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 />
In order to be realized, this scenario requires a degree <strong>of</strong> economic prosperity<br />
and good access to human and natural resources. In contrast to<br />
<strong>the</strong> Emergency scenario below, <strong>the</strong> immediate general environmental<br />
conditions are not alarming, but <strong>the</strong>re is considerable societal and governmental<br />
concern that <strong>the</strong>y may worsen if no action is taken to ensure<br />
environmental protection.<br />
C.4 Scenario 3: Budget Society<br />
<strong>The</strong> “budget society” derives from a sustained poor economic situation<br />
shaped by <strong>the</strong> necessity to cut costs and reduce spending by governments,<br />
industries and individuals.<br />
Within this scenario, industries can have difficulties in obtaining sufficient<br />
financial resources (e.g. loans or governmental support), <strong>the</strong>ir<br />
innovation capacities decrease and <strong>the</strong>y are forced to rationalize with<br />
workforce reductions and reduced new product development. This, toge<strong>the</strong>r<br />
with underlying increases in health and pension costs put fur<strong>the</strong>r<br />
stress on social insurance systems (unemployment benefits, welfare<br />
benefits).<br />
Budget society<br />
Demographic driving factors<br />
– Limited attention to <strong>the</strong> elderly<br />
– Stable population<br />
– Stronger shift towards cities<br />
Economic driving factors<br />
– Open markets, highly competitive on price,<br />
many SMEs<br />
– No, or negative economic growth<br />
– Business strategy on cost reduction and<br />
incremental innovations<br />
– Problems with finding good personnel<br />
– Limited cooperation, but consolidation <strong>of</strong><br />
firms<br />
Social driving factors<br />
– Focus on individuality<br />
– Limited attention <strong>of</strong> <strong>the</strong> user for innovations<br />
in general: No real innovations<br />
– Markets have niche character, aligned with<br />
commodity products<br />
Technological driving factors<br />
– Limited inventions and new research<br />
– Room for incremental innovations<br />
– No significant attention to infrastructural<br />
improvements<br />
Environmental driving factors<br />
– Limited problems with resource scarcity<br />
– Environmental impact limited problem<br />
– Climate change is not a big issue<br />
Political driving factors<br />
– Open markets for company access<br />
– Limited globalization<br />
– Limited governmental stimulation<br />
towards radical innovations<br />
– No attention to grand challenges, more<br />
fragmented approach<br />
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