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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 />

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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