Competing for the Future: An Analysis of ATP Funding in Photonics and Optical Technologies

NIST: The Common Denominator

For more than a century, the National Institute of Standards and Technology (NIST) has helped to lay the foundation for the innovation, economic growth, and quality of life that Americans have come to expect. NIST technology, measurements, and standards help U.S. industry invent and manufacture superior products reliably, provide critical services, ensure a fair marketplace for consumers and businesses, and promote acceptance of U.S. products in foreign markets. As industrial and national priorities change, NIST responds to the nation's most critical and emerging needs.

ATP: Bridging the Gap

Technology research in the private sector is driven by today's global, economic realities. The pace of technological change is faster than ever before, and victory goes to the swift. These realities force companies to make narrower, shorter-term investments in R&D that maximize returns to the company quickly.

The Advanced Technology Program (ATP) helps U.S. companies bridge the gap between the research lab and the market place, stimulating prosperity through innovation. Through partnerships with the private sector, ATP's early stage investment is accelerating the development of innovative technologies that promise significant commercial payoffs and widespread benefits for the nation.

ATP partners with industry to provide funding for early stage technologies that are viewed to be too technically risky or too early by private sector funding sources but nonetheless have the potential to enable broad based national economic benefits.

During a competition, ATP accepts proposals from U.S. companies, regardless of their size, that operate in all industries and fields of science and technology. Awards are based on the results of peer-reviewed competitions - open to all technology areas - and adhere to a demanding set of technical and business criteria. As an instrument for creation and growth of new businesses, nearly 65% of all ATP awards have been awarded to or involved small companies.

ATP's partnerships with U.S. companies are recognized within national and international scientific, economic, and industrial communities for the technology leadership they represent in path-breaking industrial research and development (R&D). Most recently, in December 2004, three ATP awards were among the "Scientific American 50" , the fifty technologies and companies for "outstanding technology leadership" in business in 2003-2004. The "Scientific American 50" appeared in the December 2004 issue of Scientific American magazine and at www.sciam.com.

The three technology innovations include:

• flexible computer displays that can be rolled up like a sheet of paper, the product of a 2000 ATP joint venture involving Motorola (Schaumburg, IL), the Dow Chemical Company (Midland, MI) and the Xerox research centers in Palo Alto, Calif., and Mississauga, Ontario.
  [Details: View ATP Project Brief.]
• microminiaturized fuel cells for cell phones, laptop computers and other portable electronics, produced by a 2001 ATP joint venture of MTI Microfuel Cells, Inc. ( Albany , NY) and DuPont ( Wilmington , DE).
  [Details: View ATP Project Brief.]
• genetically engineered yeast for producing therapeutic proteins that are compatible with the human immune system, created with a 2002 award to biotech start-up GlycoFi, Inc. ( Lebanon N.H. )
  [Details: View ATP Project Brief.]

R&D Magazine, a recognized journal for the nation's technology industry, recently announced their 2004 R&D 100 Awards. Sage Electrochromics, Inc. a 1993 ATP award, was recognized for their innovative, new "switchable," absorbing electrochromic window.
[Details: View ATP Project Brief.]
[Details: R&D Magazine, Recent Editorial, June 2005.]

"The SageGlass Smart Window Glazing is an all solid-state, ceramic materials technology in which the electrochromic films are adhered to the glass surface through high-temperature annealing.

SageGlass allows the user to control the amount of incoming sunlight and solar heat with the push of a button. Applying a low DC voltage to the electrochromic device in its "clear" state causes the active electrochromic layers to darken; reversing the voltage polarity causes the layers to lighten. A house full of SageGlass windows takes less energy to run than a single 75 W incandescent light bulb."

ATP: An Accelerator of Photonics and Optics

"Without doubt, the synergies of the microprocessor, laser, fiber-optic glass, and satellite technologies have brought quantum advances in information availability. These advances, in turn, have dramatically decreased business operational uncertainties and risk premiums and, thereby, have engendered major cost reductions and productivity advances. There seems little question that further major advances lie ahead. What is uncertain is the future pace of the application of these innovations, because it is this pace that governs the rate of change in productivity and economic potential."

Testimony of Chairman Alan Greenspan, February 17, 2000
Before the Committee on Banking and Financial Services, U.S. House of Representatives

In the 44 competitions that have been held between 1990 and 2004 and nearly 7,000 proposals received, 768 projects have been selected for ATP funding with 1,511 participants and an equal number of subcontractors. This amounts to 218 joint venture and 550 single company awards, $4,371 million of funded high-risk R&D - of which the ATP share is $2,269 million and the industry share is $2,102 million - and involving over 170 university and over 30 national laboratory participants. Nearly 65% of all ATP awards have been awarded to or have involved small companies. As an accelerator of technology innovations, the ATP awards fall within two major classification categories: first in support of major national priorities and second in support of United States industry's priorities.

Since 1990, the nature of ATP's awards has evolved to reflect the leading edge directions of U.S. industry.

These awards represent innovations which are essential for the United States to maintain world leadership in technology and intellectual capital. Product commercialization by the private sector, which follows completion of the ATP co-funded technology development, is the true economic power that drives the realization of new businesses, job growth, manufacturing cost reductions and quality of life advantages found in the United States .

ATP's photonics and optical technology awards first tended to focus on discrete optics fabrication and photonics manufacturing with specific applications in telecommunications. More recently, opportunities for photonics have broadened to include new applications, for example, implantable biomedical devices, solid-state lighting, and components for next-generation high-speed networking. It will be the commercial application of these ATP co-funded technology developments that will govern the future pace of U.S. economic benefits.

ATP has stimulated more than $774.4 million of industry defined, company executed R&D in 127 projects in photonics and optical technologies . These ATP co-funded awards directly involve the creation of new photonics and optical technologies leading to new-to-the-market products, goods, and services.

The ATP projects within the scope of this report include those endeavors that are:

• Developing technologies for light-based products, or products based on other forms of radiant energy whose quantum unit is the photon (generally considered infra-red and shorter wavelengths), or
• Developing systems technologies, for a variety of commercial applications, which are critically enabled by the application of advancements in light-based technologies to solve a core technical problem.
  

ATP's cost share requirement and business selection criteria has translated to a wide buy-in by U.S. industry for creating a sustainable technological, and economic edge in topics of importance to the Nation and to U.S. industry. U.S. industry's participation in the direct development of new photonics and optical technologies is illustrated by the following characteristics:

Awards and Funding across States

ATP activities, as do activities at NIST, reflect the priorities of the United States and the U.S. economy. Ideas from industry form the basis of ATP's investment history in photonics and optical technologies. As national priorities change or emerge, ATP and NIST responds to the Nation's most critical and emerging needs. Some of these national needs include topics such as manufacturing, homeland security, energy, and emerging sciences such as nanotechnology.

Over 100 of ATP's projects in photonics and optical technologies are in direct support of these national priorities.

• Homeland Security 14 projects
• Energy 16 projects
• Manufacturing 78 projects
• Nanotechnology 5 projects

Figure 1 - Photonics Investments for National Priorities*

Click to view large-scale version of pie chart.

* Note that any single award may be relevant to a single or multiple specific national priority. Therefore, the cross-cut count of awards against national priorities may exceed the number of actual awards issued.

Awards in these areas of high national importance are illustrated by the following examples:

Photograph courtesy of: Intevac, Inc. Santa Clara, CA.

Homeland Security
Many of the projects currently funded within the ATP portfolio have direct application in homeland security. Because homeland security covers a broad area of technology applications, it is useful to further delineate sub-technology areas. The ATP has followed the Office of Management and Budget (OMB) and Department of Homeland Security (DHS) classifications to group technologies in the ATP historical portfolio. The demarcation of each homeland security technology area is not discrete and there may be some interchange due to the multi-use capability of the technology.

ATP's awards in homeland security fall within one of eight categories.

• Biometrics
• Chemical, Biological, Nuclear, Radiation, and Explosives
• Critical Defense Manufacturing
• Critical (computer) Infrastructure Protection
• Computer (Cyber-) security
• Critical Physical Infrastructure
• Surveillance and Intelligence
• Technologies for Incidence Response

Examples of ATP awards in photonics supporting homeland security objectives include:

Photograph courtesy of: Evergreen Solar, Inc., Marlborough, MA.

Energy
America has one of the best systems in the world for delivering electricity from large generation plants over an intricate network of power lines to homes, schools, hospitals, businesses, and factories. According to the Electric Power Research Institute (EPRI), electricity as a percentage of total U.S. energy consumption has increased from 25 percent in 1970 to nearly 40 percent today, with a projection that it will exceed 50 percent in the near future. With power-quality technologies becoming pervasive in America 's businesses, factories, and homes, off-grid electrical power generation - fuel cells and solar cells / photovoltaics - are the only technology that can offer on-site, blackout-free electricity with very high reliability.

New technologies for energy conservation offer the best way to increase energy efficiency. Technology advances in energy efficiency has enabled the U.S. to make great strides in conservation, from the operation of farms and factories to the construction of buildings and automobiles. The President's National Energy Policy specifically calls for further improvements in the productive and efficient use of energy. A recent Department of Energy study found that if white-light SSL devices achieve the projected price and performance characteristics anticipated under an accelerated development scenario, 3.5 quadrillion BTUs of energy could be saved by 2025. ¹

Examples of ATP awards in photonics supporting new, renewable energy objectives include:

Graphic courtesy of: Agiltron Inc., Woburn, MA.

Manufacturing
Innovation lies at the heart of U.S. manufacturing leadership and success. Manufacturing advances create more efficient processes and higher quality products to meet consumer demands and customer service expectations. Successful manufacturers are always striving to make improvements in manufacturing technologies to reduce cost and lead times, and achieve 'six-sigma' quality levels. A June 2003 study by the National Association of Manufacturers, Securing America's Future: The Case for a Strong Manufacturing Base, points out that U.S. manufacturing generates large benefits to the U.S. economy.

Examples of ATP awards in photonics supporting the nation's manufacturing sector include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification:

Graphic courtesy of: Nanospectra Biosciences, Inc., Houston, TX.

Nanotechnology
Nanotechnology R&D at the atomic, molecular, or macromolecular levels, in the length scale of approximately 1 - 100 nanometer range, seeks to provide a fundamental understanding of phenomena and materials properties at the nanoscale, and to model, create, characterize, manipulate, and use structures, devices, and systems that have novel properties and functions because of their small or intermediate size. The novel and differentiating properties and functions are developed at a critical length scale of matter typically under 100 nanometers. Nanotechnology research and development includes integration of nanoscale structures into larger material components, systems, and architectures. Within these larger scale assemblies, the control and construction of their structures and components devices remain at the nanometer scale.

Examples of ATP awards in photonics built upon innovations in nanotechnology include:

ATP: Supporting U.S. Industry Priorities

Broadly speaking, ATP's funding in photonics and optical technologies are directed within eight application-centric areas, which we refer to as "U.S. Industry Priorities". ATP co-funded technologies that are commercialized and marketed through further private industry investments add value to the U.S. economy.

Application Centric

• Biomedical
• Communications
• Data Storage
• Imaging and Displays
• Lighting
• Solar Cells and Photovoltaics

Supply-Chain Centric

• Measurement and Inspection
• Production and Processing of Materials  

Figure 2 - ATP & Industry Investments by Industry Priority

Click to view large-scale version of pie chart.

Awards in these areas of high industrial and national importance are illustrated by the following examples:

Application Centric

Graphic courtesy of: Quantum Dot Corporation, Hayward, CA.

Biomedical
Those technologies that use photons to help diagnose and/or treat medical conditions or assess biomedical information, such as DNA diagnostics, glucose monitoring, DNA micro-chips, and medical equipment.

As the U.S. population ages, the soaring costs of medical care will become increasingly important. One way to control these costs is through early detection and treatment of medical problems. ATP funding is helping to develop photonics-based technologies to screen for cancer and detect genetic abnormalities. Other ATP photonics projects help to improve quality of life by allowing non-invasive measurement of physiological parameters such as blood-glucose level.

Examples of ATP awards for biomedical applications include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification:

Graphic courtesy of: Chiral Photonics, Inc., Clifton, NJ.

Communications
Those technologies for use within next generation light-based systems for transmitting, processing, and receiving information - whether it be voice or data - typically over a fiber-optic network, including lasers, detectors, fibers, transceivers, MOEMs, etc.

Rapid communication of voice and data information is vital to the growth of the U.S. economy, and photonics is playing a key role in this area. ATP funds a number of photonics-based projects which will lead to faster and more-reliable communications systems by helping companies develop the next generation of the photonics devices, subsystems, and design tools required to keep the U.S. at the forefront of the Information Age.

Examples of ATP photonics awards for communications applications include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification:

Graphic courtesy of: InPhase Technologies, Inc., Longmont, CO.

Data Storage
Optical technologies for storing and protecting digital data, including DVDs, CD-ROMs, holographic data storage, and optical tape.

Information is being generated at a rapidly growing pace, and better technologies are needed to keep up with this information explosion. Photonics technologies have the potential to far surpass other types of data storage in terms of data capacity and data-access rate, but the technical obstacles have so far been difficult to overcome. ATP awardees are working to develop the paradigm-changing photonics technologies, such as holographic data storage, that will make the dream of ultrahigh-density data storage become a reality.

Examples of ATP awards for data storage applications include:

Photograph courtesy of: Actuality Systems, Inc., Burlington, MA.

Imaging and Displays
Those technologies, devices, and systems used to capture, display, or manipulate images, including liquid crystal, plasma, polymer, micro-, and 3D displays; CCD arrays and video cameras; and related imaging hardware.

Visual images contain a great deal of information, and visual imaging and display devices are used in all areas of the U.S. economy, from medicine and homeland security to entertainment and the internet. New technologies are being developed with ATP funding that will enable higher-resolution and lower-cost capture and display of 2-D images, as well as advance the growing trend toward the imaging and display of 3-D data.

Examples of ATP awards for imaging and display applications include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification: 

Photograph courtesy of: Cree Lighting Company, Goleta, CA.

Lighting
Devices or systems necessary for creating next generation optical sources for an array of illumination purposes.

Traditional light sources, such as tungsten light bulbs, are extremely inefficient and waste an enormous amount of energy. Other light sources use hazardous substances such as mercury. ATP funding is helping to develop highly energy-efficient lighting for industrial and residential usage that could dramatically reduce U.S. energy consumption and dependence on foreign petroleum. Other ATP projects investigate ways to eliminate dangerous chemicals in light sources and replace them with environmentally benign substances.

Examples of ATP awards for lighting applications include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification:

Photograph courtesy of: Energy Photovoltaics, Inc., Lawrencecille, NJ.

Solar Cells and Photovoltaics
Optical technologies used in the creation of a renewal energy source, specifically the conversion of solar energy into electrical energy.

Solar energy has long been considered a potentially viable source of clean, low-cost energy. However a cost-competitive solar technology is not yet available, partly due to the need for lower-cost photovoltaic materials. With ATP funding, several companies are pursuing new ways to produce silicon ribbons, wafers, and sheets for use in inexpensive, high-efficiency solar cells. In addition, innovative solutions for efficient collection of solar energy are being developed under ATP photonics funding.

Examples of ATP awards for renewable solar energy applications include:

Supply-Chain Centric 

Photograph courtesy of: nLine Corporation, Austin, TX.

Measurement and Inspection
Technologies that use photonics to detect, measure, and evaluate, for an array of special purposes, including detecting small amounts of chemicals, product inspection for contaminants, or detecting size, shape, or appearance defects for fabricated parts.

U.S. manufacturers require a wide range of tools for inspecting and measuring their output for quality and performance. Traditionally, these tools have been mechanical in nature, but photonics-based techniques are increasingly being used by industry in these applications because they are generally faster, non-contact, more accurate, and more reliable than mechanical, ultrasonic, or other types of industrial gauges. In addition, on-line/in-process inspection and measurement techniques are becoming more important in many U.S. industries, such as semiconductors and chemicals, and ATP-funded technologies are leading the way in developing the cutting-edge tools for these purposes.

Examples of ATP awards for measurement and inspection include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification:

Photograph courtesy of: RAPT Industries, Livermore, CA.

Production and Processing of Materials
Those technologies needed for the production and processing of materials used in a variety of photonics applications - including sensors, infra-red cameras, and lasers - and technologies that use lasers or other photon sources to fabricate parts - including welding, cutting, and heat treating - or to modify the properties of specialty materials.

New manufacturing technologies are needed to bolster U.S. competitiveness in the manufacturing sector, and to help the U.S. improve both the quality and the quantity of its manufactured output. Photonics has a number of key advantages over competing technologies for the processing of materials, including higher speed, minimal tool wear, fewer harmful waste products, and higher production throughput. ATP projects are developing laser-based tools to process and treat a wide range of materials from metals to plastics. New materials for use in photonics applications are also being developed under ATP funding.

Examples of ATP awards for the production and processing of materials include:

Other reports that document long term results and economic benefits of ATP co-funded awards in this classification: 

For information about the Advanced Technology Program, contact:

For further information on these and other ATP funded projects, visit the ATP website at www.atp.nist.gov/.

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1. Energy Savings Potential of Solid State Lighting in General Illumination Applications, http://www.netl.doe.gov/ssl/publications.html.

Date created: June 27, 2005
Last updated: August 15, 2005