Engineering: turning ideas into reality - Innovation, Universities, Science and Skills Committee Contents


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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