Innovation Challenges in the Lighting Industry From 1990 to 2006

Abstract

The lighting industry faces major competitive challenges with the introduction of new solid-state lighting technologies. Solid-state lighting’s greater energy efficiency, lifetime, and other features have led to widespread adoption in backlights, traffic lights, signs, and automobile brake lights, and the technology is targeted to replace ordinary white light bulbs beginning in 2010. The purpose of this study is to assess the state of the emerging solid-state lighting industry and the traditional lighting industry, probing implications for North American industry competitiveness, the location of R&D, and government policy. The methods of the study combined discussions with industry experts, review of trade literature and government policy, and analysis of industry statistics and patent data. Although the big three traditional lighting firms have invested substantially in solid-state lighting, many new firms in the United States, Japan and Taiwan are likely to participate in solid-state lighting. R&D in a reshaped lighting industry may shift somewhat away from the United States and to Asian nations. In Japan, Europe, and the United States, both government funded basic R&D and technology programs and diffusion spurred by energy costs and government incentives have helped aid ongoing developments. This paper reports findings of a study recently carried out for the National Academies, Board on Science, Technology, and Economic Policy. The Alfred P. Sloan Foundation, the National Academies, and the RPI Center for Future Energy Systems provided funding.