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of Photonics Technologies: the European Perspective The Leverage Effect

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<strong>The</strong> <strong>Leverage</strong> <strong>Effect</strong> <strong>of</strong> <strong>Photonics</strong> <strong>Technologies</strong>: <strong>the</strong> <strong>European</strong> <strong>Perspective</strong><br />

tradeable goods import and export data are also derived from Eurostat<br />

24 .<br />

This leads to <strong>the</strong> following equation for <strong>the</strong> calculation <strong>of</strong> <strong>the</strong> photonics<br />

market leverage:<br />

PM Lindustry/market<br />

= LIM industry/market<br />

• Market size industry/market<br />

This calculation <strong>of</strong> <strong>the</strong> PML is specific to each sector and market, but<br />

a summation over all industries and markets analysed will provide a<br />

macro overview <strong>of</strong> <strong>the</strong> total leverage.<br />

This same approach can also be followed to assess <strong>the</strong> photonics employment<br />

leverage. Based on <strong>the</strong> same sources and approach, this<br />

would lead to <strong>the</strong> following equation:<br />

PEL industry/market<br />

= LIM industry/market<br />

• #Empl industry/market<br />

Also here, <strong>the</strong> assessment <strong>of</strong> <strong>the</strong> PEL is sector and market specific and<br />

a summation over all industries and markets analysed will provide a<br />

macro overview <strong>of</strong> <strong>the</strong> total leverage regarding employment<br />

24<br />

To give a true representation <strong>of</strong> <strong>the</strong> actual economic activity in <strong>the</strong> impacted industries and<br />

markets sectors in Europe, <strong>the</strong> total <strong>European</strong> market is taken as imports plus production less<br />

exports within each sector. This calculation is important to fully capture <strong>the</strong> levels <strong>of</strong> <strong>European</strong><br />

economic activity in each sector. For example, goods which are imported and used in Europe,<br />

but manufactured elsewhere can still be highly dependent on photonics and are fully accounted<br />

for using this methodology.<br />

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