Memorandum 118
Joint submission from the Department for
Innovation, Universities and Skills, and the Department for Business,
Enterprise and Regulatory Reform
The terms of reference for the plastic electronics
engineering case study are as follows:
- The current and future roles of engineers
in the field of plastic electronics
- The potential for plastic electronics in
the UK/global economy
- How universities, industry, venture capital
and Government are involved in the development of the UK plastic
electronics sector, and
- Whether the UK engineering and manufacturing
sector are set up to handle growth in this area or other areas
like it
Background
1. The term "Plastic Electronics"
is used to describe the branch of electronics encompassing semiconducting
organic molecules, including polymers.
2. There is a great deal of interest and
excitement around plastic electronics at the moment as the discovery
of electronic properties from new "plastic" materials
has opened up the prospect of electronic circuits manufactured
using relatively cheap, additive printing processes on flexible
surfaces; something inconceivable using conventional silicon-based
electronics. The ability to create plastic electronics circuits
on flexible substrates will enable the creation of a whole new
range of products that will open up new markets to complement
rather than compete with those currently dominated by Silicon.
Early applications could include rollable displays for compact
mobile devices, and "electronic newspapers"-flexible
displays that are as comfortable and natural to read as paper,
and can download a book or pick up the latest edition of a newspaper.
Another exciting potential application is solar power-organic
solar cells have the potential to generate energy at much lower
cost than current devices.
3. The UK has been at the forefront of much
of the pioneering research in this exciting new area whilst also
playing host to many of the key companies throughout the supply
chain. This puts the UK in a strong position to develop new products
and exploit commercial value from the technology
The current and future roles of engineers in the
field of plastic electronics
4. Engineers are employed within the academic
base and in companies throughout the supply chain of this emerging
industry. Academic roles cover technical areas from chemical synthesis
to theoretical modelling and from material analysis to electronic
device development and measurement.
5. The task of engineering organic materials
exhibiting semiconducting properties into manufacturable devices
and products has been taken up by engineers primarily based in
industry. This work involves the development of novel materials
processing technologies using deposition techniques more closely
aligned with the printing industries than those normally associated
with semiconductor manufacturing methods.
6. Designing and manufacturing plastic electronics
devices is currently at a stage where knowledge and understanding
of the manufacturing processes employed is still a requirement
of device designers. At present, the development of specific devices
is taking place in parallel with the development of manufacturing
processes required to reliably and repeatably produce those devices.
This dictates a multidisciplinary engineering approach requiring
very close working relationships across the supply chain from
materials and substrate suppliers, process equipment manufacturers,
device designers, and systems engineers. Close collaboration between
specialists in each of these fields can be greatly advantageous.
The UK is well represented with companies in many parts of this
supply chain and benefits from a well developed network to assist
with the flow of knowledge and information between interested
parties.
7. The Plastic Electronics Technology Centre
(PETeC) is being established at Sedgefield as a national prototyping
operation, providing world class facilities and services to a
UK-wide network in plastic electronics. PETeC will be developing
manufacturing processes compatible with pre-production volumes,
when fully functional later in 2008, and, as such, be able to
help bridge the gap between the small scale laboratory demonstrators
and high-volume production runs required for marketable products.
The Centre should be very beneficial to small companies looking
to develop products based on plastic electronics.
The potential for plastic electronics in the UK/global
economy
8. While solid market outputs are expected
within 2-3 years, products incorporating Plastic Electronics such
as the displays of several mobile electronic appliances (mobile
phones and MP3/MP4 players) are already in the marketplace generating
revenue. These are significant markets and there is an expectation
that as the technology matures and improves in performance, it
will rapidly penetrate into higher-value markets. These are likely
to be complementary to conventional silicon-based electronics
while allowing the prospect of developing flexible circuitry for
use in areas like flexible displays (sometimes referred to as
e-paper), electronic RFID labels, intelligent packaging, biosensors,
disposable electronics and intelligent textiles. Current predictions
by market analysts include:
- ID TechEx: Plastic electronics £15
billion by 2015; up to £125 billion by 2025.
- Intertech: 40% (by area) of flat panel
displays will be flexible.
- NanoMarkets: £3 billion plastic electronics
markets by 2009, and total market will grow to £12 billion
by 2012.
These figures are highly speculative however,
as the technology and associated products are at an early stage
of their evolution and market reports for disruptive technologies/markets
are notoriously inaccurate when compared to those for what have
been termed "sustaining innovations".
9. In a recent report entitled "Strategic
decision making for technology policy", the Council for Science
and Technology (CST), the UK government's top-level independent
advisory body on science and technology policy issues, identified
Plastic Electronics amongst its 6 priority technology areas that
could produce real returns for the UK within a five-year timeframe.
How universities, industry, venture capital and
Government are involved in the development of the UK plastic electronics
sector,
10. Plastic Electronics is a rapidly developing
area in which the UK has an exceptionally strong academic base
and a number of companies throughout the value chain with leading
positions in developing and marketing early products. The UK community
is well networked, with the UK Displays & Lighting Knowledge
Transfer Network (funded by the Technology Strategy Board) providing
a useful focal point for relevant UK interests throughout the
supply chain, which comprises organisations developing, producing
and supplying the following:
- Materials/Substrates-the fundamental building
blocks for plastic electronics products;
- Processing Equipment-the equipment necessary
to prepare raw materials for subsequent manufacturing steps;
- Manufacturing Equipment-the equipment necessary
to deposit processed materials onto substrates;
- Device Design-activities associated with
understanding the interactions between the substrates, materials
and layers to realise functional devices;
- Device Manufacture-the sequence of manufacturing
process steps required to assemble functional devices;
- Device Testing/Equipment-techniques and
equipment required to measure device performance characteristics;
- Device Integration-the bringing together
of devices into higher level sub-systems and systems;
- Product Design and Integration-the integration
of devices and systems into marketable products.
11. The strength and representation of academe
and UK industry across the supply chain is in part the product
of past investments by the former Department of Trade and Industry
(DTI), the Technology Strategy Board, the Engineering and Physical
Sciences Research Council (EPSRC), the Regional Development Agencies
of England and the Devolved Administrations of Northern Ireland,
Scotland and Wales[1].
The investments include:
- Funding for more than 50 projects in the
area amounting to over £25 million in grant under DTI LINK
programmes and more recently through collaborative R&D activities
funded by the Technology Strategy Board (with support following
specific calls for research on the subject of plastic electronics).
These projects have also helped the development of an infrastructure
of businesses supplying organic electronics materials and equipment,
with notable clusters around Cambridge and the North East
- An announcement to establish a £10
million Plastic Electronics Technology Centre (PETeC) in Sedgefield,
by One North East in late 2006, supported by £2 million DTI/Technology
Strategy Board funds (due to be completed in June 2008)
- Funding for UK participants in European
Framework Programme 6 projects, and successful lobbying of the
European Commission by DTI to include plastic/organic electronics
as a key theme in Framework 7, with 63 million allocated
to this area across Europe in the first year of the programme
- EPSRC supporting the fundamental science,
technology and engineering that underpins research into plastic
electronics, and pre-competitive research that will position the
UK to most effectively develop and exploit technology advances
in the area. Current EPSRC portfolio of funding with direct relevance
to the field of plastic electronics is £68.2 million, including
£2.6 million for skills and training. EPSRC funding is provided,
for the major part, directly to universities as research or training
grants, a great number of which are collaborative with industrial
partners and other relevant stakeholders, and
- Funding for the National Measurement System
Innovation R&D programme, which has recently supported a £1.5
million project on plastic electronics metrology at the National
Physical Laboratory (NPL). NPL work in the piezo and particle
size measuring areas for example, is necessary to underpin the
novel manufacturing technology (precision ink-jet printing) required
for Plastic Electronics.
12. Much of the Plastic Electronics development
work being pursued in the UK and the rest of the world is based
on developing and exploiting intellectual property. Some fundamental
materials patents have proved to be valuable not just from the
licensing revenue they earn but also as an asset to attract interest
from venture capitalists and institutional funders. Companies
not owning fundamental patents are developing IP portfolios based
on process and manufacturing technologies; these can be equally
important but are, arguably, difficult to protect. The UK's academic
and industrial communities benefit from a generally enlightened
attitude towards the value and worth of intellectual property
in all its forms.
Whether the UK engineering and manufacturing sector
are set up to handle growth in this area or other areas like it
13. Government (national and regional) and
delivery partners have a process of ongoing dialogue with industry,
including the engineering and manufacturing sectors, to ensure
that they are well placed to take advantage of opportunities like
this.
14. In the near term, following a process
of consultation, DIUS will launch its Science and Innovation strategy,
which will set out an ambitious agenda for the UK's innovation
policy.
15. The upcoming BERR Manufacturing Strategy
Review will look to set out a manufacturing vision for the UK
and a clear set of priorities that will need to be taken forward.
A key role for the review will be in assessing how the reforms
set out by "World Class Skills", which emphasised that
the answer to the UK's future skills needs lies in creating a
demand driven system in which the skills and training provided
are determined by the needs of employers, can most effectively
be carried through to ensure that the skills needs of the manufacturing
sector are met. Sector Skills Councils have a key role to play
in this agenda.
16. The National Skills Academy for Manufacturing
(NSAM) will provide industry specific development programmes for
trainers and assessors, which it will accredit against the new
national standards. It will train employees and managers to work
closely together with training providers in the supply chain to
ensure that the skills of the entire manufacturing workforce are
lifted. The scope of the Academy will be broadened to include
schools and Higher Education. By 2012 it will be supporting the
learning and skills needs of 40,000 people per annum. Electronics
is one of the four leading sectors for NSAM.
17. The Government is also substantially
expanding the Apprenticeships Programme. By 2013 the government
will have introduced an entitlement to an apprenticeship place
for all school leavers who meet the entry criteria. Apprenticeships
for older learners are being expanded as well. Apprenticeships
offer the chance to acquire high quality, technical skills through
the practical experience of working with an employer while achieving
a nationally recognised qualification.
18. The national Engineering Apprenticeships
programme is one of the largest, with 17,000 young people currently
enrolled on level 3 courses. Continued employer engagement will
be vital to further expanding the programme.
19. The new 14-19 Diplomas will provide
an opportunity for employers to recruit people who have demonstrated
an understanding of and a commitment to their industry. Diplomas
give employers a key role in the development of curricular and
allow learners to combine theoretical study with practical experience.
SEMTA in association with other SSCs has played an important role
in developing a new diploma in Engineering, which will be taught
for the first time in September 2008. A diploma in manufacturing
will be introduced in September 2009.
20. A key aspect of our enabling the UK
to compete globally in the high technology sector is to develop
our skills in Science, Technology, Engineering and Maths. To this
end:
- DIUS is investing 12.7 million (2005-2008)
in STEMNET-the Science, Technology, Engineering and Mathematics
Network, which has a UK wide network of 53 SET Points to encourage
the take up of these subjects
- DIUS is investing 12.7 million (2005-2008)
in STEMNET-the Science, Technology, Engineering and Mathematics
Network, which has a UK wide network of 53 SET Points to encourage
the take up of these subjects. 18,000 Science and Engineering
Ambassadors (SEAs) are supporting school science activities, offering
mentoring and careers advice and acting as positive role models
- Steps have also been taken to improve the
number and quality of science teachers. 3,390 people started to
train as science teachers last year (2006-07), up from 2,590 in
2000-01, and
- The Government is committed to improving
the recruitment, retraining and retention of physics and chemistry
specialist teachers so that by 2014, 25% of science teachers are
specialised in Physics, and 31% in Chemistry
21. The Technology Strategy Board will launch
its strategy for the upcoming CSR period shortly. It has been
established to play a cross-Government leadership role, operating
across all important sectors of the UK economy to stimulate innovation
in those areas which offer the greatest scope for boosting UK
growth and productivity. Following the CSR 07 settlement, the
Technology Strategy Board was allocated a budget of over £700
million, and the Research Councils and RDAs have also committed
£120 million and £180 million respectively for collaborative
working with it. The leadership role assigned to the Technology
Strategy Board will enable it to use its investments to create
critical mass and coherence so that UK business has greater clarity
and is better able to access the most relevant support available.
22. Joining up the activities of the main
funders of innovation is vital to the future success of the UK
if we are to compete globally. The technology and innovation priorities
the Technology Strategy Board identifies, in conjunction with
its stakeholders, will provide a focus to co-ordinate activity
across the UK. This will include not only support for research
and innovation, but also the use of other levers of the innovation
landscape such as innovative regulation, intellectual property
rights, standards, metrology and procurement. By working across
the whole of the economy opportunities are opened up to transfer
knowledge between different sectors. This helps develop an understanding
of how innovation differs across the economy and sectors. Approaches
can then be tailored to suit differing needs.
23. The BERR Electronics and IT Services
Unit is working with the key businesses, the Technology Strategy
Board, UK Trade & Investment, the regions and other agencies
to ensure that there is a coherent strategy for pulling the advances
in plastic electronics technology through to exploitation in the
UK.
March 2008
1 The Technology Strategy Board and the Research Councils
will be submitting a detailed memorandum to the Committee. Back
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