1. Major Innovation Light-emitting diode (LED) lightning 17 th November 2014 Microsoft Innovation Center, Brussels 17 November 2014JIIP Symposium 20141

2. 17 November 2014JIIP Symposium 20142 LED is a man-made semiconductor, composed of gallium & nitrogen (gallium nitride), that generates light when electric current is passed through it LED produces light by combining positive and negative charges inside a chip which consists of semiconductor material The type of semiconductor used determines the colour of emitted light, ranging from infrared to red, yellow, green, blue, violet, and ultraviolet Light-emitting diode (LED)

3. Overview on LED innovation 17 November 2014JIIP Symposium 20143 Blue & white LED is scientific and technological breakthrough and radical innovation which – has revolutionized lighting and lightning industry – is substantially more energy-efficient than traditional lightning sources, and thus… – enables enormous energy savings and CO2 emission reductions, and, – as LED produces less heat, less electricity is needed for cooling & air-conditioning – is disruptive & totally new lightning technology – enables new entrants to lightning markets

4. Research & technology landscape 17 November 2014JIIP Symposium 20144 Critical contributions – long history since electroluminescence by Henry J. Round (Marconi Labs) (1907) and first LED by Oleg Lesov (1927) – Semiconductor material (gallium nitride) research at RCA (US) by Jaques Pankove, Herbert Maruska etc. in 1960s – 1st white LED by Isamu Akasaki (Meijo and Nagoya Univ.) and Hiroshi Amano (Nagoya Univ.) in 1989 – Shuji Nakamura (Nichia R&D, Univ. of California, Santa Barbara): new low-cost method of white LED production, processing, commercialisation, scaling-up of technology Industries – in 1960s initiative in the U.S., then gradual shift to Japan, in Europe Philips & Osram (spin-off of Siemens 2013)

5. Global LED patenting 17 November 2014JIIP Symposium 20145 Japanese Nichia Chemical, Toyoda Gosei – currently globally leading LED patent holders Philips: strongest U.S. patent portfolio in LED technology Recently fast growth in patenting of Asian companies, especially Korean Samsung and LG

6. Evolution of LED efficiency 17 November 2014JIIP Symposium 20146

7. Evolution of lightning 17 November 2014JIIP Symposium 20147

8. Market breakthrough for LED applications 17 November 2014JIIP Symposium 20148 (Source: Pham-Gia 2011)

9. Global LED market evolution 17 November 2014JIIP Symposium 20149

10. Revenue forecast for LED lightning market 17 November 2014JIIP Symposium 201410

11. LED value chain 17 November 2014JIIP Symposium 201411 (Source: Frost & Sullivan)

12. Impacts of LED 17 November 2014JIIP Symposium 201412 Scientific & technological – breakthrough, radical, disruptive Economic & industrial – electricity cost cut potential even 70% -- replacement potential of 3 (of 9) nuclear power plants in in Germany (*) – convergence of traditional lightning manufacturing industry and semiconductor industry Social, ecological and environmental – enormous energy savings and CO2 emission reductions – off-grid regions in developing economies e.g. replacement of kerosine lightning, purification of water by ultraviolet Led (*) McKinsey & Company: Lightning the Way: Perspectives on the global lightning market (2012)

13. Policy impact 17 November 2014JIIP Symposium 201413 In 1960-1970s material & semi-conductor technology & early LED technology in context of defence & space technology, in U.S. by NASA, DARPA (*) U.S. DoE Next Generation Lightning Initiative in 2000 Philips Lightning North America: in 2011 U.S. DoE: Bright Tomorrow Lightning Prize ($10 million) Dr. Nakamura: ”free hands” to develop LED technology Impact of regulation in U.S., Europe, Asia: shift to less energy intensive lightning, mitigation of CO2 emissions, etc. In Asia, especially in China huge investments in LED, also in Korea by Samsung & LG Policy matters: positive correlation of national programs & funding, and LED patenting (*) U.S. Defence Advanced Research Projects Agency

14. EU FP5-FP7 funding overtime 17 November 2014JIIP Symposium 201414 Annual EC-contribution to MI development (left axis and columns) and overall FP- funding (right-axis and line). Note: EC contribution to companies not available for FP5.

15. Lessons 17 November 2014JIIP Symposium 201415 Conclusions – LED is example of technology & innovation which has required patient long-term R&D activities – Regulation as technology development driver – Regional differences: U.S. – China & Asia – Europe EU companies – fast enough reactions? - for example U.S. has promoted commercialisation of LED technology For discussion – Opportunities for European industries? – Role for EU level & national European policies?