Laboratory Strategies
New Value Creation in Photonic Technology
Yoshio Itaya
Director of NTT Photonics Laboratories
Progress in establishing a high-speed Internet environment through ADSL *1 , FTTH *2 , and otherschemes is continuing in the world of information
communications. The rapid transmission of large volumes of data, the availability of always-on network
connections, and the use of the Internet via cellular
phones and information appliances are fast becoming
possible. At NTT, we have formulated a plan called“HIKARI Vision—Toward the World of Resonant
Communication through Broadband” (hikari is theJapanese word for light). This plan reflects our mission of creating a true broadband and ubiquitous era
through photonics.
The networks for this broadband/ubiquitous era
will be based on optical communication. This technology has been advancing steadily in parallel withthe development of photonic devices. It includes optical fiber that carries light over long distances, semiconductor lasers that generate many optical signals athigh speed, optical receivers that detect high-speed
optical signals, and optical circuit components thatcombine/split optical signals. The laying of opticalfiber started with the trunk network and is now reaching individual homes, enabling users to exchange
large volumes of data. We expect this maturing of
optical technology to accelerate price competition inphotonic devices and promote the creation of newvalue-added optical-component technologies.
Various researchers have different outlooks onthese technologies. Some pursue truth in nature. Others are pleased when the technology they developed
provides practical services. Still others want substantial monetary compensation for their inventions.
These goals are all important and necessary inresearch laboratories. However, more importantconsiderations are: What will this technology be useful for? What will the benefits be? Have market andcustomer needs been considered? How much market
share can we get?
Our research results are expected to produce hugebenefits in corporate laboratories. Four key factors increating a new business model for generating revenue

are: (1) integration of multi-disciplinary approaches,(2) value proposition (3) new value creation, and (4)cooperation with partners. We first need to understand the market and customer needs and propose andcreate value based on research results and intellectual property rights. Brainstorming with our partners
will be necessary to generate proposals for new value.
We need to repeat this process and progress towards
new value creation to make a new business model.
Against this background, we at NTT Photonics
Laboratories are researching and developing innovative photonic devices to create new value in communication networks. These R&D efforts are centeredon the three technological pillars of optical semiconductors, planar lightwave circuits (PLC), and ultrahigh-speed electronic circuits and devices. In addition, our target field for these photonic devices is not
limited to optical communications. We are simultaneously pursuing their application to biotechnology,
medical care, and other fields, and we expect to supply them to the global market through technology
transfer and product development. NTT Photonics
Laboratories aims to contribute to the creation of thenext-generation information-sharing society throughthese various R&D activities.
*1 ADSL: asymmetric digital subscriber line
*2 FTTH: fiber to the home