We have great science. They have patient investors.<\/p>\n
That pretty much sums up the now three-year old shopping and investment spree being conducted by Chinese and Asian companies for clean technology invented in the U.S.<\/p>\n
The latest example is Luminus Devices, an MIT-spin out with a novel LED. San’an Optoelectronics bought Luminus for $22 million. Over the years, VCs plunked $150 million into the company. Luminus was shipping products, but the company wasn’t exactly hitting escape velocity. The company specializes in a supersized LED: with a large LED, you can cut down the number of components and hence the cost of a light fixture. Unfortunately, for Luminus, the cost of regular-sized LEDs dropped faster than expected, partly thanks to Chinese companies and to U.S. companies driving innovation, while performance for standard LEDs has steadily increased.<\/p>\n
Last year, Chinese auto maker Wanxiang bought the assets of A123 Systems, another MIT startup, out of bankruptcy for $256 million. A123 raised over $350 million from investors, received grants and loans from the U.S. Department of Energy, and even held an IPO. Unfortunately, customers like Black & Decker were tough to hold onto and A123 continued to fall behind. Wanxiang also wants to buy Fisker Automotive.<\/p>\n
And before the A123 garage sale, China Private Equity Investment holdings bought the assets of Evergreen Solar, founded by MIT professor Ely Sachs, for $6 million.<\/p>\n
Note to MIT: maybe this start-up thing isn’t your bag.<\/p>\n
Other notable Asia-U.S. acquisitions and investments include Boston-Power (a $125 million injection of cash from the Chinese government and investors in 2011.), MiaSole (a solar panel maker that raised over $400 million\u2014China’s Hanergy bought it for $30 million in 2012), Stion (Taiwan’s TSMC invested in the solar panel maker) HelioVolt ($50 million from South Korean investors).<\/p>\n
What is driving this? Despite the fears about the decline of U.S. educational standards, we still lead the world in many ways in R&D. Americans also still lead in the know-how and experience when it comes to turning novel lab results into companies. Asian companies, however, have the edge when it comes to low-cost volume manufacturing. Energy and, in many countries, environmental hazards caused by air pollution are also greater concerns.<\/p>\n
European giant ABB has been a loyal buyer of U.S. technology, but recently CEO Joe Hogan, the person driving ABB’s strategy, stepped down. That could give Chinese buyers a little bit more bargaining power. At a minimum, it might mean one less party to compete against. In any event, with U.S. investors still moping on the sidelines, expect the shopping spree to continue.<\/p>\n
http:\/\/www.forbes.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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