IN MY OPINION Growth to continue for System-on-Chi p The bni-gwning Systeman-Chip (SOC) market is 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 is to be expected due to integrated h c t i o n a l i t y The unit sales are definitely cannibalising the consumption volume traditional components, meaning there i s 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 e n d u e 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 mill ion cards will be sent by businesses this Christmas. Howeve6 53% of manufacturing frms wi l l 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 E l 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, (~.spaceforideas.ukcom). Anne Miller is Director of l e CreatiVity Partnership and co-founder of TTP Group Fir She is 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