŁ1.8 billion by 2009 as shown in Table 4.

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Northwest Photonics Mapping Study HB LED Revenues ($million)

2004

2005

2006

2007

2008

2009

Signs/Displays

500

552

631

758

1073

1835

Mobile

2095

1997

2061

2174

2229

2300

Traffic Signals

Automotive

472

519

650

766

905

1019

Illumination

174

252

360

494

661

857

Other

383

418

475

541

615

700

Total

3687

3812

4264

4831

5577

6801

Table 4: The market forecast for HB LED revenue by application segment The slowing growth of mobile appliance applications is due to maturing mobile phone markets however the trend for incorporating digital cameras within phones has been persistent and solid growth for LEDs will remain as mobile phones will incorporate high brightness white light LED camera flash’s in the foreseeable future. OLEDs are a novel and attractive class of solid-state light sources, which are thin, flat and lightweight and generate a diffuse, non- glaring illumination. Due to its freedom of design, OLED lighting technology offers possibilities for a range of new lighting applications. OLEDs could also be used in lighting systems with controllable colour, allowing users to customize their lighting ambiance at home. Furthermore, with the future possibility of being a highefficient light source, the technology has the potential of achieving substantial energy savings. It is estimated that by 2020 the potential annual sales of OLED lighting systems could reach $15 billion with signage and billboards approaching $10 billion. Recent focus in the Next Generation Lighting Initiative in the US has funded development of White OLEDs for lighting applications whilst OLLA is an Integrated Project (IP), funded by the IST program of the European Commission's 6th Framework to research and develop high brightness, high efficient white OLEDs and demonstrate their use in general lighting applications. Until now, the main focus of OLED development has been for the display market, but recent work by GE, Philips and Konica Minolta has shown OLEDs are suitable as diffuse light sources over large area applications. GE has already demonstrated a 2ft by 2ft OLED panel which produces a total of 1200 Lumens at an efficiency of 15 lm/W. This is equivalent to an 80 W incandescent bulb and exhibits improved colour quality performance compared to most fluorescent tubes. More recently, OLLA project partners have delivered an advanced white Organic Light-Emitting Diode (OLED) prototype light source, with an efficacy of more than 10 lm/W, emitting several thousand hours at 1000 cd/m² brightness. The key advantages of OLEDs are potentially high efficiencies, the ability to make thin and flexible substrates, and eventually low manufacturing costs through the use of printing technologies. Current disadvantages are the lifetimes of OLED materials which often last for only 100’s of hours. OLED materials are being refined to enable products to have increased Version 14

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Northwest Photonics Mapping Study lifetimes especially with UK expertise including Elam-T and Cambridge Display Technologies. 4.4.2.2 The Lighting Equipment Market The global lighting market size was estimated to be worth $79 billion in 2001 (light sources accounting for $17bn and fixtures at $62bn) which increased by approximately five percent per year through 2006 to approximately $100 billion and is estimated to reach over $132 billion (light sources $25bn and fixtures $107bn) by 2011. The most rapid growth in demand is expected in industrializing areas such as Eastern Europe, the African/Middle-east region and the Asia/Pacific region, where building construction activity and greater industrialization will generate more opportunities for lighting equipment. Lighting equipment demand gains in China are projected to surpass 10% up until 2006 due to liberalization of housing markets, including the encouragement of private ownership of real estate. Rising living standards and increased industrialization within developing countries will benefit lighting equipment use in manufactured goods applications as well. In contrast, advances for lighting equipment in the mature, industrialized regions of North America and Western Europe will both be below the global average. While new construction activity will support lighting equipment demand in these regions, activity will also be fuelled by efforts to improve energy efficiency in existing building structures. Among the principal lighting equipment types, lighting fixtures and related components will offer the strongest prospects with annual gains nearing 6%. While demand for lamps in the aggregate will lag the pace projected for lighting fixtures, several types of lamps will exhibit strong advances. Across both product segments, technologically advanced products with improved performance and high energy efficiency will exhibit the most robust growth. In the component arena, electronic ballasts, specialized reflectors and other products designed to improve lamp performance will show above-average growth. Within Europe the professional lighting market (that which covers commercial, industrial, public and domestic lighting) is significant with a value of approximately $10 billion in 2004. The UK market for lighting equipment is expected to increase marginally to ÂŁ1.9 billion in 2005. Prior to this, demand increased year-on-year between 2002 and 2004, culminating in overall growth of 10%. The buoyant construction market and strong consumer spending have had a positive impact on the UK lighting equipment market over the past 5 years. However stronger market growth has been hindered by intense price competition, in particular from low-cost far-eastern imports, and also through the increase in the life span of lamps. The construction market is expected to continue to demonstrate growth, albeit at more moderate levels than in recent years. Product innovation in the area of energy efficiency along with changes in the building regulations are also likely to further boost such sectors of the market. However the slowdown in consumer spending towards the end of 2007, reflecting increased interest rates, is likely to affect demand for residential lighting equipment in the short term. Furthermore, many sectors are expected to continue to be characterised by price competition and increased import penetration. Nevertheless, the UK market for lighting equipment will continue to demonstrate growth until 2010, although the annual rate

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Northwest Photonics Mapping Study of market growth is expected to remain moderate at between 1% and 2% in real terms. Sales of lighting equipment are projected to reach £2014.1 million in 2010, representing a marginal increase in the year and equivalent to 6% real term growth compared with the current year. The UK Non-Domestic Lighting Equipment Market is defined to include three key product sectors: Lamps, Luminaires and Lighting Controls. In 2004, the overall market value was estimated to be approaching £920m. The development of the overall non-domestic UK lighting market is significantly influenced by trends in industrial and commercial construction and has therefore exhibited slow to moderate levels of growth over the last few years. The retail, entertainment and warehousing sectors have benefited from the consumer spending boom, while the industrial and commercial office sectors have been adversely affected by the recession in manufacturing and an oversupply of office space in London and the South East. While the market has also benefited from government investment in health and education, it has been adversely affected by a growing level of imports from low wage economies such as China and the Far East. Also impacting upon the market over the last few years has been a growing level of legislation aimed at reducing carbon dioxide emissions. While Part L of the Building Regulations, introduced in 2002, has encouraged modern buildings to maximise utilisation of natural daylight, the requirement for greater energy efficiency has resulted in increased usage of added-value energy saving products and lighting controls. Subsequently the outlook for the UK is likely to be one of modest growth, with a steady improvement in the commercial office sector, a significant number of projects in the health and education sectors and infrastructure developments including airport extensions, ‘Crossrail’, the cross London rail link, and a number of major PFI street lighting schemes. In the medium to longer term, the market will also receive a boost from developments in connection with the 2012 Olympics. Figure 17 outlines the share of the UK non-domestic lighting market by product sector type in 2004 and illustrates that luminaires account for 61% of the market followed by lamps at 28% and finally controls at 11%.

Controls 11% Lamps 28%

Luminaires 61%

Figure 17: UK non-domestic lighting equipment market share by product type in 2004

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Northwest Photonics Mapping Study The lamps sector was valued at around £258m in 2004 and has exhibited more steady levels of growth than other sectors of the non-domestic lighting market, being less dependent upon economic factors due to the significant ongoing demand for replacements. Discharge lamps represent the largest segment with 32% of the lamps market, followed by Tungsten Halogen with 29%, Compact Fluorescents (15%), Fluorescent Tubes (12%) and Incandescent (4%). Fibre Optics and LED’s are currently experiencing rapid growth, however at present their share of the market is small, accounting for some 4% or £10 million each. There are a wide variety of luminaires used in non-domestic applications and the UK luminaires market reached £560m in 2004 with growth in this sector being more volatile than in the lamps sector, reflecting its dependence upon commercial and industrial new build investment. Luminaire sales have also been adversely affected in recent years by the highly cost-competitive nature of the electrical contracting market, driving the specification of cheaper ‘own brand’ and imported ranges. However, the increasing emphasis on appearance in the commercial sector has encouraged the use of more expensive design oriented ranges. The lighting controls and components sector has experienced good levels of growth in recent years to a value of around £102m in 2004. The sector has benefited in particular from increasing legislation relating to energy efficiency and the impact of rising fuel bills. The majority of commercial office installations now incorporate lighting control systems; however there remains considerable potential for further growth reflecting the continuing drive to reduce carbon dioxide emissions and the relatively low penetration of installations in some other sectors such as retail. Key end use application areas for non domestic lighting equipment include commercial offices (21%), entertainment & leisure (17%), healthcare (17%), education (14%), retail (13%), industrial (9%) and infrastructure (5%), with ‘other’ applications such as prisons and the MOD accounting for 4%. Sectors likely to offer the greatest potential for growth over the next few years include healthcare, education, infrastructure and commercial offices. The distribution of non-domestic lighting equipment is dominated by wholesalers and distributors who account for around 62% by value, with this channel comprising general electrical wholesalers/distributors and specialists who supply primarily lighting equipment. Direct supply accounts for an estimated 29%, with other channels of distribution - including DIY multiples and builders merchants - accounting for approximately 9%.

4.4.3 UK Lighting Market Analysis The UK lighting market is well established at various layers within the supply chain due to the maturity of the lighting market however there are indications that volume manufacturing of conventional lighting systems in the UK will diminish rapidly as conventional lamp technologies are moved offshore due to lower manufacturing costs. This has been demonstrated in recent years by the closure of the GE lighting’s lamp manufacturing facility in Leicestershire. The challenge will be to ensure that the UK lighting sector transfers production to new, high-margin SSL technologies without incurring significant industrial decline in the sector. Due to the significant presence of Lighting companies within the Northwest including Whitecroft Lighting, Searchlight and Thorn Lighting there is a risk that

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Northwest Photonics Mapping Study these and other companies could face increased pressure from low cost imports unless they obtain support in developing new LED products and technologies over the next decade. It is here that the Northwest development agency can demonstrate leadership and help regional companies take a commercial lead by developing policies that support the adoption of SSL lighting within the regional and UK market. Observation 7:.Consider supporting the NW regional strength in SSL lighting via adoption of reviewing policies which may act as business drivers for adoption of SSL and growth of NW SSL companies. High brightness LED activity for general illumination is embryonic in the UK however niche markets are beginning to expand where SSL benefits outweigh the current high entry costs of HB-LED fixtures. This opportunity has created many new start-up lighting manufacturers specialising in solid-state lighting fixtures and has resulted in an increase in the number of UK manufacturers to 722 as shown in Figure 18. The number of companies associated with SSL technologies such as plastic optics, drivers and heatsinks would make the number of companies associated with the UK SSL much larger but the true number is difficult to quantify.

700 600 500

66 2

1999

2000

2001

72 2

65 9

1998

70 8

64 8

1997

69 9

62 1

200

2002

2003

2004

51 4

300

59 2

400

44 1

Number of UK Lighting Manufacturers

800

100 0 1995

1996

Figure 18: Number of UK lighting manufacturers between 1995 and 2004 The mapping study and consultation process has identified the need for a national centre of Solid-State Lighting which can become the authoritative body for research, product development, market information and guidance in energy efficient lighting. Through the significant consultation process it has been identified that no matter the size of the company there is a need for a national lighting institute that helps bridge the chasm between academic research and industrial development. The study has shown that there is a significant presence of LED and lighting companies in the Northwest with enough evidence to support Version 14

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Northwest Photonics Mapping Study such an institute. A good example of such an institute is the Lighting Research Centre based in the USA who develop recommendations for the adoption of SSL. Observation 8: The evidence suggests that the Northwest could develop a national SolidState Lighting institute combining academic and industrial collaboration within the lighting sector similar to the Lighting Research Centre in the USA and Fraunhofer Institutes in Germany. The national institute could work in collaboration with regional centres such as the lighting laboratories at Aston Science Park, NPL and other centres of excellence. It is important that a UK institute should provide services to all regions within the UK however there is a clear need to support the regional lighting supply chain so that the transition from conventional lighting to Solid-State Lighting can be made within the next 5 years. 9% 9%

Merseyside 9%

13%

Cumbria

Lancashire Cheshire 13% 21% Cumbria 7%

Lancashire 21%

Greater Manchester

Greater Manchester 50%

Figure 19: North West Lighting & Energy Companies classified by sub regional geography The following figure shows the sub-regional turnover of Lighting & Energy companies as a percentage: the vast majority of the turnover is associated with companies in the Greater Manchester sub-region.

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Merseyside, 3%

Cheshire, 11%

Lancashire, 5% Cumbria, 5%

Greater Manchester, 76%

Figure 20: Breakdown of Turnover for North West Lighting & Energy Companies

The mapping survey revealed that for the lighting and energy application sector, and for solid state lighting in particular, an approximate supply chain can be identified as follows: • • • • •

LED device fabrication (100% offshore) LED device distribution LED assembly into bespoke lighting product e.g. luminaire or signalling LED architectural design LED lighting product installation

Of course many of the companies surveyed have a capability across most if not all of the chain but tend to centre on 2-3 related areas of the supply chain.

It is important to note that there is no volume fabrication of the base LED or OLED components in the UK itself; instead supply is dominated by the 5 main SSL/LED players (Nichia, Cree, Osram, Philips and GE) whose products are considered to be both ground breaking and high quality in their performance. Importantly, the lack of a UK LED foundry may not be a major issue as it is widely perceived that LED dies will become a commodity item that will attract little in the way of added value however the UK has a very strong position in producing the basic materials for LED and OLED devices.

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Northwest Photonics Mapping Study Around 11 companies are associated with the distribution of LEDs and LED component modules. 44 companies are involved with the supply of bespoke lamps and luminaires and 44 companies are involved in the architectural and installation side of the technology. The UK is strong in the design and manufacture of secondary optics, electronic drivers, packaging and thermal management which enables LEDs to be built effectively into fixtures and luminaires and establishes the UK firmly at the higher end of the value chain. It is evident from the mapping study and the Solid-State Lighting workshop that the Northwest supply chain and experience dominates this sector of the market and there are numerous examples of innovative LED fixture companies such as NJO LEDs, Oxley, Marl International, Luminanz and Lumier that are capitalising on their early leader position within the SSL market. Referring to Figure 7 it can be deduced that of the 111 companies working in the lighting and energy application sector, two specific specialisms dominate: • •

Lamp and luminaire supply Lighting and architectural (design and installation)

Evidence indicates that the Northwest organisations working in this area show high degrees of innovation particularly in solid state lighting and the assembly of novel LED based lighting and signage products. Longer term, the UK has considerable knowledge, expertise and experience in organic LED materials, printing processes and manufacturing equipment, which is an opportunity to establish the future of the UK lighting manufacturing industry within the next two decades.

4.5 Industrial Photonics 4.5.1 Overview As it names suggests industrial photonics concerns the use of photonics/optical technology within an industrial context, the applications for which are many and varied, and includes the following: •

Lasers o

•

Sensing o

Structural health monitoring

Smart industrial and power utility monitoring

Traffic monitoring

Imaging o

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Cutting, welding, micromachining, material processing

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Northwest Photonics Mapping Study o

Thermal imaging; security certification

Document scanning

A quantum-leap has taken place by the introduction of photonic technologies in production processes on macro-, micro- and nanoscale in the past decade, having a significant impact on the economy through increases in productivity, competitiveness and which can thus enable UK industry to differentiate itself from labour-intensive low technology manufacturing processes. Accordingly it is important to recognise that photonics has revolutionised the way modern industry operates in today’s competitive environment and the long-term future for UK advanced manufacturing will be heavily linked to new photonic technologies and processes, enabling industry to remain competitive and offer advanced manufacturing solutions. The mapping study identified industrial photonics in the Northwest in the following areas: •

Manufacturing & Production

•

Advanced research

•

Spin-out / Start-up companies

All of which are discussed in detail in the following sections which reviews key industrial photonics related activity within the world, UK and NW contexts.

4.5.2 UK industrial Photonics Activity The UK industrial and consumer laser eco-system is well established with a vibrant academic community involved with both laser development and material processing. The UK academic community is particularly strong in both micromachining and modern macro-machining areas (e.g. rapid prototyping, drilling, surface engineering). Academic laser based research activities have been strongly supported by EPSRC and since 2000 more than £15m of research grants have been provided to develop novel laser systems and more than £300 million to laser-enabled products. There is also a strong UK presence of laser equipment manufacturers predominantly within the non-diode and industrial material processing sector which is growing. The UK has an excellence in fibre and diode pumped solid-state (DPSS) lasers which offer a tremendous growth opportunity in the near future. The laser eco-system analysis undertaken by the DTI has indicated there is no significant UK presence of users however this was based upon the knowledge that the majority of UK manufacturer’s revenues are obtained from export sales. However, the UK industrial manufacturing user base has great growth potential though the trend is towards niche high-value, low-volume components. This trend reflects that seen by general UK manufacturing whereby low-value, high volume manufacturing is sent offshore. Large UK users of lasers specifically diode types exist within the telecommunications sector which supports a fairly robust components supply chain within the UK however; the non-diode laser components supply chain is

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Northwest Photonics Mapping Study weak as the majority of components are purchased from outside the UK for cost and/or availability reasons. The UK can boast that it maintains significant activity in industrial lasers, used for material processing. There are a few well-established international industrial laser companies—GSI Lumonics, Rofin Sinar UK, Oxford Lasers, Exitech and also a number of small companies e.g. Litron Lasers, Advanced Optical Technology; Powerlase. The Northwest is itself home to several leading innovative laser manufacturers including Datalase, Lynton Lasers and Laser Quantum.

4.5.3 Industrial Laser Applications The applications of industrial lasers are diverse (e.g. welding, cutting, marking, medical) and their adoption within modern manufacturing processes has been well documented due the significant advantages provided over existing technologies including: •

Reduction in production costs due to improved speed and throughput

•

Improvements in flexibility

•

Minimum heat input resulting in less distortion of work piece

•

High degree of accuracy, consistency and control

•

High weld strengths

•

Easily automated and computer controlled

•

Excellent quality and appearance

•

Non-contact so ideal for high speed marking

•

Small beams for micromachining applications

•

Utilised on a wide variety of materials

The UK has a strong laser and laser processing industry covering academic research into high speed femtosecond lasers through to laser diode design for optical communication and consumer equipment. New applications using lasers are being identified everyday and current research and development activities in high power, tuneable and high modulation lasers will ensure this trend continue well into the foreseeable future. The market for lasers for production and manufacturing which has developed from small beginnings 25 years ago to a market worth more than $5 billion in 20054. Generally, laser welding and cutting applications are carried out using gas lasers (principally carbon dioxide) or solid-state lasers (principally Nd:YAG). Carbon dioxide lasers offer higher powers enabling the processing of thicker materials or processing at higher speeds whereas Nd:YAG lasers emit wavelengths that are compatible with silica fibre permitting the laser light to be transferred to a remote workplace which is advantageous for harsh environments or places of limited workspace. Version 14

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Northwest Photonics Mapping Study Diode or semiconductor lasers are becoming increasingly important in industrial applications as the pump source for solid-state lasers such as the Nd:YAG or used directly for low power applications. As pump sources, laser diodes enable the production of smaller and more reliable laser systems which are extremely important for industrial applications which require high reliability. The business model for Laser Quantum (Stockport) is essentially founded on the importance of diode pumped solid state lasers. A relatively new type of industrial laser system is the fibre laser which has found a market niche in replacement of Nd:YAG lasers that are too expensive or where the application demands extremely high quality beam properties. Fibre lasers are able to generate highly focussed beams that results in increased resolutions for marking or micromachining; the Optoelectronics Research Centre (ORC) at Southampton University is a strong UK and world player in the field of fibre laser technology. The North West Laser Engineering Consortium (NWLEC) is also investigating fibre lasers for microprocessing applications that could help manufacturing based businesses in the region. Figure 21 shows the revenues versus laser type for industrial lasers, over the period 2004-2006. Carbon dioxide laser systems increased by 14% over 2004 levels mainly due to higher-cost, higher-powered laser metal cutters whereas revenues for solidstate laser systems increased by 18% again due to system enhancements that make these units more attractive to users. Fibre laser system revenues increased by 170% reflecting the significant growth in system sales of lasers for marking and the emerging high-power welding unit market. Diode and Excimer lasers in the other category followed the same trend lines and overall the systems revenues grew by 16% to nearly $4.6 billion during 2005.

System Revenues ($million)

2500 2000 1500 1000 500 0

CO2

Solid-State

Fibre Laser

Other

2004

2045

1515

2005

2327

1674

230

2006

2468

1806

306

Figure 21: Industrial laser system revenues by laser type 2004-2006

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Northwest Photonics Mapping Study Figure 22 shows world laser revenues by type wherein it can be seen that Europe is a major player in terms of revenue generation; this reflects the presence of three major suppliers of high-power carbon dioxide lasers and several producers of excimer and diode lasers. In addition, several suppliers of solid-state lasers in the UK and Europe (TRUMPF, Rofin Sinar, Lasag, and GSI Lumonics) ensure a dominant position.

20% 30%

35% 61%

50% 42% 60% 36% 30%

28% 5%

3% CO2

Solid-State Asia

Europe

Fibre Laser

Other

North America

Figure 22: Worldwide geographic revenue of all laser unit types during 2005

In relation to Northwest industrial photonics activity and the role of the NWDA, there is no significant grouping or cluster of laser manufacturing capability within the Northwest and therefore little per se to do in this area in terms of aggregating capability. Two exemplar northwest industrial photonics companies were visited as part of the study: â&#x20AC;˘

Datalase (Widnes) o

â&#x20AC;˘

World leading laser marking capability for industrial and commercial products

Laser Quantum (Stockport) o

World leading capability in diode pumped solid state lasers for a wide range of industrial applications.

The current status of both companies is similar in that they have both reached the stage of strong financial independence, rapid growth based on a leading product / process capability and with both companies having clear strategic visions for the future. The critical finding here, especially for the case of Laser Quantum (whose origins lie entirely in the Northwest) is to ensure that their origins and routes to becoming established as world-class photonics companies is understood and any lessons learned are fed back into the system to encourage the establishment of Version 14

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Northwest Photonics Mapping Study similar companies, especially coming through the academic sector. As an example, the establishment of Laser Quantum (and similarly Lynton Lasers) was assisted with the use of SMART awards (now NWDA GRAND awards) and it will be important to monitor that the take-up of such awards for NW photonics companies is still occurring and is at a rate in line with expectations; during the consultation process many SMEs stated that they had lost visibility of SMART type awards. Observation 9: There is the need to review recent history of SMART and GRAND awards in relation to Northwest photonics companies to check that take-up is ongoing and preferably increasing. There may be a need to stimulate future GRAND activity in the photonics area by suitably targeting publicity and marketing to organisations identified in the mapping study.

4.5.4 Industrial Laser Processing Lasers now have widespread use in a multitude of industrial applications and processes, as indicated in Figure 23. 35%

Material processing unit %

30% 25% 20% 15% 10% 5% 0%

Market share

Other

Drilling

Welding

11%

Microproc Engraving essing 12%

13%

Cutting

Marking

24%

32%

Figure 23: Worldwide industrial laser applications by units in 2005

Worldwide material processing applications are still dominated by the sales of marking and engraving systems, with a 45% share as shown in Figure 23. It is important to note that the 45% unit sales represent only 15% of total system revenues. Cutting applications with 24% of the units installed represents more than 40% of the revenue sales for all industrial laser systems. Having stated that the Northwest is not home to a significant number of suppliers of industrial lasers it does however contain significant activity in laser processing within an industrial context: â&#x20AC;˘

Aerospace manufacturing o

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Micro and Nano-laser engineering research and development o

Cluster organisation: North West Laser Engineering Consortium (NWLEC)

Industrial photonics activity in manufacturing and production can be mapped directly into the important northwest aerospace sector in areas such as laser welding and industrial processing of airframe materials. Example companies for such activities are Rolls-Royce and Middleton Sheet Metals. The mapping study revealed that there exists presently an excellent supporting framework for laser processing activity in the Northwest arising from the presence of both the North West Aerospace Alliance (NWAA) and the North West Laser Consortium (NWLEC). The North West Aerospace Alliance (see section 5.1 below) are focused on manufacturing and supply chain issues in the aerospace sector and to some extent laser processing in this area can be treated as a somewhat mature production related discipline albeit with elements of leading edge capability and research in certain instances. Observation 10: The North West Aerospace Alliance could be utilised as a link into manufacturing and production related disciplines, especially within the aerospace sector. A focus on technology transfer of industrial photonic technologies should be prioritised to enable improved industrial productivity and capability. The Northwest Laser Engineering Consortium (NWLEC) is an exciting NWDA funded initiative run jointly by the Universities of Liverpool and Manchester and provides cutting edge research and facilities in advanced laser processing and engineering (see section 5.3 below). There is strong evidence that the NWLEC project is working well especially in terms of its collaborative nature. For example at the 2nd NWLEC Annual Conference on Novel Laser Processes for Microtechnology (5th March 2007) at the University of Manchester there was a good mix of industry and academia present at the meeting, including the aerospace sector, and it was clear following attendance at the meeting that laser processing based industrial photonics activity can and should be further supported. Observation 11: The Northwest Laser Engineering Consortium could be recognised as an exemplar for clustering activities of advanced laser engineering research in the region.

4.5.5 Sensing & Imaging Optical fibre sensors are widespread in applications and, with a diversity of technical requirements have stimulated photonic technologies to a considerable extent. The technology of in-fibre refractive index gratings has provided a near-ideal optical fibre component for sensor applications, principally in the guise of a strain-gauge. Most applications at present are in structural monitoring, notably in aerospace composites or in civil engineering infrastructure. The commercial world of optical sensing and instrumentation is characterised by small and specialised companies, which are such a feature of the UK scene. In grating-based sensors, Insensys and Smart Fibres are examples. For large-scale Version 14

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Northwest Photonics Mapping Study interferometric systems, (intended for applications in oil and gas exploration), QinetiQ’s Winfrith laboratories are developing leading technologies. The mapping study encountered little industrial activity in the area of fibre sensing although there are several companies in Cumbria working in the areas of umbilicals and niche undersea photonics applications. In the longer term it is expected that optical fibre sensing will penetrate the aerospace sector via so-called ‘smart skin’ technology wherein optical fibres are used to provide structural information on the health and performance of the aircraft and so in the absence of Northwest based activity e.g. in research and development work in the smart skin field there may be some business leakage to regions working on this capability, especially as the required optical fibre infrastructure must by its nature be embedded within or comprise an integral part of the airframe. Observation 12: NWAA should be encouraged to incorporate photonics including optical fibre sensing into regional aerospace activities to ensure there is no potential for significant business leakage from the Northwest region. This could be achieved in partnership with national photonics organisations. Within the UK there is relatively little activity in conventional imaging and mainstream camera technology with a few companies specializing in design and niche components e.g. ST Microelectronics, E2V and Andor. However, there are many examples of UK involvement in imaging systems, in two main categories: instrumentation based on image processing; and new microscopies. In both areas there is considerable strength in the research base, and a substantial number of small companies in the field. Image processing extends beyond simple machine vision, digital photogrammetry, and feature recognition to techniques that overlap with full-field optical instrumentation, covering structured-light shape measurement, particle image velocimetry and various forms of interferometry—and notably speckle interferometry. Advanced imaging techniques are applied in very diverse sectors: defence and aerospace; environmental and earth observation; life-sciences; manufacturing; security; and generally in scientific research. A particularly exciting new area is terahertz technology, e.g. for medical and security imaging applications where the generation of the THz radiation is dependent on optical techniques. An analysis of University activity in this area (via EPSRC funding) reveals that the University of Manchester is undertaking research into Terahertz technology with a percentage allocation of the overall funding of 14% (funding £6.7 million) compared to the University of Leeds 45% (£2.2 million funding);

4.5.6 Nanotechnology Nanotechnology can be defined as the creation and manipulation of materials, devices and systems by controlling matter in the nano-scale region i.e. in the range. 1 – 100 nanometres. At this scale, the properties of the material (e.g. physical, chemical, electronic, optical and biological) can differ significantly from the bulk material allowing a host of innovative functionalities and novel structures to be developed such as: quantum dots; nanorods; nanowires; nanotubes. For example the conductive properties of nanometer scaled wires and tubes behave differently at Version 14

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Northwest Photonics Mapping Study the nanoscale (e.g. they have quantum mechanical properties) allowing extremely small and novel conductive and emissive properties for use in next generation versions of existing technologies such as flat panel displays and photovoltaics. Optics and photonics developments occurring at the nanoscale are referred to collectively as nano-photonics and include devices such as quantum dot lasers and ‘holey’ optical fibres. Because most nano-photonics is heavily related to an advanced materials processing capability it is most appropriate to classify them under the DTI industrial photonics banner. Nanotechnology based research and development is still at an early stage, and arguably there are more ideas for novel products and processes than there are proven commercial applications, accordingly a long term view must be taken of nanotechnology research. Examples of existing products include a nanoparticle based sunscreen lotion from L’Oreal and selfcleaning glass (Pilkington). An excellent example of leading Northwest nanotechnology activity is the North West Laser Engineering Consortium (NWLEC) (Section 5.3) who have three ‘strands’ of operation working in the nanotechnology field. To date NWLEC have received £2.3 million funding from the NWDA scheduled to expire in June 2008, accordingly in consideration of the long term aspects of the fledgling nano-photonics activity, further support for NWLEC may be required in specific application fields where a novel nanotechnology based capability could provide a leading capability (in an otherwise mature scientific discipline.) An example of such a field is nanotechnology applied to photovoltaics, wherein the existing silicon based technology could be overtaken by for example flexible printable nanotechnology based photovoltaic structures . This area is being studied by the Organic Materials Innovation Centre based at the University of Manchester.

Observation 13: Strong support for NWLEC and other regional Materials Research and Technology Organisations could see Northwest UK play a prominent role in micro-scale and nano-scale processing (i.e. the growing field of nanotechnology.)

4.6 Photonics in Life Sciences & Healthcare 4.6.1 Overview Photonic technologies have a long tradition in the field of life sciences and have been used in various applications over many centuries, arguably starting with the invention of a simple light based optical microscope by Anton van Leeuwenhoek in 1674 to observe blood, yeast and insects. In 2007 the field has advanced rapidly to the situation where for example high brightness blue LEDs are being used to treat various skin conditions such as acne and jaundice via the expanding field of phototherapy. The future role of biophotonics as a key enabler in healthcare and life sciences will expand tremendously due to: •

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The use of light as a probe to image a variety of features simultaneously and to observe very complex processes such as protein reactions in living cells.

•

To image biomaterial from the molecular level right through tissue samples and living organs to whole bodies of animals or humans.

•

The use of light as a tool to manipulate or modify cells. Such properties are essential for new tools in cell biological research and minimally invasive treatment.

No other 3D-imaging and manipulation technology for life sciences and healthcare, such as ultrasound, MRI or computer tomography can offer similar capabilities as biophotonics in terms of resolution, simultaneous probing, cell manipulation and sensitivity.

4.6.2 Biophotonic applications and technologies Advances in life sciences and healthcare through photonic technologies can be categorized into four broad application fields: •

Cell and molecular biology

•

Advanced and early diagnosis

•

Preventative medicine

•

Minimally invasive and personalised therapies

The four categories are outlined in Figure 24 along with a cross section of identified applications and photonic technology solutions.

4.6.2.1 Cell and molecular biology Since the late 1950s and early 1960s, molecular biologists have learned to characterise, isolate, and manipulate the molecular components of cells and organisms. These components include DNA, the repository of genetic information; RNA, a close relative of DNA whose functions range from serving as a temporary working copy of DNA to actual structural and enzymatic functions; and proteins, the major structural and enzymatic type of molecule in cells. Future developments in biophotonics may make it possible to monitor in-vivo the dynamics of the entire biochemical process from single genes and transcripts to entire proteins. New instruments and techniques would allow the selection or engineering of substances which could trigger cellular processes, cell differentiation or repair malfunctioning cells and could serve as constituents of drugs.

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Northwest Photonics Mapping Study TECHNOLOGIES Advanced Microscopes Microscopic procedures

Cell and Molecular Biology

APPLICATIONS

TECHNOLOGIES

APPLICATIONS

Understanding of protein and other cellular processes

Fast photon-based screening

Bioactive stimuli for specific genes

Biocompatible Markers

Development of pharmaceutical drugs

Photonic Manipulation Tools

Cellular imaging

Functional genomics and proteomics

Gene activation in cell And tissue growth

Photonic biochips Automated Instruments

TECHNOLOGIES

APPLICATIONS

In-vivo Cellular diagnostics

Intra-operative tumour diagnostics

Biocompatible Markers

Triggering of Endogeous self repair mechanisms

Photonic biosensors

Automated Instruments

In-vivo tissue diagnostics

Preventative Medicine

TECHNOLOGIES Optical microsurgical methods and tools

Advanced Detection of specific Diagnostics defects & predispositions

Laser systems Virtual reality systems

Early detection of malfunctions of metabolism

Medical image processing

Optical Tomography Detection of diabetes Photodynamic Diagnostics

Early detection of cancer

Spectroscopy

Tissue Status

Metabolic imaging

Pathogen detection

APPLICATIONS Stem cell research

Minimally Invasive medicine

Advanced photodynamic therapies Microsurgery Pain control

Advanced visualisation Metabolic imaging Patient monitoring Endoscopy

Figure 24: Graphical overview of the main future applications and technologies

4.6.2.2 Advanced and early diagnosis Methods, instrumentation and devices for advanced diagnostics will be developed for many applications including: •

To assist in the identification of specific defects or the ability to contract diseases by individuals through advanced in-vivo cellular diagnostics

•

In-vivo histology and intra-operative tumour diagnostics will help doctors during surgery through the use of biomarkers attached to tumour tissue

•

3D imaging of tissue will become widely used outside of ophthalmology through advances in optical tomography systems

•

Breath analysis with biosensor systems will provide a new diagnostic tool

•

Portable, fast, accurate and sensitive pathogen detection systems will help to identify and fight diseases

4.6.2.3 Preventive medicine Generally speaking, preventive medicine is that part of medicine engaged with preventing disease rather than curing it. Biophotonic technologies could assist individuals with genetic defects resulting in defective proteins or a predisposition for a specific disease and allow them to be treated before the disease manifests itself, i.e. early diagnostics of diabetes. Research in functional genomics and proteomics will help to identify the status of the disease and to find the best appropriate treatment or therapy. Photonic biochips and other biosensors will also play an essential role in the future.

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4.6.2.4 Minimally invasive and personalised therapies A minimally invasive medical procedure is defined as one that is carried out by entering the body through the skin or through a body cavity or anatomical opening, but with the smallest damage possible to these structures. Minimally invasive surgery may be performed in this way, thus resulting in less operative trauma for the patient. It is also less expensive, reduces hospitalization time, causes less pain and scarring, and reduces the incidence of complications related to the surgical trauma, speeding the recovery. Other areas of minimally invasive and personalised therapies include: •

Photosensitive retinal implants for the treatment of specific eye diseases, e.g. Retinitis Pigmentosa

•

Microsurgical tools for specific endoscopic surgery, in-vivo-image guided manipulation and navigation are essential for improved minimally invasive surgery resulting in new robust, low-cost surgical treatments.

•

Tissue engineering, tissue regeneration and organ confection is one major focus in the development of tissue and organ replacement.

•

Photonics in combination with nanotechnology will also be able to sort and extract relevant cell populations that can then be used in cell therapies.

4.6.3 Biophotonic tools A number of photonic tools are available for biophotonics application: •

Photonics Force Microscopy (PFM) e.g. ‘optical tweezers’

•

Optical coherence tomography e.g. 1-2 mm subcutaneous imaging

•

Optical biosensors e.g. molecular targeting (see Figure 25)

•

Terahertz spectroscopy e.g. 2-3 cm subcutaneous imaging

•

Near-infrared (NIR) spectroscopy and imaging e.g. breast cancer detection

An account of the technical details of these tools is beyond the scope of this study but activity does exist in the Northwest region, for example the North West Laser Engineering Consortium (NWLEC) are developing an ‘optical tweezering’ capability within a focused strand of their planned strategic activities. This technology enables the direct manipulation and capture of cells, and for specific molecules to be injected into a cell as required. The University of Manchester have also received EPSRC funding for the development of Terahertz imaging tools. Figure 25 shows various current and future applications for biosensor based tools.

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Figure 25: The various application of biosensors within the market

4.6.4 Biophotonics Markets The extent of the biophotonics market is challenging to assess or monitor due to the embryonic state of the sector and that it covers such a wide number of specialist applications that are growing rapidly. However, there are specific photonic applications and technologies such as lasers, bioinstrumentation and biosensors that have reached a certain size and visibility to provide sufficient indicators for market trends. The biophotonic sector has developed due to a variety of different market demands of which the largest is potentially to provide photonic devices to the healthcare and medical sectors. Although the health sector is notorious for being conservative when adopting new technologies much of the new developments can be transferred to other applications such as food, environmental measurements, security, defence and general industry. According to OECD figures healthcare costs in 2004 were over $1.8 trillion dollars for the USA, $144 billion for the UK and more than $260 billion for Germany. The world’s top 30 countries provide healthcare services at a cost of nearly $3.5 trillion per year6. Small cross sections of healthcare markets that utilise photonic technologies include: •

Emerging bio-health technologies estimated at $260 billion in 2005

•

Medical diagnostics estimated at $27.5 billion in 2005

•

Medical biosensors estimated at $8.5 billion in 2005

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Northwest Photonics Mapping Study •

Brest cancer biopsy market estimated at $2.3 billion in 2005

•

Cervical cancer diagnostics estimated at $1.6 billion in 2005.

The prognosis for photonic technologies in medical devices expects to grow from $5.95 billion in 2002 to $20.4 billion in 2010 and could reach $38 billion by 2015. This relates to a global medical devices market valued at over £124 billion in 2005 with the UK having a 3% share as shown in Figure 26:

Other 16% Japan 11%

US 44%

Other Europe 8% Germany 10%

UK 3% Italy 3% France 5%

Figure 26: Global medical devices market by country share

The market can be further defined by medical specialism as demonstrated in Figure 27

Sterilisation 1%

Dental 12%

Other 26%

Imaging 12%

Disposable 2% Rehab 2% Dialysis 3%

Orthopaedic 11%

Wound care 3%

Monitoring 7%

Urology 10%

Opthamology 4% Cardiovascular 7%

Figure 27: Global medical devices market by medical specialism

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Northwest Photonics Mapping Study The growth of the biophotonic market is linked closely to the demands for new solutions to improve medical healthcare within our society. The global market for medical imaging equipment (including ultrasound, CT and MRI scanners and x-ray imaging equipment) was estimated to be $15 billion in 2005 and is expected to grow to over $26 billion by 2008. There is a clear penetration of photonic systems within the medical imaging sector which are now strongly competing with existing technologies due to advantages in resolution, sensitivity and price. Established technologies such as endoscopy, ophthalmology and fluorescent imaging are being complemented by advanced optical systems that can image a few millimetres into cell structures such as Optical Coherence Tomography (OCT). The global pharmaceutical industry exceeds $400 billion with the revenues on equipment used to develop drugs and to deliver healthcare estimated to being around $180 billion during 2004. The industry spends an average of $800-$900 million in direct costs to develop each new drug over a 15 year period. It has been estimated that photonic devices for molecular imaging can provide savings from $10 million to $30 million per drug project resulting in the need for faster and more sensitive systems.

4.6.4.1 Biomedical Laser Market The biophotonic instrument market incorporating lasers is estimated to be about $900 million of which about 5% or $45 million represents the cost of the laser component itself. Laser are mostly used in biophotonic instruments for fluoroscopy to detect or image an analyte within a sample, optical tweezers or ionisation sources for mass spectroscopy. Figure 28 shows the forecast of revenue and unit shipment of biophotonic lasers for such application through to 2014. The overall growth rate is expected to be near 10% similar to the anticipated growth in system sales, capital expenditure and the pharmaceutical and healthcare sectors.

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40000 35000

Biophotonic Laser Units

Units

100

Revenue

30000 80 25000 20000

15000 40 10000 20 5000 0

Biophotonic Laser Revenue ($ million)

120

0 2004

2005

2006

2007

2008

2009

2014

Figure 28: Forecast of biophotonic instrument laser sales 2004 to 2014

4.6.4.2 Biophotonic Chips A further application of photonic technologies is within the biosensor sector including biochips, DNA arrays, protein arrays, cell and tissue arrays, lab-on-a-chip device, microfluidic devices etc. The worldwide market size for biosensors in 2003 was estimated to be approximately $7.3 billion growing to around $10.8 billion during 2007/8. The forecast for biophotonic chip products from 2004 to 2014 is shown in Figure 29 and it is estimated that more than 2.5 million â&#x20AC;&#x153;biochipsâ&#x20AC;? are produced each year according to OIDA.

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3000

35 Revenue

2500

Units

30 2000

25 20

1500

15 1000 10 500 5 0

Biophotonic chip revenue ($ million)

Biophotonic chip shipments (million)

0 2004

2005

2006

2007

2008

2009

2014

Figure 29: Forecast of biophotonic chip units and revenues 2004 to 2014

The growth will be much greater in some product segments such as protein arrays and lab-on-chip devices to ensure the overall growth in revenue will reach 10% each year over the forecast period.

4.6.5 Market drivers for life science and healthcare applications Today, as the population of the UK grows progressively older due to the huge increases in average life expectancy and through advances in healthcare and modern living, the requirement for new technologies and methodologies for the treatment of disease will be essential to maintain the quality of life expected. It is clear that health care provision in the future has to change dramatically from the current scenario to meet future demands and biophotonics provides an opportunity to create a paradigm shift in modern diagnosis and treatment. Accordingly, biophotonic instrumentation has created a new opportunity to change the model for modern healthcare provision by delivering photonic-enabled screening techniques directly to the user to identify the origin of disease on a molecular level. This way, diseases may be prevented or healed in an early and less aggressive manner thus reducing healthcare costs and enabling healthcare provision within the community thereby reducing the pressure on acute hospital services. This new model of healthcare provision would ideally utilise photonic-enabled devices to monitor and screen individuals with regular health check-ups or potentially in a noninvasive continuous nature. The results would identify potential or early stage abnormalities through imaging or other detection methods and suggest early corrective procedures using minimally invasive surgery, drugs or other treatments as required.

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Northwest Photonics Mapping Study Two of the most common diseases within the UK, namely cancer and diabetes, provide an indication as to how important the role biophotonics will play in the future of healthcare provision. For example, in the UK, cancer has recently overtaken heart disease as the UK’s biggest killer, causing around 160,000 deaths each year and with over 1 million people currently living with cancer. In 2003, it was estimated that the treatment of cancer accounted for 6% of all NHS expenditure amounting to over £1 billion per year. It is clear that in this instance cancer represents a significant burden to those diagnosed, and their family, in terms of pain and quality of life. The monetary cost of this to the UK is significant but is not just restricted to that spent on cancer treatment, management and research with an immense need to develop new and faster photonic tools for cancer prevention and control. Support for research into cancer in the late 1990’s was over £260m per year; with total government expenditure amounting to £25m, while spending by charities was approximately £125m and that by the pharmaceuticals industry totalled over £110m. Much of the research included the investigation into the mechanisms that cause the cells to become malignant; carrying out clinical trials to evaluate new treatments; clinicians treating individual patients; implementing screening programmes and attempting to characterise high- and low- risk populations to provide clues to carcinogenic mechanisms. Photonics and more specifically biophotonics already assists in many of these areas from laser spectroscopy to optical microscopy and in-vivo imaging of cells and tissues and has been the key to unlocking the human genome through micro array readers and assays. There are now over 1.8 million people with various forms of diabetes in the UK, equivalent to 3% of the population with the disease now affecting over 5% of the world’s population. The increase in diabetes has had a tremendous effect on national productivity with more than 1.1 million days lost through hospital visits. Diabetes alone can lead to further serious complications such as heart disease, blindness, kidney failure and strokes with the NHS spend on diabetes set to rise to an astounding 10% or more than £200 a second by 20115. A significant proportion of these health costs could be mitigated with biophotonic sensors aimed at point of care testing (POCT) to provide an early identification of diabetes allowing treatment to be more effective. Recently, the National Health Service delivered a white paper entitled “Our health, our care, our say: a new direction for community services” outlining four main goals for future health care service delivery in the UK, these being: •

Improved prevention services with earlier intervention

•

Provide people with more choice of services

•

Tackling inequalities and improve access to community-based services

•

Greater support for people with long-term needs.

The white paper proposed several ways in which the goals could be achieved including: •

Shifting resources into prevention

•

More care undertaken outside of hospitals and in the home

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Encouraging innovation within the health service

•

Provide a commitment to new assistive technologies in national demonstration site.

This health care vision will drive the requirement for simple, easy-to-use, reliable prevention and monitoring systems to be developed for point of care use outside of the current hospital environments and closer to the community. There is a tremendous opportunity for biophotonics to assist in bringing healthcare closer to the community over the next few years whether it will be through low cost photonic sensor systems to monitor blood glucose levels or high speed communication networks to the home to enable continuous monitoring of a families health online or access to a virtual doctor using remote telemedicine. According to recent research by SHI consulting the global market size for the emerging life sciences segments reached $173.5 billion in 2005.

4.6.6 UK Life Sciences and healthcare Photonics Activity The UK is very strong in medical and pharmaceutical related research and production and in 2003, the United Kingdom world trade in pharmaceuticals was valued at £11,941m for exports and £8,378m for imports to create a trade balance surplus of £3,563m. GlaxoSmithKline and AstraZeneca (UK-Swedish) are the two largest UK-based pharmaceutical companies and in 2004, 211,436 people were directly employed in the top 95 UK pharmaceutical companies with total R&D expenditure reaching more than £8.4 billion. Similarly for the top 37 UK medical and healthcare companies the total number of employees reached nearly 40,000 in 2004 with total R&D expenditure reaching more than £325 million. The Northwest region of the UK is one of the UK's top three clusters for the biomedical sector including biotechnology, pharmaceuticals and healthcare activity; there is a major pharmaceutical presence, a rapidly expanding biotechnology community and internationally renowned academic and clinical research strengths. In total there are over 230 biomedical companies in the Northwest, including seven multinational pharmaceutical firms employing over 25,000 people. The list of pharmaceutical giants in the region includes: AstraZeneca (who’s largest R&D facility is in the Northwest); GlaxoSmithKline; Eli Lilly; Bristol-Myers Squibb; MedImmune; Chiron and SanofiAventis. The North West is the UK’s highest exporter of pharmaceuticals, with exports valued at £3.4 billion. The Northwest university sector produces 25,000 life science graduates (excluding nursing degrees - a further 10,000) per year, and the University of Manchester has 50% of its research effort dedicated to life science and medicine. Biomedical activity in the Northwest is clustered under the watchful eye of the leading Bionow organization (see section 5.4), and there are two key bioscience projects located in the Northwest region: the MerseyBio (Merseyside) which incorporates the MerseyBio Business Incubation Centre, and the Manchester based Core Technology Facility (CTF)

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Northwest Photonics Mapping Study for bioscience located in the Manchester Incubator Building (UMIC) on the University of Manchester campus.

4.6.6.1 Biophotonics SME Activity In terms of biophotonic SME activity, the mapping study highlighted that there were around 12 biophotonics SME type companies located in the Northwest (not including the research activities of the pharmaceutical giants listed above.) This is likely to be a significant underestimation of the true picture and depends upon the visibility of biophotonics as a recognized discipline within an organizations capability; Bionow list over 230 biomedicine companies in the Northwest region. Highlighted by the mapping study are Lynton Lasers (Holmes Chapel) who are an excellent example of a rapidly growing Northwest company developing novel lasers (and laser processes) for the medical and cosmetic marketplaces, and whose foundation arose out of management buyout from the University of Manchester. Lyntonâ&#x20AC;&#x2122;s growth was initiated and sustained via the receipt of DTI SMART awards, and so they are a perfect example of a regionally funded and supported Northwest success in the biophotonics field.

4.6.7 Recommendations for Northwest Biophotonics A recent DTI assessment of the UK life sciences and healthcare photonics sector identified that the UK biophotonics sector offers a tremendous opportunity to shape the future delivery of healthcare services around the world. For example, the UK presents an excellent opportunity for research and development of new medical devices, surgical techniques and personalised therapy development due to its close proximity to a huge local market demand from intermediaries such as the NHS and the wealthy end-user population within the UK and Europe. Because of the rapidly advancing nature of the field, biophotonics related applications, discoveries and breakthroughs are being made on an almost daily basis across a wide ranging number of medical and life sciences fields, and in many regards it can be difficult to keep abreast of the sector and to recognize how development and growth from the photonics perspective can be stimulated in a co-coordinated manner, other than on a perhaps ad hoc basis through the skills and excellence existing in the various medical research departments. Clearly, the biophotonics sector which is embryonic and inherently multi-disciplinary requires excellent communication and integration of skills between photonics, life sciences, pharmaceutical and medical communities. There is thus a need to make sure that medical workers in the field are aware of the ever growing capability of photonics based tools, and similarly that photonics researcher are aware of potential medical applications for any new photonics technologies they develop.

4.6.7.1 Northwest Biophotonic Clustering The DTI study recognized that the UK must develop a strong networking organization able to bridge the gap between all the specialists and create significant cross-disciplinary research and development collaborations to develop the next generation of market-led photonic tools. There is though an opportunity to lead the achievement of these aims on

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Northwest Photonics Mapping Study a local scale in the Northwest region via a coordinated effort on biophotonics working with the Bionow and regional photonics organisations. In the absence of such an effort there is the possibility that regional strengths in photonics and biomedicine will not be harnessed to achieve a critical mass, such that biophotonics development work progresses in an isolated ad hoc manner. As an example, given that there is a strength in LED technology in the Northwest region, and experience in the integration of LED assemblies for photonics products notably in the lighting field, there is the strong possibility of a need to link the LED players with biomedical researchers to advance rapidly novel application for e.g. high brightness LEDs in the medical field. Examples of such products could be LED based products for Seasonal Affective Disorder (SAD) and blue light phototherapy. As an example of the potential for this field, OIDA estimates that the medical optical components market was $535 million in 2005, with high brightness LEDs contributing approximately 14% ($73 million) of the total. By 2010, revenue is forecast to reach $847 million with Gallium Nitride based HB LEDS (used for UV lighting, sterilization and other medical applications) alone contributing almost 25% ($200 million) to this figure. Clearly the potential for linking Northwest expertise in HB LEDs to the biomedical sector must not be overlooked at this early stage. A proposed Northwest based centre for Solid State and LED technology excellence should incorporate biomedical / biophotonic applications. Because of the widespread, interdisciplinary and diverse nature of the biophotonics field, a specific mapping study of biophotonics in the Northwest may be required to further this idea. NWLEC for example are a model of excellence for a clustered approach to laser engineering in the Northwest, and so there may be benefit in the establishment of a similar consortium to focus Northwest biophotonics activity across industry and academia. Observation 14: Need to review how (or indeed whether) Northwest biomedical and photonics activities could benefit from the adoption of a clustering approach to the integrated field of biophotonics.

4.6.7.2 Barriers to Biophotonic Innovation One pressure point that exists in the new field of biophotonics is the need to be able to take innovative biophotonic treatments to market at the earliest opportunity, a process which likely involves lengthy and expensive clinical trials, and which can act as a significant barrier to innovation and growth. It is not clear from the context of the mapping study whether this is a specific business issue for the burgeoning biophotonics industry, or a more widespread issue for the medical business sector as a whole but the concern with the rapidly growing field of biophotonics is that significant business leakage can occur to competitor organizations that are either large enough to fund trials with ease, or alternatively are simply prepared to take more risks (than are permitted in the UK) to establish a lead in a biophotonic medical field e.g. intense pulsed light based treatments. In the absence of support for biomedical type trials at the SME level, business leakage could occur, innovation could be inhibited leading to a â&#x20AC;&#x2DC;me tooâ&#x20AC;&#x2122; type

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Northwest Photonics Mapping Study product development approach which waits for other players to enter the field with a new biophotonic treatment. Observation 15: To investigate further how barriers to biophotonic innovation can be overcome through coordinated innovation support activities. The Northwest has significant potential with key components required to create an active biophotonics sector

4.7 Defence & Security 4.7.1 Overview The defence and security requirements cover numerous end-users from the Government through its military defence requirements and emergency services to the private sector including para-military, industry and the general consumer. Increasingly the defence and security sectors are being underpinned by sophisticated technologies and photonics plays a vital role in the development of a wide cross-section of military and civil products which in themselves can be classified as systems, sub-systems, equipment, subassemblies and components. The DTI applications breakdown for defence and security includes: â&#x20AC;˘

â&#x20AC;˘

Command, control, communications computers and intelligence o

Secure communications: quantum cryptography

Optical fibre communications

Surveillance, Targeting Acquisition and Reconnaissance o

Laser range finding

Remote sensing e.g. passive IR sensors

Forward Looking Infrared Imaging

Perimeter security

Checkpoint/port/airport security: Terahertz imaging

Unmanned vehicles

Sensing: chemical and biohazard

Generally, the markets for defence and security segments have different eco-systems and end-use applications however many of the underpinning technologies required are applicable to both sectors. Within defence the UK has a strong position with significant capability in all photonic technologies and the presence of large UK systems companies that act as prime contractors to a single customer, UK government. The UK defence market is well established with a complete supply chain and a robust defence industrial Version 14

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Northwest Photonics Mapping Study strategy that defines future military requirements, technology priorities and annual budgets. The UK security industry has benefited significantly for continual investments over many years and has a higher level of maturity especially within video surveillance systems and transportation security. New technologies are being developed for sophisticated security solutions ranging from biometric identification products to sophisticated fraud detection systems and provide a high growth opportunity for photonic-enabled technologies.

4.7.2 The defence and security market The total worldwide market revenue for the defence segment was estimated at $950 billion in 2004, with the USA having a significant lead in terms of expenditure compared to the rest of the world with a defence budget of $466 billion in 2004. The chart in Figure 30 estimates the relative share of the global homeland security market among key countries and regions in 2004. Singapore/HK 2% Australia 3%

Rest of World 9%

Japan 2% Middle East 5% Europe 14%

United States 54% UK 6% Canada 3%

Israel 2%

Figure 30: Relative share of global homeland security market by key countries

In 2004/5 the total UK budget for defence was £38.4 Billion and is the third highest area of government expenditure behind health and local government. Although, it is difficult to determine how much of the total budget is related to photonics-enabled expenditure analysis shows that in 2003/4 £1.33 billion was dedicated to electronics and optical technologies. In addition the total UK defence expenditure on research and development activity totalled £2.7 billion, comprising of £524 million on research and £2.2 billion on development during 2003/4. It has been estimated that MOD expenditure and defence related exports supports 305,000 employees within the UK with over 140,000 indirectly supplied through the supply-chain. Importantly two of the three prime contractors to the MOD, BAE systems (based in Lancashire) and QinetiQ (Herefordshire), have significant interests in photonics-based technologies covering materials development through component design and manufacture to full systems integration. Version 14

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4.7.3 Key Application Areas The key application areas where security based solutions can be identified include:

•

Transportation security: Aviation, maritime and ground transport

•

Border security: Land border and air/sea entry points

•

Infrastructure protection: Physical security and Cyber/Network security

•

WMD countermeasures: Bio- and chemical- terrorism

•

Emergency preparedness and response: Preparedness and mitigation

•

Intelligence: Domestic and foreign intelligence

•

Law enforcement and counter terrorism: Domestic and foreign prevention

Each of these application areas will require specific technology solutions and a cross section are listed in Table 5 Application area Aviation security

Technology requirements Baggage and passenger screening technologies Biometric identification technologies Anti-missile technologies

Port and Marine security

Port surveillance and monitoring technologies Container screening technologies Seacoast surveillance technologies

Ground Transport security

Bus and train screening technologies Explosive detection technologies Surveillance and monitoring technologies

Border security

Biometric identification technologies Non-invasive screening technologies for vehicles

Physical infrastructure security

Surveillance systems for buildings and facilities Biometric identification technologies

Cyber/Network security

System intrusion detection Encryption technologies Secure network infrastructures

Bioterrorism prevention

Bioterrorism countermeasures Detection and monitoring systems

Table 5: Security applications that require specific photonic-enabled solutions

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There are many photonics-enabled solutions being introduced to the security market at specific points in the individual security threat lifecycle these include optical sensors for the detection of biological entities and perimeter detection, imaging systems for CCTV security and monitoring solutions, and biometric products for fingerprint, iris and facial recognition systems. The need for enhanced security in short- and long-term Government plans on both domestic and foreign levels, and in the private sector has meant biometric technologies are becoming accepted as a crucial part of overall leading-edge security installations. The global biometric market revenues are expected to steadily increase between $1.5 billion in 2005 to $5.7 billion by 2010. Further investigation determines that photonics represents the majority of biometric-enabled products with fingerprint analysis at 43.6% of the market share in 2006 utilising laser and image scanning techniques. Figure 31 identifies the percentage of biometric revenues by technology for 2006 with fingerprint, face, hand geometry, iris and signature solutions all utilising photonic technologies as their detection inputs.

Signature, 1.7%

MultipleBiometric, 4.0%

Voice, 4.4% Iris, 7.1% Fingerprint 43.6%

Middlew are, 11.5%

Hand geometry, 8.8%

Face, 19.0%

Figure 31: Percentages of biometric revenues by technology 2006.

The UK has boasted of the most intensive closed-circuit television (CCTV) systems in the world with a vast array of video systems placed to aid police to track down innumerable criminals. The UK has extensive experience in the development and deployment of such CCTV security systems and the UK market is considered to be at a high level of maturity in comparison to Europe and the rest of the world. Replacement systems, extensions and upgrades play key roles in the UK CCTV market which is poised for a 7% compound rate growth by 2009 to the tune of ÂŁ700million, as opposed to ÂŁ568million in 2004. CCTV market growth from 2006 to 2009 is expected to witness a significantly large demand for high-resolution image sensors, network-enabled IP cameras and digital recording CCTV systems.

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Growth in market demand and the proven success of security solutions developed within the UK has helped to boost investment in research and development. As a result the UK security segment has enjoyed the benefits of improved manufacturing techniques, development of new technologies and applications of existing technology with a coordinated approach to the promotion of security equipment within the domestic and international markets.

4.7.4 Key technologies Key photonic technologies are only one â&#x20AC;&#x153;toolâ&#x20AC;? for security and defence and require to be embedded within a broader solution, together with off-the-shelf products, services, human resources, and system integration. It is possible to identify seven key technology areas within the defence and security market each having a multitude of photonic components, sub-systems and systems: 1. 2. 3. 4. 5. 6.

Sensor technologies Identification and authentication technologies Screening technologies Surveillance technologies Tracking technologies Cyber-security management technologies

4.7.5 An analysis of the UK security and defence eco-system The UK defence and security eco-system is well established due to significant government support over the past few decades within military and security based technologies and has been boosted by recent international terrorist activities and foreign conflicts. For defence, the UK supply chain is very well established with several key primary contractors located within the UK acting as system integrators and technology providers at the head of an efficient supply chain. This position provides a unique opportunity for the defence eco-system as the primary enduser for defence solutions is the UK government, which has to maintain a certain degree of national security, and predicates the need for UK self-sufficiency in certain high technology areas including photonics. Whilst there are large prime contractors located in the UK the drive towards globalisation has meant that in recent years industry consolidation has taken place with many companies becoming part of a European or global organisation. This has resulted in the reduction of UK-owned tier 2 and 3 suppliers representing mainly medium sized companies and reducing the degree of self-sufficiency. The eco-system supports many large numbers of small companies that are able to offer world-class technology solutions and it is vital that continued support is provided to encourage their rapid and sustainable growth in order to establish future tier 2 and 3 companies.

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The key issue highlighted within the eco-system analysis is the lack of any significant photonics-related material suppliers and research resulting in a reliance on overseas material suppliers that has obvious associated supply chain risks. The analysis also revealed that although there are some global component suppliers within the UK they provide very selective or niche products resulting in the need to source other components from outside the UK eco-system. The defence sector generally requires cutting-edge technology solutions in low volumes and it is essential that to maintain a complete eco-system small defence companies be encouraged to diversify their technology toward security applications which offers a potentially larger volume market. Many of the advanced photonic systems required for military applications eventually find opportunities to become commercial products through spin-out companies from universities or research laboratories. For example, technologies used for night vision goggles and thermal imaging systems are now rapidly gaining use as low cost commercial systems for measuring performance of combustion engines or as quality control systems for food and drink production. Significant amount of vertical integration has taken place at sub-assembly, equipment and system integrator levels, so these are not entirely distinct. This may assist players in the lower ‘tier’ layers of the eco-system in finding markets. The following table shows major UK industry players within the defence and security industry: AMS

Deutsch

DSTL

Afonics

EADS Astrium

Spectrum Technologies

BAESYSTEMS

e2V

SPI

BAESYSTEMS Avionics Eurosystems (Finmeccanica.)

Infrared Integrated Systems

Smiths Industries

Bookham

INSYS

Thales

Forth Dimension Displays MBDA

Vinten

CDT

QinetiQ

AgustaWestland

Davin Optronics

Roke Manor Research

British Telecom

Filtronic

Many SME’s

Table 6: UK Defence & Security Industry Players

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Aston

Heriot Watt

St. Andrews

Bath

Imperial College

Southampton

Cambridge

Leeds

Strathclyde

Durham

Oxford

Surrey

Glasgow

Sheffield

UCL

Bristol

Cardiff

DeMontfort

Table 7: UK Defence & Security University Players

4.7.6 Northwest UK Defence & Security Activity The mapping study assessment of Northwest photonics activity in the Defence and Security sector revealed that there was no cluster of activity which would benefit from aggregation or a coordinated effort. This can also be discerned from Table 6 and Table 7 above where there is no discernable NW base of for photonics defence and security related activity. In total out of the 259 companies assessed on the database, only 8 were deemed to be working primarily in the defence and security area usually in highly niche areas. As examples, Natolamps and Francis Searchlights produce lighting products for the defence and security sector, and AD Aerospace Ltd are specialists in leading edge video security for the airline and aircraft industries. Other companies such Oxley Systems develop specific Night Vision technologies including specific optical filter technologies for military applications. Support for such photonics-based companies in the Northwest may best be delivered through generic photonics business and sector support. Arguably the lighting companies could be drawn into any lighting based clustering activity assuming their technical concerns for product performance (e.g. of novel solid state lighting products) are similar and generic to other companies working in the lighting sector.

4.7.6.1 BAE Systems The single largest NW company encountered working in photonics related Defence & Security was BAE Systems (Lancashire) who due to their history and size have a clear focus and strategic vision for their defence and security activities, including photonics/avionics as needed. A good example of focussed defence related aerospace work which will likely involve significant photonics activity was the decision in Spring 2006 to officially centre pioneering work on the future of unmanned air vehicles (UAVs) at BAE Systems in Lancashire and this could be the platform for developing new photonic technologies. Observation 16: The photonics mapping study revealed that there is no significant natural core activity in photonics related defence and security work based in the Northwest region of the UK.

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5 Northwest Clustering Activity Within the existing 6 key NW business sectors, there already exists clustering activity pertinent to the sustenance and growth of the businesses. These clusters do not presently include or highlight photonics as strategic within their remit. Accordingly this section of the report reviews some of the leading business clustering centres in the Northwest and addresses whether or not photonics activity needs to be further mapped and scoped within the remit of that cluster’s business activity. In many regards, all of the organisations highlighted below can be considered to be models of excellence for their clustering activity across industry and academia. These networking organisations do not currently focus specifically on the photonics sector, however considering the ubiquitous nature of photonics it is expected that future photonics activity will require that the cluster networks work closely together. As an example, consider the Assistive Technology which concerns the remote supervision, monitoring and healthcare support of the elderly and infirm in their homes. A potential technology solution for this would likely involve a host of photonics disciplines: •

Biomedical healthcare and analysis

•

Distributed sensors (e.g. to detect movement)

•

Video and media services for online diagnostics and support

•

Broadband telecommunications infrastructure such as fibre to the home

Clearly the delivery of such an advanced technological solution requires collaboration across a number of photonics disciplines. Accordingly in the following review of existing northwest clustering activity, future photonics innovations and technology developments are described to indicate possible directions of evolution for the cluster to best incorporate photonics technology within their existing activities.

5.1 Northwest Aerospace Alliance (NWAA) Falling within the remit of the Advanced Engineering Materials sector of the NWDA, the Northwest Aerospace Alliance (NWAA) supports the NW regional aerospace industry which is considered to be the largest single centre of aerospace manufacturing in the UK, with over 60,000 people employed. Overall, the UK aerospace industry is the world’s second largest with a turnover of £18.8 billion of which around £7 billion is generated from within the North West region through companies such as BAE Systems, Airbus, Rolls-Royce and TRW-Lucas. The NWAA itself dates back as far as 1994, and currently has over 750 members and stakeholders from the aerospace sector. Because of the strong manufacturing base in the NW, the NWAA is largely focussed on the manufacturing aspect of aerospace and through its Supply Chain Excellence programme is seeking to ensure that there is world competitive supply chain performance in aerospace activity in the North West UK.

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Northwest Photonics Mapping Study Following discussions with NWAA representatives as part of the photonics mapping study it is felt that photonics technology developments will have an impact upon the NW aerospace scene but its extent is not well understood. For example it is recognised that photonics can impact upon aerospace activity in a number of key disciplines: • Airport lighting & signage • Interior and exterior aircraft lighting • Flight control via optical fibre technology • In-flight entertainment systems based on optical communications technology • Aircraft and airport security Accordingly there is an opportunity to ensure that existing NW aerospace companies are made aware of relevant photonics technology developments and capabilities, especially where they exist already within the NW region. For example, several NW photonics companies are already working on the development of solid state lighting products for the railway sector which are likely to be readily applicable to the aerospace sector. Similarly, university based photonics research activity in areas such as sensing and security could be directed to emerging and near market needs in aerospace. Failure to address via a coordinated initiative, how photonics technology will impact the NW aerospace sector could be expected to lead to significant business leakages to more capable players already working in this field elsewhere. Observation 17: Review and assess the impact of the integration of photonics technologies within NW aerospace sector with partnership organisations.

5.2 Northwest Automotive Alliance (NAA) Supported by the NWDA, the Northwest Automotive Alliance (NAA) is a cluster organisation that acts as a focus for the NW region’s automotive sector which is considered to be the UK’s second most important automotive region with a turnover of £9 billion and employing over 43000 people. The NAA is leading a number of initiatives to support growth and excellence in the automotive sector across manufacturing, engineering, supply chain management, innovation and workforce skills improvement. It is recognised that photonics could impact the automotive sector in a number of areas: • LED based headlights, brake lights and indicators • In-vehicle communications (currently using plastic optical fibre) for o In-car entertainment systems o Sensing and actuation o Vehicular control • Novel developments in intra and extra vehicular illumination Discussions with NAA representatives indicated that expertise for next generation photonics based automotive developments currently lie outside the Northwest region, certainly in the design and assembly of photonics related modules and the necessary autonomy needed for taking leading steps in the photonics area. Thus in terms of photonics activity, NW based car manufacturing would largely comprise of the incorporation of photonics components (e.g. LED brake lights, fibre optic harnesses) designed, developed and assembled elsewhere, into the car manufacturing process. Version 14

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Northwest Photonics Mapping Study That said it is considered that the more recent idea of using solid state lighting for innovative intra and extra-vehicular lighting of vehicles could be a useful focus area. The primary issue here is the need for interested parties and potential innovators in the areas of vehicular lighting to be made aware of the opportunities afforded by photonics. This has been already highlighted as an area of interest for leading automotive innovators including Bentley Motors (Crewe) that have approximately 20 lighting engineers studying the application of LEDs for both interior and exterior lighting applications. Observation 18: Opportunity to explore the provision of a Solid State Lighting workshop for vehicular and transportation illumination including car, train and street lighting.

5.3 Northwest Laser Engineering Consortium (NWLEC) The Northwest Laser Engineering Consortium (NWLEC) is a working partnership between Liverpool University and Manchester University whose aim is to develop novel micro - and nano-scale laser processing technologies which ultimately will be transferred into the industrial sector. To this end, the work of NWLEC is overseen by an Industrial Advisory Board featuring key industry players in laser processing, and regular review meetings held to feedback the work of the consortium. NWLEC was established with £2.3M of start-up funding and includes the foundation of an industrial scale laser processing facility based at Lairdside in Merseyside; there are within the consortium a total of over 35 laser systems available for advanced laser processing type experimental work. Nanotechnology and its related optical discipline of nano-photonics are expected to underpin advanced developments across areas: • Materials o Self-cleaning glass, luminescents • Energy o Solar cells, high brightness LEDs • Biomedicine o Lab-on-a-chip, genetic engineering • Information technology o Displays, molecular electronics NWLEC is an excellent example of how advanced photonics technology research can be enhanced by taking a clustering approach cutting academic and industrial sectors and boundaries. The current funded programme for NWLEC runs for three years and is due to end in 2008 which is perhaps premature given that nanotechnology is only estimated to reach the stage of convergence and assimilation from around 2010 onwards. Observation 19: Consider undertaking a review of the NW nanophotonics market activities and future applications potential incorporating NWLEC activities.

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5.4 BioNow England’s Northwest is one of the UK’s top three clusters for the biomedical sector which covers biotechnology, pharmaceuticals and healthcare. The Northwest is itself home to some 230 biomedical companies, including seven multinational pharmaceutical firms employing 25000 people; pharmaceutical exports from the NW region account for £3.4 billion. Bionow is the NWDA’s cluster organisation charged with ensuring that the Northwest remains at the forefront of biotechnology developments by assisting both existing NW companies and new ventures in their strategic development. Bionow also serves to promote the Northwest’s science and research base and host’s a vibrant networking community. As a simple example, the Bionow Northwest Biomedical Directory can be considered to be an excellent resource document that usefully describes the scope and objectives of the organisation and provides high quality listing and summary of the member organisations. Observation 20: Consider a review of photonics activity within the key biotechnology, pharmaceuticals and healthcare sub-sector. In recent years, bio-medical photonics has begun to establish itself as a rapidly growing technology that can be applied to numerous medical and health related applications including as examples laser surgery, optical coherence tomography and novel LED based skin treatments. Growth in this relatively new photonics related sector can be expected to continue quite dramatically in the near future as new techniques and treatments are developed on the cutting edge of medical and photonics technology. As a further example, the medical imaging market alone is estimated to be £270M and set to grow at 7% per annum (Source: ‘Analysis of 6 Healthcare Equipment Segments’, May 2005, DTI.) Currently and is to be expected for such a new technology related discipline, biomedical photonics is not identified uniquely as a standout sub-sector within the remit of Bionow, although it is certain to say that bio-photonic work will be taking place within the cluster organisations. Accordingly, it might be useful to consider whether there is any merit in recognising NW based bio-medical photonics as an activity that could benefit from targeted support. As a related illustrative example, the UK’s National Physical Laboratory have in conjunction with the DTI only recently established Bio-Medical Photonics as a distinctive metrology theme necessitating specific (project based) attention. The recently approved NPL work in this new theme is considered to be future looking and expected to deliver (metrology related) benefit over a 5-10 year timescale. There is no doubt that cross-fertilisation between distinctive disciplines such as laser engineering (whether based in industry or academia) and medical / healthcare activity (e.g. as occurs in a university based research hospital) would be mutually beneficial. Lynton Lasers based in Cheshire are an excellent example of a successful medical laser company spun out of a North West university; ongoing developments in biomedical photonics will likely lead to the creation of further, highgrowth start-up companies working in this field. Version 14

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Observation 21: Opportunity to review the potential of specific NW clustering of biomedical photonic activity or incorporating it under a specific photonics priority sector.

5.5 Northwest Photonics Association (NWPA) The Northwest Photonics Association (NWPA) was founded in 2003 by Professor Alan Boardman, Professor of Applied Physics at the Institute for Materials Research at the University of Salford and Vice President of the UK Consortium for Optics and Photonics (UKCPO). The NWPA serves to coordinate and promote photonics across Northwest industry and academia has recently received ÂŁ75k to support its promotional activities for the period 2007 to 2009, after which it intends to be selfsustaining. The NWPA has good links with the ÂŁ11.5 M funded Fourth Generation Light Source (4GLS) at the Daresbury Research Facility in Warrington. To date the NWPA have established a database of photonics contacts located in the Northwest and just begun their roll-out phase of clustering events with a formal inauguration event planned for June 2007. During the mapping study consultation process, it was clear that awareness of the NWPA has yet to penetrate through to the SME sector, a situation which is expected to improve through the higher profile NWDA photonics mapping study. However, the consultation process did reveal that the industrial sector is reasonably familiar with and are somewhat wary of the benefits of generic and/or localised clustering activity. A large proportion of the NW organisations interviewed welcomed regional activity but stated that it would be better served by encouraging established national photonics forums to develop local activities. For example, Marl international, Dorman and Bentley have sent a variety of staff to the Photonics Cluster (UK) to be trained on a variety of short courses however it would be more convenient if they were available within the Northwest regional necessitating the need to travel. In the current climate, the benefit to business of all clustering activities has to be firmly linked to the industrial bottom line. This would necessitate activities to not only encompass technologies but also business related activities including access to national and international photonic markets. For example, several companies highlighted the benefits gained by UKTI support for international activities such as attending Laser Munich (Germany), Electronica (Germany), Light and Build (Germany) and Photonics Europe (France). Observation 22: Opportunity to encourage, highlight and promote NW photonics activity on an international level. It could also attract national and international photonics activities and organisations to the region.

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6 The Northwest Business Support Activity Spread throughout the Northwest UK is a host of agencies and organisations whose remit is to support business growth within the region. Table 8 below summarises some of the key organisations encountered during the mapping study. Organisation

What They Do

Relevance to NW Photonics

NWDA

Deliver sustainable business growth to the Northwest region via the Regional Economic Strategy and through specific business initiatives.

• Scope of priority sectors may need to be widened to recognise photonics as a key business sector or sub-sector

Business Link Northwest

Act as a single point of contact for (new) business development in the Northwest. Skills brokerage delivery under the Train to Gain brand.

• Remit may need to be widened to recognise photonics as a new business sector • Skills brokerage long term may need to be widened to include specific photonics training needs.

Lancashire Economic Partnership (et AL)

LEP is an example of a sub-regional strategic body that promotes economic growth throughout (in this case) Lancashire.

• Need to review whether a strategic vision for photonics needs to be rolled out through the sub-regional strategic bodies.

Envirolink Northwest

Aims to support the development and growth of the environmental industry in England’s Northwest.

• Photonics technology (e.g. photovoltaics, solid state lighting) can be expected to have a dramatic impact on the environment in terms of energy efficiency and solar cell technology.

Northwest Science Council

Sets priorities and provides strategic guidance supporting scientific activity in the Northwest region. Northwest Science Strategy document issued in April 2007 which identifies 4 priority scientific sectors: Biohealth; Chemicals; Aerospace; Nuclear

• Any specific aspects of photonics highlighted for growth in the Northwest region should be harnessed within the Northwest Science Strategy and if necessary added to the science priority pillars.

Furness Enterprise

Furness Enterprise, established in 1991, is SW Cumbria's main business support agency. They have supported with success many of Cumbria’s SSL companies with innovation grants and business support

• They have already understood the importance of photonics to sub regional development and would be an important player considering their support activities in SSL

Table 8: Northwest Business Support Organisations

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Northwest Photonics Mapping Study Other business supporting agencies in the Northwest encountered but not discussed in the mapping study are: Partnership for Learning; Manchester Enterprise Centre and Salford Enterprise Programme. The following sections describe some of the key business supporting organizations in the Northwest and links their activities to photonics where appropriate.

6.1 NWDA NWDA are responsible for delivery of a Regional Economic Strategy that supports sustainable business growth in the NW region. Direct Business support for the region is now targeted through Business Link Northwest (see section 6.2 below), and NWDA also support specific business clustering activities as discussed in section 5. NWDA have identified in their RES the six priority sectors: Biomedical; Energy & Environmental Technologies; Advanced Engineering and Materials; Food & Drink; Digital and Creative Industries; Business and Professional Services. Accordingly there is the opportunity to review how Photonics can support the six priority sectors however this study has revealed that the Northwest has a significant share of the UK national photonics sector and would merit it being considered as a future priority sector. Observation 23: The opportunity to consider the potential for photonics as a key sector or discipline in its own right. Ensuring that Photonics becomes a key priority would include the following summary advantages. •

Avoid duplication of photonics support effort across the current sectors

•

Link the regional strategy to a future growth industry and become one of the first UK RDA’s to prioritise Photonics

•

Reduce the chances there are gaps or a lack of support and focus for photonics sub-sectors that don’t fit into the existing structure

•

Help relate geographic aspects of the RES in line with photonics capability e.g. via project exemplars, regional recruitment and skills initiatives

•

Firmly support a high-growth and emerging technology sector that will provide high quality, value added activities for the future of the Northwest

6.2 Business Link Northwest Launched in April 2007 as a sub-agency within the NWDA, Business Link Northwest directly support the NWDA RES by acting as a ‘single point of contact’ for (new) business support in the Northwest region replacing five sub-regional Business Link organisations. Business Link Northwest were also awarded in 2006, a contract from the Learning and Skills Council (LSC) to deliver regional Skills Brokerage services within the Northwest under the Train to Gain brand. This latter service is design to ensure that businesses can identify their workforce training needs and link those needs with training and learning providers across the region. The Business Link Northwest website is an

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Northwest Photonics Mapping Study excellent resource for businesses to identify how they may access business support suited to their specific business sector. Business Link Northwest are presently focussed on business support delivery via the six NWDA priority sectors (Advanced Engineering and Materials etc.) however there may be a need to review whether photonics is recognised as an important sector in its own right. For example, during the mapping study several SMEs stated that they were not clear how to access or even recognise valid business support for their activities, reflecting perhaps the previous situation where support was delivered on a sub-regional basis. Thus, there is an opportunity here for Business Link Northwest to raise their profile across the photonics sector. As a specific example, neither ‘optics’ nor ‘photonics’ are yet listed specifically on the Business Link Northwest website as ‘searchable’ business sectors accessible through dropdown menus on the website. Alternatively searching on business support for ‘Biotechnology’ identifies 9 regional business support agencies for this sector; searching under ‘IT & Telecom’s identifies 10 agencies etc. Observation 24: Business Link Northwest to consider ‘photonics’ as a key business sector and to include technology based support accessible from within the academic community. In the future, specific expertise in photonics may need to reside within Business Link Northwest, for example to include for skills brokerage in advanced photonic technologies training. Observation 25: Develop skills framework and brokerage for photonics training with the Learning & Skills, and Sector skills councils.

6.3 Envirolink Northwest Envirolink Northwest is the regional agency whose aim is to support the development and growth of the environmental industry in England’s Northwest; the Envirolink website is a very useful resource for support in this latter area. Photonics technology will have a dramatic impact on environmental issues, for example harnessing photovoltaic / solar cell technology with highly energy efficient high brightness solid state lighting sources capable of greatly reducing costs and wastage in lighting across all sectors. Observation 26: Embed the potential of photonics within the remit of Envirolink Northwest Observation 27: The development of a new field, enviro-photonics that encompasses all photonics that impact on environmental issues such as PV’s and SSL should be linked to future Envirolink activities.

6.4 Northwest Science Council The Northwest Science Council sets priorities and provides strategic guidance to the Northwest region supporting a vision for the region to become renowned as an area of world-class scientific achievement, and which is a magnet for talent and science investment, and a powerful driver for innovation and enterprise. A Northwest Science Version 14

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Northwest Photonics Mapping Study Strategy document was issued in April 2007, similar in context and scope to the NWDA RES. Six strategic scientific ‘pillars’ are identified for the Northwest region comprising of 4 priority science sectors: Biohealth; Chemicals; Aerospace; Nuclear, and two pillars dedicated to ‘Emerging Opportunities’ and ‘Strategic Science Sites’ respectively. Observation 28: The need to consider the opportunity to add photonics or a relevant sub-sector of photonics to the strategic scientific ‘pillars’ recognised by the NSC strategy e.g. via the Emerging Opportunity route.

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7 NW Universities - Academic Support 7.1 Overview of Northwest University Sector The Northwest is home to the strongest higher education sector in the UK outside of London, with 10 major universities and numerous research institutes. The 10 universities are listed below: •

University of Bolton

•

University of Central Lancashire

•

University of Chester

•

Edge Hill University

•

Lancaster University

•

The University of Liverpool

•

Liverpool John Moores University

•

The University of Manchester

•

Manchester Metropolitan University

•

University of Salford

Table 13 in APPENDIX G of this report describes the photonics related specialism of the Northwest universities. Together the various higher education institutes in the Northwest have: •

a combined annual turnover of over £1.6 billion

•

employ over 33,000 staff

•

produce over 55,000 graduates annually

•

secured over £200 million from research grants and contracts in 2004/2005

•

achieved scores of 4 or more (signifying nationally or internationally recognised research) in 62 out of 68 research assessment exercise 2001 categories

•

achieved scores of 5* (the highest award) in one third of all subjects

(Source: Northwest Universities Association) The Northwest university scene is extremely positive and increasingly popular as place to live and study for students located throughout the UK and Rest of the World. The University of Manchester which has 56% of its 35000 registered students studying sciences is presently the UK’s most popular university, receiving more applications for undergraduate study than any other British university (63,000 in 2006). Furthermore, the Version 14

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Northwest Photonics Mapping Study University lies 5th in the list of UK universities ranked by research income (Source: HESA, HEFCE & SFC). Accordingly there is tremendous expectation and opportunity for growth within just this Northwest based University alone, and for photonics this optimism is reflected in the recent formation of The Photon Science Institute within the School of Physics and Astronomy (see section 7.3.1).

7.2 Analysis of EPSRC Grant funding A useful methodology via which university based photonics research activity can be analysed is to study the scientific grants awarded by EPSRC. Accordingly, the data available on the EPSRC website was analysed and broken down into various sectors relevant to photonics. Critical metrics for the data are: •

EPSRC grants were analysed as listed on the website at the start April 2007

•

A total of 712 EPSRC grants reviewed in photonics related disciplines

•

The total grant funding for photonics related disciplines was over £330 million

•

85 Universities or Research Institutes across the UK were considered

The following table shows the research topic classifications deemed relevant to photonics along with the percentage share of the funding received; the Northwest percentage share is compared to the South East who are the dominant player in photonics, along with other significant regions. Pie charts showing the regional spread of funding per research topic are given in APPENDIX F at the end of this report.

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EPSRC Research Topic Classification

Total Funding

North West %

South East %

Significant Other %

Image & Vision

£74,310,377

4.4%

58.3%

Yorkshire & Humber (18.6%)

Laser & Laser Systems

£39,009,242

2.6%

37.6%

Scotland (44.6%)

Light Matter Interactions

£13,502,866

3.6%

43.1%

East of England (16.8%) South West (16.9%)

Medical Instrumentation Devices & Equipment

£39,347,253

6.3%

39.1%

Scotland (17.5%)

Optical Communications

£36,377,909

0.7%

38.2%

Scotland (35.3%)

Optical Devices

£78,458,742

1.6%

23.2%

Scotland (27.6%) East of England (18.2%)

Optical Phenomena

£22,165,150

3.7%

36.5%

Scotland (51.5%)

Applied Optics

£27,289,902

1.7%

54.8%

Scotland (12.5%)

Optoelectronics

£52,294,403

3.4%

17.2%

Scotland (44.1%) East of England (26.1%)

Plasmas & Laser Fusion

£17,750,370

1.1%

24.7%

Scotland (34.9%) Northern Ireland (31.6%)

Quantum Optics

£47,134,022

1.0%

65.7%

East of England (14.1%)

Table 9: EPSRC Funded Grants in Photonics – Regional Breakdown

Note in the above table that certain research projects are classified as belonging to more than one of the several research topic classifications and so there is a slight duplication of data in a few cases. Analysis of Table 9 reveals that photonics research is dominated by the South East and Scotland regions of the UK whose shares of the total £334 million funding are 43% (£142 M) and 18% (£60 M) respectively. Compared to this, the North West region received a relatively low share of 3% (£11 M) of the overall funding. The domination by the South East region is perhaps to be expected, with major players being: University of Oxford (£38 M), Imperial College London (£25 M), University College (£20 M) and Southampton (£16 M); Cambridge University which is located in the East of England region received (£ 33 M) Compared to this the EPSRC photonics related funding of the North West universities combined was £11 M, with The University of

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Northwest Photonics Mapping Study Manchester receiving the largest funding of £6 M) which is over half of the entire Northwest funding (see Figure 32 below). A major boost to regional University photonics research funding could occur if the NWDA were to highlight photonics as a key business sector by highlighting the importance of the discipline to regional economic strength. It is also envisaged that a shift of future science council funding towards industrially relevant research would increase further Northwest university-industry collaboration.

Allocation of EPSRC Funding Across the North West University Sector University of Salford, £132,257, 1% Christie Hospital, £549,744, 5% University of Liverpool, £2,046,487, 18% Lancaster University, £1,546,266, 14%

Liverpool John Moores, £350,561, 3%

University of Central Lancashire, £325,753, 3%

Manchester Metropolitan University, £316,327, 3%

University of Manchester, £5,895,587, 53%

Figure 32: Allocation of EPSRC Funding across the North West UK

7.3 University Based Photonics Activity Keynotes The analysis of EPSRC funding for photonics research reveals that presently the Northwest university bases has a relatively low profile in terms of funded photonics research, certainly compared to the South East and Scotland. And yet this is set against a background where the Northwest universities are growing in popularity and stated to be the strongest academic sector outside London. Accordingly, photonics related research in the Northwest are capable of becoming focussed in niche and terms of scope. There is evidence that such focus is already occurring. Examples highlighted in this mapping study include: •

Northwest Laser Engineering Consortium (see section 5.3)

•

Photon Science Institute, University of Manchester (see section 7.3.1)

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Northwest Photonics Mapping Study The mapping study also revealed that there are several degrees which now contain photonics in their title including: •

University of Manchester, Dept of Photon Science – Photon Science (MSc)

•

University of Salford – Physics with Lasers & Photonics (BSc)

•

Imperial College, London – Optics & Photonics (MSc)

•

University of Hull – Physics with Lasers and Photonics (BSc)

•

University of Southampton – Physics & Photonics (BSc)

•

University of Strathclyde, Institute of Photonics, Optoelectronics & Photonics Devices (MSc)

•

University of Dundee – Photonics & Optoelectronics (MSc)

•

University of St Andrews –Photonics & Optoelectronic Devices (MSc)

•

Heriot-Watt University – Photonics & Lasers (BSc)

The presence of the Universities of Salford and Manchester on the list is encouraging in terms of the potential to attract students in photonics to the North West. The regional strength of the Scottish Universities in photonics and optoelectronics is also to be noted, and could be a potential source of skills leakage from the Northwest for undergraduates seeking to study the subject at undergraduate or postgraduate level Observation 29: Ensure where possible that the Northwest University undergraduates and postgraduates can obtain regional access to similar and established photonics courses offered elsewhere (for example in Scotland). As an example, given the forthcoming closure of the Physics department at Reading University and the corresponding cancellation of Reading’s 1 year MSc course in Modern and Applied Optics, it is the case that currently Applied Optics, which is a critically important underpinning discipline for photonics, is only available as a Masters level subject in London (Imperial College) and accordingly there is an opportunity here to create an equivalent Masters level Applied Optics course in the North West.

7.3.1 Photon Science Institute, University of Manchester In June 2006, a £24 million bespoke laboratory was founded in The University of Manchester to house the Photon Science Institute (PSI) with affiliated instrumentation valued at £15 million. The Photon Science Institute provides an innovative and interdisciplinary environment for research into and the application of photon science – the understanding of how light interacts with matter, fostering collaboration across physical, engineering, material, medical and biological sciences in order to produce highquality research and knowledge transfer. In total there are more than 100 academics from across each of the faculties within The University of Manchester, and around 70 to 80 PhD students working in photon science and of which 10-15 are collaborative PhD studentships with industry. A department or Version 14

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Northwest Photonics Mapping Study institute of this size can be considered to be reasonably high, comparable to other UK leading photonics and optics university institutes and can be taken as evidence that there is good potential for establishing a strong academia based discipline in photonics in the Northwest region. The Institute has established a 1 year Master of Science degree in Photon Science with 16 students registered for the year 2006-2007. In discussions with Professor Klaus Muller-Dethlefs, Director of the Institute he made clear that in terms of industrial relationships, the preferred model at PSI is for pre-competitive research in photonics related material interactions. In this case a number of companies or organisations provide the funds to support advanced research activity, ahead of any competitive or market based considerations or concerns. To this end, PSI would welcome an industry based ‘club’ to fund and gain benefit from their research programmes. In contrast the situation whereby industry effectively out-sources its research activity to a university is not considered to be particularly viable either for the university or the sponsoring organisation, and is therefore not particularly being pursued by PSI. That said, it is considered critical by PSI that those industrial organisations that have specific technical problems (e.g. in the photon science area) which require resolution, are well aware of the capability of the HEI sector to help solve the problem. This is an important issue for the Northwest photonics mapping study and leads to a key finding that there is a need to raise the profile of the spectrum of photonics activity in the Northwest such that industry, especially SMEs, are clear which universities, faculties and researchers can help solve technical problems. Similarly, the HEIs can benefit from being made aware of the range of technical problems that exist across the (photonics) industry sector and so take steps in terms of short term research and knowledge transfer to support industry. Observation 30: The need for networking and linking regional expertise in universities with Industrial needs will be essential for exploiting and capturing growth.

7.3.2 Power Conversion Group, University of Manchester In April 2007, The Power Conversion Group in the School of Electrical & Electronic Engineering in the University of Manchester announced the receipt of £175,000 funding from the DTI matched with equivalent funding from Yorkshire based Dialight Lumidrives to undertake research into the use of clusters of LEDs in external applications such as street lighting. As discussed previously in section 4.4 the use of LEDs in such an application can significantly reduce maintenance costs as well as deliver energy savings of the order of 25 to 50% and is a clearly an attractive proposition. In terms of near future research into the benefits of solid state lighting based products within a range of diverse applications the above project in Manchester can be considered to be the ‘tip of the iceberg’ and emphasises the possibility of harnessing SSL industrial and academic capability in the North West UK.

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7.4 NW Universities - Technology & Business Support An extremely positive and encouraging sign for the Northwest is the number of Universities that are growing direct business support services on the basis of their academic strength giving rise to training and postgraduate courses in areas such as innovation and the creation of spinout and start-up companies, as well as direct technology support into the business sector. The following is an example list of Northwest university based business and technology support agencies: •

Manchester Metropolitan University’s Business Gateway

•

UMIC

•

OMIC

•

Daresbury Innovation Centre

•

Daresbury CLIK (Technology Transfer)

The potential role of these organisations in supporting the growing photonics industry cannot be understated as the nature of the photonics business is that SMEs will invariably require advanced technological support at some stage during their growth, as well as support for areas like innovation and technology transfer. The innovation and technology transfer facilities at Daresbury are an excellent example of the kind of support needed in this area. Of particular to photonics work is OMIC, about which further details are described below:

7.5 Organic Materials Innovation Centre (OMIC) OMIC is a UK government supported University Innovation Centre of which there are 5 in total in the UK, and which has a specialty in organic materials and polymer technology; the aim of the innovation centres is to bridge the gap between the knowledge which UK Universities generate and that which businesses need in order to innovate and grow. The OMIC Centre is based in the School of Chemistry at the University of Manchester and encompasses expertise in organic materials at other universities in the Northwest. In terms of photonics materials support, OMIC has the potential to underpin a number of as yet immature but potentially key photonic material technologies. It has also developed a capability to deliver short term (i.e. 2 months or less) support work to industry in the areas of technology feasibility study work and knowledge transfer (KT). This latter support issue is very important for photonics, as several of the photonics SMEs interviewed in the mapping study stated that they felt academic support for their technology base was important but likely to be ‘too slow’ to support their immediate and pressing business needs. Observation 31: There is a requirement for developing short term technology support capabilities essential for ‘know how’ and photonics technology transfer to NW based SMEs. The opportunity to create a Photonics Application Centre similar to that supported by Advantage West Midlands for regional companies should be considered. In terms of technology, OMIC are working in three areas: high performance (e.g. strength, temperature) organic materials; biomaterial polymers (potentially regenerative materials); polymer/organic electronics. For potential photonics applications, OMIC have taken the Version 14

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Northwest Photonics Mapping Study strategic decision to avoid OLED technology, for which the capability in the UK already lies elsewhere (e.g. Cambridge University and Durham University), instead they have an interest in organic photovoltaic technology which could lead to a capability to manufacture (e.g. via a printing based process) sheets of flexible, printable photovoltaic material. As stated previously given the recent interest in green issues and the demand for renewable energy sources, a lead capability in a new technology base such as flexible photovoltaics could be extremely important for Northwest photonics. In recognition of this, in April 2007, the Chemistry department at the University of Manchester received ÂŁ1 million EPSRC funding for research into photovoltaics.

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UK Photonics Networking & Clustering

Presently in the UK, there are a number of photonics networking and clustering agencies which have been established to support the photonics sector usually on a regional or national basis. The agencies serve to establish and lead photonics related initiatives, forging links across universities, support organisations, businesses and SMEs working in the photonics sector. The list of photonics agencies includes the following: •

UK Photonics Knowledge Transfer Network (Photonics KTN)

•

Scottish Optoelectronics Association (SOA)

•

Welsh Optoelectronics Forum (WOF)

•

Photonics Cluster (UK)

•

UK Collaboration in Photonics & Optics (UKCPO)

•

Fibre optic Industry Association (FIA)

A discussion of the roles of all of these various agencies is beyond the scope of this mapping study with the exception of the organisations noted below. Furthermore, there are photonics clustering type organisations active within the boundaries of the various Regional Development Agencies (RDAs), with for example the Northwest Photonics Association (NWPA) representing the Northwest UK region, as described in section 5.5 above. During the mapping study consultation process it was noted that there was a degree of confusion in industry with regards to the roles of the various clustering organisations, and following a phase of initial enthusiasm for the clustering concept, many companies now require a clear, proven business justification for attendance and support of such organisations. Accordingly, (support for) photonics clustering type activity can be considered to be a somewhat sensitive issue for hard pressed NW businesses and SMEs working in the photonics sector and in the light of this, the public sector will need to adopt a strategic approach with regards to photonics clustering type activities. Observation 32: Because of the proliferation of clustering and knowledge transfer organizations working in the photonics area, it is important that the Public Sector establishes clear and harmonized working relationships with key agencies. This will likely require the setup of an internal ‘clearing house’ or focus for working in the photonics area. An example of such strategic type thinking lies in the area of photonics skills development, where there is an opportunity to ensure that regionally developed vocational photonics skills qualifications can be mapped into a wider national initiative in the photonics skills area and recognised by the various learning skills councils.

8.1 Photonics KTN As part of the DTI's photonics strategy launch at the QE2 Conference Centre, London on 13th July 2006 the DTI announced the kick-off of the Photonics Knowledge Transfer Network (KTN). This KTN is being managed by a consortium of seven partners led by the UK Centre for Photonics and Optics (UKCPO), and including Photonics Cluster (UK), TWI, the Centre Version 14

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Northwest Photonics Mapping Study for Integrated Photonics, the UK Astronomy Technology Centre, the Association of Industrial Laser Users and University College London (UCL). KTNs are designed to give their communities a single voice for reaching government, and to integrate and support interchange between all those working in the sector. These include developers, industrialists, academics, end users and other networks, national and international. Several KTNs have been established to date: •

Industrial Mathematics

•

Resource Efficiency

•

Intelligent Transport Systems

•

Sensors

•

Integrated Pollution Management

•

Displays & Lighting

•

Location & Timing

•

Materials

•

Photonics

•

Electronics

Table 10: UK Knowledge Transfer Networks

The Photonics KTN has built on successes of the EPPIC and Smart Optics Faraday Partnerships and will join the other KTNs, including the UK Displays and Lighting Network in looking for exciting new cross links with other domains. The Photonics KTN and its network groups will provide a range of activities and initiatives to enable the exchange of knowledge and the stimulation of business innovation. Through national organisations such as the Photonics Cluster (UK) and its partner organizations the KTN is exploring how to add value to the industry by supporting activities such as the; • •

• • • •

Delivery of regional seminars to disseminate photonics information developed by the European Photonics 21 initiative Delivery of a series of end user focussed photonics convergence events with e.g. automotive, aerospace and space, medical and healthcare and high precision engineering sectors Production of a twice yearly industry focussed KTN review or journal Coordination of extra activities twinned with key global exhibitions, e.g. Photonics West, Laser Munich, ECOC Supporting inward and outward photonics technology missions and brokering events, e.g. with China, Japan, Singapore and Taiwan Promotion of the KTN itself at a wide variety of events through partner participation, e.g. Plastic Electronics, Lighting Show, Arc, Strategies in Light and many more …

8.2 Welsh Optoelectronic Forum Founded in 1996 and located in St Asaph, North Wales, the Welsh Optoelectronic Forum (WOF) is a consortium of Welsh companies, University research groups, users and support organisations whose mission is to stimulate the growth and competitiveness of the optoelectronics(read photonics) sector in Wales. Three important photonics related projects run under the auspices of the WOF are:

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Northwest Photonics Mapping Study •

Technium OpTIC (Optoelectronics Technology and Incubation Centre)

•

Photonics Academy

•

Photovoltaics Group (Wales)

8.2.1 Photonics Cluster (UK) Photonics Cluster (UK) is a business network dedicated to supporting the optoelectronics industry in the UK. The overall aim of PCUK in partnership with others is to establish a dynamic hub of activity within an integrated supply chain of researchers, suppliers, manufacturers and sales distributors. This commercially focused hub seeks to secure increased profitability of the sector and enhanced knowledge and wealth to the individual members and wider UK optoelectronics community. PC(UK) was formed in 2001 and represents approximately 200 companies including more than 4000 individual community members. PCUK bring to its membership network, expertise in the development of photonics related industry convergence events within target areas of automotive, aerospace, medical healthcare, lighting and high precision engineering. Additional experience in internationalisation activities include supporting the DTI Global Watch team on technology missions to Japan and North America as well as a series of UK European, UK Asia, and UK North American business forums. This included the highly successful international LED and Solid State Lighting conference, exhibition and workshop series organized on behalf of industry, EUROLED.

8.2.2 Technium OpTIC Founded in 2004, Technium OpTIC is a business incubator facility that can host up to 24 technology based start-up companies with onsite support facilities which include a Business Support centre and a Technology Centre that contains state-of-the-art clean room and laboratories. The Technology Centre can support the development of leading edge (photonic) processes and technologies with a level of expertise considered complimentary to existing academic activity. This enables the centre to act as a bridge between industry and the university sector in important areas such as technology transfer and the commercialisation of near-to-market photonic products. In February 2007, the Netherlands based Science Alliance7 organisation listed Technium Optic as lying 10th in a global survey of science based business incubation centres.

8.2.3 Photonics Academy (Wales) The Photonics Academy (Wales) is a virtual academic institution that pulls together photonics expertise across schools, further education and higher education institutes, thereby by providing an educational and training based framework to support the skills needs of present and potential employees and employers in the Welsh photonics industry. A useful driver behind the remit of the Photonics Academy is to support the development of new photonics businesses which emanate from the OpTIC Technium in St Asaph.

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Northwest Photonics Mapping Study The establishment of the Photonics Academy indicates perhaps an early recognition by the WOF members that photonics is (or at least soon will be) a well defined industrial sector in its own right, and accordingly, a number of interesting photonics career roles and milestones have been identifies for their photonics students including: photonics scholar; photonics apprentice; photonics technician; photonics graduate practitioner and photonics postgraduate practitioner. In recognition of this work and also the relatively close location of the Technium Optic to Northwest England (St Asaph is only 30 miles from the Wales-England border in Cheshire), there is a good opportunity here to ensure that any initiatives to establish a photonics skills set or framework for the Northwest region are based upon or harmonised with the work of the Photonics Academy (Wales). Indeed, there would be a benefit to the UK as a whole by the widespread adoption of the photonics career milestones as developed by the Photonics Academy.

8.2.4 Photovoltaics Group (Wales) The Photovoltaics Group (Wales) was launched by the Welsh Optoelectronic Forum (WOF) in March 2006 with to promote Photovoltaic Solar Energy in Wales with the twin benefits recognized as being the provision of a source of renewable energy as a well as a driver for sustainable economic growth. Notable membership of the PV Group includes two of the three main manufacturers of photovoltaic products in the UK, namely Sharp Corporation (Sharp Solar) in Wrexham and ICP Solar in Bridgend. In terms of the recognition of the role that photovoltaics can play in solid state lighting and photonics, the role of the PV Group (Wales) should be noted in consideration of similar activity in the Northwest region. In this regard, the somewhat niche foundation work in organic (polymer) photovoltaics underway at OMIC at the University of Manchester (see section 7.5 above) is arguably the key photovoltaic technology specialism where the greatest differentiation could be made, in terms of funded regional support and development.

8.3 National Photonics Events During the consultation process with industry several organizations reported a degree of confusion and/or a perceived lack of support for attendance at both national and international photonics based conferences and exhibitions. Observation 33: The opportunity exists to create a competitive advantage for the support of its regional economy by ensuring its regionally located businesses fully exploit these regional, national and global opportunities. There are a few key photonics exhibitions and conferences which require to be integrated into the planning of Northwest based photonics companies; specific national activities in photonics include: 17-18 October 07 - Photonex 07 – Coventry, West Midlands, and UK – this exhibition provides a broad ranging representation of the UK photonics industry. Through the provision of dedicated technology workshops the opportunity exists to provide a “Spotlight on the Northwest Photonics capability” as part of the pre publicity and seminar sessions.

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Northwest Photonics Mapping Study 13 – 14 February 08 – Imaging Photonics and Optical Technologies & Machine Vision – Birmingham, West Midlands, UK – this exhibition draws an interesting visitors from photonics end user customer sectors. Through the provision of dedicated technology workshops the opportunity exists to provide a “Spotlight on the Northwest Photonics capability” as part of the pre publicity and seminar sessions. 3 – 5 June 08 - euroLED and euroLIGHT 2008 – Birmingham, West Midlands, UK – This conference series is Europes largest dedicated conference, exhibition and workshop for the LED and Solid-State Lighting industry. The event attracts the global SSL supply chain and enables lighting companies to showcase energy efficient and environmentally friendly lighting technologies. Northwest Photonics community members will be able to access the exhibition on a complimentary basis. Photon 08 – Regional venue to be determined. Short listed venues include Durham, Edinburgh and Limerick, UK and Ireland – This bi annual event is predominantly an academic conference however a growing industry programme and exhibition is developing to support the technology transfer process. The Photon 06 Conference which was located in Manchester was considered a successful activity.

8.4 International Photonics Events Specific international activities in photonics include: 5 and 7 June 07 – Technology World 2007– Ascot (5th) and Cambridge (7th) UK – this B2B brokering event with conference programme and parallel exhibition is an excellent medium to interface with large overseas corporates which have been specifically targeted to attend by the UK Trade and Investment overseas officers. 18 - 21 June 07 - Laser Munich, Germany – within this bi annual exhibition there is good UK representation. This is the largest European exhibition to support the promotion of optoelectronics, lasers as well as manufacturing and advanced engineering. There is the opportunity to explore the Northwest supporting the Northwest photonics community to participate within this exhibition. Whilst 2007 is probably now too soon planning to secure substantial Northwest representation, Laser 09 activity should be progressed. 17-19 September 07 – European Conference and Exhibition on Optical Communications Berlin, Germany – Photonics Cluster (UK) will be able to promote the Northwest photonics companies whilst exhibiting at this specialist optical communications exhibition. There is the opportunity to explore the Northwest supporting the Northwest photonics community to participate within this exhibition. Whilst 07 may be too soon planning to secure substantial Northwest representation within the ECOC 08 activity should be progressed. 20-22 November 07 - Asia Interprise B2B Photonics Brokering event Beijing, China. This is an excellent opportunity for 10-12 UK based companies to participate within a B2B brokering event over 3 days. Selected participants from the European photonics communities from Estonia, France, Germany, Italy, Poland, and Lithuania will interface with their technology counterparts in China. The B2B event is collocated with the ILOPE exhibition. There is

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Northwest Photonics Mapping Study considered an excellent opportunity for the Northwest photonics community to explore Southeast Asia in a supported environment. 19 - 24 January 2008 - SPIE Photonics West, San Jose, California, USA â&#x20AC;&#x201C; this is generally recognised as the premier photonics conference and exhibition in the world. The opportunity exists for the Northwest RDA to explore on behalf of the Northwest photonics community explore added value activities to be undertaken in conjunction with the UK Trade and Investment and British Consulate San Francisco office. National photonics organisations such as the Photonics Cluster (UK), a part of the DTI Photonics KTN are in an excellent position to support the Northwest Development Agency in positioning the Northwest Photonics community within these activities to secure maximum regional advantage.

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9 Northwest Photonics Mapping Study Consultation This mapping study was underpinned by a series of one-to-one interviews and phone based discussions for which the courtesy of those companies taking part is greatly appreciated. APPENDIX C contains a list of the companies consulted during the exercise which included over 20 one-on-one interviews held at the client company location. In further support of the consultation process, an industry based photonics questionnaire was devised and utilised in order to focus the information gathering exercise to the greatest possible extent. In addition to the consultation process, a workshop on Solid-State Lighting was held in association with Quantum Strategy & Consultancy Limited in order to gather specific input and consultation towards this rapidly evolving technology field; the meeting and its outcome are described in section 9.15 below, and a list of attendees for the workshop is given in APPENDIX H. It is considered that following the mapping study and consultation process, there is merit in holding further cross-disciplinary workshops to highlight to interested parties critical areas in photonics which are worthy of further attention and knowledge transfer. Observation 34: There is a need to support additional photonics workshops focusing on developing regional partnership collaborations within the five photonics application sectors

9.1 Northwest Base Virtually all companies stated that the reason behind their location in the Northwest UK was primarily historical, with family or previous employment in the area cited as the main factor(s). In terms of running a NW photonics company, a comparatively good quality of life and reasonably low cost of operations were also cited as positive benefits. However as discussed further below, Cumbria based photonics companies had noted some difficulties in recruitment to their location due to a perceived â&#x20AC;&#x2DC;isolationâ&#x20AC;&#x2122; of the sub-region in terms of the wider jobs market. It is also noted that house prices in certain areas such as Kendal area are relatively high. Observation 35: There is an opportunity to promote the relocation prospects for securing highly mobile photonics company entrepreneurs to the attractive rural locations which are ideal for technology jobs operating in a global market. Observation 36: Inward investment teams could highlight the Northwest photonics sector credentials and utilise the technology opportunities to attract inward investment such as the best practice identified in the Walsall Urban Regeneration model.

9.2 Customer Location A typical finding from the mapping study was that for the majority of SMEs, the UK customer base currently represents around 80% of the business, and within this proportion there was usually no distinction between local and national customers. This finding is in line with the general viewpoint that successful photonics companies operate within a global market. Clearly for SMEs whose business is heavily dependent on UK customers there is a concern that during the next 2-3 years, overseas competitors will be Version 14

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Northwest Photonics Mapping Study able to penetrate into the UK with low cost photonics products (not just components) to the detriment of their business. Observation 37: Consider the added value opportunities for NW based clients companies increasing their export capabilities.

9.3 Photonics Supply Chain The survey indicated that for active photonic products there is no distinctive supply chain. Typically a photonics product is assembled from high performance photonics components sourced as necessary from around the world (usually via locally based agents and distributors.) On the passive optics side, it is noted that the North West is home to number of world-class optical coatings companies who represent a key source of added-value to photonics components technology. These companies were also seeking to improve their capability to add value by becoming more involved in the design and fabrication of the optical substrate (e.g. bespoke lenses for military applications) on to which their coating technology could be applied. In view of the absence of a NW photonics supply chain penetrating down to the components and processing level, the SMEs perhaps surprisingly do not identify as a matter of course, a ‘local’ photonics spend. Observation 38: Opportunity to encourage regional supply chain development using company innovation support activities such as “Innovation Networks” where the client company can secure support funding for product development but the activity is undertaken by three or more regional companies.

9.4 Non-Photonics Supply Chain Spending During the mapping study it was highlighted by many SME companies that they were spending in the region of £20k to £100k on locally based non-photonics resources such as metal work and custom product packaging. Aggregating an average £50k spend across 100 to 200 NW photonics companies indicates a non-photonics spend of circa £10M occurring within the region.

9.5 Perceived Competitive & Business Threats As might be expected for a global business such as photonics, the primary business concern for local NW SMEs is the potential influx of low cost competition typically from the Far East. Currently, SME’s involved in for example the design and assembly of bespoke solid state lighting products (such as an LED based signalling device) can be considered, in terms of innovation, to be ahead of their competition. These companies have usually identified a novel or leading application in the lighting field, and accordingly, designed and assembled an appropriate product to meet the demand. In terms of ongoing business performance, meeting the immediate business demand is deemed to be more important than designing and developing the next generation of products via research and development activity. Given the impending threat of overseas competition and the ease with which ‘me-too’ products will soon be produced offshore in the absence of strong defensive patent activity (certainly at the micro-SME level) then there is a clear Version 14

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Northwest Photonics Mapping Study concern that in 2-3 years time many lighting based SMEs could be facing significant competitive threats to their business from low cost products unless these companies embrace innovation within their business practices.

9.6 Recruitment Despite the recent telecoms downturn around the year 2000, the UK academic sector has forged ahead in terms of its photonics activity, and there are now a number of world class higher education institutes working in the photonics field. In many cases, the institutes have diversified in their research away from telecoms based optical communications research into applied disciplines such as photonic sensing and advanced research such as nanotechnology. As a welcome consequence of the telecoms crash a number of innovative photonics SMEs were founded by ex-telecoms based engineers. The consultation process indicated that there is currently no significant shortage of skilled photonics engineers. For example, several SMEs reported that they had recently completed (successful) recruitment drives for up to 5-6 PhD qualified employees – usually to work in photonics product development but not research. For those companies based close to the large Northwest cities such as Manchester, there were no major issues cited with recruitment of staff. That said however, several photonics companies located in rural areas such as Cumbria had noted some difficulty in recruiting skilled personnel to their locality. The main reason for this was considered to be due to the perceived ‘isolated’ nature of the location in terms of future employment if needed. (Since the telecoms downturn photonics engineers are now largely wary of relocating into areas perceived as being ‘remote’ for future work opportunities.) This latter situation can however be alleviated somewhat whenever geographic clustering occurs and a host of similar companies are located in the same geographic region. There may be an opportunity to highlight (or even grow) the firmly established group of solid state lighting companies located in the Cumbria region; it is noted in the NWDA 2006 RES that Cumbria is a designated area that merits economic support (for business growth) wherever possible.

9.7 Staff Training The majority of photonics companies interviewed reported no major concerns with the skills levels of their staff; for example rapid PhD recruitment was defined as a technique for “recruiting pre-skilled staff”. In terms of engineer and technician skills levels it was also frequently reported that any requisite skills could be established straightforwardly via ‘in-house’ training as needed. It was identified that more support should be given to SME’s to help provide in-house or specific external training as this often placed significant resource issues on the company. For the telecoms based photonics sector such as communications cabling and installation, it can be noted that there is currently a very good availability of high quality, Version 14

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Northwest Photonics Mapping Study reasonably low cost accredited training from external providers as needed e.g. Lucid Optical Services, Cumbria.

9.8 Training Initiatives Few of the companies surveyed were aware of what support (if any) was available via local skills sector training based initiatives such as the recently launched Train To Gain skills brokering scheme run by Business Link. Indeed it remains to be seen whether the latter scheme is applicable or appropriate to the photonics sector as discussed in section 6.2 where an observation was made that photonics skills may need to be included within the skills brokering initiative. It is also noted that certain types of funding such as Passport to Export require key members of staff to attend training events as part of the funding process and whilst this approach is not universally popular it can be considered as a useful driver to ensure that underpinning skills which are relevant to the funding are established in the recipient companies.

9.9 Photonics Skills Needs Although there was no overall photonics skills shortage per se, it should be noted that there are certain photonics disciplines which remain problematic across the technology sector, and also that opportunities presently exist for training initiatives to be implemented and undertaken ahead of predicted future demand. For photonics, the key problematic technical skills area of concern is optical design which is typically required for the design of optical elements needed for novel lighting and/or imaging applications. In many cases the optical designs used to achieve a certain illumination condition with LEDs for example are far from optimum, with useful light energy wasted in the process. During the study several companies signposted the short courses (1 day) that have been developed specifically for industry needs by the Photonics Cluster (UK) and its training partners. The responsive nature of such courses to industry wide issues such as photometric testing and LED eye safety has benefited several Northwest companies although they wished that such courses could be provided within the Northwest. In terms of near future photonics skills provision, forthcoming applications that could benefit from the implementation of an early training initiative include training support for: â&#x20AC;˘ Fibre To The Home installation o Already taking place in the USA, the Far East and in isolated regions of continental Europe â&#x20AC;˘ LED Lighting Design o Solid state lighting can be considered to be the wave of the future and could benefit from a focussed skills resource o Could work regionally with national and international partners such as the Photonics Cluster (UK) and the Lighting Research Centre (USA). Version 14

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There is an opportunity here to link current and future photonics undergraduate and postgraduate courses in the North West with the current and near future industry pressure points in photonics such as may exist in optical design, solid state lighting, illumination technology and optoelectronics. Observation 39: The Public Sector to review (e.g. with LSC, NWUA, NWDA) to what extent Northwest Universities photonics related courses and research areas can be tied into near future Northwest industry photonics skills needs

9.10 Non-Photonics Skills Needs One interesting finding from the mapping study concerned non-photonics skills needs related to the commercial aspects of the photonics industry, namely: • Technical Sales • Business Development Management • Marketing Support In terms of technical sales, photonics is such a fast moving and technically complex discipline that sales personnel need also to be well qualified, typically to PhD level so that they can: “…develop new photonics applications for our products during face-to-face meetings with our customers.” Accordingly, several photonics companies reported that they needed to recruit “…PhDs with sales skills” or raise the skills profiles of their existing sales personnel. In a related area it is also noted that photonics creates an inherent need for personnel skilled in the role of Business Development which may accordingly become a critical skills-set requirement for photonics engineers. Observation 40: Consider endorsing a Photonics Business Skills training initiative which could consist of a training voucher to be used with the local business support sectors in Universities. Another non-photonics technical skill that was perceived to be in-demand during the mapping study was that associated with product design. Here the issue is that photonics engineers were not necessarily skilled in product design (nor could such resources be afforded full time within the company.) Similarly, due to their size some small SMEs could not justify the purchase of state-of-the-art design related software packages (e.g. Solidworks). Accordingly, many SMEs felt that their finished product designs lacked a certain degree of design flair when compared to competitor products. There is a possible opportunity here to tie SME industry requirements in the area of product design with University Schools and Departments working in this area e.g. University of Salford, School of Art & Design.

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9.11 University Collaboration On the whole, SME collaboration with the University sector was found to be relatively ad hoc rather than something undertaken in a coordinated manner. Because the urgent technology needs for photonics SMEs are primarily towards rapid product development, the response of the university sector is considered to be “too slow to be of value” and therefore not pursued actively. University based support for pure research type activity was also considered to be “too far off in the future” to be of likely benefit. In this regard, the rapid 2 month feasibility study knowledge transfer (KT) initiative of OMIC is to be applauded for recognising and seeking to overcome the industry perception that the academic sector cannot provide ‘useful’ business support.

9.12 Grants& Funding The SME consultation process yielded two major feedback points regarding grants and funding research and/or start-up costs: •

•

SMART Feasibility grants o Had proven to be excellent (read essential) for some start-up / spin out companies Loss of focus for Grant Applications o Some SMEs are deterred from even starting the grant application process

SMART awards were stated by 3 of the interviewed companies as being essential for the company start-up process; there is an opportunity to learn from this experience perhaps by reviewing the case history of recent SMART awards in the photonics area. Observation 42: The need to review recent SMART awards for learning outcomes with regards to the successful establishment of Northwest photonics companies.

On the flipside, some SMEs felt that they had ‘lost track’ of the current grant application process and were deterred completely from applying for support; the following concerns were typically cited during the study: • • • • •

Lengthy filling out of forms Short rejection letter with no feedback Concern that there are ‘pre-identified’ winners - usually large organisations Not clear at all whether grants were applicable to their business Competitive system that requires ‘winners’ and thereby ‘losers’

Typically the pursuance of grant support for say less than around £10k of funding was felt to be “not worth the effort” leading to the situation where the SME would either abandon the application (one case cited was for a joint venture with a university) or no Version 14

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Northwest Photonics Mapping Study longer consider applying for any kind of grants in the first place. There was little knowledge or visibility of the GRAND scheme which has been introduced by Northwest Business Link as a replacement for the (evidently popular) SMART award scheme. Observation 43: The profile of the GRAND award scheme must be raised so that SMEs are aware of the various routes that it provides towards funded business support. Another interesting observation was the comment that it might be appropriate that business support in the photonics area was supported by a local business expert with a background or skills specialism in photonics. In this way, the feasibility (or otherwise) of potential photonics projects could be ascertained via a relatively brief assessment process, rather than the current process that is perceived to be lengthy and bureaucratic. Observation 44: Photonics business support might benefit from a Public Sector Northwest focus on this key technology area.

9.13 Innovation & Business Development The NWDA RES is concerned to ensure that NW companies are supported in the innovation process. In terms of photonics it has become very clear from the study that by its nature any work involving photonics technology is inherently innovative; in fact virtually all of the companies in the study stated that they had one or more potential new products on hold pending further resources for their development. However due to ongoing pressing business concerns many SMEs considered pure research as an unaffordable luxury both in terms of time and money, with emphasis instead placed upon incremental innovation of existing products. Also, as stated above, it was felt that involving the University sector would likely be ‘too slow’ to deliver business benefits and so was not pursued as a means of driving research and innovation. It is interesting too to bear in mind the comments of The Director of the Photon Science Institute in Manchester University that the situation where companies rely totally upon the academic sector for their research support was likely to be an unviable proposition for either party concerned. Observation 45: Research activity in support of product innovation in the photonics area is presently considered to be a ‘luxury’ by many SMEs. Following the consultation process, it appears that in the photonics area there are presently two main types of innovation: • Fundamental Research • SME Product innovation

9.13.1

Fundamental Research

An example of innovation arising out of the more pure or fundamental research is University based innovation occurring as may be expected at the doctoral and postdoctoral level. Aside from Higher Education Institutes, fundamental research (“..more likely to be ‘D’ than ‘R’…”) does occur in those companies whose product portfolio is Version 14

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Northwest Photonics Mapping Study based in advanced photonics technology and/or which have spun out from a University base. For example, a spin-out company based on a novel laser technology base will very likely to continue to develop new and enhanced laser products from this base, usually via the recruitment of a number of PhD qualified staff specifically to work in the product development area; indeed, several of the Northwest companies interviewed had recently concluded successful recruitment drives to bring in around 5-6 new PhDs into their companies. Thus for innovation taking place within the context of the fundamental research area, it is reasonably true to say that the innovation process, at least at its earliest stages is already well established. For example university departments are usually quite clear as to which research topics might need patent protection, or instead can be published openly, and accordingly universities now tend to have (university based) business support units close to hand. Similarly, spin out companies working in the photonics area are usually founded on the basis of a number of key patents. These companies invariably continue to select carefully which product developments and innovations are worthy of further patent protection.

9.13.2

SME Based Product Innovation

There are a vast number of micro sized SME companies wherein considerable product innovation occurs almost inherently, as seems to be the case with the photonics technology field. For example, as shown previously there are over 100 companies in the Northwest working in the lighting area usually involving LED or solid state lighting based technology. Presently there is a great deal of innovation usually centred on a recognised opportunity to develop a signal or luminaire type product based on LED technology, usually in opposition to an existing incandescent or fluorescent based lighting product base. In such cases, the product development innovation process usually involves ensuring that appropriate drive circuitry is developed alongside the relevant assembly or configuration of the LED device or cluster, and the skills base involved for such innovation is mostly at the engineering or technician level (rather than say requiring a doctorate level researcher). However, it is important to note that this process has led to an outstanding number of new SMEs to be established in the Northwest region and to reach a reasonable turnover level within a very short period of time. Usually the initial innovation was sufficient to allow the owner/manager of the company to establish their (successful) business. The SMEs working in this area urgently recognise the need to continue with the product innovation process and indeed they usually have a number of ideas and products awaiting development. However, there is a concern here, that having done so well to establish themselves these SMEs could very easily stall due to the following difficulties: • Resource Balance: Balancing new product innovation against the demands of an increasing workload o “..there is no available resource other than my spare time to develop this idea further….” • Regulations: A number of SMEs had to “..take valuable time out” to work on business regulatory matters (such as the WEEE directive) rather than their core business needs Version 14

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Northwest Photonics Mapping Study •

•

Product trials and approval: In the area of biomedical photonics concerns with regulations associated with the development of new medical treatments has led to the situation where it is easier to develop ‘me-too’ (copy based) technology products rather than undertake lengthy photonics R&D and clinical evaluation. This can be considered a significant deterrent to innovation for biomedical SMEs, especially against a background of rapidly developing bio-photonic medical treatments. SME growth: as companies increase in size beyond their initial ‘micro-size’ (19 people) then Human Resource issues become important and to some extent time consuming for the owner manager.

The majority of the SMEs recognised that their business growth needed to be ‘fast and dynamic’ in order to survive in photonics but they were struggling to get to the ‘next level’. In this situation, some of the SMEs (especially those that had not spun out from the university sector) can be recognised to have great potential and a good track record of product development and delivery and yet they were effectively stuck at the ‘organic’ growth level, with product research and innovation held back pending additional (and unspecified) resources. Appropriate funding and business support for these types of photonics companies will likely be essential if they are to grow beyond the micro-size. Potential areas for support for these companies could involve: • Development of strong links to NW based business partnership organisations working in the area of product innovation e.g. The University of Manchester, Manchester Business School run an MSc course in the Management of Science, Technology and Innovation, elements of which (e.g. a Diploma) could be used to support photonics SMEs if desired. • Create a one-stop-shop for regulations affecting micro-sized (photonics) companies e.g. availability of ‘off-the peg’ support for responses to WEEE directive and Human Resource needs Observation 46: The growth of micro sized SMEs (i.e. 1 – 9 people) can easily stall as they become established and then sidelined away from their initial business focus such that product research and innovation can easily become neglected. Delivery of focussed business support to companies at this stage of their development might be vital in order that they can grow beyond the micro-size.

9.14 Photonics Patent Issues Similar to the findings on product innovation (see 9.13.2 above), patent protection of photonics products is largely split along the lines of the organisation type defined as either those engaged in a degree of fundamental research, or those (usually SMEs) involved with the ‘assembly’ of photonics products. Patenting (where it occurs at all) tends to take place as a formality in the former, and rarely if at all in the latter, and this could become a cause for concern for the longevity of these latter companies (see further below). Accordingly, the following discussion on technology patenting has widespread implications for the UK as a whole rather than just the Northwest region; however the potential exists for the Public Sector to take a leading role in its remediation. Version 14

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Most technology companies recognise the need for the patenting of their foundation or ‘cornerstone’ products; universities and high technology spin-outs tend invariably to select carefully, and add to their patent portfolio as needed. In these cases though patenting is rarely thought of as a tool for competitive action, but instead it is a reactive or defensive measure. Indeed in many regards, the key value of patented technology for an SME is that ultimately the company might be bought outright by a larger (probably offshore) company who require the technology; this would be seen as a highly successful outcome for the company, rather than the ongoing sustenance of the company and the corresponding employment of the workforce. With regards to photonics patents, there are a number of concerns raised by the study: • Patent costs overall are considered to be prohibitive o However initial filing costs are not considered to be too expensive • Patent defence litigation is beyond the reach of most SMEs These prevalent concerns give rise to a major issue concerning photonics patenting at the SME level, in that SMEs tend not to file patent applications; typical responses to discussions on patenting were: o “…if challenged, we could not afford to protect our patents anyway..” o “…we’ve got to get to market whilst we can now (i.e. with no patent protection) and then see what else happens downstream” o “…we won’t be launching this in the USA because of the patent situation over there.” In addition to the reluctance of SMES to apply for patents, there is a concern, certainly for the area of high technology/photonics patenting that there is a perceived difference in the attitude towards patents, between the UK and North America. It is felt that North American companies are granted ‘non-inventive’ patents which are then defended aggressively. This is certainly the case for solid state lighting technology where several NW SMEs expressed a total reluctance to enter the US market with their product portfolio due to the potential for litigation. Worse still, several NW SMEs stated a concern regarding (US based) patent litigation wherein they are required to pay a ‘licence’ for their own technology or face a court battle to avoid doing so. In this situation the SMEs felt they were working ‘on their own’ and were ‘too small’ to defend themselves. This matter was raised and discussed at the solid state lighting workshop where it was deemed to be a significant concern. One possible solution would be for the Public Sector to put in place a central resource to help SMEs deal with their patent concerns. In the absence of patent support it can be expected that many Northwest photonics could face two significant threats to their future growth (and in many cases long term viability) •

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Vulnerability to low cost imported ‘copies’ of their successful but unpatented products

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Patent litigation from major organisations with extensive resources for patent based litigation initiatives

Observation 47: Small photonics SMEs are deterred from taking part in the patent process and wary of entering markets where patent litigation would be extremely expensive.

9.15 Workshop on Solid State Lighting & LEDs To support the Northwest photonics mapping study, Birmingham Technology Ltd arranged for a joint symposium and workshop on Solid-State Lighting and LEDs to take place in Haydock, Merseyside on 22nd March 2007. The aim of the meeting was to: • • • •

Review the initial results of the mapping study in order to develop an Action Plan for growth in England’s North West Secure contributions from workshop attendees on key issues, trends and barriers Discuss and agree how the Plan should be implemented Secure feedback on the priorities for action

The Symposium included a keynote address by Peter Batchelor of the DTI and presentations of current research findings by consultants Duncan Yellen (Quantum Strategy & Consultancy Limited) and Dr Geoff Archenhold (Birmingham Technology Ltd) which served to provide an in-depth overview of the market opportunities and technology trends for Northwest companies working in solid state lighting and LEDs. The list of attendees at the workshop is listed in APPENDIX H. Following the technical presentations, a brainstorming and workshop event was organized which split the attendees up into 4 groups to review the issues and potential solutions associated with the following photonics related areas:

•

Skills Barriers

•

Technology & Knowledge Barriers

•

Business & Commercial Barriers

•

Patents & Innovation

•

Grants & Funding

•

Exemplar Projects for SSL & LED

Table 11: Solid State Lighting & LED Workshop Brainstorm Issues

Some of the key outcomes from the workshop are described below:

SSL Workshop - Patents & Innovation Similar to the findings from the consultation process there is a concern that whilst SMEs are highly innovative in the SSL area, they lack resource in the patent area especially in terms of patent defence against large scale (litigious) corporations. A possible area for coordinated (e.g. NWDA or governmental) support would be to establish a clearing

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Northwest Photonics Mapping Study house for patent support that photonics SMEs could tap into as and when needed. Such a coordinated ‘defensive’ patent resource would likely deter speculative patent threats that currently are of concern to SMEs, especially with regards to the US market. SSL Workshop - Solid State Lighting Standards As solid state lighting penetrates lighting markets (e.g. home, street, office etc) as a rival to the existing technology base (i.e. incandescent and fluorescent lights) there is a need to establish and confirm that its performance and reliability are acceptable as this will encourage adoption. The Public Sector could assist here by driving the establishment of performance specifications for key solid state light applications such as SSL for domestic and street lighting as part of the encouragement process. For example once SSL technology can match the performance of existing streetlight technologies then SSL/technology could be ‘mandated’ for the Northwest as it supports strongly energy saving and environmental issues. Creation of performance standards (‘kite marks’) would also help to push out poorly performing SSL technology products (e.g. LED desk lamps) which might otherwise discourage adoption when they fail to live up to expectation. It is noted that SMEs do not usually have access to the key decision makers due to their small size and dispersal throughout the region. SSL Workshop – Skills & Business Issues SSL technology is currently creating a host of demands e.g. there is a need to link SSL industry players to end users, SSL employers to potential employees with the right skills mix, employees skilled in photonics might need training in sales and marketing. The Public Sector could assist here by identifying a range of SSL and photonics skills needs and the appropriate training agenda, especially for accredited training courses and encourage colleges and training agencies to develop and deliver such courses through appropriate funding mechanisms. SSL Workshop – Exemplar projects Numerous exemplar projects which could all help demonstrate the capability of SSL technology were proposed including: Blackpool Illuminations; large NW retailer and/or local government building to fully adopt SSL as their primary lighting technology; NW based casino to include dynamic solid state lighting (e.g. as occurs in Las Vegas); designated parks and walkways to be converted fully to SSL; town or village to be converted over to SSL as a ‘world first’ demonstrator. Note project exemplars are discussed further in 9.16 below.

9.16 Exemplar Projects An exemplar project is a highly visible demonstrator or showcase project that acts as a flagship for a concept, a capability or a specialism and shows what can be achieved with focussed effort, and which could be developed further depending on the level of support. Exemplar projects can be applied across many sectors, for example a new low cost housing scheme which might help re-generate an area, or an environmentally themed project (e.g. recycling) for the benefit of the community. It is believed that there are a number of exemplar projects in photonics that could be used as flagship for the

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Northwest Photonics Mapping Study Northwest region and indeed many ideas were discussed at the solid state lighting symposium at Haydock. Observation 48: It is recommended that regional photonics exemplar projects are developed to showcase the best of photonics technology. As a matter of interest, Blackpool & Fylde College are currently considering the establishment of a Degree in Illuminations (through the University of Lancaster) in support of a perceived need to develop skills in this area and which are clearly relevant to the region.

9.16.1

Solid State Lighting Showcases

Another suggestion of an exemplar project to support solid state lighting technology in the Northwest was the idea of solid state lighting showcase projects. For example, persuading a major Northwest retailer or organisation to convert an entire building (e.g. a flagship retail outlet) over to solid state lighting in replacement of existing incandescent / fluorescent lighting would provide good publicity for the retailer and act as an exemplar. Similarly, urban regeneration projects could use energy efficient solid state lighting based products as a replacement for existing street lighting and general illumination in an entire area. Aside from the energy saving considerations, SSL based lighting also has the potential to impact on the â&#x20AC;&#x2DC;quality of lifeâ&#x20AC;&#x2122; due to its improved illumination capabilities e.g. a better general white light illumination, pure colours to enhance architectural features etc, Another example of a showcase project to stimulate activity would be a design award / competition to find the best design of LED replacement for conventional household light bulbs; it is only a matter of time before conventional incandescent lights become obsolete in the home.

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10 Conclusions 10.1 Overview This mapping study has assessed photonics technology related activities in the Northwest region of the UK in order that opportunities for sustainable business development and growth may be identified and implemented through a coordinated Public – Private sector effort led by the Northwest Regional Development Agency. The mapping study involved consultation with regional academic, industrial, business support, and technological support organisations in the region and included an analysis of over 260 scientific companies located in the Northwest of which 188 were identified as working in the photonics sector. Notable within the overall number of companies surveyed are 110 companies active within the Lighting and Energy Applications sector of the photonics industry, chiefly in the innovative area of solid state lighting technology. Overall the NW photonics companies generate more than £674 million for the region per annum, employing an estimated 6200 employees. In accordance with this data and the world trend towards‘ knowledge based’ economies, the photonics sector is largely associated with the creation of a proliferation of fast moving, small to medium sized enterprises (e.g. employing around 5 to 40 people) rather than the centres of large scale employment. It follows that clustering of such disparate and widespread activity is usually beneficial both for the companies and the region in which they are located. The mapping study process generated a list of ‘observations’ listed in APPENDIX I and which are pertinent to the Northwest photonics sector. Some of the key highlights, findings and conclusions for the mapping study are summarised below: •

Photonics needs to be recognised as a priority business sector for the Northwest region.

•

Within the photonics technology umbrella, solid state lighting (SSL) technology (and allied environmental technologies such as photovoltaics) needs to be recognised as priority business sub-sector within the region:

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There is a noted regional strength in SSL in the Northwest UK with a de facto SSL cluster emerging in the Cumbria region centred on 3 companies which contribute £19 million annually to the region.

A regionally based centre of excellence (e.g. Institute of Sustainable Lighting) could ally energy efficient solid state lighting technology with emerging renewable energy schemes, assisting with the delivery of strong economic and environmental benefits, and acting as a means of knowledge transfer.

Exemplar projects in SSL (e.g. The Blackpool Illuminations, SSL street lighting etc.) could stimulate awareness of and grow business activity in the region.

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Biophotonics is another important photonics sub-sector activity which needs to be harnessed with an existing Northwest strength in biomedicine.

•

Photonics clustering in the Northwest requires careful, strategic support with a preference for nationally led initiatives, albeit delivered locally where possible.

•

Clustering already occurs in the aerospace, automotive, biomedical and advanced laser engineering sectors o

Emphasis now needs to be given to recognising core and underpinning photonics activity within each of these sectors in order to sustain growth and prevent business leakage to other regions

•

The Northwest universities are popular and growing rapidly in key areas such as biomedicine and photon science. Photonics activity can and should be encouraged further to enhance the region such that it becomes a known centre for academic strength and excellence in the photonics area. For example, identify desirable and potentially demand driven undergraduate and postgraduate courses in optics, photonics and lighting.

•

Photonics companies are typically small in size and are inherently innovative yet they are currently facing considerable business pressures which inhibit forward looking but otherwise essential activities needed critically for their survival. Concerns identified during the study include:

•

Insufficient resources (time and money) for product based research activity

Lack of interaction with the higher education sector for knowledge transfer

Disengagement with the patenting process

Photonics exemplar projects could stimulate Northwest activity and should be considered by the Public and Private sectors. Proposed projects could include: o

A fibre-to-the-home initiative to support future ICT and Media related businesses e.g. Media City

The Blackpool Illuminations as a state-of-the-art photonics display event

Conversion of flagship public sector and/or commercial properties to solid state lighting to highlight regional strength in SSL and the environmental benefits thereof

10.2 Mapping Study Findings versus NWDA Brief This section places the key findings from the mapping study against the context of the original NWDA Brief:

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Northwest Photonics Mapping Study Mapping Study Requirement

Keynote Findings

Determine the scale of the sector and sub-sectors including where possible regional and sub-regional turnover and employment figures. Key and fastest growing companies should also be identified. The information should be presented graphically and include a geographic map of the distribution of the cluster.

Determine the existence and strength of any supply chain activity in the Northwest.

• NW Region: 188 photonics Companies employing over 6000 people regional turnover £659 million • Sub-regional turnover: Cheshire £88 M; Cumbria £51 M; Gtr Manchester £331 M; Lancashire £144 M; Merseyside £46 M. (See Table 2) • Exemplar companies include: Datalase, Lynton Lasers, Laser Quantum, Oxley, Marl, Forge Europa • Photonics is a global business with minimal (or extremely short) supply chain activities • Photonics knowledge and skills transfer are arguably the key supply chain issues to consider.

Identify the level to which Photonics may be embedded in existing priority sectors identified under Action 8 of the Regional Economic Strategy, through reviewing member companies to the North West’s Regional Cluster Management Organisations.

• Photonics is a pervasive technology that is best recognised as a priority sector in its own right. Solid state lighting is a priority sub-sector due to an existing NW regional strength in this field. • Photonics cluster programmes in existing priority sectors can be stimulated as follows: Biophotonics via Bionow; aerospace photonics via NWAA; automotive photonics via NAA; nanophotonics via NWLEC • This Northwest mapping study report and process can be used to assist NW photonics companies in the identification of regional cluster management organisations

Identify the sub - sectors with the highest growth potential describing the key dynamics and business drivers. This should clearly indicate competitiveness and emerging market opportunities.

• The NW has a regional strength in biomedicine within which biophotonics activity can be amplified and accelerated. Knowledge transfer across this interdisciplinary field is an essential part of the process. Biophotonics is driving a paradigm shift in healthcare towards advanced screening, remote assistance and minimally invasive treatment. • Solid state lighting allied with renewable energy schemes (e.g. nano-photovoltaics) is a major emerging market with SSL expected to replace incandescent and fluorescent lighting in all markets. The UK domestic lighting market is typically around £2 billion per annum, the non-domestic market around £1 billion per annum.

Assess where there are business leakages from the North West to other regions or countries.

Determine the strength in photonics of HE and FE institutions in comparison with national and international capabilities.

• The NW regional strength in SSL should be aggregated and protected pending leakage to other regions and especially to threats from low cost imports • NW photonics academic activity has the potential to be grown and increased to compete against existing and established UK capability e.g. located in the South East and Scotland. • The North West is an extremely popular location for students entering HE sector • There are gaps in the market in the areas of lighting and illumination technology which could be grown into a regional strength. …continued over

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Table 12: Photonics Mapping Study Findings versus NWDA Brief (1 of 2) Mapping Study Requirement

Keynote Findings

Determine the level of engagement between the photonics sector with HE/FE institutions.

• NWLEC is a model of excellence for academic and industry based collaboration (in advanced laser engineering) • SME engagement is poor due to perceived timescale conflicts • R&D vouchers for SMEs to spend in the HEI sector is an innovative solution to this problem • OMIC capability for short term 2 month feasibility studies and technology transfer needs to be encouraged

Determine the existence of existing networking in the photonics sector and the public agencies which support the sector.

• NWLEC is an exemplar model for networking in the advanced laser engineering field • There are numerous photonics networking agencies in the UK – NWDA should identify strategic partners for future networking • Northwest Photonics Association is still at an early stage of development. • SMEs require generic photonics clustering to be matched to their immediate and specific business needs

Identify the strengths and weaknesses of the various subsectors that could be subject to future threats and opportunities.

• SSL based SMEs are inhibited from entering the patenting process and concerned by the threat of patent litigation • Many innovative SSL products are therefore unprotected in a dynamic and aggressive market • Photonics will rapidly penetrate the Aerospace and Automotive sectors and could lead to significant businesses leakages if not addressed through coordinated activity

Identify any gaps in provision in terms of key services should be highlighted and reported, especially if these gaps are in markets with future growth potential and therefore present opportunities for expansion and development of the Northwest photonics sector.

• Awareness of grant support to photonics SMEs needs to be increased i.e. raise the visibility of the GRAND scheme • Linkage between SMEs and HEI could be improved by increasing visibility of SME needs and HEI capability • Photonics SMEs are lacking support in the patents area which could become a key concern for this high technology field • Fibre-to-the-home requires enabling support to improve broadband provision to the office/home

Evaluate the benefits to the North West economy of the NWDA adopting a cluster approach to developing the identified Photonics sector.

• Clustering needs to be carefully targeted towards business needs and considered at the highest strategic level. • Focussed sub-sector clustering (e.g. bio photonics, solid state lighting, enviro-photonics) is arguably more critical than a generic photonics clustering approach • Because of the criticality of knowledge transfer to photonics, engagement between industry and academia needs to be stimulated along the lines of the NWLEC model

Table 12 (continued): Photonics Mapping Study Findings versus NWDA Brief (2 of 2)

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APPENDIX A References 1

Worldwide Optoelectronics Markets 2004, Optoelectronics Industry Development Association, June 2005

â&#x20AC;&#x2DC;Painting a Bright Future: Photonics - A UK Strategy for Successâ&#x20AC;&#x2122;, July 2006, Department of Trade and Industry, www.dti.gov.uk

Northwest Regional Economic Strategy 2006, www.nwda.co.uk

Industrial Laser Solutions, "Fibre lasers tip the scale", 2006, http://ils.pennnet.com/Articles/Article_Display.cfm?ARTICLE_ID=246483&p=39&cat=Feat

Diabetes UK, "Diabetes in the UK 2004: A report", October 2004, http://www.diabetes.org.uk/infocentre/reports/in_the_UK_2004.doc

OECD Health spending and resources, 2005, http://ocde.p4.siteinternet.com/publications/doifiles/012005061T002.xls

Founded in 1997, the Netherlands based Science Alliance is an intermediary organization that stimulates the collaboration and knowledge transfer between universities and external parties.

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APPENDIX B Glossary of Terms CATV

Cable television delivered via a coaxial cable drop to the home for residential voice, video and data services

DSL

Digital subscriber line – delivery of digital data services usually up to 2 Mb/s over a conventional phone connection (copper pair).

EEDA

East of England Development Agency

EPPIC

Electronics and Photonics Packing and Interconnection

FPD

Flat Panel Display – generic reference to alternative to the cathode ray tube

FTTP

Fibre to the Premises – optical fibre installed up to and into a building

FTTx

Generic reference for optical fibre delivered into the access network but with its end point (e.g. curb, building, home) not clearly defined

HB LED

High brightness light emitting diode – technology breakthrough delineating the latest LED products from traditional LEDs which were to on-off indication type applications. HB LEDs are now bright enough to be considered for use in signalling, lighting and illumination applications.

KTN

Knowledge transfer network – play an important role in delivering the UK government’s strategy on innovation for high technology sectors, with over 20 KTNs defined to date (including a photonics KTN.) The objective of KTNs is to improve the UK’s innovation performance by increasing the breadth and depth of knowledge transfer into UK industry.

IST

Information Society Technologies (European Union Activity)

LCD

Liquid crystal display – extremely important digital display technology that usually requires a backlight (unlike OLED which is emissive).

LED

Light emitting diode – semiconductor that emits light when a current is passed through it.

NWDA

North West Regional Development Agency. Regional development agency for the Northwest UK comprising Cumbria, Cheshire, Lancashire, Greater Manchester and Merseyside

OECD

Organisation for Economic Cooperation and Development – comprising 30 member countries and publishes statistics on world social and economic developments, including high technology industries and innovation.

OIDA

Optoelectronics Industry Development Association – based in Washington USA provides roadmaps, reports and market data for the optoelectronics industry. The OIDA annual report is a key reference and resource for photonics market data.

OLED

Organic Light Emitting Diode or light emitting polymer – is a next generation display technology (rivalling LCDs) that is based on small organic polymer dots which can emit light when electrically charged.

OLLA

Focus organisation for European expertise in OLED technology.

PDP

Plasma Display Panel – display technology rivalling LCD, OLED and CRT technologies; popular in recent years but likely to be displaced by LCD and OLED.

RDA

Regional Development Agency; There are 9 regional development agencies covering England: East of England; East Midlands; London; North East; North West; South East; South West; West Midlands; Yorkshire & Humber.

RES

Regional Economic Strategy – the clearly economic policy of each Regional Development Agency.

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APPENDIX C List of Companies Consulted for Mapping Study The following table lists the Northwest based companies who were consulted during the photonics mapping study process, for 20 of the companies listed the process included an on-site visit and the use of a detailed consultation questionnaire probing for specific information.

Company

Contact

Company

Contact

Altimex

Davinder Lotay

Lythgoes OSP

Les Lythgoe

Aurelialight

Terry King

Marl

Adrian Rawlinson

Bentley

David Maughan

Natolamps

John Ronfell

Bionow

Linda McGee

NJO Leds

Mike Rawlinson

Blackpool Festival of Light

Samara Stott

Northwest Photonics Association

Alan Boardman

CLIK-Daresbury Labs

Paul Vernon

NWAA

David Bailey

Datalase

David Mille

NWLEC

Ken Watkins

Dorman

Philip Martin

NWUA

Peter Davies

Exfo Ltd

Mike Harrop

OMIC

Mike Holmes

Forge europa

Julie Barton

Opticonsulting

Hugh Barton

Lairdside Lasers

Martin Sharp

Oxley

Tim Bushell

Laser Physics

P Bennet

PlusOpto

Andrew Heaps

Laser Quantum

Steve Lane

Rutronik

Chris Turner

Leybold

David Clegg

Siltint

Gerry Biggs

Lo-Energi Lighting

William Parr

Skylighting

Izquar Hamid

Lynton Lasers

Andy Berry

Tritec

David Myers

Furness Enterprise

Harry Knowles

Ventilux

Neil Whittingham

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APPENDIX D Complete List of Northwest Companies Surveyed (1 of 4) 12 VoltZ Ltd

Preston

Lancashire

ACDC LEDs

Barrowford

Lancashire

ACDC Lighting Systems Ltd

Barrowford

Lancashire

AD Aerospace Ltd

Preston Brook

Cheshire

ADI UK Ltd

Fulwood

Lancashire

Adlite Productions Ltd

Liverpool

Merseyside

Alampco limited

Wirral

Merseyside

Altimex

Chester

Cheshire

Amber Optics

Northwich

Cheshire

AMR (Burnley) Ltd

Burnley

Lancashire

Aneeva Electronics

Oldham

Greater Manchester

Asco Lights

Manchester

Greater Manchester

ASG Stage Products

Ashton-in-Makerfield

Greater Manchester

Atkins Odlin

Stockport

Greater Manchester

Attiger

Birkenhead

Merseyside

Aurelialight Ltd

Manchester

Greater Manchester

BAE Systems

Salmesbury

Lancashire

Bentley Motors Limited

Crewe

Cheshire

Bloom Recruitment Ltd

Manchester

Greater Manchester

BP Communications Ltd

Barrow In Furness

Cumbria

Brabin & Fitz Limited

Chester

Cheshire

Braemac UK Electronics Distribution

Warrington

Cheshire

British Machine Vision Association

Manchester

Greater Manchester

Cascade Electrolite Ltd

Oldham

Greater Manchester

Chantelle Lighting Ltd

Nelson

Lancashire

Chelsom Ltd

Blackpool

Lancashire

Chromatechnic Ltd CIMS (Centre for Intelligent Monitoring Systems)

Ulverston

Cumbria

Liverpool

Merseyside

Craft Metal Spinning (Warrington) Ltd.

Warrington

Cheshire

Darnell Consultants Ltd

Manchester

Greater Manchester

DataLase Ltd

Widnes

Cheshire

DC Emergency Systems Ltd.

Dukinfield

Greater Manchester

Digital Projection

Manchester

Greater Manchester

Digital Projection International

Manchester

Greater Manchester

Digital Projection Service Ltd

Manchester

Greater Manchester

Discreet Remote Control

Manchester

Greater Manchester

Display Lighting Ltd

Altrincham

Greater Manchester

Dorman (Unipart Rail Limited)

Southport

Merseyside

DP Fibre Optics

Bury

Greater Manchester

Energetix Laser Technologies Ltd

Chester

Cheshire

Envin Scientific Limited

Tattenhall

Cheshire

Environmental Lighting Ltd

Manchester

Greater Manchester

Epichem Group

Bromborough

Merseyside

Epichem Ltd

Bromborough

Merseyside

Eurolite Ltd.

Preston

Lancashire

EuroPac Metrology

Crewe

Cheshire

Ex-Or Limited

Haydock

Merseyside

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APPENDIX D Complete List of Northwest Companies Surveyed (2 of 4) Express Instrument Hire Ltd

Southport

Merseyside

F20 Lighting / Futuristic Fibre Optics

Nelson

Lancashire

FARFIELD SCIENTIFIC LIMITED

Crewe

Cheshire

Farfield Sensors Ltd

Manchester

Greater Manchester

Fibre Optic FX Ltd

Great Harwood

Lancashire

FIBRE OPTIC SERVICES LIMITED

Liverpool

Merseyside

FIBRE OPTIC SOLUTIONS LIMITED

Preston

Lancashire

Fibre Optics UK Ltd

Manchester

Greater Manchester

Fibre Research Group

Manchester

Greater Manchester

Forge Europa

Ulverston

Cumbria

Francis Searchlights Ltd

Bolton

Greater Manchester

Future Electronics

Manchester

Greater Manchester

GJD Manufacturing

Heywood

Greater Manchester

Gradus Group Holdings #1

Macclesfield

Cheshire

Great British Lighting

Fleetwood

Lancashire

Hiden Analytical

Warrington

Cheshire

Hilclare Lighting

Manchester

Greater Manchester

Hope technology

Barnoldswick

Lancashire

Howells Railway Products Limited

Manchester

Greater Manchester

IC Pie

Keswick

Cumbria

Image Lighting (Manchester) Ltd.

Bolton

Greater Manchester

Inspired by Design

Broughton

Greater Manchester

Inspired Lighting Ltd

Manchester

Greater Manchester

Instrumentation Design Ltd

Altrincham

Greater Manchester

Intelliblinds

Macclesfield

Cheshire

ISS Group Services Limited

Manchester

Greater Manchester

J D Photo tools

Oldham,

Greater Manchester

J H Miller & Sons Ltd

Manchester

Greater Manchester

Kane Computing Ltd

Northwich

Cheshire

KB Import and Export Limited

Manchester

Greater Manchester

Kipfold Ltd

Manchester

Greater Manchester

Lairdside Laser Engineering Centre

Birkenhead

Merseyside

Lamplighter Products

Ashton-Under-Lyne

Greater Manchester

Lamps and Lighting Ltd

Burnley

Lancashire

Lancaster Communications

Lancaster

Lancashire

Laser Physics UK Ltd

Milton Green

Cheshire

Laser Quantum Ltd

Stockport

Greater Manchester

Laser Visuals Research Limited

Grange-Over-Sands

Cumbria

Lasers for Life

Liverpool

Merseyside

Leco Instruments (UK) Ltd

Stockport

Greater Manchester

Leybold Optics Lighting & Illumination Technology Experience Ltd

Stretford

Greater Manchester

Nelson

Lancashire

Lighting and Electrical Supply Company

Manchester

Greater Manchester

Lighting Motions Ltd

Oldham

Greater Manchester

Lighting Paradise Inc

Burnley

Lancashire

Lighting Up

Wilmslow

Cheshire

Litelogic

Stockport

Greater Manchester

Lloytron Plc

Leigh

Greater Manchester

Lighting FX

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APPENDIX D Complete List of Northwest Companies Surveyed (3 of 4) Lo-Energi Lighting Ltd.

St Helens

Merseyside

Lucid Optical Services

Sedburgh

Cumbria

Lumier

Barrow

Cumbria

Luminanz Limited

Bolton

Greater Manchester

Luxlite Europe

Liverpool

Merseyside

Lynton Lasers Ltd

Holmes Chapel

Cheshire

Lythgoes Ltd

Leigh

Greater Manchester

MacLean Electrical Business Unit

Liverpool

Merseyside

Mallatite Manchester Engineering Design Consultancy

Manchester

Greater Manchester

Manchester

Greater Manchester

Marl International Ltd

Ulverston

Cumbria

Martin Roberts

Skelmersdale

Lancashire

MEI Technologies

Macclesfield

Cheshire

Mercury Recycling Ltd

Trafford Park

Greater Manchester

Metcraft Lighting

Oldham

Greater Manchester

MicroMark

Liverpool

Merseyside

Middleton Sheet Metal

Middleton

Greater Manchester

MK Illumination UK Ltd.

Darwen

Lancashire

MKS Instruments UK Ltd

Broadheath

Greater Manchester

Mondiale Publishing

Stockport

Greater Manchester

Mulligan Lighting

Preston

Lancashire

Musco Lighting Europe Ltd.

Bolton

Greater Manchester

Museum & Gallery Lighting Ltd

Bury

Greater Manchester

Natolamps

Miry Lane, Wigan

Greater Manchester

Neat3D Solutions Ltd

Liverpool

Merseyside

NJD Electronics Ltd

St. Helens

Merseyside

NJO North West Laser Engineering Consortium

Kendal

Cumbria

Manchester

Greater Manchester

Nu Light Systems Ltd

Warrington

Cheshire

One Electrical

Manchester

Greater Manchester

Optic Lighting Ltd

Gisburn

Lancashire

Optical Fibres (UK)

Morecambe

Lancashire

OptiConsulting UK

Manchester

Greater Manchester

Opticus

Manchester

Greater Manchester

Optimum coatings

Morecambe

Lancashire

Oriental Interiors

Chester

Cheshire

Orion Optics

Crewe

Cheshire

Oxley Systems

Barrow-in-Furness

Cumbria

Oxley Technology Group

Ulverston

Cumbria

Panoptic Ltd Parkersell (lighting and electrical) Services

Carnforth

Lancashire

Worsley

Greater Manchester

Passcomm Ltd

Warrington

Cheshire

PAV Data Systems Ltd

Knowsley Industrial Park

Merseyside

Photonic Research Systems Ltd

Salford

Greater Manchester

Photronics

Trafford Park

Greater Manchester

Pilkington Technology Management Ltd

Ormskirk

Lancashire

Plus Opto (Holdings)

Leigh

Greater Manchester

Plus Opto Ltd

Leigh

Greater Manchester

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APPENDIX D Complete List of Northwest Companies Surveyed (4 of 4) Projection Lighting Ltd

Manchester

Greater Manchester

Protec Fire Detection Plc.

Nelson

Lancashire

RVL

Manchester

Greater Manchester

Rolls-Royce

Barnoldswick

Lancashire

Rutronik UK LTD

Bolton

Greater Manchester

Sanko Gosei UK Ltd

Skelmersdale

Lancashire

Satis Vacuum (UK) Ltd

Bolton

Greater Manchester

Satishloh Uk Ltd

Bolton

Greater Manchester

Scanlite Visual Communication

Blackpool

Lancashire

Searchlight Electric Ltd

Manchester

Greater Manchester

Sensory Technology Ltd

St Helens

Merseyside

Servlite UK Ltd

Manchester

Greater Manchester

Siemens Plc

Congleton

Cheshire

Signature Ltd

Manchester

Greater Manchester

Silonex / Chromatechnic

Ulverston

Cumbria

SILTINT Industries Ltd

Wythenshawe

Greater Manchester

Simplex Marketing Ltd

Barrowford

Lancashire

Siteco Limited

Stockport

Greater Manchester

Skylighting

Manchester

Greater Manchester

Solar Twin Ltd

Chester,

Cheshire

SolarTech (UK) Ltd

Bury

Greater Manchester

Solite Europe Ltd

Manchester

Greater Manchester

Spectrum Coatings

Crumpsall

Greater Manchester

stuart photronics

Manchester

Greater Manchester

Swan Signs Limited

Preston

Lancashire

Sympatec (UK) Ltd

Bury

Greater Manchester

System Technologies

Ulverston

Cumbria

Theoptics Designs Ltd

Penrith

Cumbria

Thorn Lighting Ltd

Manchester

Greater Manchester

Translec Limited

Oldham

Greater Manchester

Trident Manufacturing Ltd

Manchester

Greater Manchester

Tritec Developments Ltd

St Helens

Merseyside

Tronic Ltd

Ulverston

Cumbria

TWM Traffic Control Systems Ltd

Winsford

Cheshire

Tyson Lighting

Blackburn

Lancashire

Uniwell Systems (UK) Ltd.

Blackburn

Lancashire

Valentine Signs and Labels

Manchester

Greater Manchester

Ventilux UK Ltd.

Liverpool

Merseyside

Virtual Reality

Manchester

Greater Manchester

Visual Automation Ltd

Manchester

Greater Manchester

Whitecroft Lighting

Ashton-under-Lyne

Greater Manchester

WR Anderton and Company Ltd

Rochdale

Greater Manchester

X-Rite Ltd

Poynton

Cheshire

Zetex Semi

Oldham

Greater Manchester

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APPENDIX E Geographic Map of Northwest Photonics Defence Sector

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APPENDIX E Geographic Map of Northwest ICT & Consumer Photonics Sector

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APPENDIX E Geographic Map of Northwest Industrial Photonics Sector

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APPENDIX E Geographic Map of Northwest Life Sciences & Healthcare Sector

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APPENDIX E Geographic Map of Northwest Lighting & Energy Sector

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APPENDIX F Analysis of EPSRC Funding

Image & Vision Computing £3.2 M NW

£13.8 M

East Midlands East of England North East North West Northern Ireland Scotland South East South West

£43.3 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 33: EPSRC Grant Funding: Image & Vision Computing

Lasers & Laser Systems £1.0 M NW

East Midlands East of England North East North West Northern Ireland Scotland

£14.7 M £17.4 M

South East South West Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 34: EPSRC Grant Funding: Lasers & Laser Systems

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APPENDIX F Analysis of EPSRC Funding (continued)

Light Matter Interactions East Midlands East of England £2.3 M

North East North West Northern Ireland Scotland £0.5 M

South East South West

£5.8 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 35: EPSRC Grant Funding: Light Matter Interactions

Medical Instruments East Midlands East of England North East NW

£4.9 M

£2.5 M

North West Northern Ireland Scotland

£6.9 M

South East South West

£15.4 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 36: EPSRC Grant Funding: Medical Instruments

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APPENDIX F Analysis of EPSRC Funding (Continued)

Optical Communications NW

£0.2 M

East Midlands East of England North East North West Northern Ireland Scotland

£12.8 M

South East South West

£13.9 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 37: EPSRC Grant Funding: Optical Communications

Optical Devices East Midlands East of England North East NW

£1.2 M

North West Northern Ireland Scotland South East South West

£18.2 M £21.7 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 38: EPSRC Grant Funding: Optical Devices

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APPENDIX F Analysis of EPSRC Funding (continued)

Optical Phenomena £0.8 M

East Midlands

East of England North East North West Northern Ireland Scotland

£8.1 M

South East South West £11.4 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 39: EPSRC Grant Funding: Optical Phenomena

Applied Optics NW

£0.4 M

East Midlands East of England North East North West

£3.4 M

Northern Ireland Scotland South East South West

£15.0 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 40: EPSRC Grant Funding: Applied Optics

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APPENDIX F Analysis of EPSRC Funding (continued)

Optoelectronics East Midlands East of England North East North West

£9.0 M

Northern Ireland Scotland NW

£1.8 M

South East South West

£23.1 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 41: EPSRC Grant Funding: Optoelectronics

Plasmas NW

£0.2 M

East Midlands East of England North East £4.4 M

£5.6 M

North West Northern Ireland Scotland South East South West

£6.2 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 42: EPSRC Grant Funding: Plasmas

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APPENDIX F Analysis of EPSRC Funding (continued)

Quantum Optics East Midlands East of England

£6.6 M

North East North West NW

£0.5 M

Northern Ireland Scotland South East South West

£31.0 M

Wales West Midlands

Source: EPSRC

Yorkshire & Humber

Date: April 2007

Figure 43: EPSRC Grant Funding: Quantum Optics

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APPENDIX G Table 13: Northwest University Activity in Photonics (1 of 2) University

Department / School

Photonics Related Courses & Research Subjects

Supports DTI Photonics Application Sector

University of Bolton

Computing & Electronic Technology

Internet Communications (Bsc) Creative Technologies3D advanced computer gaming Special effects

ICT & Consumer Photonics

Christie Hospital

North Western Medical Physics

Image & Vision Computing Metrology Guided Radiotherapy

Life Sciences & Healthcare

Communication and Computer Systems (BSc/MSc) Electronic Communications Systems (BEng / MEng) Mid-infrared Optoelectronics Group Semiconductor fabrication capability Mid-infrared diode lasers & Quantum Dots Photonic band gap engineering

ICT & Consumer Photonics

Lancaster University

Computing Department

Physics

Engineering Liverpool John Moores University

General Engineering Research Institute Computing & Mathematical Sciences

Manchester Metropolitan University

Engineering & Technology

School of Computer Science, Department of Computing & Mathematics University of Liverpool

Electrical Engineering & Electronics

Engineering

Coherent and Electro-optics Research Group RF & Microwave Research Group Convergence of Networking, Telecommunications & Broadcasting

ICT & Consumer Photonics Industrial Photonics

Industrial Photonics Life Sciences & Healthcare

ICT & Consumer Photonics

Communication & Electronic Engineering (BEng) Information and Communications (BSc) Terahertz imaging and related sensing Cognitive Systems Foresight (facial image recognition)

ICT & Consumer Photonics Defence & Security

Electrical Engineering and Electronics (BEng / MEng) Electrical and Electronic Engineering (BEng /MEng) Electronic and Communication Engineering (BEng /MEng) Electronics (MEng)

ICT & Consumer Photonics Life Sciences & Healthcare

Laser Engineering (BEng/MEng) North West Laser Engineering Consortium (NWLEC)

Industrial Photonics Life Sciences & Healthcare

Life Sciences & Healthcare Defence & Security

â&#x20AC;ŚContinued overpage

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APPENDIX G Table 13 (continued): Northwest University Activity in Photonics (2 of 2) University

Manchester University

Department / School

Photonics Related Courses & Research Subjects

Chemistry

High efficiency solar cells Quantum Information Processing Computing & Communication Systems Engineering (BEng/MEng) Microelectronics and Nanostructures Terahertz technology and imaging Low Energy Lighting (LEDs) Manufacturing & Laser Processing Group North West Laser Engineering Consortium (NWLEC) Aerospace / flow Diagnostic imaging Post graduate research in the field of Imaging Science and Biomedical Engineering Terahertz technology for medical imaging Optical phenomena

School of Electrical and Electronic Engineering

Power Conversion Group School of Mechanical Aerospace and Civil Engineering

Faculty of Medical & Human Sciences, School of Medicine, Pharmacy and Pharmaceutical Science School of Physics & Astronomy School of Physics & Astronomy, Photon Physics University of Central Lancashire

Blackpool & Fylde College University of Salford

CCLRC Daresbury

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Technology (including recently opened PACCAR Robotics and Vision Laboratory)

Department of Photon Science

Digital Communications (BEng) 3D Computer Graphics and Visualisation (BSc)

(Supported by the University of Lancaster)

Supports DTI Photonics Application Sector Lighting & Energy ICT & Consumer Photonics Life Sciences & Healthcare Defence & Security Lighting & Energy

Industrial Photonics Defence & Security

Life Sciences & Healthcare

Life Sciences & Healthcare Life Sciences & Healthcare Industrial Photonics Industrial Photonics (underpinning research) ICT & Consumer Photonics

Degree in Illuminations (proposed 2007)

Institute of Materials Research

Physics with Lasers & Photonics (BSc/MPhys) Northwest Photonics Association (NPA)

ICT & Consumer Photonics

Computational Science and Engineering Department

Advanced Research Computing including Quantum Optics and Information

ICT & Consumer Photonics

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APPENDIX H SOLID STATE LIGHTING WORKSHOP PARTICIPANTS Solid State Lighting & LED Symposium Workshop 22nd March 2007, Haydock Park, Merseyside Organised by Photonics Cluster UK & Envirolink

Adrian Rawlinson Chris Turner Daniela Graef Dave Hall David Howell Davinder Lotay Davy Lo Derek Deighton Dr Geoff Archenhold Dr M.P. Halsall Dr Neil Haigh Dr Philip Dawson Dr Tim Bushell Duncan Yellen Gavin Tracey Ian Maxwell Ian Sibbick James Millar John Keough Jon Potter Julian Ding Khagendra S Thapa Mike Bartley Mike Rawlinson Neil Wittingham Nicholas Jones Nigel Walker Peter Batchelor Simon Tebbey Stephen Yeates Stuart Klosinski Yvonne Brady

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APPENDIX I LIST OF OBSERVATIONS Observation 1: Photonics should be recognised as a high growth and emerging business sector for the Northwest region. Observation 2: It should be noted that 188 photonics companies reflects a significant proportion of the UK photonics activity and it is recommended that photonics (or a key subsector) becomes a priority focus for the Northwest region to encourage future growth. Observation 3: There is a regional strength in solid state lighting technology as evidenced by the presence of at least 111 companies working in this field across the areas of SSL lamp and luminaire design, and SSL based lighting installation and architectural design. Observation 4: The photonics mapping study did not identify any significant Northwest activity in display screen technology, including OLED research and although this clearly is a promising photonics technology no obvious exploitation pathways currently exist. Observation 5: Whilst beyond the scope of this study, there are a number of possibilities that should be considered for encouraging or stimulating FTTP rollout in the Northwest region including defined ICT, digital media and regeneration support projects. Observation 6: Initiate the development of a skills framework based on the potential requirements for intermediate skills training of FTTx deployment in conjunction with relevant Sector Skills Agency and Learning & Skills Council. Observation 7:.Consider supporting the NW regional strength in SSL lighting via adoption of reviewing policies which may act as business drivers for adoption of SSL and growth of NW SSL companies. Observation 8: The evidence suggests that the Northwest could develop a national SolidState Lighting institute combining academic and industrial collaboration within the lighting sector similar to the Lighting Research Centre in the USA and Fraunhofer Institutes in Germany. The national institute could work in collaboration with regional centres such as the lighting laboratories at Aston Science Park, NPL and other centres of excellence. Observation 9: There is the need to review recent history of SMART and GRAND awards in relation to Northwest photonics companies to check that take-up is ongoing and preferably increasing. There may be a need to stimulate future GRAND activity in the photonics area by suitably targeting publicity and marketing to organisations identified in the mapping study. Observation 10: The North West Aerospace Alliance could be utilised as a link into manufacturing and production related disciplines, especially within the aerospace sector. A focus on technology transfer of industrial photonic technologies should be prioritised to enable improved industrial productivity and capability. Observation 11: The Northwest Laser Engineering Consortium could be recognised as an exemplar for clustering activities of advanced laser engineering research in the region. Observation 12: NWAA should be encouraged to incorporate photonics including optical fibre sensing into regional aerospace activities to ensure there is no potential for significant Version 14

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Northwest Photonics Mapping Study business leakage from the Northwest region. This could be achieved in partnership with national photonics organisations. Observation 13: Strong support for NWLEC and other regional Materials Research and Technology Organisations could see Northwest UK play a prominent role in micro-scale and nano-scale processing (i.e. the growing field of nanotechnology.) Observation 14: Need to review how (or indeed whether) Northwest biomedical and photonics activities could benefit from the adoption of a clustering approach to the integrated field of biophotonics. Observation 15: To investigate further how barriers to biophotonic innovation can be overcome through coordinated innovation support activities. The Northwest has significant potential with key components required to create an active biophotonics sector Observation 16: The photonics mapping study revealed that there is no significant natural core activity in photonics related defence and security work based in the Northwest region of the UK. Observation 17: Review and assess the impact of the integration of photonics technologies within NW aerospace sector with partnership organisations. Observation 18: Opportunity to explore the provision of a Solid State Lighting workshop for vehicular and transportation illumination including car, train and street lighting. Observation 19: Consider undertaking a review of the NW nanophotonics market activities and future applications potential incorporating NWLEC activities. Observation 20: Consider a review of photonics activity within the key biotechnology, pharmaceuticals and healthcare sub-sector. Observation 21: Opportunity to review the potential of specific NW clustering of bio-medical photonic activity or incorporating it under a specific photonics priority sector. Observation 22: Opportunity to encourage, highlight and promote NW photonics activity on an international level. It could also attract national and international photonics activities and organisations to the region. Observation 23: The opportunity to consider the potential for photonics as a key sector or discipline in its own right. Observation 24: Business Link Northwest to consider â&#x20AC;&#x2DC;photonicsâ&#x20AC;&#x2122; as a key business sector and to include technology based support accessible from within the academic community. Observation 25: Develop skills framework and brokerage for photonics training with the Learning & Skills, and Sector skills councils. Observation 26: Embed the potential of photonics within the remit of Envirolink Northwest Observation 27: The development of a new field, enviro-photonics that encompasses all photonics that impact on environmental issues such as PVâ&#x20AC;&#x2122;s and SSL should be linked to future Envirolink activities. Version 14

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Northwest Photonics Mapping Study Observation 28: The need to consider the opportunity to add photonics or a relevant subsector of photonics to the strategic scientific ‘pillars’ recognised by the NSC strategy e.g. via the Emerging Opportunity route. Observation 29: Ensure where possible that the Northwest University undergraduates and postgraduates can obtain regional access to similar and established photonics courses offered elsewhere (for example in Scotland). Observation 30: The need for networking and linking regional expertise in universities with Industrial needs will be essential for exploiting and capturing growth. Observation 31: There is a requirement for developing short term technology support capabilities essential for ‘know how’ and photonics technology transfer to NW based SMEs. The opportunity to create a Photonics Application Centre similar to that supported by Advantage West Midlands for regional companies should be considered. Observation 32: Because of the proliferation of clustering and knowledge transfer organizations working in the photonics area, it is important that the Public Sector establishes clear and harmonized working relationships with key agencies. This will likely require the setup of an internal ‘clearing house’ or focus for working in the photonics area. Observation 33: The opportunity exists to create a competitive advantage for the support of its regional economy by ensuring its regionally located businesses fully exploit these regional, national and global opportunities. Observation 34: There is a need to support additional photonics workshops focusing on developing regional partnership collaborations within the five photonics application sectors Observation 35: There is an opportunity to promote the relocation prospects for securing highly mobile photonics company entrepreneurs to the attractive rural locations which are ideal for technology jobs operating in a global market. Observation 36: Inward investment teams could highlight the Northwest photonics sector credentials and utilise the technology opportunities to attract inward investment such as the best practice identified in the Walsall Urban Regeneration model. Observation 37: Consider the added value opportunities for NW based clients companies increasing their export capabilities. Observation 38: Opportunity to encourage regional supply chain development using company innovation support activities such as “Innovation Networks” where the client company can secure support funding for product development but the activity is undertaken by three or more regional companies. Observation 39: The Public Sector to review (e.g. with LSC, NWUA, NWDA) to what extent Northwest Universities photonics related courses and research areas can be tied into near future Northwest industry photonics skills needs Observation 40: Consider endorsing a Photonics Business Skills training initiative which could consist of a training voucher to be used with the local business support sectors in Universities. Version 14

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Northwest Photonics Mapping Study Observation 41: Consider how Photonics Business Skills in the area of product design can be linked to University skills in this area via for example the local business support sectors in Universities or through design related student projects. Observation 42: The need to review recent SMART awards for learning outcomes with regards to the successful establishment of Northwest photonics companies. Observation 43: The profile of the GRAND award scheme must be raised so that SMEs are aware of the various routes that it provides towards funded business support. Observation 44: Photonics business support might benefit from a Public Sector Northwest focus on this key technology area. Observation 45: Research activity in support of product innovation in the photonics area is presently considered to be a ‘luxury’ by many SMEs. Observation 46: The growth of micro sized SMEs (i.e. 1 – 9 people) can easily stall as they become established and then sidelined away from their initial business focus such that product research and innovation can easily become neglected. Delivery of focussed business support to companies at this stage of their development might be vital in order that they can grow beyond the micro-size. Observation 47: Small photonics SMEs are deterred from taking part in the patent process and wary of entering markets where patent litigation would be extremely expensive. Observation 48: It is recommended that regional photonics exemplar projects are developed to showcase the best of photonics technology.

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NOTES

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