of Photonics Technologies: the European Perspective The Leverage Effect

The Leverage Effect of Photonics Technologies: the European Perspective
try, linking the activities of different organisations in the value chain
(horizontal and vertical) is of importance to optimally benefit from the
opportunities. Besides SMEs not being strongly present in certain areas,
also the position in a larger value chain is sometimes difficult. One example
may be solid state lighting where there are a small number of
large and globally orientated LED chip suppliers and a large number of
smaller regionally based luminaries suppliers integrating chips.
The following recommendations are given:
● Set up a specific policy to support SMEs for participating in the various
value chains. This must include support of risky start-up initiatives,
as well as support for participation in the supply chains.
● Support the creation of SME spin-offs from research organisations.
This is of importance because of the research intensive character of
photonics markets.
● Improve access to finance for photonics businesses where there are
risks but, at the same time, significant opportunities for growth.
7.6
Support the vertical
connection between research
and industry
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The assessment shows that the horizontal elements in the value chains
are often of limited importance and globally organised. Suppliers of
photonic components can be situated in Asia, while the assembly of
user oriented products is done in Europe. Also the linkages are often
weak (quick change of supplier, based on cost reduction). However, the
linkages between research and industry (so-called vertical value chains)
are of more importance and often well established. Highly skilled personnel
are a result of long term relationships between companies and
universities. This pipeline is crucial for the competitiveness of companies
and research done at universities is an important input to innovation of
European industry. However, changes in the organisation of innovation