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Photonics Driving Economic Growth in Europe - Photonics21

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0. Executive Summary 7<br />

Underp<strong>in</strong>n<strong>in</strong>g all the proposed activities is the<br />

objective of grow<strong>in</strong>g photonics manufactur<strong>in</strong>g <strong>in</strong><br />

<strong>Europe</strong> and creat<strong>in</strong>g further ‘high skill’ employ-<br />

ment. This will be achieved by enabl<strong>in</strong>g the pho-<br />

tonics products themselves to be manufactured <strong>in</strong><br />

<strong>Europe</strong>, and by ensur<strong>in</strong>g the ongo<strong>in</strong>g competitive-<br />

ness of other key photonics-dependent manufactur<strong>in</strong>g<br />

sectors <strong>in</strong> <strong>Europe</strong>.<br />

The proposed <strong>Photonics</strong> PPP will differ from the<br />

exist<strong>in</strong>g support mechanisms by establish<strong>in</strong>g a<br />

closer alignment of <strong>in</strong>dustrial and public strategies,<br />

and by pool<strong>in</strong>g academic, <strong>in</strong>dustry and public<br />

resources to provide sufficient know-how and the<br />

<strong>in</strong>vestment essential for achiev<strong>in</strong>g major progress<br />

towards this jo<strong>in</strong>t strategy. Apply<strong>in</strong>g an open <strong>in</strong>novation<br />

process will help achieve the specific aim<br />

of the PPP to establish a more effective translation<br />

of scientific research <strong>in</strong>to products. In recognition<br />

of the importance of form<strong>in</strong>g a PPP, the <strong>Europe</strong>an<br />

<strong>Photonics</strong> Industry undertakes to make a substantial<br />

commitment through a four-fold leverage of public<br />

fund<strong>in</strong>g to achieve a total <strong>in</strong>vestment of €7 billion<br />

(€5.6b from the private sector and €1.4b from the<br />

<strong>Europe</strong>an Commission).<br />

Added-value for <strong>Europe</strong> through strengthened<br />

<strong>in</strong>dustrial competitiveness<br />

The photonics global market is today around €300<br />

billion. <strong>Europe</strong> has established a strong position<br />

with an overall total share of 20%, and as much as<br />

40% <strong>in</strong> key sectors such as light<strong>in</strong>g. The <strong>Europe</strong>an<br />

photonics <strong>in</strong>dustry employs about 290,000 people<br />

directly, many of these <strong>in</strong> the over 5000 photonics<br />

SMEs. <strong>Photonics</strong> also has a substantial leverage<br />

effect on the <strong>Europe</strong>an economy and workforce:<br />

20-30% of the economy and 10% of the workforce<br />

depend on photonics, directly impact<strong>in</strong>g around 30<br />

million jobs. <strong>Photonics</strong> also offers solutions which<br />

address key societal challenges, such as energy<br />

generation and energy efficiency, healthy age<strong>in</strong>g<br />

of the population, climate change, and security.<br />

<strong>Photonics</strong> is a Key Enabl<strong>in</strong>g Technology for <strong>Europe</strong>.<br />

It is a very dynamic and vibrant <strong>in</strong>dustrial sector <strong>in</strong><br />

<strong>Europe</strong> and holds the potential for huge market<br />

growth. The expected compound annual growth<br />

rate for photonics over the com<strong>in</strong>g years is 8% 28 ,<br />

clearly demonstrat<strong>in</strong>g the rapid growth of this key<br />

technology sector. In specific areas, substantially<br />

higher growth rates are predicted, for example,<br />

<strong>in</strong> green photonics 39 the expected CAGR value is<br />

nearer 20% 410 .<br />

2 http://ec.europa.eu/enterprise/sectors/ict/files/kets/<br />

photonics_f<strong>in</strong>al_en.pdf<br />

3 Green photonics comprises photonics solutions that generate<br />

or conserve energy, cut greenhouse gas emissions, reduce<br />

pollution, yield environmentally susta<strong>in</strong>able outputs or improve<br />

public health.<br />

4 http://ec.europa.eu/enterprise/sectors/ict/files/kets/<br />

photonics_f<strong>in</strong>al_en.pdf<br />

Left: <strong>Photonics</strong> offers enormous<br />

economic potential for <strong>Europe</strong>.<br />

© Fotolia<br />

Right: The annual market growth<br />

rate of photonics <strong>in</strong> <strong>Europe</strong> is<br />

estimated at 8-10%. © Fotolia<br />

<strong>Photonics</strong> has a<br />

substantial leverage<br />

effect on the <strong>Europe</strong>an<br />

economy and work-<br />

force.<br />

<strong>Photonics</strong> is a Key Enabl<strong>in</strong>g<br />

Technology for <strong>Europe</strong>.

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