Connecting Minds. Advancing Light.07‐Apr‐08

Gary Colquhoun 

IntroductionsInnovation LandscapeInnovation LandscapeThe Business of Photonics

l b lBorn GlobalBridging the Global Gapg g pLessonsInsightInsight

Gary ColquhounHeriot Watt University (1992 96)Heriot‐Watt University (1992‐96)▪ BSc Optoelectronics & Laser Engineering (Hons)Mi i t  Nd YAG l  d l t▪ Miniature Nd:YAG laser development

▪ Fixing MSc laboratory experiments

fWorking Life▪ Optical Calibration Engineer, Technical Sales, Product 

k lManager, Marketing & Business Development Manager

Other Stuff▪ Enjoy music, my family, and don’t enjoy recovering from knee surgery

SPIE EuropeNot for profit company wholly owned by SPIENot for profit company wholly owned by SPIE▪ Head Office  Wales (UK)▪ Technical Programmes  Czech RepublicTechnical Programmes  Czech Republic▪ Industry Liaison Scotland (UK)▪ Sales England (UK), Germany

Events

Outreach▪ Photonics21, SUPA, UK Technology Strategy Board

Fibre Photonics Formed in October 2006Formed in October 2006Mid IR fibres and fibre probes for spectroscopyApplications▪ Food & Drink▪ Petrochemicals▪ EnvironmentalMilitar▪ Military

Staff = 3Year 1 Turnover = £350,000

Fibre Photonics ProductsCablesCables▪ Chalcogenide Fibre Cables (1.5‐6μm)▪ Polycrystalline Fibre Cables (4‐18μm)Polycrystalline Fibre Cables (4 18μm)Probes▪ Attenuated Total Reflectance (ATR)▪ Hastelloy body▪ Diamond, ZnSe or Si tip

▪ Gas CellGas Cell

Innovation Landscape

1.00% growth in public R&D leads to a 0 17% increase in total factor productivity 0.17% increase in total factor productivity [1]Academic research makes a positive 

ib i i hcontribution to economic growth [2],[3]Advances in science and technology must gybe converted into innovation and new policies [4]policies [1] R&D and Productivity Growth: Panel data analysis of 16 OECD countries, Guellec and van Pottelsberghe de la Potterie, 2001[2] The economic impact of industry funded university R&D, Bergman, Research Policy, 1990[3] The economic impact of Canadian university R&D, Martin, Research Policy, 1998[4] The Race to The Top: A Review of Government Science and Innovation Policies, Lord Sainsbury, 20074 p f , y, 7

The ‘Knowledge Transfer System’li   t   th  fisuppliers, customers, other firms

universities,  research & technology organisationssocieties and other intermediaries

Individuals are also part of the systemp yYour role is just as important

Universities are slowly changingUniversities are slowly changing‘Ivory Tower’ to ‘Economic Engine’

1. SwedenFinland 2. Finland 

3. Switzerland  4. Germany5. Denmark

MERIT – Maastricht Economic and social Research and training centre on Innovation and Technology

EU25 innovation gap Close to stable with USClose to stable with US~70% of the innovation gapfrom poor performance infrom poor performance in▪ USPTO patents ▪ population with tertiary educationpopu at o t te t a y educat o▪ ICT expenditure 

EU Leadership in Science?pLeading in number of publications…not in relative measures nor citations 

Summary Innovation Index (SII) 

Notes:  The circles (right) identify four Notes:  The circles (right) identify four main country groupings: 

top = leading countries, middle = average performers, g p ,bottom right = catching upbottom left = losing ground

EU25 EU15 European leaders US JP

1.1 S&E graduates 12.2 13.1 IE (24.2) FR (22.2) UK (21.0) 10.9 13.2

1.2 Tertiary education 21.2 23.1 FI (34.2) DK (32.9) NO (32.3) 38.4 37.4

1.3 Broadband penetration rate 6.5 7.6 DK (15.6) IS (15.5) NL (14.7) 11.2 12.7

1.4 Life-long learning 9.9 10.7 SE (35.8) IS (31.7) CH (28.6) -- --

1.5 Youth education 76.7 73.8 NO (95.3) SK (91.3) CZ (90.9) -- --

2.1 Public R&D expenditures 0.69 0.70 IS (1.37) FI (1.03) SE (1.02) 0.86 0.89

2.2 Business R&D expenditures 1.26 1.30 SE (2.93) FI (2.45) CH (1.90) 1.91 2.65

2.3 Share of medium-high/high-tech R&D -- 89.2 SE (93.7) DE (93.5) IT (91.1) 90.6 86.8

2.4 Share of firms receiving public funding N/a N/a AT (19.2) FI (18.7) IT (14.8) -- --

& f ( ) ( ) ( )2.5 University R&D expenditures financed by business sector 6.6 6.6 LV (23.9) BE (12.7) DE (12.5) 4.5 2.7

3.1 SMEs innovating in-house N/a N/a CH (54.8) IS (46.5) AT (44.7) -- --

3.2 Innovative SMEs co-operating with others N/a N/a HU (32.9) CY (22.6) FI (18.6) -- --

3.3 Innovation expenditures N/a N/a CH (3.48) UK (3.35) MT (3.29) -- --

3.4 Early-stage venture capital -- 0.025 SE (0.081) FI (0.065) DK (0.063) 0.072 --

3 5 ICT expenditures 6 4 6 3 SE (8 7) EE (8 6) MT (8 5) 7 8 8 03.5 ICT expenditures 6.4 6.3 SE (8.7) EE (8.6) MT (8.5) 7.8 8.0

3.6 SMEs using non-technological change N/a N/a LU (74) DE (65) CH (63) -- --

4.1 Employment in high-tech services 3.19 3.49 SE (4.85) IS (4.81) FI (4.68) -- --

4.2 High-tech exports 17.8 17.2 MT (55.5) IE (29.9) LU (29.3) 26.9 22.7

4.3 Sales share of new-to-market products N/a N/a SK (10.9) PT (10.8) LU (9.1) -- --

4.4 Sales share of new-to-firm not new-to-market products N/a N/a DK (25.6) DE (23.4) CH (20.5) -- --p ( ) ( ) ( )

4.5 Employment in medium-high/high-tech manufacturing 6.60 7.10 DE (11.04) SI (8.94) CZ (8.71) 4.89 7.40

5.1 EPO patents 133.6 158.5 CH (460.1) SE (311.5) FI (310.9) 154.5 166.7

5.2 USPTO patents 59.9 71.3 CH (188.3) SE (187.4) FI (158.6) 301.4 273.9

5.3 Triad patents 22.3 36.3 CH (110.8) FI (94.5) SE (91.4) 53.6 92.6

5.4 Community trademarks 87.2 100.9 LU (571.2) CH (180.0) AT (158.8) 32.0 11.1

5.5 Community designs 84.0 98.9 DK (199.1) CH (161.2) DE (147.1) 12.4 15.1

Regional Performance

The Business of Photonics

Combined optoelectronic components and enabled productsenabled productsSurpass $1.2T by 2017 with 2004‐17 CAGR 7.7%

Total OE Enabled and components market

1200

1400

Total OE Enabled and components market

1200

1400

800

1000

00

llion

s 800

1000

00

llion

s

200

400

600$ B

i

200

400

600$ B

i

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Segment Growth ‐ ProductsYear on year growth for global enabled products/systems in

optoelectronics (2005 to 2006)

Consumer display/TV

Year on year growth for global enabled products/systems in optoelectronics (2005 to 2006)

Consumer display/TV

Medical care/Welfare

Environmental/Sensing

Medical care/Welfare

Environmental/Sensing

Transportation

Computing/Processing

Communications

Transportation

Computing/Processing

Communications

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Defense

Solar

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Defense

Solar

Segment Growth ‐ComponentsYearly growth for OE components market

Solid state lighting

Yearly growth for OE components market

Solid state lighting

Optical fiber comm

Optical lens and laser

Optical fiber comm

Optical lens and laser

Flat panel displays

Optical I/O devices

Optical storage

Flat panel displays

Optical I/O devices

Optical storage

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Optical components

p p y

Growth year on year (%)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Optical components

p p y

Growth year on year (%)

EU Photonics industry grew by 12% to 49 billion in 2006billion in 2006Over 5000 companies employ 246,000 

h f ld id d iEurope has 19% of worldwide productionLighting, measurement & automated vision, g g, ,production technologies, medical technology & life sciences, and defence photonics, p

B  Gl b lBorn Global

Companies must decide tob l   ith     k t      d t f  balance either a market or a product focus prioritise the customer against the investor. 

St t    t  k  l b ll  f  d    Start ups must work globally from day one There is no luxury of gradually developing a domestic marketFew plan the transition from early market p yto mainstream market Visionary few into pragmatist majorityVisionary few into pragmatist majority

To successfully making this step depends on many factorson many factorsthe founderthe corporate approach to strategic planning positioningpos t o gnetworking international o tlookinternational outlook

Must be close to the customer at start upbilit  t   t f t  d i    fl ibl     ability to react fast and in a flexible manner  

Focus must be global from the outset Companies often rely too heavily on the research‐based early marketyThis will not naturally reference to the majority

Rationalist strategy developmentRationalist strategy developmentActivity divided into formulation & i l t tiimplementation

Customers, supply chains, and competitors can be found internationallycan be found internationallyCompanies must gain exposure to the i i l i iinternational open innovation system Select intermediaries and support pporganisations who facilitate knowledge transfer based on much they can advance transfer based on much they can advance your company in the global marketEarly survival depends on itEarly survival depends on it

Incorrect strategiesdi ti  d i  b   ti iti  th t  ld  lif  direction driven by activities that would qualify them for funding 

O  i ti   d  d i   t t i   Open innovation needs dynamic strategies  opportunities to co‐develop with larger players

‘ready–fire– aim’ Complete a working prototype for an early p g p yp yadopter will generate more informed knowledgeAid the development of robust strategies. p gAllow you to establish barriers to entry for others

Fibre PhotonicsO t it  f  fi   h i l    t lOpportunity for fine chemical process control▪ Greatest in Europe then US then Far East

Competition in  the US, Israel and JapanCustomer base of early adoptersy p▪ European Space Agency, Selex Galileo, BP Chemicals, Mettler Toledo, Thermo, Syngenta, Fuji film, Pfizer

Innovation partners are application oriented▪ Strathclyde University: Chemistry & BiopharmaceuticalsStrathclyde University: Chemistry & Biopharmaceuticals▪ Heriot‐Watt University: Brewing and Distilling

B id i  th  Gl b l GBridging the Global Gap

SPIE Founded in California on July 1, 1955 Milit  i i   i tMilitary imaging requirementsHollywood film crews with capability

Knowledge TransferApplication of photographic instrumentationpp cat o o p otog ap c st u e tat o

or Knowledge Exchange ?Stimulation of knowledge by othersStimulation of knowledge by othersApplication of knowledge by others

Biology and PhotonicsMultifaceted way to serve a communityMultifaceted way to serve a communityBIOS conference and exhibitionGoal to connect clinicians and technologists KT through short coursesg▪ Photonic Therapeutics and Diagnostics (1)▪ Clinical Technologies and Systems (1)▪ Tissue Optics, Laser‐Tissue Engineering, and Tissue Engineering (4)▪ Biomedical Spectroscopy, Microscopy, and Imaging (4)Nano / Biophotonics (6)▪ Nano / Biophotonics (6)

European Conference on Biomedical OpticsG l t  di t ib t  i f ti  t   tit tGoal to distribute information to constituents

Medical Imaging8 conferences, 800+ papers

Journal of Biomedical Opticsp78 papers published in 2003272 papers published in 2007272 papers published in 2007Impact Factor ~3

Digital LibraryO     ti lOver 250,000 articles>17,000 new additions per year>40,000 papers cited in 20,00 high‐tech patentsSix SPIE Journals Six SPIE Journals ▪ applied remote sensing, nanophotonics, biomedical optics, optical engineering, electronic imaging and p , p g g, g gmicro/nanolithography

500 refereed articles from journals added per year5 j p y

Top downloads from the Journal of Biomedical Optics DownloadsTop downloads from the Journal of Biomedical Optics DownloadsUltrahigh-resolution optical coherence tomography 1096

Fluorescence resonance energy transfer microscopy: a mini review 1080

Quantum-dot nanocrystals for ultrasensitive biological labeling and multicolor optical encoding 1070

Multiphoton excitation spectra in biological samples 944

Optical glucose sensing in biological fluids: an overview 780

In vivo human retinal imaging by Fourier domain optical coherence tomography 705

High-resolution multiphoton tomography of human skin with subcellular spatial resolution and picosecond time resolution 675

"Coherence radar" and "Spectral radar"- new tools for dermatological diagnosis 666

Fiber optic probes for biomedical optical spectroscopy 654

In vivo imaging of light-emitting probes 637

Optical properties of human skin in the near infrared wavelength range of 1000 to 2200 nm 608

Optical imaging of Renilla luciferase, synthetic Renilla luciferase, and firefly luciferase reporter gene expression in living mice 604

Optical properties of circulating human blood in the wavelength range 400-2500 nm 604

Imaging wound healing using optical coherence tomography and multiphoton microscopy in an in vitro skin-i l t ti d l 589equivalent tissue model 589

Resolution of multiple GFP color variants and dyes using two-photon microscopy and imaging spectroscopy 566

Development of novel dye-doped silica nanoparticles for biomarker application 565

Patents  it ti  t  SPIE   i  U S PTO>40,000 citations to SPIE papers in U.S.P.T.O.

Much lower incidence across EU ProductsUS product development lifecycle management US p oduct de e op e t ecyc e a age e tdriven and informed by published innovation EU lags behind adoption of such methodsEU lags behind adoption of such methods▪ Patent law subtleties?

NewsroomAstronomyAstronomyBiomedical Optics & Medical ImagingCommunications & NetworkingDefence & SecurityElectronic Imaging & Signal g g gProcessingIllumination & DisplaysIndustrial Sensing & Measurement

NanotechnologyIndustrial Sensing & MeasurementLasers & SourcesMicro/Nano Lithography & F b i ti

Optical Design & EngineeringRemote SensingSolar & Alternative EnergyFabrication Solar & Alternative Energy

Student Chapters St d t  h t121 Student chapters

Fastest growing membership areaLeadership WorkshopGuest lectureship programmeGuest lectureship programmeFree text booksT l  tTravel grants

Case Study –Wolfson MicroelectronicsF bl   i d  i l  i d t  Fabless mixed signal semiconductor company▪ Provide the interface between the “real world”i.e. light, 

d  d t h  d di it l  l t isound and touch and digital electronics

Early Adopters are now majority pragmatistspragmatists

LLessons

Transitioned from an engineering to a sales and marketing led company and marketing led company Defined the “right” products

i d h fi d i dRaised the necessary finance and recruited people ahead of timep pFlexible planning and challenging review processprocessExecution and attention to detail

Competition is on a global basisCan grow or die very quicklyCan grow or die very quicklyA wrong strategy takes a long time and a lot of money to rectifyy yBeing first does not mean successBiggest does not mean bestSmaller companies can innovative quicklyMust have a clear route to marketC i i  i   h  l   h     hi kCompetition is much closer than you thinkDesign teams are never finishedAnyone can produce a prototypeAnyone can produce a prototypeDon’t believe your own hype

If you don’t know where you are going you will probably end up somewhere else!probably end up somewhere else!Planning process is more important than the planDefine what’s core and what’s not coreMust have a clear business model, e.g. are you selling consultancy, products or IP?Work out what needs to be done and then do it!One page strategy and key battlesR lli   l   8   b k 8   f dRolling plan – 8 quarters back 8 quarters forwardTrend analysis – learn from the past

It’s tough and time consumingRaise the funds before you need themRaise the funds before you need themMake sure you raise enough to achieve your goalsManagement team must be able to show that they g ycan deliverMust show significant growth potentialBe realisticGet good advisors on board earlyK    “ ”Know your “enemy”Must have “Plan B”

Recruit the best people you can get and recruit them earlyearlyRecruit people with relevant experienceEffective managers take responsibility and are g p yproactiveSet clear objectives then monitor and communicate performanceKnow when to take charge ‐ people follow leaders!D ’     h   l  k   h  i   i    Don’t assume that people know what is going on ‐make sure that they knowMake decisions rather than procrastinateMake decisions rather than procrastinateHero’s die, teams survive

It takes much longer than you thinkWhat’s the problem that you are trying to solve?What s the problem that you are trying to solve?Solution must be driven by your technologyMake sure that your technology is protectedy gy pIdentify target customersAttend relevant technical seminars, contribute to publicationsIdentify lead customers/championsFi d    h  d i i   k   d  h   h  d i i  Find out the decision makers and what the decision process isSell the benefits not the solutionSell the benefits not the solution

I i htInsights

How do leading CEOs improve company performance performance 

(3i research publication January 2007)

Interviewed >100 leading CEOs of mainly Interviewed >100 leading CEOs of mainly international companiesT   f  i   i d f   ill    Turnover of companies varied from £3millon to £6billionSectors ‐electronics, IT, services, media, engineering, consumer

Main focus for CEOsM k ti   d    d t d l t %Marketing and new product development 41%People management 31%Operational efficiency 14%Financial management 9%Financial management 9%Acquisitions and disposals 5%

Be brave, passionate, determinedGlobal opportunities require dynamic Global opportunities require dynamic strategies

d k i ifYou and your team can work it out if you really want to, it’s not rocket scienceyManaging people takes time and is a skill that can be developedthat can be developedIf you don’t know, find someone who does10% inspiration  90% perspiration10% inspiration, 90% perspiration