industrial robotics and display technologies and to explore the role of government policies in Europe's future needs for innovation in information and communication technologies (ICTS) through a comparison with the USA and Asian countries.
and the EU in flat panel displays of all types, used for mobile phones, tablets, computers, TVS and other consumer electronics devices.
11 2. US-EU Innovation Performance in Web Services, Display Technologies and Robotics...13 2. 1 Web services...
21 2. 2 Display technologies...21 Cambridge Display Technologies (CDT) key lessons...24 Plastic Logic key lessons...
24 Novaled AG key lessons...25 E Ink Corporation key lessons...26 Kodak key lessons...
Case studies Web Services, Display Technologies and Robotics...57 A1. 1 Web Services...57 Apple Corporation...
71 6 A1. 2 Display technologies...74 Cambridge Display Technology (CDT...74 Plastic Logic...77 Novaled AG...
80 E Ink Corporation...84 Eastman kodak...86 A1. 3 Robotics...89 irobot Corporation...89 Shadow Robot Company...
105 7 Executive Summary Innovation in US and EU companies was analysed in three ICT subsectors (web services, display technologies,
and the EU in flat panel displays of all types, used for mobile phones, tablets, computers, TVS and other consumer electronics devices.
with web services estimated at about €70 billion, flat panel displays worth about €75 billion and robotics valued at about €19 billion.
OLED screens of all sizes suddenly started to appear everywhere early in 2012, i e. when the preceding TFT-LCD technologies had been exploited fully
since been bought out by overseas entities a Japanese semiconductor materials company (for CDT), a Russian Sovereign Wealth Fund (Plastic Logic) and a Taiwanese screen manufacturer (E Ink).
robotics and display technologies) the study examined the following questions: What is the nature of the differences in innovation performance between Europe and the USA in these sub-sectors?
the EU in another (robotics) and Asia has the advantage in the third (displays). Evidence was gathered from the practical experience of innovative firms through fifteen case studies five from each sub-sector.
Novaled, E Ink, CDT and Plastic Logic in displays; and in robotics, Shadow Robot, R. U. Robots;
Display Technologies and Robotics In this Chapter we put forward an overview of the technological evolution of each sub-sector, specifically with regard to the factors affecting innovation performance in the EU and the USA for:
Web services, Display technologies, Robotics. Annual global revenues for the three sub-sectors show their relative significance,
with web services estimated at about $92 billion (about €70 billion), 3 flat panel displays worth about $99 billion (about €75 billion) 4 and robotics valued at about $25 billion
Initially both the USA and the EU have contributed significant technological developments in display technologies, jostling for the lead in the early stage innovation in novel screen technologies (for 3 SCF Associates Ltd estimate based on the nine top web service providers'revenues in 2010
/2011 (with Apple revenue counted as directly online dependent only for 10%of its 2011 revenues of $108 billion,
4 UK Trade and Investments, 2010, Flat Panel Displays, quotes Displaysearch, 2009 figures. 5 SCF Associates Ltd, 2010.6 Unfortunately the United states lags behind other countries
Display technology needs much more post-innovation effort in commercialization, since the development stages of mass-market products (see value chain in Appendix 2) require‘crossing the valley of death'to initial production and then full-scale industrial volumes for a mass market of displays for mobile phones,
tablets and PCS and other consumer electronics. In this subsector the EU has lost practically any initiative,
and growth as a hardware manufacturer but also because of its later reinvention and move into web services.
as in OLED technology for flexible displays. Apple takes a view on what is most important to control internally it and
Thus, although it has acquired two‘fabless'semiconductor companies to lay out its processors the original processor conceptual design for its smart phones and ipads is licensed Cortex
from ARM in the UK, and the graphics processor may come from NVIDIA. Apple has strived always to control the whole customer experience
and so moving to integrate web services into that experience was a natural course and part of its emphasis on design for ease of use.
Thus the web service, at its inception, was coupled to the software (Apple's ios) and its hardware, the ipod originally,
OLED screens of all sizes suddenly started to 18 appear everywhere, i e. when the preceding TFT-LCD technologies had been exploited well
is free when designing for a new product (e g. a new smart phone) to choose from many competing display technologies.
whether to go for TFT-LCD (the current display technology) or e-ink or OLED screens,
but it is beyond the scope of this study. 2. 2 Display technologies New directions in display technologies in OLEDS
and e-paper offered a brief opportunity for European firms to re-enter the displays market.
The EU has been largely absent from the displays market for the past two decades. Characterized as a high volume production commodity market, production has moved mainly to Asia, especially Japan, Korea and Taiwan.
The current generation of flat panel displays 22 (LCDS) has required tight cost controls and large amounts of capital investment.
Samsung and LG Display), Japan (e g. Sharp) and Taiwan (e g. AU Optronics) have demonstrated over the past two decades that they have capabilities far in advance of European
Asian manufacturers are starting mass production in the next generation display screens. LG and Samsung are reported to be investing some $17 billion (€13 billion) between 2011 and 2015 in OLEDS. 9 Until recently,
It is perhaps for this reason that a global cartel in LCD screens materialized among the ten largest suppliers controlling 80%of the market.
Hitachi and Toshiba to merge their advanced display businesses for small/medium screens to form Japan Display,
This new screen maker will convert its LCD fabrication plants to OLED11 and may accelerate OLED mass 8 AU Optronics of Taiwan,
was convicted of price fixing in a US court in March 2012 and fined up to $1 billion for participating in a display screen cartel between 2001 and 2006 (Financial times 15 march 2012).
11 december 2009). 9 http://www. oled-display. net/samsung-and-lg-display-to-invest-17-billion-dollars-in-am-oled-until-2015/10 South korea fines LCD makers
20 nov 2011, Japan Display to convert a 6-Gen LTPS fab to AMOLED? http://www. talkoled. com/tag/oled-production/23 production in a $2. 7 billion (€2 billion) investment for both R&d and production.
It has bought also Panasonic's Mobara LCD plant to convert it to OLED displays, planning for mass production of OLED screens by 2013.
In this way, the Japanese will build mass market scale in mobile phone and tablet size screens (3 to 12) for the expected market expansion from 2013 to 2016.
Thus the future display screens market is likely to be dominated by the largest Asian flat screen producers,
Kodak recently sold its OLED patents to LG Display of Korea, who also acquired some patents from Philips. Meanwhile,
Hence one cannot cite the USA's innovation in displays as being hugely successful, and more so than those of the EU. Apple, HP, IBM, Motorola and other very large US producers of ICTS using displays tend to be users of existing technology,
buying it in from others, rarely originators. Moreover, the role of government support in such US innovation
Cambridge Display Technologies (CDT) key lessons The role of higher education hosting leading edge research is highlighted once again by the case of CDT.
in a start-up company, it could take many years to perfect new technologies as revolutionary as replacing silicon with plastic transistors for a flexible electronic display.
Hence it has moved fairly far from its core expertise, in semiconductor technology into a specific consumer electronics product segment.
E-Ink's technology became highly attractive to larger display screen manufacturers, especially its partner who had perfected
Although the Apple Macintosh did break new ground (with its injection of intellectual capital from Xerox PARC) it still relied on supply of the latest technologies from outside Apple (for its bit-mapped screen
floppy disk drive, mouse and M68000 processor) though all was designed within Apple, including the single button mouse (Rose, 1989).
Kodak key lessons The lessons from Kodak are quite clear. Making discoveries and inventions is only part of the innovation process.
Korea's LG has acquired now significant assets that make it one of the key players in the next generation of display technologies. 2. 3 Robotics In this sub-sector,
and safety hardware. Thus in pure design and manufacture of robots for civilian purposes, Europe leads the USA.
the enthusiasm of its founder and the core team and the fact that it has had to survive hand-to-mouth for so long has meant that Shadow Robot has a resilience
However, the USA has been much less successful in those technologies that require longer term investment and support such as robotics and displays.
They were a significant factor for the display start-ups and innovators CDT Plastic Logic and E-Ink (as well as for Kodak) in their early innovation through start up and establishment.
or offers less valuable or irrelevant patents to claim disproportionate royalties, all of which requires adequate contracts to set up and then monitor.
Case studies Web Services, Display Technologies and Robotics A1. 1 Web Services Apple Corporation Apple computer was founded in April 1976 in a garage in Los Altos near Cupertino
to make a whole computer motherboard for under $700. Following R&d injections from Xerox PARC, over the next 20 years it then developed a series of highly successful small computers with quite conventional operating systems
external appearance, expressed through complementary design of software and hardware for ease-of-use. Apple's design emphasis has profited from one of its founder's sojourns,
Apple has changed radically, turning away from pure hardware and software for computing to combining bundles of web services.
Thus Apple's major business segments have advanced out of hardware and software products for personal computing and graphics into global retail services, with chains, of both online and physical shops.
and virtually has leadership in new business models for the web platform and for its hardware and software products.
despite its apparently virtual presence in cyberspace, is very much a hardware company, needing heavy amounts of capital investment for the two key business processes:
sales, cataloguing and customer profiling engines on a base of cloud computing. For this it has its own hardware manufactured, rather than COTS units.
Despite this activity, some analysts believe that as the company has got bigger so quickly it is finding it difficult to maintain its success. 39 Google has insisted famously that its employees be allowed to spend 20%of their time working on projects other than their core work (Innovation Time out ITO.
and also has led to some mediocre products that have relied on the marketing power of the Google brand. 40 38 According to Ram Shiram (see Auletta,
-and-the-challenge-of-1000-blooming-flowers/65 Capital investment Google received about $1miilion in angel investment around the time it incorporated in September 1998, from Andy Bechtolsheim (cofounder of Sun microsystems) Ram Shiram
pagewanted=all A1. 2 Display technologies Cambridge Display Technology (CDT) Cambridge Display Technology (CDT) is a subsidiary of Sumitomo Chemical of Japan.
Today it leads the research and development of organic light emitting polymer technology used in displays, and with potential application in lighting and other organic semiconductor applications.
‘It was more that they did not see organic light-emitting diodes as a core business and I was concerned that they would simply sit on our idea
By forming partnerships with companies throughout the displays value chain potential licensee could approach CDT
and be able to immediately acquire all the knowledge required for display production, avoiding the need for them to do independent development work.
It would also give licensees immediate access to all materials required for display manufacture The growth in CDT's patent portfolio is a measure of the company's R&d achievements,
and the need to build a family of patents around the core IP. By 2002 the number of patents held had risen to 140, the product of the company's steadily growing workforce,
sat, a TV screen. Halving the brightness of the blue polymer doubled its lifetime but this characteristic has proven a barrier both technologically and commercially for the company.
A case study of Cambridge Display Technology, International Journal of Innovation and Technology Management (2007), Volume:
of innovative organic flexible displays, based on its proprietary technology for plastic electronics, Plasticpaper. Over the last twelve years, the company has developed a technology that enables silicon to be replaced by plastic in integrated circuits
and so created a flexible electronic display with a continuous substrate. Commercial application of the technology yields display modules that are claimed to be more robust
flexible, lighter and cleaner to manufacture than traditional glass and silicon displays. They can be far larger and lower cost than conventional displays, potentially with higher process yields in manufacture.
Using this display technology, the company is developing a second-generation e-reader product. Plastic Logic sees itself as leading a revolution in visual information technology.
Founded in 2000 by researchers at the Cavendish Laboratory of Cambridge university in the UK, Plastic Logic now has its R&d centre in Cambridge, with a high-volume, state-of-the-art manufacturing facility in Dresden, Germany and product engineering,
sales and marketing and executive management being headquartered in Mountain view, California, USA. The manufacturing plant in Europe, in the capital of the federal state of Saxony, Dresden, is at the heart of the German electronics industry-sometimes called"Silicon Saxony".
the Plastic Logic 100, featuring a large, thin, lightweight screen based on the Plasticpaper technology with rugged construction.
At the time, the Cavendish Laboratory was developing inkjet printing to deposit polymer light emitting diodes (P-LEDS) on substrates for displays,
so that by 2006 it had developed its plastic transistor technology sufficiently to produce a display with a million transistors.
The company then produced a key application for its display an e-reader product for business, the Pro-Reader.
Of this, some US$100 million was raised in late 2006 to build an advanced manufacturing plant in Dresden for display modules for electronic readers
and finally abandoned in August 2010 amidst rising competition for portable electronic displays and e-readers.
Moreover over 2009-2010, Apple advanced, launching the slender, larger screen colour ipad cutting retail prices
However, the company was driven to continue by the core concept-that plastics can replace silicon in transistors
form factor and environmental benefits over silicon semiconductor and glass-based displays. So simultaneously the company then entered negotiations with a Russian state controlled investment company, RUSNANO,
The market for its first mass produced e-reader, the Plastic Logic 100, features a capacitive touch screen.
Flexible plastic electronic displays will provide another major milestone in how people process information. Entering this new disruptive segment at the stage of its inception gives Russia a chance to win a leading position in global market of future electronics. 56 James Mawson
flat panel displays; lighting; solar power with organic photovoltaics; and printed organic electronics for all functions.
Its OLED materials and technologies are supplied to the leading display manufacturers, e g. Samsung. In May 2011, Novaled claimed to have developed the world's most power-efficient fluorescent white OLED structure,
Dr. Martin Pfeiffer, Dr. Jan Blochwitz-Nimoth and Jörg Amelung, aiming to specialize in OLED displays.
For example, Novaled supplies materials and process technology to Samsung for their OLED displays. Also Novaled may launch their own consumer brand for new lighting systems with OLED sources.
up to three times lower than conventional OLED technology, giving longer long battery lifetimes for portable devices and high efficiency for displays.
In 2006, Universal Display Corporation, of the USA and Novaled teamed up to produce red phosphorescent OLED Devices.
's dopants in Holst Centre's organic thin film transistor technologies for displays and circuits. Note that a key feature of the Holst Centre (named after the first director of Philips Research) is its partnership model with industry and academia around shared roadmaps and programs.
and displays (NSF WTEC 2010). COMED is focused increasingly on organic photovoltaics (OPV. This centre employs approximately 60 personnel, with an annual budget of €6 million/year,
and world-class facilities for processing OLED displays and OPV cells on glass and stainless steel.
but does not produce whole display screens or manufacture the OLED plastic film needed to make them.
For those who would produce displays or lighting from its technology it is possible to use existing plants and half of the equipment in them.
organic thin film transistors and solar cells, as well as displays. When Novaled started as a spin-off from Fraunhofer and Technical University of Dresden in 2001 with just 4 people,
to advance electronic ink further with display developments based on this technology. Since incorporation, E Ink has advanced gradually both the core technology of the electrophoretic materials
and the applications for electronic ink displays selling micro-encapsulated ink imaging films and prototyping kits.
Originally E Ink Corporation was headquartered in Cambridge, Massachusetts and was held a privately company. It was bought by a strategic partner, PVI (Prime View International) of Taiwan in 2009 for $215 million.
In 2009, the epaper display module market was expected to grow to over $3 billion by 2013, with the emergence of colour displays and flexible displays, for the ebook and etextbook
At that time, electrophoretic display technology had more than 90%market share in the overall epaper displays, and E Ink was the leading supplier of electrophoretic materials.
when it successfully microencapsulated a micromechanical display system, creating a flexible display material with excellent reflectivity,
The patented microencapsulation process enables suspension of display material in an ink form with design
The resulting‘electronic ink'has many applications, from point-of-sale signs in retail stores, to next generation displays in mobile phones, tablets and electronic books.
However E Ink did not go into volume production of its electronic ink films as part of an electronic display.
and assemble all into a electronic paper display product. Thus E Ink, through PVI, seeded the e-reader market from 2005 on
It then partnered with E Ink on production of displays for electronic books, such as Sony's e-reader and the Amazon Kindles.
Also PVI invested heavily in dedicated driver chips and most importantly, the touch screens for epaper, as well as flexible displays for future products.
The E Ink deal was the final step in the transformation at PVI over the period 2005-2009 into a specialist in electronic paper displays.
It secured its supply of a critical component during the rapid growth phase of the e-reader market.
Sony launched its PRS-700 Reader with an integrated touch screen using E-Ink display film.
PVI, Epson, LG Display, Polymervision, Hewlett-packard and Plastic Logic have demonstrated all flexible active matrix displays using E Ink Vizplex imaging film.
as part of a joint development for the use of electronic ink in handheld device displays.
TOPPAN, a Japanese printing technology company, added to its initial $5 million investment in 2001, with a further $25 million,
This portfolio provides wide coverage as E-ink holds patents not only for displays, but also for methods of manufacturing the required materials, processes for assembling finished displays,
and techniques for integrating the displays into finished products. While many of E Ink's patents are focused on electronic paper
some have broader applicability in fields like organic electronics and flexible semiconductor manufacturing. It has over 100 additional patent applications pending.
The Finetech Japan Display Components & Materials Category Grand Award. Note that many such technologies were coming to market over the period 1998-2010,
Techcrunch, Devin Coldewey, 9 november 2010, E Ink's Color"Triton"E-Paper Screens Make Their Debut,
http://techcrunch. com/2010/11/09/e-inks-color-triton-e-paper-screens-make-their-debut Eastman kodak Eastman kodak Company,
Kodak has announced that it will stop making digital cameras, pocket video cameras and digital picture frames in 2012, focusing on photo printing,
In 1999, after 20 years of continued research, Kodak in partnership with Sanyo (SK Display Corporation) produced the first OLED display.
OLED pioneer Kodak believed that its OLED display screens would displace liquid crystal displays (LCDS) in digital cameras and a range of other electronic products.
A joint venture with Sanyo was started in 2003 called SK to mass-produce OLED screens for Kodak and other manufacturers.
the first camera to feature an AMOLED display, proved to be the high point though,
The company also developed manufacturing equipment and technologies around its chosen approach to producing full-colour displays:
enabling CMEL to use Kodak technology for active matrix OLED modules in a variety of small to medium size display applications. 88 Kodak also explored the use of OLEDS as a lighting solution,
with things turning from bad to worse, Kodak sold its OLED-related assets to LG for a reported $100 m. Thus, after 40 years of fundamental research, materials and device development, display manufacturing,
the inventor and first developer of OLED displays exited the business. Kodak's small molecule technology, in the form of materials and intellectual property, enabled OLED to become a mass-production display technology,
with numerous display developers licensing Kodak technology and manufacturing using vapour deposition through fine metal masks.
The vast majority of OLED displays produced to date use Kodak's technology and/or materials in some form.
This has enabled what is now a billion-dollar industry on the verge of even significant growth according to analysts Display Search.
LG formed a new company, Global OLED Technology (GOT), to exploit Kodak's two thousand OLED related patents,
Samsung the dominant player in LCD technology, announced in February 2012 that it was spinning off its LCD business, Samsung Display,
In a parallel move, it was rumoured that Samsung Mobile Display (the OLED company formed in 2008) would be brought fully under the control of Samsung Electronics.
cheap hardware and expensive consumables laid the golden e g . but in the digital era hardware margins were still slim
and software was largely free. Kodak's virtual monopoly in colour film was a cash cow.
http://www. displaysearchblog. com/2009/12/kodak-exits-oled-business-after-30-years-lg-poised-to-compete-with-samsung/http://www. oled-display. net/samsung
It is equipped with sensors to provide tactile feedback to the processor. The hand has a list price of about $100, 000,
the use of open source software and hardware platforms is seen as fundamental. Shadow Robot joined the ranks of Willow Garage
KUKA has benefited from the DLR work on a robot component library, the core of all design phases.
while there may be very differing value among the components such as the display panel with its touch screen, the processor and the software such as a standard operating system.
and distribution systems, including apps/content stores Data centres development Design Custom systems development (eg CPUS) Webfarms 24x7 operation Design Build Test Operate 3rd
The displays industry value chain for OLEDS full production is capital intensive Simon Forge SCF Associates Ltd all rights reserved 2012 25 OLED Components Manufacture IPR licensing for fabrication process
Application of OLED screens in an end-user product (eg TV) Fabrication equipment R&d Manufacture of Fabrication equipment R&d for production process R&d for OLED base materials,
The Displays industry value chain for e-paper production of the display screen is capital intensive,
manufacture 1) E-paper film production to e-paper screens 2) Application of E-paper in an end-user product (eg PDA) Printed circuit R&d for flexible
industrial robotics and display technologies and to explore the role of government policies in Europe's future needs for innovation in information and communication technologies (ICT) through a comparison with the USA and Asian countries.
132 8. 5 European Investment Monitor by Ernst & young...133 8. 6 Patent Data: REGPAT by OECD...134 8. 7 Company-level Information:
dimension Based on NACE Rev. 2 Unit of observation NUTS 3 Source European Investment Monitor by Ernst & young (Section 8. 5) Reference year (s
Orbis by Bureau Van dijk (Section 8. 7) European Investment Monitor by Ernst & young (Section 8. 5) Reference year (s) considered 2005-2011 2005-2011
the dataset itself represents a unique collection of data for its coverage with a great level of details provided. 8. 5 European Investment Monitor by Ernst & young The European Investment Monitor (EIM) is a unique monitor
34 5. 5 European Investment Monitor by Ernst & young...34 5. 6 Patent data: REGPAT by OECD...35 5. 7 Company-level information:
47 5 1 Introduction ICT-related innovation is considered at the core of economic recovery, growth and productivity.
Agglomeration characteristics Spatial proximity of similar and related firms and industries and the general tendency of people and economic activity to locate in large cities and economic core regions lead to agglomeration.
o Computer science and engineering with respect to university faculties, o Computer science with respect to scientific publications, o ICT hardware and software with respect to R&d activity performed in R&d centres,
Investment Monitor by Ernst & young, ORBIS by Bureau Van dijk, and Venturesource by Dow jones. 9 More details about these data sources can be found in Chapter 5. Selecting indicators A list of indicators for the EIPE project was selected carefully on the basis of the above-described framework of activities and their characteristics and the discussion on their empirical measurements.
ORBIS by Bureau Van dijk see Section 5. 7) European Investment Monitor by Ernst & young (Section 5. 5) Reference year (s) considered 2005-2011 2005-2011
Design Activity Tool by IHS isuppli, 5. European Investment Monitor by Ernst & young, 6. Patent data:
as detailed information on employment or R&d expenditures in those centres is not available at this level of granularity. 5. 5 European Investment Monitor by Ernst & young The European Investment Monitor (EIM) is a unique
monitor of foreign investment in Europe by companies from all over the world, but excludes investments in their home countries.
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