* Tracking the economic value of the embedded technology:
Future outlook and trends:
The Embedded Digital Technology use in our everyday life is highly significant. To some estimate, around 98% of all the programmable digital devices are in some way embedded which includes the digital devices which embedded under the humans skin. Both current and future studies and trends suggests to a dramatic potential for a much bigger growth.
All the future outlooks of this technology points to a much wider use based on both enhanced functionality and cost reduction. “There are now more embedded devices than people on earth. As chips and wireless communications become universal and inexpensive, an enormous potential is created for new applications and novel ways to support our society and people’s lives” said Viviane Reding The former European Commissioner for the Directorate General Information Society & Media.
This study by author Geomina Turlia and conducted with the support of European Commission, focused on the inter-linked between macro and micro approach to the technology so it can support the importance of the proposed overall methodology when looking into the economic value of the embedded devices in general. However, it is as important for implementation purposes to also use other supported tools like using a European National Accounts Data so finding the correct economic value can be refined specifically when more needed sectorial or thematic studies can be further conducted to support results. This also means that the study here advocated the abandonment of the measuring of embedded devices as own subject, to move towards a different integrated approach at the product level so that measurement of the this technology can get its economic value more precisely.
There are two challenges that are theoretical, and need to be looked at when implementing the macro and micro approach: 1. The micro-level aggregation results
The digital technology impacts give some extreme variations in organizations performance and that only when the compliance with the homogeneity conditions “the quality of being similar or comparable in kind or nature” can get a good function of aggregate production as a form of the micro production. 2. Determination and identification of the profit margins of the components
The study suggests that the factors of productivity are more mechanical than anything else and that it is based on the general purpose and not at all based on statistical factors; it has yet to be dealt with in a more practical calculations.

As defined in this study, one must take all aspects of the information and communication technology like the hardware components, software components, labor services, capital services and the innovation drivers into account to produce a more measured economic value of the embedded technology. The study assumes that based on the large amount of microeconomic evidence and with the support of the macroeconomic researches approach that there is a more additional link between the technology and the output which is the better knowledge of information and communication technology. A common sense is used here with supported evidence as basics of believing that organizations can get a great benefit marketing the new technology on the imperfect markets which will generate an impact which may be seen as a factor of the total productivity.
The final value of the product and its implications of the incremental growth do not seem to take shape until it’s distributed to markets which can be seen as an obstacle to the mechanism for the distribution final value chain " The value chain only attains its established value at the final consumer market. Consequently, value is diffused to the firms that contribute to the fulfillment and satisfaction of the consumer driven values. Hence, what proportion of the value that corresponds to each firm in this consumer driven value chain diffusion process is a matter of competence, capacity, power, dependence, pricing and negotiations in the value chain within the firms concerned." (Svensson - (2003)).
As the demand grows, there is a need for standards that can benefit organization to limit liability mainly when it involves healthcare which directly affects the life of humans.

Impact on the Economy –

* Development technologies of low-power by Guardian Angels
This study focuses on the importance of creating intelligent human embedded technology that works as a companion to assist human race from infancy to old age. Our focus will concentrate on the economic value and enhanced availability to more users, how funding can be used to create a potential market for the new components mainly in Europe. Knowing what markets will benefit from such technology can dramatically increase growth of such industries which will have a big economic impact on the quality of life and services exercised by humans
The Guardian Angels in Europe are developing new low- power technologies and that will create a huge market for newly developed devices, systems and components. The development does focus on promoting the industry to develop devices that consume reduced power which will integrate technologies and materials like complex polymers, semiconductors and nanomaterial. The important point of the expected market for the new applications is that it will include all the highly consolidated semiconductors levels, this means allowing the mass-production of lower-cost products.
This opportunity comes with a challenge because of the amount of requirements and customizations for each dedicated design of all the systems or sub-systems including supporting each system’s integration process. Each layer of the software developments will require some type of customization.
This process comes at multiple steps of the overall device, component or system manufacturing/integration process, the outcome products will result in a well-adapted development to the requirements of the European industries now and the need for the knowledge-based European economy in the future and add value to services and manufacturing as expected to the continent economy.
The material, device structuring and the system integration of the existing industries will see an increase in production but cannot be precisely predicated or evaluated with currant information, but the trend and the advancing of the technology including the need for more embedded devices and systems supports the need for manufacturing more and more systems in the future as new local and global markets are expected to appear. The following segments are expected to be the focus of the Guardian Angels developments:
Health and an aging society
This includes all the sectors like sports, the health monitoring of individuals, required rehabilitation, and the monitoring of the elderly. The remote monitoring of health care will allow people to age longer and stop overcrowding of hospitals. It is important to mention that the Guardian Angels technology will be the launching pad for the biochips innovations. It will allow for faster medical diagnostics, like the enabling of early detection of the dangerous bird flu.
Also as an example, Guardian Angels are developing some advanced technological therapy using devices or systems to manage mental health which will improve productivity and access of healthcare to provide therapy with expected 80% of savings considering the time therapist will spend on each case compared to the normal used therapy today.
Intelligent transportation
This is a vast sector; it may include embedded devices in electric and gas automobiles, rail and marine and the intelligent public and business infrastructures interactions. A special attention is paid to new technologies and services of the recharging and refueling of electric and hydrogen-based automobiles.

Safety and security
In the future, Guardian Angels will employ an improved security embedded chips to work as travel electronic documents, it will ensure as a result that data of people cannot be changed and protect privacy of travelers.

* Veri-Chip Implantable RFID for The Health Industry - Cost outlook
Veri-Chip is the corporation that marketing the first sub-dermal of the radio frequency identification device (RFID). Their development and invention is now used in healthcare, security applications, financial and more. The future usage in medical applications is now the focus of company analysis for possible huge growth. The Veri-Chip embedded Health Information System includes: * An implantable of chip with a size like the grain of rice * A hand-held scanner * A secure database containing the patient’s medical information.
Although this study takes on the technology from its description, target market, internal assessment and the company future strategy, but it also detail some needed economic estimates and cost structure of the technology. The study reflects on the company efforts in highlighting the benefit of embedded chips verses the external devices and explain how and where the profit is going to be generated
Vari-Chip, being the first in the industry focuses their marketing efforts on highlighting the product future benefits, it will describe how uniquely it can answer and serves all specific needs and it would explain some of the advantages of the embedded devices over the external normal devices.
As demand goes high, Vari-Chip organization is continually reviewing the cost of the new embedded technology based on their analysis study that expect the organization to sell one to about one and half million devices in the next 15 years or so. The cost is expected to be high in the early years because it will include the cost of research and development and implement security measures to protect their technology secrets and this all can add to cost to end users.
Vari-Chip and its parent organization “Applied digital” remain enthusiastic about their technology but are dealing with risks from the cost related issues which cannot be ignored, some of their venders like Raytheon Microelectronics provides the organization with microchips needed in their embedded devices and will not guarantee needed production by them if the demand increases.
It is a financial duty on Vari-Chip to keep cost down by developing new real markets to sell their product so their technology stays available and within reach of parties and individuals who needs it.

* Economic Impact of RFID
This study focuses on the possible economic impact of the embedded technology in the world especially in Europe where this study is partly funded by the European Commission. While producing needed systematic economic data for analysis is as important as the technology itself, but the author is talking about how difficult it is to obtain such data because using the technology is fairly in its early stages. All indications about the technology predict a huge economic impact for reasons like the improvements the technology is getting, the potential increase of future users and a list of other reasons.
The productivity improvements came by adoption of new Innovations new technologies which lead to generating a stronger economic growth. The new embedded technologies have evolved to take the supply chain systems from small production systems to what we see today in a real management and performance of the technology, it also transformed the supply chain process from huge production to huge customization and needs, this caused to replace inventory with information. Organizations now make much better informed decisions as more data are available enabling more precise requested improvements and analysis of business needs.
The startup cost of building this technology is ever decreasing due to improvement in the IT sector “IT has significantly reduced the cost of sharing information, enhanced real-time information sharing, coordination, and decision making among firms - Whitaker, J.; Mithas, S.; Krishnan, M.S. (2007)”
It is also hard to predict cost of the new embedded chip for lack of data at this time “It is almost impossible to obtain systematic and reliable data to analyze the economic impact of RFID. For example, a study from 2005 finds that RFID related spending represents round about 9% of the companies’ IT-budgets, the spending for 2006 is predicted with 16% and another 20% by 2007 - Whitaker, J.; Mithas, S.; Krishnan, M.S. (2007)”.

* A feasibility study - Embedded health data chips for interior Alaska
The author of the study is conducting an evaluation to see the effectiveness and costs of current system of maintaining health records verses the projected costs and economic implications on how there can be a reduction in health care cost when such technology is implemented and if that can provide quality of life to the Native Athabasca in Alaska.
Cost
The element costs for the project plan vary and may include negotiations with the Vari-Chip which is the technology that will be used in this plan. It is expected that Patients will pay about $150 to $400 for implanting the device and $20 to $120 per year fee. Cost will depend on how much data patients will store in the system. The passive tag will cost $1- $3; where active tag will cost $25-$50. Scanner however will have a cost of $600 to $3000. In some recent time, Vari-Chip has provided the scanners to physicians without cost to increase market share.
The challenge in implementing the technology in Alaska is that it was hard to economically convince local people that there is a cost reduction that is effective, “The native community takes great pride in the care and wellbeing of its people. When a member shows up for care at Chief Andrew Isaac Health Center the patient is almost immediately surrounded by knowledgeable persons who can relate his/her medical history. Therefore, the community may not see a need for this proposal and it is highly possible they may also take offense –Page 25”
Although it is hard to implement the plan based on the social culture of the natives, it is found that the economic aspects were the easy part of the plan and can be used as a gate to convince the people there to consider using the system.
References:

Economic Impact of RFID Report Patrick Schmitt (ETH Zurich), Florian Michahelles (ETH Zurich) 2008

RFID-Feasibility-Study-for-TCC005 - EMBEDDED HEALTH DATA CHIPS FOR INTERIOR ALASKA – a feasibility study Perkins, Robert PhD (2007)

The “Guardian Angels for a Smarter Life” FET Flagship project - Ecole Polytechnique Fédérale de Lausanne (Switzerland) - Pilot Final Report (2012)

Tracking the Economic Value of Embedded Technology – A supply-side methodology Author: Geomina Turlea Editor: Marc Bogdanowicz European Commission - EUR 24788 EN – 2011

VeriChip Implantable RFID for The Health Industry Ann Marburger, Jim Coon, Kevin Fleck, Treva Kremer (2005)