Qualifying and Quantifying the UK's Electronic Systems Community' and it contribution to the UK's Economy. (See http://youtu.be/VOqjMyaf4zE) ## By Ian Phillips. http://ianp24.blogspot.com/ ## Opinions are my own.

1. The UK’s Electronic-System
Community
By: Ian Phillips
Principal Staff Engineer, ARM Ltd, UK
12mar14
From ESCO Economic Workstream Report
available at http://www.esco.org.uk/economic-footprint/
Pdf and Tube available at http://ianp24.blogspot.co.uk/

2. What are Electronic-Systems?
 Are Systems whose end-product functionality is
fundamentally dependent on the deployment of Electronic
Technology within them ...
• They are the smart gadgets we love; and the ‘technology’ that enables
the sophisticated living that we value today.
• They are complex alloys of Technologies and Know-How working
together to deliver Functionality ...
• Electronic, Software, Mechanical, Optical, Transducers, Analogue, etc.
• Research, Design, Reproduction, Automation, Qualification, etc.
• They are the result of Global Endeavour throughout their life-cycles
• With Physical and Virtual contributors, of Components and Sub-systems
• They are the foundations on which the 21c will be built
... Our Societies dependence on ES is a strategic vulnerability
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3. Who is the UK ES Community?
 These are UK Enterprises who’s individual Product feeds into
the life-cycle of Global Electronic Systems (ES) ...
• It includes scientist/engineer roles in creation, configuration,
installation and maintenance.
• Including instrumentation, tools, equipment and factory automation
• But Excluding the non-technical use of such systems
• It includes ES knowledge and know-how enterprises
• IP Business, Methodology, Quality, Reliability
• Educators (School, University and Commercial)
• It includes the UK-Footprint of International Enterprises
• It includes the ES-Departments of businesses that are primarily known
for their Non-ES product
• Eg: Retail, Defence, Aerospace, Logistics, Health, Education, Energy, etc.
... We know the UK is quite active here; but at what scale?
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4. Quantifying the Invisible
 We identified UK-Employees using the ...
• FAME commercial database of UK registered companies ..and..
• Collating that with HM Revenue & Customs tax-return database
• Using BIS Analysts (to make sure we didn’t get to see individual data!)
• With published ONS data (and a few other reliable sources)
 We quantified UK-GDP Contribution using the ...
• Income Approach to measuring GDP ...
• Not the Production or Expenditure Approaches (Economics 101)
• With the assistance of Manchester University Business School
• And more ONS data (and a few more reliable sources)
 We sanity-checked and reviewed the Methods and Figures ...
• And the calculations are freely available on the ESCO website
... We believe them; as does BIS and various EC audiences
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5.  Electronic Systems Enterprises (Overtly ES enterprises)
• Electronic Systems employs 435k UK people in 30k UK ES Enterprises
• ~50% of employment is in the 250 companies with ave. size of 1,180
• Much better than National where only 22% of employment is in 250+ category
• These are very successful ES businesses!
• ~80% of ES Enterprises are <10 employees
• Huge growth opportunity for the overtly ES Sector
Employment Findings - 1
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6.  Embedded Electronic Systems (ES within other businesses)
• Employs 420k UK people in 440k UK enterprises (of 2.5M total)
• ~40% of employment is in 250+ companies
• Nationally only 22% of employment is in 250+ category
• ES is a Key Enabling Technology for successful companies
• Yet ~2m businesses in the UK today have no ES roles!
• Huge opportunity for increasing roll-out of ES; and business efficiency.
Employment Findings - 2
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7. UK Economic Contribution
 Using the Income Method, the UK Employees and their
UK Salaries equates to UK GDP contribution (By a factor ~2x Salary)
• Bigger and more successful: Than its monolithic electronic predecessors
• Highly Productive: 5.4% of UK-GDP, from 3% of working population
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8. Honourable mention for:
 Electronic Systems Capabilities and Opportunities (ESCO)
• Initiated Government Interest in this sector
• Drove the creation of the full ESCO Report (www.esco.org)
• With its 5 Work-Stream Reports (Inc. the Economic)
• It won Government and Community recognition
... ESCO Quantified UK-ESC; but did not Create it and does not Own it!
 Re-Branded Electronic Systems COmmunity (ESCO)
• ESCO-Council: Chair: Warren East, Co-Chair: R.Hon Michael Fallon MP
• With 11 Industry leaders
• ESCO-Executive:
• 13feb14: ESCO CEO appointed (Sarah Macken)
• Other Execs are Industry Associations (Evol’n of UK Electronic Alliance)
... ESCO will be Your/Our Voice and Representation to Government
... and it should Influence/Guide Us in our own best interests
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9. Conclusions
 The 20c market for Electronics has evolved into the
insatiable 21c market for Electronic Systems ...
• Products which are too complex to be created and supported by any
company or country; they are the children of global-enterprise
• Many UK Enterprises have successfully evolved and offer their products
lucratively into the global market (Some old monoliths didn’t)
• The roles of these UK enterprises is overtly technical; so not readily
understood or valued by non-scientifically qualified
• The UK’s valued presence in ES is strategically important to the Nation
 Employing 850,000 in the UK and adding ~5.4% to UK GDP
• This is one of the biggest sectors in the UK (Tourism is bigger at 9%)
• Highly efficient sector, producing 5.4% GDP from 3% of workforce
• This sector is one of the greatest development opportunities in the UK
... The UK’s Electronic Systems Community is a story of success!
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