OVERCOMING CHALLENGES, LEVERAGING OPPORTUNITIES:

ECONOMIC POLICY & REGULATION FOR 3D PRINTING

Prof. Thierry RaynaNovancia Business School Paris

3D Printing Event Eindhoven 2014

PROF. THIERRY RAYNA

• Professor of Economics, Novancia Business School Paris

• Affiliate Professor, Imperial College London

• Associate Editor, Int. J. of Manufacturing Technology & Management

• trayna@novancia.fr

• @ThierryRayna

3D PRINTING & ADDITIVE MANUFACTURING RESEARCH GROUP

RESEARCH FOCUS

• Business Models

• Innovation Ecosystems

• Strategies

• Market Research & Forecasting

• Intellectual Property Right Management

• Economic Impact & Foresight

• Public policies

THE OPPORTUNITIES OF 3D PRINTING

LONG-TERM ECONOMIC EFFECTS OF 3D PRINTING

• Innovation unleashed

• Massive cost savings

• Tooling

• Transport

• Storage

• Waste

• Return of manufacturing

• Regional and global development

• Competitiveness

• Sustainable growth

THE CHALLENGES OF 3D PRINTING

CHALLENGES OF 3D PRINTING

• Adoption

• Innovation

• Standards

• Safety

3D PRINTING ADOPTION: A SPECIAL CONTEXT

Technology

Costs1980 … 2000 2010… …2020

$20K $1K $500

Polym

ers

$200K

PlasticsMetal

alloys

Sugar

Chocolate

Cells

Ceramics

…

$100…

…

AN ‘ADDITIVE’ ADOPTION

1980 1990 2000 2010 2020 2030 2040

Adoption

2050

Rapid prototyping

Rapid Tooling

Direct manufacturing

Home fabrication

MANY ADDITIVE MANUFACTURING TECHNOLOGIES

• Stereolithography (SLA)

• Fused Deposition Modelling (FDM)

• Laminated Object Manufacturing (LOM)

• Selective Laser Sintering (SLS)

• Laser Deposition Technology (LDT)

• Electron Beam Freeform Fabrication (EBF3)

• …

TREE VS. FOREST

TechnologySLA FDM LOM SLS LDT EBF3

HOW IS INNOVATION ADOPTED?

Time

Users

DIFFUSION IS NON-LINEAR

Time

Users

TYPES OF ADOPTER

development

Introduction

Growth

Maturity

Decline

Innovators

early adopters

early Majori

ty

Late Majori

ty

Laggards(Rogers)

Technolo

gy

Enthusiasts

Visionaries

Pragmatists

Conservativ

es

Skeptics (Moore)

Resources, desire and

willingness to take risks to try

new things

Opinion leaders: selective

about technologies they adopt

Willing to embrace: look to understand how it fits with their

lives

Adopt with skepticism: most

of the uncertainty

must be resolved

Last to adopt, have an

aversion to change

TYPES OF ADOPTER

development

Introduction

Growth

Maturity

Decline

Innovators

early adopters

early Majori

ty

Late Majori

ty

Laggards(Rogers)

Technolo

gy

Enthusiasts

Visionaries

Pragmatists

Conservativ

es

Skeptics (Moore)

Chasm

CHASM AND DIFFUSION

Time

Users

CAN THIS HAPPEN TO 3D PRINTING?

FROM HYPE TO DISILLUSION?

CAN THIS HAPPEN TO 3D PRINTING?

• Possibly, because:

• It’s not just digital

• Ubiquitous fails

• Requires entirely different core competencies

• Network effect (virtuous/vicious circle)

• Segregated industry

THINKING AHEAD:ECONOMIC POLICIES &

REGULATION

LEVERS TO BRIDGE THE GAP

• Economic Policy

• Industry Policy

• Competition Policy

• Standards

INDUSTRY POLICY

INDUSTRY POLICY

• Aims to fill gaps left open by the market

• For 3D Printing:

• ‘Create the need’

• Help building networks to trigger virtuous circle

• Promote research in critical areas (materials, interface)

• Promote standards and safety

INDUSTRY POLICY IN THE U.S.

• National Network for Manufacturing Innovation (NNMI)

• National Additive Manufacturing Innovation Institute-America Makes

• Digital Manufacturing and Design Innovation (DMDI) Institute

• American Lightweight Materials Manufacturing Innovation Institute (ALMMII)

• Next Generation Power Electronics National Manufacturing Innovation Institute

IP IN THE U.S. (1)

• National Additive Manufacturing Innovation Institute – America Makes

• 40 companies (e.g. 3D Systems, Boeing, Lockheed Martin, Northrop Grumman, GE, Stratasys) and 25 education/NGO. $70M / 5 years

• Ensure quality parts are produced and certified for use in products made by a variety of industries and their supply chains.

• Emphasis on providing tools needed for additive manufacturing applications to progress from prototype to market-ready.

• Improve and develop metal applications

• Determine international standards for safety and quality purposes (ASTM F42)

IP IN THE U.S. (2)

• Digital Manufacturing and Design Innovation (DMDI) Institute

• $70M / 5 year to University of Illinois Labs, over $250 million committed by 41 companies (including GE, John Deere, Procter & Gamble and Lockheed Martin), 23 universities and 9 other organisations.

• Enable low volume, varying demand, complex systems, with a combination of advanced materials, high performance computing resources, modelling and simulation tools, and additive manufacturing practices.

IP IN THE U.S. (3)

• American Lightweight Materials Manufacturing Innovation Institute (ALMMII)

• $70M federal funding + $78M from consortium partners /5y

• 30 companies (e.g. ALCOA, Boeing, Lockheed Martin, NanoSteel, Optomec, PowderMet, RTI International Metals, Honda, GE)

• Numerous lightweight metals are not being effectively utilised because of scale-up challenges and a lack of design guides and certifications.

• Will accelerate the introduction and expand the use of more affordable products made with high strength-to-weight alloys that improve performance and reduce energy consumption.

IP IN THE U.S. (4)

• Next Generation Power Electronics National Manufacturing Innovation Institute

• $ 70M federal funding + $140 million from partners /5y

IP IN THE U.S. (5)

• Examples of funded projects:

• Post-manufacturing inspection, process controls

• Thermal imaging inspection; comparing machines

• Optimising properties of metal powders

• Research on very large systems (19 feet large)

• Defect-free deposition in metallic AM

• Hybrid manufacturing system

INDUSTRY POLICY IN THE UK

INDUSTRY POLICY IN RUSSIA

INDUSTRY POLICY IN FRANCE

COMPETITION POLICY

COMPETITION POLICY

• Aims to prevent anti-competitive behaviour and abuse of monopoly power

• But should still provide incentives to innovate!

• In the case of 3D Printing: lowering costs to foster adoption

• Open standards

• Access to IP

WHICH IS THE WAY FORWARD?

THE STORY SO FAR…

• Expiration of ‘FDM’ patents has led to the first ‘boom’ in 3D Printing

• Other patents to expire soon

• But patenting activity has significantly increased over the past few years

• Patenting around

• May block development and integration

IS THERE A NEED FOR CP?

• Probably not at the moment

• CP often comes after IP

• But need to keep an open eye for blocking patents

• FRAND

• Need to promote standards

• Already many mergers and acquisitions

CONCLUSION

• Radical and transformative technologies seldom get adopted by themselves

• Industry policy is a critical tool needed for 3D Printing

• H&S, standards, research in materials and interface, equipment ➜ help to cross the chasm

• Competition policy required to help set standards and avoid blocking positions.

QUESTIONS? trayna@novancia.fr

@ThierryRayna