Strategic and Operational Evaluation of the Optocap Project

The Optocap Project, implemented by Scottish Enterprise Edinburgh and Lothian (SEEL), and associated company Optocap Limited, aimed to establish a centre of excellence in optoelectronic packaging to: provide environmental test, reliability and qualification services; assist with the commercialisation of Research and Development; and develop new device packaging technologies. The evaluation aimed to investigate: what improvements SE/SEEL could make to the approach taken with the Optocap Project; how well Optocap Ltd has performed in achieving the project’s objectives; and what the future ambitions are for the project; and what should be the exit strategy.

The methodology consisted of investigating the external and internal views of Optocap. The external view was drawn from desk research, interviews around changes in market, customer interviews and discussions with venture capital companies. The internal view was investigated using interviews with those responsible for the project inception, documents used during the inception process, interviews with Optocap Ltd staff and company documents.

Overall, concludes that the Optocap Project and Optocap Ltd represent a positive contribution to the Scottish optoelectronics sector and SE’s Smart, Successful Scotland, and that customer feedback is universally strong. Notes that there are a number of examples of government best practice in the project’s inception and implementation stages, but that there are some areas where continuous improvements and new techniques are needed to increase the speed, quality and value of the initiative. In terms of delivery against the project targets, Optocap Ltd is affected by market changes in the sector.

Provides recommendations for the inception of future projects based on SE Project Lifecycle procedures, the successful approaches taken within the Optocap project, and additional improvements identified during the evaluation. Indicates priority changes to the operation of Optocap Ltd to increase its operational efficiency as well as EDP and commercial performance to ensure sustainability. Recommends that the exit strategy should include: pursuing a trade buyer immediately; considering higher volume production; and raising prices.