Framework : Existing R & D Network

R & D Key Stakeholders

Research Institutes/ Universities

Private Companies

Government Institutes

Universities

Display/Lighting Manufacturers

University Spinouts

Private Funding

Government Funding Agencies

Venture Capital funding

Corporate Funding

University Grants

Government Funded Competitions

Seed Investors

Government Funded Research

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R & D Network Model 1

The main objective of the network is to develop a product which would be commercialized by the OEMs which would be doing the corporate funding.

Key Stakeholder

Functions/Activities
The R& D network starts with the research done in the university /institute level. These researches are basically funded by various government funding agencies.
University / Government Funding Public / Private Corporate Funding

University/ Government Funding

University Spinout Company

University Spinout Company

After successful academic research over a couple of years, a spinoff company is started. The spin of company is usually funded by university grants and seed/venture capital. The corporate management typically comprises the core team from the university/research centre and members from the funding agencies.

Venture Capital/ Seed Investors

Strength/ Benefits The major benefit for the spinout is the assurance of a constant demand for its technology as a result of the collaboration with the major player. The major benefit for the private equity firm is that its is a provided with a well researched technology with a proven background.

Weakness

Public / Private Corporate Funding

The further technology development and product development is usually done in collaboration with major players in a particular sector. The R&D for the product is done by the spin-off with the funding from the private equity as well as venture capital funding.

The biggest weakness of the above network is the long time it is going to take for the technology to be commercialized as spinout would do a further research to modify the technology to suit the specification of the private equity firm that is funding the research.

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R & D Network Model 1 (Example)

On Dec1. 2010 LG Display announced that it has signed an agreement with QD Vision for developing QDEF technology and integrating it with its range of display products. QD Vision has been backed by many venture capitals. The main ones are Highland Capital Partners, North Bridge Venture Partners, Open Innovation Ventures, In-Q-Tel and DTE Energy Ventures. The list of venture capital funding is as follows: QD Vision received $6M in Series A funding. QD Vision received $9M in Series B funding QD Vision received $10M in Series C funding. QD Vision received $3M in Venture Round funding. QD Vision received $22M in Series D funding

The

base technology was developed by a group of researchers at Massachusetts Institute of Technology. The research was headed by Vladimir Bulovic who is right now a member of the scientific advisory team of the company. company was started by Seth Coe-Sullivan, Greg Moeller and Jonathan Steckel, all researchers in the Vladimir Bulovics group founded the company on August 23, 2004 to commercialize work begun at MIT on quantum-dot display materials, processes and devices.

LG Display

The

QD Vision MIT / Government Funding

Venture Capital/ Seed Investors

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R & D Network Model 2

The main objective of the above network is to develop a product/ technology which would be a combination of the technology of new technology based on 2 different technologies developed by 2 different companies. Key Stakeholder Functions/Activities

Private Equity Funding

Venture Capital Funding

Corporate Venture Capital Division

Government Agencies Funding

Funding available for Company 1 Company Developing Technology 1

Private Companies

The main stakeholder in this type of network are the two companies that are collaborating to form the joint venture. Both the companies involved in the R/D technology could be a startup/ spinout/Major private company or a startup company backed by a major company. Another key stakeholder in the network is the various funding agencies that are involved in the R&D network. These funding agencies are responsible for providing enough resource for the companies to commercialize the technology. Weakness

New QD technology based on both the technologies

Funding Agencies

Company Developing Technology 2

Strength/ Benefits
The main advantage of this model, is that both the companies can leverage on each other technologies and hence can develop a better technology faster
Government Agencies Funding

Funding available for Company 2 Private Equity Funding Venture Capital Funding Corporate Venture Capital Division

Another benefit of the model is the reduced business risk for each company as the risk gets shared between both the companies.

There is an imbalance in levels of expertise, investment or assets brought into the network by the different partners leading to lack of clarity of the objective of the R& D network.

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R & D Network Model 2 (Example)

Nanosys, Inc.

Optical Division of 3M

As

Arch Venture Partners, Polaris Venture Capital, Venrock and El Dorado Ventures

the part of the strategic agreement, Nanosys will contribute its QDEF technology and related patents to the alliance. of the development cost also will also be shared by the Nonosys.

As

LCD Displays Using

Part

the part of the agreement 3M would be bring its expertise in engineering, design and supply chain for the development of the display technology. Also a part of the total developmental cost would be contributed by 3M as part of the agreement.

Private Equity of 3M

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R & D Network Model 3

The main objective of the above network is to leverage the technological advances made by the participating companies and universities to create a new technology. The commercialization of the above technology is done as per the agreement signed by the stakeholders. Key Stakeholder Private Companies Functions/Activities The private companies depending on the agreement could be acting as a joint research partner or just a funding partner for the research. The main research activity is performed by the research institute. This activity could be a either a research on a previous technology developed by the university or could be a completely new research. The government agencies usually act as the major source of funding for the research being conducted.

Private Companies

Universities/ Research Institutes

Cooperative Research and Development Agreements

Universities/ Research Institutes

Funding Agencies Government Agencies

Strength/ Benefits The biggest advantage of the above model for a university is that it will not have any shortage in funding to continue with its research. Also it will be able to leverage the technical expertise of the private company which it turn can help in faster commercialization of the technology. Another major advantage of this model for the private company is it will have access to an already researched and established technology and hence will not have to spend money from the scratch. Also with government being a major source the company will not have to spend a lot of money. D24A-TI

Weakness

The major disadvantage of the above network lies in the fact that the there is a lack of certainty about the organizational form and hence can lead to anti-trust cases and patent infringement by the various stakeholders involved.
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R & D Network Model 3 (Example)

The goal of this effort is to develop a new manufacturing technique that enables "Tip-Based Nanofabrication" to accelerate the transition of nanotechnology such as QDs from the laboratory to commercial products. Key Stakeholder Industry Participants Functions/Activities The industry participants led by Zyvex Labs use their expertise in manufacturing to develop robust QDs with atomic precision under computer control. The university participants such as university of Texas and university of Florida will add their expertise and lad equipment for the research activities. Government institute s like National Institute of Standards and Technology (NIST) and the North Texas Regional Center for Innovation & Commercialization (NTXRCIC) will add their expertise of nanotechnology. The basic funding of the entire research is done by DARPA ($5 miliion) and Texas ETF ($4.5 million).

Industry Participants

University Participants

University Participants

Consortium for Manufacturing QDs

Funding Agencies

Government Institutes

Government Institutes Funding Agencies

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R & D Focus Areas : Framework

R & D Key Focus Areas

Display

Lighting

Manufacturing

Technology

Materials

Technology

Continuous flow process

Inkjet-Printing Method

Electroluminescent QDs

Photoluminescent QDs

Cadmium free QDs

Graphene as QDs

Photoluminescent QDs

Electroluminescent QDs

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R & D Focus Area : Display (Manufacturing)

Focus Area

Specific Area of Focus

Organizations

Activities/Developments

Continuous flow process

Quantum Materials Corporation

Quantum Materials Corporation as a part of an agreement with Access2Flow consortium of Netherlands are working on a methodology to mass produce quantum dots with improved yield and conversion over the current manufacturing techniques such as batch quantum dot synthesis.

Quantum Dot Manufacturing for Display Applications

Mass production of Quantum dots will enable the economy of scales thus helping not only to reduce the cost by also to meet the demand for current applications like phosphor replacements for LCD displays. Researchers from University of Oulu is working on novel methodology to manufacture CdSe core/ZnS shell nanoparticles by inkjet-printing in air and then sandwiching between organic hole and electron transport layers to produce efficient photon emissive media. Cost - efficient methodologies like inkjet printing will help reducing the overall manufacturing cost of QD displays. This will help in faster adoption of these QDs for Display manufacturing process as electroluminescent display devices.

Inkjet-Printing University Of Oulu Method

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R & D Focus Area : Display ( Technology )

Focus Area Organizations Activities/Developments Impact

Quantum Dot Embedded Optical Films

Nanosys,LLC, United States

Nanosys Quantum Dot Enhancement Film (QDEF) enables LCD manufacturers to deliver a better visual experience using their existing manufacturing process. QDEF active material is composed of Nanosyss proprietary, high efficiency quantum dot phosphors. Nanosys holds over 400 patents for various technologies used to develop this product

Quantum Dot display applications based on technology

Phosphor replacement Quantum dots LCD displays have been demonstrated to have more colour gamut and efficiency compared to conventional LCD displays. With further improvement in performance and cost a wide scale adoption of Quantum Dots can be expected in the near future. Display Applications with QDs as light emitting sources. SAIT adopted a new patterning method referred to as transfer printing. SAIT created red, green and blue QD films on separate wafers. The printed QDs are picked

Samsung Advanced Institute of

Technology (SAIT), Korea

from wafer and transferred to the substrate using stamps. This methods enables larges scale electroluminescent quantum dot display development.

Electroluminescent Quantum Dots are more efficient both in terms of performance as well as power. The above technology once developed in a cost efficient manner would not only replace the conventional display methodologies like LCD but also the upcoming ones like OLEDs and FET displays.

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R & D Focus Area : Lighting (Materials)

Focus Area Specific Area of

Focus

Organizations

Activities/Developments

Heavy metal-free quantum dots

Nanoco Group PLC, UK

Nanoco produces heavy metal-free quantum dots which show bright emission and can be tuned from ultra-violet, through the visible spectrum, into the near infrared. The quantum dots produce by Nanoco is RoHS compliant.

The Restriction of Hazardous Substances Directive (RoHS) aims to restrict certain dangerous substances like Lead (Pb) and Cadmium (Cd) commonly used in electronic and electronic equipment. This above directive forces the need for development of Cadmium free Quantum Dots. The directive is currently implemented actively in U.K and will have be adopted soon in other parts of US and EU. Hence development of RoHS compliant quantum dots will help in maintaining the adoption of phosphor replacement QDs in not increase it. Researchers for Beijing Institute of Technology Graphene Quantum Dots Beijing Institute of

Materials used for Manufacturing Quantum Dots for Lighting

Applications

Technology, China

are currently researching on finding novel method for manufacturing graphene quantum dots (GQDs) on a cost- efficient large scale methodology.

GQDs have presented extraordinary properties like unique optical and electronic properties, and the promise of GQDs in energy-related devices such as light-emitting diodes are immense. Development of these QDs will help in wide scale adoption of QDs in lighting applications due to their high CRI and better power consumption efficiencies.
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R & D Focus Area : Lighting (Technology)

Focus Area Specific Area of Focus Organizations Activities/Developments WiSys Technology Foundation has developed new solid state lighting technology that uses quantum dot phosphors to produce high quality

Phosphor Replacement QDs

WiSys Foundation

Technology

white light.
Light-emitting diodes are currently fabricated from direct-gap semiconductors using epitaxy, which makes them expensive and difficult to integrate with other materials. Light-emitting diodes based on semiconductor quantum dots, on the other hand, can be solution-processed at low cost, and can be directly integrated with silicon making them cheaper and more efficient. Hence can lead to an increase in adoption rates of quantum dot based LEDs. Quantum applications technology Dot lighting on School of Engineering and Applied Science of Harvard University based The QDs are made of CdSe and ZnS, while the electrical contact is made through two layer of aluminium-doped zinc oxide (AZO). The use of

Electroluminescent QDs for Lighting

octadecylamine (ODA) as a ligand in the synthesis and deposition of the QD and the use of Atomic Layer Deposition process (ALD) instead of the standard evaporation technique, to deposit a layer of aluminium oxide on the dots.

Electroluminescent QDs compared to current LED , CFL has better power conversion and CRI. Also these devices are cheaper and more flexible opening a wide range of new lighting application. On a long term basis these QDs are expected to be widely adopted across sectors ranging from defence to general lighting.
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Emerging Business Models

NIST, Ocean Nanotech Nanosys, LLC, Nanophotonic, QD Vision and QLight Nanotech Samsung, LG Innotek, 3M, Merck KGaA

Technological Concept These includes universities and companies that work on R & D of the technology

Solvay, Sentury Reage

Quantum Dot Technology Providers It includes suppliers of Quantum dot based technology devices such as Photo luminescent Quantum dot films, Electroluminescent QLED, QD crystals for other display and lighting applications.

Display Manufacturers It includes developers of products such displays for mobiles, televisions And computers

Distribution Channel
Raw material Suppliers It includes suppliers of chemicals like Cadmium, zinc, Indium, Arsenic, Silicon, Selenium, etc.
Quantum Dot Manufacturers It includes suppliers of Quantum dots made of Cadmium, zinc, Selenium and graphene.

Revenues

Tools and Equipment Providers It includes equipment suppliers for the manufacture and testing of Quantum dots.

Lighting Manufacturers It includes developers of products such as LED Lamps and QD-based lighting products

Omicron Nanotechnology, Veeco Instruments, Tokyo Electron

Nanoco Technologies, QD solution, Nanosquare, ,Evident technologies

Nexxus Lighting, CREE Lighting

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Emerging Business Models (Cont..)

Joint Venture Model Nanosys and Samsung Electronics This model in one of the most prominent models in the QD industry. In this model 2 or more companies come together to develop a technology and commercialize the product based on the technology. For ex: Nanosys develops a thin optical film that is used as a phosphor replacement for LCD displays. Nanosys has collaborated with Samsung who will integrate and commercialize their LCD displays. The biggest advantage of this model is the fact that QD developers are able to utilize the supply chain of giants like Samsung and LG, thus improving the adoption of the QD technology based products. R&D Based Business Model Ocean Nanotech, USA One of the most emerging models in this technology is the Q&D based model in which a company/institute acts as an outsourced partner for another company. The company/institute develops the technology/product and the other company commercialized the product. This type of business model is followed by Ocean Nanotech which develops the QD technology/ product based upon the requirements of its clients. The clients then commercialize the product. The biggest advantage of this model is that the startup doesnt have to worry about the supply chain and hence is only concerned with the QD technology/product development. These models are usually adopted by large display/lighting companies who get the benefit of getting a ready made technology in hand and hence is able to reduce the time to market for the QD product. Licensing Based Model Evident Technologies, USA Another model that is currently emerging is the licensing model. In this a company/institute licenses its technology to another company who develops the product and commercializes the product on their own. This type of model is followed by Evident Technologies who recently licensed many of their display and lighting patents to Samsung. Samsung will use these patents to develop their products which they plan to commercialize. The biggest advantage of this model is again the company doesnt have to worry about the product commercialization. As for the licensee company, they are getting a ready made technology and hence dont have to begin their research from scratch and hence can easily reduce the commercialization time frame.

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Global R&D Network Analysis

Environmental Analysis

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Key Technology Drivers in QD Technology Market

Better Light Emitting Efficiency

Wider Viewing Angle

Smaller size compared to current LED chips

Better power consumption efficiency

Improved flexibility

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Key Drivers in QD Technology Market(Cont..)

Inherent Capabilities of Technologies

Quantum dot have inherent technology advantages such as better energy efficiency, better color rendering index, better colour quality, more effective design and much low power consumption which makes them an attractive substitutes for the current display technologies such as LCDs and OLEDs. However most of the QD technology is still under development and hence the short term impact of the QD technology due to its inherent capabilities is going to be very low. However some of the display products such as phosphor replacements QDs for LCD are expected to reach better efficiency by the mid term and hence a high impact can be expected on a the mid term and long term basis. Short Term MidTerm Long Term

Impact

Funding Support
Any disruptive technology requires endless funding to push it towards commercialization especially if its competitors are well established industry products like LCD displays. Quantum Dot R&D has been witnessing huge investments for product development as well as mass production techniques to speed up the process of commercialisation. The funding has been from both government as well private sources such as venture capital and private equity. This driver will have a high impact on the QD adoption during the mid term as this funding will lead to more efficient R/D leading to better products during this period. The long term impact of this driver is considered to be low to medium. Short Term MidTerm Long Term

Impact

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Key Drivers in QD Technology Market(Cont..)

Participation of key market players

Another key driver for any disruptive technology is the participation of all key market participants as these companies not only bring there technological expertise but also other key resources like supply chain as well as funding. Another major impact of this driver is it allows the small and medium sized companies such as Nanosys and QD Vision to concentrate on just the development of one part/technology of the entire QD device instead of the entire device. The impact of the key market players' participation is considered to be high in mid term and long term basis as major product commercialization is expected to happen during these periods.
Short Term MidTerm Long Term

Impact

Huge Market Potential

The current LCD display market is expected to be around $1 billion according to the latest Frost and Sullivan studies. This huge market potential would in turn result in increased player participation resulting in substantial growth in the QD display market during the medium and long term basis. In the short term this driver would have a medium term effect as some companies have already released products which have efficiency comparable if not better than the current display technologies available. Short Term MidTerm Long Term

Impact

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Key Drivers in QD Technology Market(Cont..)

Demand for eco friendly Technologies

Another major driver for the QD technology is the growing increasing awareness and concern for environment and fast depletion of non renewable resources of energy. This has resulted in a greater demand for less power consuming and more efficient technologies for both display and lighting applications. QDs with there inherent advantage of being a both photo luminescent as well as electroluminescent product is able to cater effectively to these requirement. This driver is expected to have a high impact on QD development during the short term and mid term but with the technological advances the impact will fall to medium during the long term basis.
Short Term MidTerm Long Term

Impact

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Challenges in QD Technology Market

Saturation of market High Initial Cost of Purchase

Presence of competing technologies

Time for commercialization

Technical disadvantages

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Key Challenges in QD Technology Market(Cont..)

High Initial Cost of Purchase

One of the major challenge has been the high initial cost of QD based devices. As the technology is in the nascent stage the manufacturing of the technology is yet to reach the stage where economies of scale would result in reduced price for the commercialized product. Also the Quantum dot manufacturing add extra cost in development and implementation which adds up to the total cost of device. However with the rapid progress in the QD technology, this challenge is expected to have a decreasing affect as the time passes and is expected to pose a very low impact in a long term perspective. Short Term

Impact

MidTerm
Long Term

Saturation of market
Another major challenge for the QD industry is the long life time of QD as well as the competing products. Due to this long life time the rate of replacement for these products are very low and resulting in the complete saturation of the market. Right now as all the products are in a very emerging stage the impact of this challenge would be low. However with the development in QD technology as well as its competing technology the challenge is expected to increase in impact and is expected to have a very high impact on a long term perspective. Short Term MidTerm Long Term

Impact

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Key Challenges in QD Technology Market(Cont..)

Presence of competing technologies

One of the major challenge has been the high initial cost of QD based devices. As the technology is in the nascent stage the manufacturing of the technology is yet to reach the stage where economies of scale would result in reduced price for the commercialized product. Also the Quantum dot manufacturing add extra cost in development and implementation which adds up to the total cost of device. However with the rapid progress in the QD technology, this challenge is expected to have a decreasing affect as the time passes and is expected to pose a very low impact in a long term perspective. Short Term

Impact

MidTerm
Long Term

Time for commercialization

Another major challenge facing the QD manufacturers is the lack of efficient QD dot manufacturing techniques and equipments. Up until now QDs are being manufactured using the same technique that has been used for other nanomaterial which is not only decreasing the performance efficiency but also leading to wastage during production. However with the improvement of technology and adoption rates it is expected that QD manufacturing technologies and equipment would also be developed leading to efficient, low-cost and high volume production of QDs. Short Term MidTerm Long Term

Impact

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Key Challenges in QD Technology Market(Cont..)

Inherent disadvantage of the technology

Certain inherent disadvantage such as printing techniques which effect the longevity of the product and colour quality are yet to completely resolved which is proving a major hindrance for adoption of the electroluminescent quantum dot. However with the recent advances made by the companies such as Nanophotonica and Ocean Nanotech, this challenge would have a low impact in the mid-term and long term. Short Term

Impact

MidTerm
Long Term

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Regulatory/Standards Compliance
Regulations specifically targeted for the Quantum Dot development and manufacturing are yet to be formulated on a global basis. Most of the regulation are either adopted from electronic device manufacturing or from nanotechnology manufacturing process. This has invariable led to public concerns for environmental, health, and safety factors which could act as a roadblock against industry efforts to develop QDs.

EPSs Toxic Substances Control Act (TSCA)

Carbon-, Silica derivatives below the size of 100nm are considered harmful and hence should be certified before use. Fullerenes and modified fullerenes used commonly for quantum dot manufacturing has be first certified by TSCS before usage.

EUs Regulation on Hazardous Substances(RoHS)

The Restriction of Hazardous Substances Directive (RoHS) aims to restrict certain dangerous substances like Lead (Pb) and Cadmium (Cd) commonly used in electronic and electronic equipment. This above directive forces the need for development of Cadmium free Quantum Dots. The directive is currently implemented actively in U.K and will have be adopted soon in other parts of EU.

EPAs Significant New Use Rule (SNUR)

Section 4 of this rule requires the testing of certain nanomaterial before usage in any material. Section 8(a) requires the reporting of all available use, production volume, exposure and toxicity for existing nanoscale materials.

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