Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf ·...
Transcript of Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf ·...
![Page 1: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/1.jpg)
Innovation Challenges in theLighting Industry
Susan SandersonKenneth Simons
Judith WallsYin-Yi Lai
Rensselaer Polytechnic [email protected]
Sloan Industry Studies Annual ConferenceApril 26-27, 2007
![Page 2: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/2.jpg)
Traditional Lighting Industry• Market size: $40-100 bn• U.S. consumption: $4.8 bn
– Lamps• Big Three: Philips, GE, Osram• 44.6% patents (1990-1993)
– Fixtures– Other
• Increasingly imported, especially fromAsia
![Page 3: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/3.jpg)
Traditional Lighting Industry
0%
20%
40%
60%
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Imports
Exports
Chinese Imports
BULBS
FIXTURES
Imports
Exports
Chinese Imports
U.S.: 26% bulbs & 86% fixtures imported from China
![Page 4: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/4.jpg)
commercial
51%
residential
27%
industry
14%
outdoor
8%
U.S. Lighting Energy Consumption
Enormous energy savings potential• Residential – 90% incandescent• Commercial – mostly fluorescent
![Page 5: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/5.jpg)
Innovation in Lighting
Source: Color Kinetics
Incandescent
Halogen
Fluorescent
Gas-discharge(example: neon)
Light emitting diodes(LEDs)
Shift to LED (light emitting diodes): semiconductor
![Page 6: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/6.jpg)
Market Trends
0
50
100
150
200
1920 1940 1960 1980 2000 2020
Incandescent
Fluorescent
Lum
inou
s Ef
ficac
y (l
umen
s/w
att)
Halogen
LED
IR Halogen
WhiteLED
Source: Lumileds & Color Kinetics
LEDs eclipsing traditional technologies
![Page 7: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/7.jpg)
Expansion through Market Niches
![Page 8: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/8.jpg)
Disruptive Technology• Different technological skills
– Semiconductors• Entry of new firms
ColorKinetics (U.S.)Epistar (Taiwan)United Epitaxy (Taiwan)
New firms
Nichia (Japan)Sharp (Japan)Eastman Kodak (U.S.)Samsung (Korea)
Non-traditional
Philips (Netherlands)GE (US)Osram (Germany)
Traditional
![Page 9: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/9.jpg)
Patent Analysis Methodology• U.S. & European patents
– Espacenet• Text search:
– “LED”– “light emitting diode”– “lighting”
• Equivalents – patent counted once iffiled multiple times
• High value patents – applied for andgranted in multiple continents
![Page 10: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/10.jpg)
USUS
Japan
Japan
Germany
Germany
UK
UK
Taiwan
Taiwan
Korea
Other Other
0%
20%
40%
60%
80%
100%
1990-1993 2000-2003
LED Patents by Inventor Location
![Page 11: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/11.jpg)
High Value LED Patents by Inventor Location
US US
Japan
Japan
Germany
Germany
UK
Taiwan
Korea
Korea
OtherOther
0%
20%
40%
60%
80%
100%
1990s 2000s
![Page 12: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/12.jpg)
Top Ranking Firms by LED Patents
2000s 1990s Company HQ location Patents 2000s
1 - Philips/Lumileds Netherlands/U.S. 13
2 7-16 OSRAM/Siemens Germany 11
3 - Nichia Japan 8
4-5 7-16 Sharp Japan 7
4-5 - United Epitaxy Taiwan 7
6-9 - AXT U.S. 5
6-9 3-4 Eastman Kodak U.S. 5
6-9 - GE/Gelcore U.S. 5
6-9 7-16 Samsung Korea 5
Big Three strong in LED via joint-ventures
![Page 13: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/13.jpg)
National Policies as R&D Drivers
• Japan: Light for 21st Century– 1979/1999 energy law is key driver– Early R&D funding by government &
industry• US: Next Generation Lighting Initiative
– Industry led program initiated by DOE– Grants largely to private sector
• E.U.– Sixth Framework Program– Overall nanotechnology investment
![Page 14: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/14.jpg)
National Policies as R&D Drivers
• Taiwan: Next Generation Lighting– Government & private sector consortium– 6-year nanotechnology initiative
• Korea: Semiconductor Lighting Program– Government backed KOPTI– LED Valley
• China: Semiconductor Lighting Project– Part of 11th 5-Year Plan– Developing five industrial parks for LED
![Page 15: Innovation Challenges in the Lighting Industry - MITweb.mit.edu/sis07/www/sanderson_slides.pdf · Innovation Challenges in the Lighting Industry Susan Sanderson ... •U.S. & European](https://reader031.fdocuments.us/reader031/viewer/2022022608/5b8aba597f8b9a78618e98cc/html5/thumbnails/15.jpg)
Conclusion• LEDs creating new lighting market
opportunities– Big Three lighting firms remain strong
participants– However, new competition from entrants
especially from Asia• Apparent fruitful policies
– Government funding for R&D• Synergies with semiconductors
– Education of engineers & researchers– Incentives to diffusion