The document discusses the flat panel display industry and focuses on liquid crystal displays (LCDs) and plasma display panels (PDPs). It notes that LCD technology has grown significantly from 1990-2006, with thin-film transistor LCDs now dominating the market. The document also describes the geographic distribution of LCD manufacturers and suppliers, with companies from Taiwan, Korea, Japan, the US, and increasingly China playing major roles. It discusses how research and development has moved along with investment and production to different countries over time.

1. Flat Panel Displays Jeffrey Hart Indiana University Conference on Globalization and Innovation April 21, 2006

2. Contact Information Jeffrey Hart, Dept. of Political Science, Indiana University, Bloomington, IN 47405 Tel: (812) 855-9002 Email: [email_address] Web: http://mypage.iu.edu/~hartj Flat panel web site: http://php.indiana.edu/~hartj/FlatPanl/fpdindex.htm

3. Flat Panel Display Industry Major Flat Technology Segments Thin Film Transistor (TFT) Liquid Crystal Displays (LCDs) Single Twist Nematic (STN) Liquid Crystal Displays (also called passive LCDs) Plasma Display Panels (PDPs) Organic Light Emitting Displays (OLEDs) Competing Technologies Cathode Ray Tubes (CRTs) Projection Displays

4. Growth of FPD Revenues (in Billions of Current Dollars), 1990-2006 Source: DisplaySearch.

5. Share of FDP Market by Technology, 2005 Source: DisplaySearch.

6. TFT-LCD

7. Seven Generations of Glass Substrates Source: Corning Glass.

8. 6 th Generation TFT-LCD Fab Source: AUO.

9. Production Shares of TFT-LCDs by Country, 1993-2003, in percentages Source: Murtha, Lenway, and Hart, Managing New Industry Creation , and updated by authors.

10. Major TFT-LCD Manufacturers, 2006 BOE SVA none AUO CMO HannStar Quanta CPT Samsung LG-Philips S-LCD Sharp China US Taiwan Korea Japan

11. Representative Geographic Distribution of TFT-LCD Tool and Glass Suppliers, 2006 tools glass Schott Unaxis W.Eur. Corning Samsung-Corning Asahi NEG AKT Photon Dynamics Canon Nikon Shimadzu Tokyo Electron China US Taiwan Korea Japan

12. R&D Aspects of the Industry The industry is highly research-intensive Types of research required Current and alternative display technologies Current-generation production techniques Next-generation production techniques Need to secure intellectual property rights (IPRs) for both product and process technologies

13. Research Moves with Investment and Production General movement of investment and production from Japan to Korea to Taiwan and now to China R&D intensity of firms increases with each move Participation of scientists and engineers in international meetings from new countries Increased patenting, licensing, and cross-licensing activity accompanies movement of production

14. R&D Intensity of Display Firms and Suppliers, 2005 CPT’s parent firm Tatung has R&D intensity of 9.5 LG Electronics has R&D intensity of 16.8 Source: UK Dept. of Trade and Industry, The 2005 R&D Scorecard , Vol. 2, Company Data, 2005. 24.3 CPT 31.4 Corning 52.7 CMO 51.7 AUO 51.7 LG.Philips 18.8 Samsung Electronics 14.3 Sharp Intensity Firm

15. US LCD Patents by Firm, 2000-2004 Source: http://www.uspto.gov/go/taf/tecasg/349_tor.htm 44 55 63 69 92 Sharp 6 4 43 114 34 2003 22 1 0 0 HannStar 14 4 0 0 Chi Mei 50 14 26 17 Samsung 159 59 21 4 LG.Phillips 22 11 22 18 IBM 2004 2002 2001 2000

16. Surnames of Elected Fellows of the Society for Information Display Surnames Source: SID

17. Conclusions R&D activity follows investment and production in this industry There is a lag with respect to top level R&D and protection of intellectual property in latecomer countries (E. Asian tradition of not protecting IPRs eroding?) Big question is whether China will follow the pattern of Korea and Taiwan