IN MY OPINION

Growth to
continue for
System-on-Chi p
The bni-gwning Systeman-Chip
(SOC) market i s predicted to reach
E24hn by 2009, an annual growth rate
of nearly %Oh, according to a recent
survey from research organisation
Business Communications Company
The performance is strong next to
the overall Integrated Component
market, which is predicted to grow by
under 10% over a similar period.
According to the survex SOC
component growth is being driven by
three factors. Firstlx the average
selling prices are higher than
standalone chips, as i s to be expected
due to integrated hcti onal i ty The
unit sales are definitely cannibalising
the consumption volume traditional
components, meaning there is an
occurrence of SOC devices
simultaneously penetrating into
existing markets of most standalone
chips. The growth of SOC
components has, in fact, led to the
birth and popularity of new endue
devices that were hitherto deemed
impossible to make or to market.
Manufacturers
fall short on
festive cheer
According to figures released by
Royal Mail, manufacturing fwms are
failing to cash in on the festive
mailing. Over half of businesses
report that receiving a Christmas
card from a supplier leads them to
make repeat purchases, while almost
as many expect believe a Christmas
card is the least a company can do.
New figures released by Royal Mail
estimate that 223 million cards will be
sent by businesses thisChristmas.
Howeve6 53% of manufacturing
frms will not be sending cards this
year, one of the lowest &-sending
industries in the LIK.
IVORY TOWERS
Research & Development is the most
important sector within the B2.2tr global
creative economy. In 1999 the world's
expenditure on it was 8545bn; higher
than the combined totals of all the
traditional 'creative' industries such as
the media, design, music. film, fashion
and the arts.
a powerhouse for ideas and has a
thriving El 1.5bn R&D indushy. Our
problem is twofold: we oumlves often
fail to recognise this strength and, most
importantly, we are let down by a lack of
understanding as to how to convert
ideas into commercial successes.
In fact, the future for UK plc as a
whole could be an unhappy one. Not
only is there the possibility of the
manufacturing industy disappearing. but
also the thriving R&D industy which
feeds into it
Less contact with the real world of
manufacturing. with the rough and
tumble of commercialisation and
developing its own ideas and
technologies, means that the UK is
becoming an 'Ivory Tower' centre of
research.
Venture capitalists are starting to
realise this, and are looking increasingly
for firms that have a manufacturing
capability and tangible assets. I f s less
risky than relying on intellectual property
that can be superseded before the
money arrives. The lack of expertise and
vigour in commercialising ideas means
that major funders already refuse to
invest in European technology because
there is a false perception it will lead to
a low return compared with innovations
from the US.
There are some powerful cultural
reasons for our lack of adventure in
commercialising smart ideas. The pride
the UK had in its scientists and inventon
-for example, the post-war period
when there was huge confidence in the
'backroom boffins' to produce world-
changing and improving technologies -
has gone.
The UK is recognised internationally as
One reason for the change can be
found in the ascendancy of a business
and management culture that is
comfortable with the idea of technology
as a separate function, a specialist area
of which there is no need to have any
detailed understanding. In my
experience, vey few senior executives
have a science or technology training
and, if they do, they will shout about
their management credentials and keep
a 'techie' background quiet. Staff who
would be embarrassed to admit they
couldn't spell will boast of a lack of
technical knowledge.
Business needs to wise up to the role
of technology. And to think more about
innovation. rather than relying on
straight imitation and better marketing.
The Government can help by backing up
words with cash and to make major
investments in areas of R&D that will put
the UK into a clear leadership position.
Renewable energy is a good example.
The UK has plenty to say to the world on
the issue, it has the good principles and
the expertise, but will it actually be
leading on R&D and implementation of
the technology?
Taken from the essay Them@ of the
mousetmp: how to make money from
ideas, (~.spacef ori deas.ukcom).
Anne Miller is Director of l e CreatiVity
Partnership and co-founder of TTP Group
Fir She i s also a successful inventor
with over 20 years' experience of
Research and Development and more
than 30 patenk.
IEE Manvfacfuring Engineer 1 Decemberiianuary 2004105 S