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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 />

supporting policies for implementation <strong>of</strong> photonic energy systems<br />

are expected to be reduced. This will significantly lower demand for<br />

<strong>the</strong>se systems.<br />

■ Large Chinese initiatives to develop and implement photonic energy<br />

systems can create a low cost research and manufacturing that will<br />

establish an even stronger position, which will relatively weaken <strong>the</strong><br />

position <strong>of</strong> Europe.<br />

■ Various worldwide initiatives are now surfacing, e.g. in developing<br />

countries. <strong>The</strong>se can provide even more momentum to <strong>the</strong> development<br />

<strong>of</strong> more efficient and lower cost systems.<br />

<strong>The</strong> conclusion is that <strong>the</strong> value chain on photonic energy systems is highly<br />

dynamic and still in its infancy with significant fur<strong>the</strong>r development to<br />

emerge. However, <strong>the</strong> future is highly uncertain and with significant risks.<br />

Photonic energy systems: a SWOT analysis for Europe<br />

Strengths<br />

● EU has several multinationals major<br />

players at <strong>the</strong> global market<br />

● EU research is strong in several<br />

crucial areas, although it is still an<br />

upcoming area<br />

● Research is somewhat unevenly<br />

distributed along Europe<br />

● <strong>The</strong> connection between research<br />

and industry is good in Europe<br />

● EU policy in <strong>the</strong> field is highly stimulating<br />

applications<br />

Opportunities<br />

● Political pressure on sustainable<br />

energy generation is stimulating<br />

production<br />

● Cost <strong>of</strong> production is decreasing<br />

substantially, creating new market<br />

applications<br />

● Pressure on availability <strong>of</strong> fossil fuels,<br />

including <strong>the</strong> oil price, is enhancing<br />

economic feasibility<br />

Weaknesses<br />

● Dependency on governmental<br />

regulation for economic feasibility<br />

is crucial<br />

● Dominance <strong>of</strong> German industry in<br />

Europe might weaken support from<br />

o<strong>the</strong>r EU countries<br />

Threats<br />

● <strong>The</strong> weak financial position <strong>of</strong><br />

several countries is putting <strong>the</strong>ir<br />

policy under pressure<br />

● Large Chinese initiatives in this area<br />

are reducing <strong>the</strong> strong EU position<br />

● Economy <strong>of</strong> scale because <strong>of</strong> full<br />

market development can increase<br />

competitiveness<br />

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