/LEUDULHVLQWKH$JH
6HOHFWLQJ$Q$XWRPDWHG/LEUDU\6\VWHPIRU)LQQLVK5HVHDUFK /LEUDULHV/LQQHD
$QQX-DXKLDLQHQ
+HOVLQNL8QLYHUVLW\/LEUDU\)LQODQG DQQXMDXKLDQLQHQ#KHOVLQNLIL
$EVWUDFW)LQQLVKXQLYHUVLW\OLEUDULHVKDYHFKRVHQDQHZLQWHJUDWHG OLEUDU\V\VWHP7KLVLVFRQWLQXDWLRQWRWKHFRRSHUDWLRQWKDWVWDUWHGLQWKH ODWHªVZKHQWKHVHOLEUDULHVJRWWKHLUILUVWDXWRPDWHGOLEUDU\V\VWHP 7KHFRRSHUDWLRQLVQRZH[SDQGHGZKHQWKHGDWDEDVHVRIDOOXQLYHUVLW\
OLEUDULHVDVZHOODVWKHQDWLRQDODQGXQLRQGDWDEDVHVZLOOEHDVVHPEOHGRQ DVLQJOHVHUYHUZKLFKLVRXWVRXUFHG7KLVPHDQVVLJQLILFDQWVDYLQJVD ORQJZLWKWHFKQLFDOLPSURYHPHQWVERWKLQWKHSXUFKDVHSULFHRIVRIWZDUH DQGKDUGZDUHDVZHOODVLQWKHPDLQWHQDQFHFRVWV
7KH3UHVHQW6LWXDWLRQ
$OO)LQQLVKDFDGHPLFOLEUDULHVDQGDQXPEHURIRWKHU)LQQLVKUHVHDUFK OLEUDULHVKDYHXVHGWKH97/6VRIWZDUHGXULQJWKHV7KHFRQWUDFW ZLWK97/6,QFZDVVLJQHGLQDQGLPSOHPHQWDWLRQWRRNSODFH GXULQJWKHIROORZLQJ\HDUV$XQLILHGQHWZRUNFDOOHG/LQQHDZDV FUHDWHGFRQVLVWLQJRIWKHORFDOLQVWDOODWLRQVDQGDFRPPRQSK\VLFDO XQLRQFDWDORJXHZKLFKDOOZHUHFRQQHFWHGE\WKHSRZHUIXODFDGHPLF GDWDWUDQVPLVVLRQQHWZRUN)81(7
7KH97/6EDVHGQHWZRUNQRZFDOOHG/LQQHDZDVYHU\DGYDQFHG ZKHQEXLOWDGHFDGHDJRDQGLWKDVVHUYHG)LQQLVKOLEUDULHVZHOO 97/6,QFKDVDOVREHHQDWUXVW\FRPSDQLRQRI)LQQLVKDFDGHPLF OLEUDULHVGXULQJWKHVHWHQ\HDUV
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
7KH$XWRPDWLRQ8QLWRI)LQQLVK5HVHDUFK/LEUDULHVFUHDWHGLQWKH 0LQLVWU\RI(GXFDWLRQLQZDVLQVWUXPHQWDOLQWKH
LPSOHPHQWDWLRQGHYHORSPHQWDQGUXQQLQJRIWKH/LQQHDQHWZRUN,Q WKH8QLWZLWKDOOLWVWDVNVDQGUHVRXUFHVZDVPRYHGWRWKH 1DWLRQDO/LEUDU\ZKHUHWKH'LYLVLRQRI/LEUDU\1HWZRUN6HUYLFHVLV QRZPDQDJLQJWKH/LQQHDQHWZRUNIXQFWLRQLQJDVDFRPPRQ DJHQF\IRUWKHDFDGHPLFOLEUDULHV,QWKLVFDSDFLW\WKH1DWLRQDO /LEUDU\LVDOVRUHVSRQVLEOHIRUWKHQHZVWHSVWRZDUG/LQQHDDVWKH QH[WJHQHUDWLRQQHWZRUNLVFDOOHG
6HOHFWLRQRID1HZ$XWRPDWLRQ6\VWHP
7RVXPPDUL]HWKHQHHGIRUDQHZJHQHUDWLRQVRIWZDUHZHFDQVD\
WKDWDOOOLEUDU\V\VWHPYHQGRUVDUHEXLOGLQJVRFDOOHGWKLUGJHQHUDWLRQ OLEUDU\V\VWHPVZLWKUHODWLRQDOGDWDEDVHDQG&OLHQW6HUYHU
WHFKQRORJ\JUDSKLFDOXVHULQWHUIDFHDQGZHEJDWHZD\VWKHDELOLW\WR VHDUFKPXOWLSOHGDWDEDVHVVLPXOWDQHRXVO\PXOWLPHGLDVXSSRUWDQG VXSSRUWIRULQWHUQDWLRQDOO\DFFHSWHGVWDQGDUGVVXFKDV=
8QLFRGH(GLIDFWDQG,62,//WRPHHWWKHJURZLQJQHHGVRIWKH XVHUV,WZDVDOVRHYLGHQWWKDWWKHFODVVLF97/6V\VWHPZDVFRPLQJWR WKHHQGRILWVOLIHF\FOHDQGZRXOGQRWEHGHYHORSHGIXUWKHUVLQFH 97/6,QFLVFRQFHQWUDWLQJRQWKHLUQHZV\VWHPZKLFKLVFDOOHG
9LUWXD
7KH)LQQLVKDFDGHPLFOLEUDULHVKDYHVLQFHHDUO\VHQMR\HGWKH EHQHILWVRIEHLQJDFRQVRUWLXP7KHWHQ\HDUVRI97/6XVHKDYH WDXJKWWKHOLEUDULHVDQGDOOSDUWLHVLQYROYHGWKDWFRRSHUDWLRQLV SRZHUHYHQLILWLVQRWDOZD\VHDV\RUVLPSOH
%HFDXVHRIWKHJUHDWVXFFHVVRI/LQQHDWKHUHZDVQRQHHGWR UHYLVHWKHEDVLFVHUYLFHSKLORVRSK\ZKHQPRYLQJWRDQHZV\VWHP /LEUDULHVZHUHVDWLVILHGZLWKWKHV\VWHPDQGWKHZRUNIORZVDQGZLWK FRRSHUDWLRQZLWKRQHDQRWKHU
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
7KUHHPDMRULVVXHVKDGWREHWDFNOHGWKHVHOHFWLRQRIWKH VRIWZDUHWKHIXWXUHGDWDEDVHRUQHWZRUNDUFKLWHFWXUHDQGWKH PDLQWHQDQFHRIWKHKDUGZDUH
6HOHFWLRQRIWKH6RIWZDUH
7KH/LQQHDOLEUDULHVVWDUWHGWRORRNIRUDQHZJHQHUDWLRQOLEUDU\
V\VWHPDERXWIRXU\HDUVDJR7KH1DWLRQDO/LEUDU\ZDVDVNHGE\WKH GLUHFWRUVRIWKH)LQQLVKDFDGHPLFOLEUDULHVWRVXUYH\WKHV\VWHPV HLWKHURQWKHPDUNHWRUEHLQJGHYHORSHGDWWKHWLPH$
TXHVWLRQQDLUHZDVFRPSLOHGDQGVHQWWRWKHYHQGRUVZKRKDG UHFHQWO\EHHQVKRUWOLVWHGLQFRUUHVSRQGLQJSURFXUHPHQWVLQ(XURSH RULQWKH867KHYHQGRUVZHUHDVNHGDERXWWKHLUGDWDEDVH PDQDJHPHQWV\VWHPGDWDEDVHVWUXFWXUHVWDQGDUGVYDULRXVIXQFWLRQV DQGIHDWXUHVWKHXVHULQWHUIDFHODQJXDJHVDQGIRUPDWVWUDLQLQJ VXSSRUWSULFHVDQGIXWXUHSODQV
3URFXULQJDQHZOLEUDU\V\VWHPIRUDODUJHQHWZRUNLVDPDMRU SURMHFWZKLFKLVUHJXODWHGE\(XURSHDQ8QLRQVWDWXWHV:KHQWKH YDOXHRIWKHFRQWUDFWH[FHHGVWKHWKUHVKROGZKLFKLVHXURV DWWKHPRPHQWWKHSURFXUHPHQWKDVWREHDGYHUWLVHGDFURVVWKH (XURSHDQ8QLRQ2IWKHWKUHHDOWHUQDWLYHW\SHVWKHUHVWULFWHG SURFHGXUHVHHPHGWREHWKHPRVWVXLWDEOHIRUWKH/LQQHDSURMHFW :KHQ97/6ZDVVHOHFWHGLQWKHODWHªVWKHVHOHFWLRQSURFHVV ZDVKDQGOHGE\WKH$XWRPDWLRQ8QLWRI)LQQLVK5HVHDUFK/LEUDULHV DORQHZLWKRXWPXFKLQYROYHPHQWIURPWKHOLEUDULHVWKHPVHOYHV7KLV DSSURDFKZDVTXLWHQDWXUDODWWKHWLPHEHFDXVHWKHUHZDVOLWWOH H[SHULHQFHRIOLEUDU\DXWRPDWLRQLQWKHOLEUDULHV0RUHWKDQWHQ
\HDUVDIWHUWKHVLWXDWLRQZDVFRPSOHWHO\GLIIHUHQW/LEUDULHVZHUH ZHOODFTXDLQWHGZLWKDWOHDVWRQHOLEUDU\V\VWHPDQGPRVW LPSRUWDQWO\WKH\NQHZZKDWWKHLUQHHGVZHUHDQGZKDWWKH\
ZDQWHGRIWKHQHZV\VWHP7KHUHVRXUFHVRIWKHOLEUDULHVZHUH ZHOFRPHGE\WKH1DWLRQDO/LEUDU\ZKLFKDVWKHVHUYLFHIDFLOLW\RI WKHDFDGHPLFOLEUDULHVKDGWKHWDVNRIFRRUGLQDWLQJWKHSURFHVVDQG SXOOLQJHYHU\WKLQJWRJHWKHU
7KHSURFHGXUHVWDUWHGRIILFLDOO\LQ$SULODQGWKHWHQGHUV ZHUHUHFHLYHGLQ-XO\$WWKLVSRLQWWHQGHUVZHUHLQYLWHGIRU VRIWZDUHRQO\DQRWKHUSURFXUHPHQWZDVSODQQHGIRUWKHKDUGZDUH RQFHWKHVRIWZDUHKDGEHHQFKRVHQ'XULQJWKHIDOOWKHWHQGHUVZHUH
6HOHFWLQJ$Q$XWRPDWHG/LEUDU\6\VWHPIRU)LQQLVK5HVHDUFK/LEUDULHV/LQQHD
/LEUDULHVLQWKH$JH
HYDOXDWHGWKRURXJKO\$WWHQWLRQZDVSDLGWRWKHWHFKQLFDOVWUXFWXUH DQGWKHWHFKQLFDOVROXWLRQRIWKHV\VWHPUHIHUHQFHVIURPSUHVHQW DQGIXWXUHXVHUVRIWKHV\VWHPWKHVHUYLFHVDQGWKHVXSSRUWRIIHUHG E\WKHYHQGRUDQGWKHTXDOLW\DQGWKHFRPSOHWLRQRIWKHYDULRXV IXQFWLRQVDQGPRGXOHV)RXUV\VWHPVZHUHVKRUWOLVWHGEDVHGRQ WKHVHFULWHULD7KH\ZHUH+RUL]RQ,QQRSDF7DRVDQG9R\DJHU 7KHVHIRXUV\VWHPVKDGEHHQIRXQGWRIXOILORXUUHTXLUHPHQWVEHVWLQ WKHILUVWSKDVHRIWKHVHOHFWLRQSURFHVV
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
HWFOLVWHGWKHPHULWVRIWKHV\VWHPVZLWKRXWNQRZLQJKRZWKHRWKHU JURXSVUDQNHGWKHP2EMHFWLYLW\ZDVWKHPDLQJXLGHOLQHKHUH,Q DGGLWLRQWRWKHUDQNLQJOLVWWKHJURXSVDOVRSURGXFHGOLVWVRIRSHQ TXHVWLRQV$QVZHUVWRWKHVHTXHVWLRQVZHUHVRXJKWLQWZRZD\V WKURXJKVLWHYLVLWVDQGQHJRWLDWLRQVZLWKWKHYHQGRUV$JURXSRIVL[
SHRSOHUHSUHVHQWLQJERWKWKH1DWLRQDO/LEUDU\DQGRWKHUOLEUDULHVDV ZHOODVWKHXQLYHUVLW\FRPSXWLQJFHQWUHVYLVLWHGOLEUDULHVXVLQJWKHVH V\VWHPVERWKLQ(XURSHDQGLQWKH867KHVLWHYLVLWVZHUHHVVHQWLDO LQILQGLQJRXWKRZWKHV\VWHPVZRUNHGLQUHDOOLIH
'XULQJWKHVHQLQHPRQWKVRIHYDOXDWLRQWKH1DWLRQDO/LEUDU\
QHJRWLDWHGZLWKWKHIRXUYHQGRUV'\QL[*PE+,QQRYDWLYH ,QWHUIDFHV,QF'DWD5HVHDUFK$VVRFLDWHV,QFDQG(QGHDYRU ,QIRUPDWLRQ6\VWHPV,QFLQVHYHUDOZD\VDQGRQVHYHUDORFFDVLRQV 7KHYHQGRUVFDPHWR+HOVLQNLDQXPEHURIWLPHVDQGZHZHQWWR WKHLUKHDGTXDUWHUVRQFHWRWDONZLWKWKHGHYHORSPHQWVWDIIVXSSRUW VWDIIDQGWKHFRPSDQ\PDQDJHPHQW7KHUHZDVDOVRFRQVWDQW GLVFXVVLRQYLDHPDLOZKHQHYHUDQ\TXHVWLRQVDERXWWKHIXQFWLRQDOLW\
RIWKHV\VWHPVQHHGHGWREHDQVZHUHG
$QHVVHQWLDOIHDWXUHLQVHOHFWLRQSURFHVVHVZDVDIDLUDQGREMHFWLYH WUHDWPHQWRIDOOSDUWLHVLQYROYHG6LQFHHYHU\VWHSZDVGRFXPHQWHG ZHZRXOGKDYHEHHQDEOHWRUHFRQVWUXFWWKHSURFHVVVKRXOGLWKDYH SURYHGQHFHVVDU\
:HKDYHEHHQWROGERWKE\PDQ\IRUHLJQFROOHDJXHVDQGE\WKH YHQGRUVWKDWWKH)LQQLVKOLEUDU\V\VWHPVHOHFWLRQSURFHVVKDVEHHQ WKHPRVWWKRURXJKHYHUFDUULHGRXW,WLVFOHDUWKDWZKHQSXUFKDVLQJ DV\VWHPIRUDOOPDMRUUHVHDUFKOLEUDULHVRIDFRXQWU\ZHDUHGHDOLQJ ZLWKDPXFKPRUHVHULRXVLVVXHWKDQVDWLVI\LQJWKHQHHGVRIMXVWD VLQJOHOLEUDU\
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
7KHFRPSDQ\(QGHDYRU,QIRUPDWLRQ6\VWHPV,QFKDGDOVREHHQ WKRURXJKO\LQYHVWLJDWHGE\DQHFRQRPLFH[SHUWDQGIRXQGWREH VRXQGDQGVWDEOHZLWKJRRGSURVSHFWV$QH[DPSOHRIWKHGLIILFXOWLHV LQDQWLFLSDWLQJIXWXUHFKDQJHVLVWKDW(QGHDYRUKDVVLQFHWKHQEHHQ VROGWR(OVHYLHU6FLHQFHUDLVLQJDQXPEHURITXHVWLRQPDUNV 7KH1DWLRQDO/LEUDU\SURSRVHGWRWKHOLEUDULHVWKDW9R\DJHU VKRXOGEHFKRVHQZKLFKZDVXQDQLPRXVO\DFFHSWHG7KH1DWLRQDO /LEUDU\ZDVDVNHGWRFRQFOXGHWKHQHJRWLDWLRQVZLWKWKHFRPSDQ\
DQGZDVDOVRHPSRZHUHGWRVLJQWKHFRQWUDFWRQEHKDOIRIDOO
XQLYHUVLWLHVDQGRWKHUERGLHVSDUWLFLSDWLQJLQWKHSXUFKDVH7KLV KDSSHQHGRQ)HEUXDU\
7KH1HWZRUN$UFKLWHFWXUH
2QHRIWKHLPSRUWDQWGHFLVLRQVLQ/LQQHDZDVZKHWKHUWRPHUJH H[LVWLQJGDWDEDVHVRUWRNHHSWKHFXUUHQWVWUXFWXUH'LVFXVVLRQVZLWK (QGHDYRUH[SHUWVPDGHLWFOHDUWKDWDOWKRXJKLWLVWHFKQLFDOO\SRVVLEOH WRPHUJHGDWDEDVHVDFWXDOO\GRLQJWKLVZRXOGEHWLPHFRQVXPLQJDQG H[SHQVLYH7KHWHFKQLFDOPHULWVRIVXFKDFWLRQZRXOGEHOLPLWHGVLQFH 9R\DJHUGDWDEDVHVFDQEHPHUJHGLQWRDYLUWXDOXQLRQFDWDORJXHE\
XVLQJWKH=,QIRUPDWLRQ5HWULHYDOSURWRFRO3ROLWLFDOO\WKHUH ZDVTXLWHDORWRIUHOXFWDQFHDPRQJOLEUDULHVWRPHUJHGDWDEDVHV HYHQWKRXJK9R\DJHUPDNHVOLYLQJZLWKDVKDUHGGDWDEDVHPXFK HDVLHUWKDQRXUSUHVHQWV\VWHP$GHFLVLRQZDVWKHUHIRUHPDGHWR UHWDLQWKHGDWDEDVHVLQ/LQQHD
7KHQH[WTXHVWLRQZDVKRZPDQ\VHUYHUVDQRSWLPDOVROXWLRQIRU WKH/LQQHDQHWZRUNZRXOGUHTXLUH,QWKHSUHVHQW/LQQHDQHWZRUN WKHUHDUH+3VHUYHUVIRUWKHGDWDEDVHV7KHQXPEHURI VHUYHUVZDVQHYHUUHDOO\GLVFXVVHGGXULQJWKHLPSOHPHQWDWLRQRI /LQQHDEHFDXVHRIWKHOLPLWDWLRQVRIWKHFRPSXWHUWHFKQRORJ\RIWKH WLPH +RZIDUFDQRQHJRLQFHQWUDOLVDWLRQ"7KHDQVZHUGHSHQGVRQ WKUHHIDFWRUVWKHDYDLODEOHGDWDWUDQVPLVVLRQQHWZRUNWKH FDSDELOLWLHVRIWKHVRIWZDUHDQGWKHVWDWHRIWKHFRPSXWHU WHFKQRORJ\
7KH)LQQLVK$FDGHPLFDQG5HVHDUFK1HWZRUN)81(7LVDOUHDG\
DWSUHVHQWDNH\IDFWRUIRUWKH/LQQHDQHWZRUN:LWKRXWWKH LQIUDVWUXFWXUHSURYLGHGE\)81(7LWZRXOGQRWKDYHEHHQSRVVLEOH WRXVHWKH8QLRQ&DWDORJXH/LQGDDVDFDWDORJXLQJWRROLQDZD\ZH KDYHGRQHVLQFHWKHHDUO\V
$VKDUHGVHUYHULVQRWSRVVLEOHLIWKHUHFDQRQO\EHRQHGDWDEDVH RQWKHVHUYHU7KH9R\DJHUVRIWZDUHDOORZVDQXQOLPLWHGQXPEHURI GDWDEDVHVRQDVLQJOHVHUYHU+RZHYHUSUDFWLFDOH[SHULHQFHIURP RWKHU9R\DJHUFRQVRUWLDPDGHLWFOHDUWKDWWKHUHVKRXOGQRWEH PRUHWKDQDERXWGDWDEDVHVRQDVLQJOHVHUYHUVLQFHDODUJH QXPEHURIGDWDEDVHVPHDQVWKDWPXFKWLPHPD\EHQHHGHGIRU 2UDFOHDQG9R\DJHUXSGDWHVLWPD\WDNHVHYHUDOGD\VWRXSGDWH PDQ\ODUJHGDWDEDVHVDQGGXULQJWKHSURFHVVDOOWKHGDWDEDVHVPXVW EHVKXWGRZQ
0RUHLPSRUWDQWO\LIDOOGDWDEDVHVDUHGHSHQGHQWRQWKHVDPH KDUGZDUHDQGRSHUDWLQJV\VWHPSURFHVVVHYHUHSUREOHPVZRXOG KDYHDQLPSDFWRQHYHU\OLEUDU\VLPXOWDQHRXVO\)RUWXQDWHO\QHZ VHUYHUWHFKQRORJLHVPDNHLWSRVVLEOHWRKDYHDVLQJOHVHUYHUDQGVWLOO DYRLGWKLVSUREOHPWKHUHDUHVHUYHUVWKDWFDQEHLQWHUQDOO\VSOLWLQWR VHYHUDOORJLFDODQGSK\VLFDOSDUWV
%RWK6XQDQG,%0ZKLFKDUHWKHSODWIRUPV9R\DJHUVXSSRUWVFDQ GHOLYHUFOXVWHUOLNHFRPSXWHUVZKLFKFDQEHVHSDUDWHGLQWRORJLFDO SDUWVFDOOHGGRPDLQV6XQRUQRGHV,%0(DFKSDUWKDVLWVRZQ RSHUDWLQJV\VWHPSURFHVVDQGGHGLFDWHGKDUGZDUHIURPQHWZRUN FDUGWRSURFHVVRUV7RWKHRSHUDWRUVDQGXVHUVWKHVHUYHUORRNVOLNH DFOXVWHURIFRPSXWHUV
6RWKHUHZHUHQRWHFKQLFDOFRQVWUDLQWVRQFKRRVLQJWKHQHWZRUN DUFKLWHFWXUHIUHHO\/LQQHDOLEUDULHVZHUHHDJHUWRILQGRXWZKHWKHU FHQWUDOLVDWLRQZRXOGVDYHPRQH\,QWKHªVWKHUHVRXUFHVDQG EXGJHWVRIWKH)LQQLVKDFDGHPLFOLEUDULHVKDYHEHHQFXWWKLVLV XQIRUWXQDWHO\DSUREOHPFRPPRQWRDOONLQGVRIOLEUDULHVHYHU\ZKHUH LQWKHZRUOG
$WWKHUHTXHVWRIWKHXQLYHUVLWLHVWKUHHVFHQDULRVZHUHDQDO\VHG
• FHQWUDOLVHGPRGHODOOGDWDEDVHVSODFHGRQDVLQJOHPDFKLQH
• VHPLFHQWUDOLVHGPRGHOVHUYHUV
• GHFHQWUDOLVHGPRGHOWKHFXUUHQWQXPEHURIVHUYHUV
&RVWDQDO\VLVZDVEDVHGRQERWKSXUFKDVHSULFHDQGWKHWRWDOFRVWRI RZQHUVKLSFDOFXODWHGIRUILYH\HDUV
$IWHUDWKRURXJKDQDO\VLVRIWKHYDULRXVRSWLRQV6XQ(ZDV FKRVHQDVWKHVHUYHUV\VWHP7KHGHFLVLRQWRJRIRU6XQZDVEDVHG RQWHFKQLFDOPHULWDQGSULFH%RWK(QGHDYRUDQG2UDFOHXVH6XQ PDFKLQHVDVWKHLUGHYHORSPHQWSODWIRUPVWKLVIDFWZDVDOVRWDNHQ
6HOHFWLQJ$Q$XWRPDWHG/LEUDU\6\VWHPIRU)LQQLVK5HVHDUFK/LEUDULHV/LQQHD
/LEUDULHVLQWKH$JH
LQWRDFFRXQW
7KH/LQQHDVHUYHUZLOOLQLWLDOO\KDYH0+]&38V
$FFRUGLQJWR(QGHDYRUWKLVLVHQRXJKIRUDFWLYHXVHUVRU PRUHWKDQFRQFXUUHQWXVHUVDERXWWZLFHDVPXFKDVQRZ
%RWK(QGHDYRUDQGZHIHOWWKDWDQDPSOHVDIHW\PDUJLQLVQHHGHGLQ RUGHUWRDYRLGSHUIRUPDQFHSUREOHPV
2IFRXUVHEX\LQJDORWRI&38VLVQRWHQRXJKWKHUHPD\EHRWKHU ERWWOHQHFNV7KH(ZLOOKDYH*%RIPHPRU\DQG JLJDE\WHVRIPLUURUHGILEHUGLVNGHGLFDWHGWR9R\DJHUGDWDEDVHV 7KHXQLYHUVLWLHVKDGVHWDQXSSHUOLPLWIRUWKHWRWDOSXUFKDVHSULFH RIWKHVRIWZDUHDQGKDUGZDUHLQFOXGLQJFRQYHUVLRQRIWKHGDWDEDVHV
%HFDXVHRIWKHXQIDYRXUDEOHH[FKDQJHUDWHRIWKH86GROODUWKH 1DWLRQDO/LEUDU\IHOWLQFUHDVLQJSUHVVXUHWRDUULYHDWDORZSULFH VROXWLRQ:HIRXQGRXWWKDWHYHQLIOLVWSULFHVPD\WHOO\RXDGLIIHUHQW VWRU\IRUDELJFXVWRPHUOLNHRXUFRQVRUWLXPLWZDVFKHDSHUWR SXUFKDVHRQHELJVHUYHUV\VWHPWKDQDQXPEHURIVPDOOHURQHV%XW EDUJDLQSULFHVDUHQRWDXWRPDWLFDOO\RIIHUHG:HPDQDJHGWR HVWDEOLVKDFRPSHWLWLRQEHWZHHQ6XQDQG,%0LQUHDOWHUPVEHFDXVH ERWKFRPSDQLHVVDZ/LQQHDDVDQLPSRUWDQWSURMHFW
$IWHUWKHVHUYHUZDVFKRVHQWKHGHFLVLRQZDVPDGHWRRXWVRXUFH WKHPDLQWHQDQFHRIWKHQHZVHUYHUWRWKH&HQWHUIRU6FLHQWLILF
&RPSXWLQJ&6&DQRQSURILWFRPSDQ\RZQHGE\WKH0LQLVWU\RI (GXFDWLRQ,WKRVWV)LQQLVKVXSHUFRPSXWHUVDQGPDLQWDLQVWKH )81(7QHWZRUN
,QVSLWHRIEHWWHUPDLQWHQDQFHFRYHUDJHDQGEHWWHUVXSSRUWIURP WKHKDUGZDUHYHQGRUPDLQWHQDQFHFRVWVZLOOGLPLQLVKDORW FRPSDUHGZLWK/LQQHD%DVLFPDLQWHQDQFHRIWKH+3 VHUYHUVWDNHVDERXWWKUHHPDQ\HDUVEXWZHHVWLPDWHWKDWDVLQJOH (ZLOOUHTXLUHOHVVWKDQDPDQ\HDU,IWKLVHVWLPDWHLVFRUUHFW ZHZLOOVDYHDERXWWZRPDQ\HDUVRUHYHQPRUHEHFDXVHPDQDJLQJD 81,;V\VWHPLVJHQHUDOO\EHOLHYHGWREHPRUHWLPHFRQVXPLQJWKDQ PDQDJLQJDQ+3FRPSXWHU
7KXVZHKDYHJRRGHYLGHQFHIRUWKHFODLPWKDWDQXQSUHMXGLFHG DSSURDFKWRVHUYHUDUFKLWHFWXUHKDVHQDEOHGXVWRFRPELQH VLJQLILFDQWVDYLQJVZLWKLPSRUWDQWWHFKQLFDOLPSURYHPHQWV%HLQJD FRQVRUWLXPKHOSVDORWOLEUDULHVEX\LQJV\VWHPVRQO\IRUWKHPVHOYHV ZLOOQRWEHDEOHWRXWLOLVHQHZWHFKQRORJ\ZLWKVLPLODUHIILFLHQF\,WLV HDV\WRXQGHUVWDQGIURPWKLVSRLQWRIYLHZZK\OLEUDU\FRQVRUWLDDUH EHFRPLQJPRUHFRPPRQLQWKH86DQGVRPH(XURSHDQFRXQWULHV )LQODQGKDVEHHQRQHRIWKHSLRQHHULQJFRXQWULHVLQWKLVDUHDDQG RXUH[SHULHQFHVIURPVXFKFRRSHUDWLRQDUHYHU\HQFRXUDJLQJ
,PSOHPHQWDWLRQ
$WSUHVHQWZHDUHLQWKHPLGGOHRIWKHLPSOHPHQWDWLRQSKDVH
%XLOGLQJ/LQQHDDQGLPSOHPHQWLQJ97/6WRRNVHYHUDO\HDUVEXWWKLV WLPHDOOGDWDEDVHVZLOOPLJUDWHIURP97/6WR9R\DJHUGXULQJD IDLUO\VKRUWSHULRGRIWLPH$SULO$XJXVW7KLVPHDQVWKDW HYHU\WKLQJKDVWREHVFKHGXOHGYHU\FDUHIXOO\DQGWKHVFKHGXOHVKDYH WREHNHSW:HKDYHDMRLQWQDWLRQDOLPSOHPHQWDWLRQSURMHFWDQG HDFKOLEUDU\KDVLWVRZQSURMHFW7KHUHDUHWKUHHSDUWLHVLQDOORI WKHVHSURMHFWVWKH/LQQHDOLEUDULHVWKHFRUHJURXSLQWKH1DWLRQDO /LEUDU\DQG(QGHDYRU,QIRUPDWLRQ6\VWHPV,QFDQGDOORIWKHVH
SDUWLHVKDYHWRZRUNWRJHWKHUVHDPOHVVO\
(QGHDYRULVGRLQJVRPHVRIWZDUHGHYHORSPHQWIRUXV,QJHQHUDO ZHDUHEX\LQJWKHV\VWHPRIIWKHVHOIDQGGLGQªWZDQWDVPDQ\
FXVWRPL]DWLRQVDVLQWKH97/6WLPHIRUZHKDYHVHHQWKHSUREOHPV UDLVLQJIURPORFDOL]DWLRQEXWWKHUHDUHVRPHWKLQJVWKDWFRXOGQRWEH DYRLGHG
7UDLQLQJLVDYLWDOSDUWRILPSOHPHQWDWLRQ:HXVHWKH§WUDLQWKH WUDLQHU¨PHWKRGVRWKDW(QGHDYRULVWUDLQLQJRQO\WKHWUDLQHUV7KLV ZD\ZHJHWFXVWRPL]HGWUDLQLQJIRU)LQQLVKORFDOQHHGVDQGDOVRVDYH TXLWHDORWRIPRQH\
(QGHDYRUKDVFRQYHUWHGVHYHUDO97/6GDWDEDVHVEHIRUHEXWLQ VSLWHRIWKDWWHVWLQJWKHORDGVLVLPSRUWDQW(DUO\WHVWVIRUVRPHVLWHV ZHUHFDUULHGWKURXJKLQWKHIDOODQGDWSUHVHQWZHDUHGRLQJWHVW ORDGVIRUDOOGDWDEDVHVWRPDNHVXUHWKDWWKHSURGXFWLRQFRQYHUVLRQV ZLOOEHVXFFHVVIXO
&RQFOXVLRQ
7KHFRUQHUVWRQHRIWKLVSURFHVVKDVEHHQFRRSHUDWLRQWKHZLOOWR SXOOWRJHWKHU7KLVLVQRWHQRXJKQHYHUWKHOHVVWKHUHDOVRKDVWREHD ZRUNKRUVHWRSXOOHYHU\WKLQJWRJHWKHU7KLVLVLPSRUWDQWHVSHFLDOO\
ZKHQWKHUHLVQRKLJKHUDXWKRULW\WRPDQDJHWKHSURFHVVDVZDVWKH FDVHZKHQ/LQQHDZDVEXLOWDQGWKH0LQLVWU\RI(GXFDWLRQWRRNFDUH RIWKHQHJRWLDWLRQVDQGIXQGHGWKHZKROHSURFHVV7KLVWLPH XQLYHUVLW\OLEUDULHVIHOWWKHQHHGWRVWDUWWKHSURFHVVRIDFTXLULQJD QHZV\VWHPWRJHWKHU7KH\ZHUHZLOOLQJWRPDNHDQHIIRUWWRILQGD QHZVROXWLRQWRLPSURYHWKHTXDOLW\RIWKHLUVHUYLFHVDVZHOODVWR XVHWKHLUVFDUFHUHVRXUFHVIRUWKHHYDOXDWLRQZKLFKZDVVHHQDV EHQHILWLQJDOO7KH\ZHUHDOVRZLOOLQJWRILQGWKHPRQH\WRSD\IRUWKH QHZV\VWHPZLWKHYHU\WKLQJLQFOXGHG
7KH/LQQHDFRQVRUWLXPZDVEXLOGIURPEHORZWKH1DWLRQDO /LEUDU\DFWLQJDVWKHZRUNKRUVHEXWQRWDVDKLJKHUDXWKRULW\7KLV ZDVDVXFFHVVIXODSSURDFK,QRUGHUWRFRQWLQXHWKLVVXFFHVVWKHUH PXVWEHDIRUPDORUJDQLVDWLRQIRUWKHFRQVRUWLXP7KDWLVZK\WKH /LQQHDFRQVRUWLXPKDVMXVWEHHQHVWDEOLVKHGZLWKDIRUPDO RUJDQLVDWLRQDOVWUXFWXUHDQGE\ODZV
7KHWKRURXJKVHOHFWLRQSURFHVVIRUDQHZDXWRPDWLRQV\VWHPIRU WKH)LQQLVKUHVHDUFKOLEUDULHVKDVQRWVLPSO\EHHQDTXHVWLRQRI WHFKQRORJ\DQGWHFKQLFDOH[SHUWLVHZKLFKWKH1DWLRQDO/LEUDU\KDV EHHQUHVSRQVLEOHIRU,WZDVHYHQPRUHDTXHVWLRQRISROLF\DQGFR RSHUDWLRQ0DQ\WKLQJVPD\EHSRVVLEOHWHFKQLFDOO\EXWSROLWLFDOO\
WKH\DUHQRWXQOHVV\RXNQRZKRZWRKDQGOHWKHPFRUUHFWO\DQG GLSORPDWLFDOO\
6RPHWLPHVRXUQHLJKERXUVLQWKH6FDQGLQDYLDQFRXQWULHVVD\WKDW OLEUDULHVLQ)LQODQGILQGLWHDVLHUWRFRRSHUDWHWKDQOLEUDULHVLQRWKHU FRXQWULHV2IFRXUVHWKLVLVQRWWUXH/LEUDULHVLQ)LQODQGDUHDV LQGLYLGXDOLVWLFDVOLEUDULHVHYHU\ZKHUH7KH\DOVRKDYHWKHLUSDUWLFXODU ORFDOQHHGV%XWWKHUHLVREYLRXVO\DZLOOWRFRRSHUDWHDVGLIILFXOWDV LWPD\EHDWWLPHV
