JULY 5, 2016 Robots, Robotics Continue to Move from Labs to … and Robotics b… · discovered. But robotics is still a small industry, despite being the recipient of nearly $600

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Robots, Robotics

Continue to Move from

Labs to Everyday Life

D E B O R A H W E I N S W I G

M a n a g i n g D i r e c t o r , F u n g G l o b a l R e t a i l & T e c h n o l o g y d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m

U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9

C H N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

• The global robot market will undergo extensiveexpansion, growing at a compound annual growthrate of 17% and be worth $135 billion by 2019,accordingtoresearchfirmIDC.

• China, faced with rising labor costs and a loweroutput of goods, will undergo massive change torobots over the next few years. Presently, SouthKorea has 478 robots per 10,000 workers whileChinahasonly36per10,000workers.

• Theuseof household robotics and robots is on theriseandrobotshavebeendevelopedfortherapeuticuseforthoseontheautismspectrum.Newmedicalusesforrobotsandroboticsseemtoemergedaily.

• Useof roboticdrones in theair,on thegroundandunderwaterareundergoingchangeasmoreusesarebeing found and developed. Photography,surveillance, detection and humanitarian deliveriescontinuetoevolve.

• Driverless car development continues amongmanufacturers and software companies working tobe the first to emerge across the threshold ofautonomous vehicles. Although there are setbacksfromtimetotime,progressisbeingmade.

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EXECUTIVESUMMARY

Robotsarewalkingoutof labsand intoour livesas robotics technology isincreasingly being used in everything from industry to household tools,personal assistants, medical systems, drones and cars. According to CBInsights,venturecapitalinvestmentinroboticsdoubledfrom2014to2015,to nearly $600 million, and the financing boom has made robotics andartificial intelligence (AI) one of the hottest segments of the technologymarket.Asroboticstechnologybecomesmorecommonplace,machineswillincreasinglyworkforus,alongsideusand,inmanycases,inplaceofus.

Modernrobotslookmuchdifferentfromwhatmanyofuspicturewhenwethink “robot”: behemoth machines with long arms working on an autoassembly line or in another industrial setting. Much like mainframecomputersoncetookupentirerooms,butarenowthesizeofaPCorevensmaller,many robots are smaller and lighter than their predecessors, andmore efficient. As the technology develops, theywill be cheaper to buildandusethaninthepast.Roboticsisevolvingdaily,anditsapplicationsarelimitedonlybyourimagination,creativityanddollars.

In this report,we examine recent investment trends and how robots androbotics technology are being used in industrial settings, hospitality,households, medicine, delivery and logistics, defense, and driverless cars,amongotherareas.Regardingtheroboticsindustrycurrently:

Anumberoffactorshavecontributedtotherecentgiantstridesinrobotics:the use of giant industrial robots has changed as smaller machines havebeen developed; improvements have beenmade in sensors, software, AIand machine learning; and new ways to use machines have beendiscovered.Butroboticsisstillasmallindustry,despitebeingtherecipientof nearly $600 in venture capital in 2015. Fewer than 250,000 industrialrobotsweresoldworldwide in2014.Forperspective,74.5million iPhonesweresoldinjustthefirstquarterof2015.

Figure1.GlobalConsumerRoboticsShipmentsbyApplicationCategory,2015–2020

Source:Tractica

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ToyandEducahonalRobots

HouseholdRobots

Robotsarewalkingoutoflabsandintoourlivesasroboticstechnologyisincreasinglybeingusedineverythingfromindustrytohouseholdtools,personalassistants,medicalsystems,dronesandcars.

Anumberoffactorshavecontributedtotherecentgiantstridesinrobotics:theuseofgiantindustrialrobotshaschangedassmallermachineshavebeendeveloped;improvementshavebeenmadeinsensors,software,AIandmachinelearning;andnewwaystousemachineshavebeendiscovered.

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GROWINGINVESTMENTBOOM

ResearchfirmCBInsightsreportsthat, in2015,venturecapital investmentinroboticsmorethandoubledfromthepreviousyear,to$587million,andIDCforecaststhattheglobalrobotmarketwillgrowatacompoundannualgrowthrateof17%by2019,reaching$135billion.InAsia,ChinaandJapanare leading the development surge. Information from IFI Claims, a patentresearch company, notes that annual robotics patent filings have tripledover the lastdecadeand thatChinaaccounted for35%of such filings lastyear,morethandoublethenumberofitsnearestrival,Japan.

THECHINESECONUNDRUM

In China, the government is dedicated to overtaking Germany, Japan andthe US in terms of manufacturing sophistication by 2049, the 100thanniversaryofthefoundingofthePeople’sRepublicofChina.Skyrocketingwages and decreased manufacturing sales are leading the country toembracethecreationandimplementationofindustrialroboticsinordertoretainitsdominanceasaleadingmanufacturingeconomy.

InChina,humanlaborisnolongerascheapasitoncewas.FactorywagesinVietnam,ThailandandIndonesiaare, insomecases, lessthanone-thirdofwhattheyareinChineseurbancenters.InShanghai,wageshavemorethandoubled in the past seven years. According to the Caixin ManufacturingPurchasing Managers’ Index, a widely used indicator of manufacturingactivity, Chinese exports in 2015 had shrunk for 10 consecutive monthsfromJanuary toOctober.Withnearlyone-quarterof theworld’sproductsmadeinChinatoday,itiseasytoseewhatchallengesthecountryfacesifitdoesnotmakesomenecessarychanges.

Manufacturing triggered the economic miracles seen in China during thelasttwodecades.Approximately100millionpeoplearecurrentlyemployedinmanufacturinginthecountry,comparedtoaround12millionintheUS.ManufacturingempiresemergedaroundtheYangtzeRiverDelta,BohaiBayoutsideBeijingandthePearlRiverDelta,withenormousfactoriesproducinggoodsthatrangedfromunderweartocomputers.In1990,Chinaaccountedfor3%ofglobalmanufacturingoutput.Today,itproducesalmostaquarterof the globalmanufacturing output, including 80% of all air conditioners,71% of all mobile phones and 63% of the world’s shoes. Consumers candirectly trace their low-priced goods, from flat-screen televisions tosmartphones,tothesegargantuanfactoriesinChina.

ButeventhoughChina isseeingwages increaseandoutputdecline, ithasthelowestproportionofrobotstohumanworkersofitscompetitors.Thereare478robotsforevery10,000humanworkersinSouthKorea,and316per10,000inJapan.InGermany,theratiois292per10,000andintheUS,itis164per10,000.InChina,theratioisamere36robotsper10,000workers.Accordingly, many in China feel that it the country must automatemoreaggressively and implement robotics technology in order to regain itsmanufacturingedge.

China’snewlyapprovedFive-YearPlanincludesaninitiativetomakebillionsof yuan available tomanufacturers to upgrade their technology, includingwith advanced machinery and robots. In Guangdong Province, thegovernment promised to spend $150 billion equipping factories with

ResearchfirmCBInsightsreportsthat,in2015,venturecapitalinvestmentinroboticsmorethandoubledfromthepreviousyear,to$587million,andIDCforecaststhattheglobalrobotmarketwillgrowatacompoundannualgrowthrateof17%by2019,reaching$135billion.

InChina,humanlaborisnolongerascheapasitoncewas.FactorywagesinVietnam,ThailandandIndonesiaare,insomecases,lessthanone-thirdofwhattheyareinChineseurbancenters.InShanghai,wageshavemorethandoubledinthepastsevenyears.

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industrial robots and creating two new centers dedicated to advancedautomation. The goal is to overtake Germany, Japan and the US inmanufacturing sophistication by 2049. The only way to do that is forChinesemanufacturers toadoptrobotsbythemillions.Thegoal isa long-term one, but it is possible that Chinese manufacturing plants willeventuallyrun24/7/365,staffedbyrobotsandonlyafewhumans.

Ifthisbecomesreality,whatwillChinadowithalloftheworkerscurrentlyemployedinmanufacturing?Evenif15%ofthemwereabletoretrainorbekeptasrobotprogrammersormaintenanceworkers,thatwouldleavesome850,000 workers without jobs, triggering great economic hardship and,almost certainly, social unrest. Robots and robotics could save themanufacturingindustryinChina,butitmightcomeatgreathumancost.

JAPANEXPERIMENTSWITHSERVICEROBOTS

Replacing humans with machines is not as easy with some jobs as withothers, but two extensive projects currently under way in Japan areexploringopportunitiesforrobotstoworkinavarietyofservicecapacities.

Huis Ten Bosch, a Dutch-themed theme park in Nagasaki Prefecture, isnamedafteroneoftheresidencesoftheDutchroyalfamily.Anew“robotkingdom” set to open in a portion of the park will be inhabited byapproximately200robots,includingabartenderthatcanmake10differentdrinks,achefthatcancookdifferentmealsondemandandothersthatwillpatrolrestaurantsandbars,servingmealsanddrinksandcleaningupwhenpatrons leave a table. At the Henn Na Hotel in Nagasaki, robots alreadycheckinguestsatthefrontdeskandcarrytheirluggagetotheirrooms.

Developing robots to help with everyday living is the goal of Japanesestartup Cyberdyne. Last year, the firm paid nearly $55million for land inTsukuba,where it is building a “city of robots.” Cybernic Citywill includehomes for elderly residents, a research center and a hospital aswell as aplazaandapark.Cyberdyne foresees robotshelpingresidentsandvisitorsinavarietyofways, includingbyperformingtasks incommercial facilities,helping aging farmers grow crops in agricultural settings, and providingassistanceandcompanionshiptoelderlyandinfirmpeople.Thestatedgoalis to make visible progress on the project by the 2020 Tokyo Olympics.Ultimately,CybernicCityisenvisionedasastate-of-the-artmodelforrobotsworkingwithinsociety.

CONSUMERROBOTSARETRANSFORMINGLIVES

Americans are well acquainted with Black Friday and CyberMonday, thetwo biggest shopping days of the year in the US. Few of them, however,knowaboutSingles’Day,aphenomenonstarted inChinabysomecollegestudentswhochoseNovember11asaspecialholidaytocelebratepeoplewhowerenotinarelationship.Thedatewaschosenbecausenootherdateon the calendar has as many 1’s—or “singles”—in it. Singles’ Day hasevolvedintoashoppingeventinChinathatdwarfsCyberMonday.

LastNovember11,e-commercegiantAlibababroke itsownrecordwithatotalof$14.3billioninsales,a60%increaseover2014.Forthesecondyearinarow,EcovacsRoboticssoldthelargestnumberofproductsinthesmallappliances category on Singles’ Day and, in the eyes ofmany,moved theownership of personal robots from “novelty” to “necessity.” In 24 hours,

WhatwillChinadowithalloftheworkerscurrentlyemployedinmanufacturing?Evenif15%ofthemwereabletoretrainorbekeptasrobotprogrammersormaintenanceworkers,thatwouldleavesome850,000workerswithoutjobs,triggeringgreateconomichardshipand,almostcertainly,socialunrest.

Replacinghumanswithmachinesisnotaseasywithsomejobsaswithothers,buttwoextensiveprojectscurrentlyunderwayinJapanareexploringopportunitiesforrobotstoworkinavarietyofservicecapacities.

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Ecovacs sold $47 million worth of household robots, including vacuums,window cleaners, roaming air purifiers, and mobile Internet-connectedentertainmentandhomesecuritydevices.Thesesalesunderscorethe factthat more consumers are embracing home robots to perform routinehousehold chores, providing themselveswith valuable free time that theyformerlywouldhavespentonhousekeeping.

According to a new report from research firm Tractica, annualworldwideshipmentsofconsumerrobotswillincreasefrom6.6millionunitsin2015to31.2million units by 2020. Tractica expects that the cumulative total willreachnearly100millionunitsduringthatperiodandthathouseholdrobotswillremainthelargestsegmentofthemarket.

NEWHOUSEHOLDHELPERS

Developments inAI andmachine learninghavemade robots smarter, andimprovedmachine vision, voice and gesture recognition, aswell as tactilesensors, are also being incorporated into consumer robots, making themmoreusefulinhomes.Amongtherecentadditionstothehouseholdrobotcategory are Monsieur, a robot bartender that can mix thousands ofdifferent drinks and HoLLiE, a two-armed robot bartender that can helpmakeandservedrinks.

TheMonsieurrobotbartenderSource:Monsieur.co

Monsieurlookssimilartoavendingmachine,butisanAI-drivenrobotthatfeatures a touch-screen menu of all the drinks it is prepared to make,ranging fromwhiskey sours to vodkamartinis and beyond. Users can askMonsieurtoincreaseorreducethestrengthoftheirdrink,orevenrequestanonalcoholicversion.Therobotlearnsmoreaboutindividualsasitisused,and can determine when someone has had a hard day at the office andneedsadoubleoriftheuserhasadateoverwhomightlikeadrinkaswell.

In24hours,Ecovacssold$47millionworthofhouseholdrobots,includingvacuums,windowcleaners,roamingairpurifiers,andmobileInternet-connectedentertainmentandhomesecuritydevices.Thesesalesunderscorethefactthatmoreconsumersareembracinghomerobotstoperformroutinehouseholdchores,providingthemselveswithvaluablefreetimethattheyformerlywouldhavespentonhousekeeping.

DevelopmentsinAIandmachinelearninghavemaderobotssmarter,andimprovedmachinevision,voiceandgesturerecognition,aswellastactilesensors,arealsobeingincorporatedintoconsumerrobots,makingthemmoreusefulinhomes.

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It can even be configured to offer the user a cocktail when his or herfavoriteteamwinsagame.

TheHoLLiErobotbartenderSource:PSFK.com

HoLLiE is a robot with anthropomorphic, five-finger hands and two armsthat move independently of one another. At a recent party in Germany,HoLLiEinteractedwithhumansinGermanandfilledordersforagin-basedfruit cocktail or awhiskey lemonade that guestshadordered via a tablet.Therobot’srighthandpicksupemptyglassesandthelefthandholdsuptheglassesasthedrinksarepouredfromadispenser.Ahumanbartenderwasonhandtoassistandreplenishsuppliesasneeded,butHoLLiEhelpedmakeandservemorethan280cocktailsatthegathering.

Cooki,aroboticchefSource:EvanAckerman,IEEESpectrum

HoLLiEisarobotwithanthropomorphic,five-fingerhandsandtwoarmsthatmoveindependentlyofoneanother.AtarecentpartyinGermany,HoLLiEinteractedwithhumansinGermanandfilledordersforagin-basedfruitcocktailorawhiskeylemonadethatguestshadorderedviaatablet.

DevelopmentsinAIandmachinelearninghavemaderobotssmarter,andimprovedmachinevision,voiceandgesturerecognition,aswellastactilesensors,arealsobeingincorporatedintoconsumerrobots,makingthemmoreusefulinhomes.

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For those looking for help in the kitchen, there is Cooki, a “robotic chef”underdevelopmentbystartupcompanySerenetithatthecompanyplanstooffer as part of a service called Foodi. Cooki can handle up to fouringredients.Usersloadsmall,motorizedbinswithingredientsandthenturnon the robot, whichmixes the ingredients and cooks the dish. The Foodisystem is expected to include prepackaged ingredients, enabling thecustomizationofmeals.

Laundroid,alaundry-foldingrobotSource:Roboticstrends.com

Seven Dreamers Laboratory has developed Laundroid, a cabinet-likelaundry-foldingrobotthattakesunsorteditemsfromahamper,foldsthem,andstackstheminneatpiles. Insidethecabinetareroboticarmsthatpullitemsofclothingfromadrawerbeneaththerobotandholdthemupsoacamera can identify them. Depending on the type of clothing, the robotthenfoldstheitemaccordingtoapresetpattern.Themachinefoldsaloadoflaundryovernight.

PERSONALASSISTANTS

Consumer robots are not just helping users with housekeeping tasks.Personal assistants are quickly multiplying and evolving: Microsoft hasCortana,AmazonhasAlexaandGoogle’sAssistantwillsupplantNowinthenearfuture.Apple’sSiriwillsoonbeovershadowedbythecompany’snext-generationAIassistant,Viv.PoweredbyAIandmachinelearning,VivtakesSiri’s conversational and smart layer a step further, allowing interactionwithavarietyofservices.Thereisalsoaplatformavailablethatdeveloperscanusetoaddmoreservices.AndthemoreVivisused,themoreitlearnsandisabletoincreaseitsintelligenceandusefulness.

Consumerrobotsarenotjusthelpinguserswithhousekeepingtasks.Personalassistantsarequicklymultiplyingandevolving:MicrosofthasCortana,AmazonhasAlexaandGoogle’sAssistantwillsupplantNowinthenearfuture.Apple’sSiriwillsoonbeovershadowedbythecompany’snext-generationAIassistant,Viv.

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Amazon’sAlexaSource:Amazon.com

Alexa is thecloud-basedvoicebehindAmazon’s in-homeroboticassistant,Echo.Echoanditsnewlyannouncedfamilymates,TapandDot,canallplaymusic on request, provide weather reports and control a variety ofelectronic items within the home, including Wi-Fi-enabled thermostats.Newskillsare forAlexaarecontinuallybeingadded, suchas theability toorderpizza,requestanUberrideoropenagaragedoorwithGarageio.EchohasrecentlyaddedsupportforCapitolOnebanking,allowingcustomerstopay credit card bills, check account balances and perform other bankingtasks via a voice command. Echo Dot offers the same banking capability.And Kayak now offers a variety of travel information and tools via Alexa,includingflighttrackingandbookingandpriceanddestinationinformationbasedonbudget.

Google’s newly announced Assistant is based on existing technology,includingGoogleNow.TheAssistantwillpowerGoogle’supcomingAmazonEchocompetitor,GoogleHome,tobeintroducedlaterthisyear.Thevoice-activatedtechnology isbuilt intotheAllomobile-messagingappandusersare able to interact with multiple AI-powered chatbots. In the past year,GooglehassharedsomeofitsextensiveAItechnologyasopen-sourcecodefor additional development by others. Most recently, Google has giventhird-party developers access to speech recognition technology and otheraspects of Now and Google Now on Tap (for Android) to create newapplications.GoogleisnowtestingTrips,atravelappincorporatingfeaturesfromitsdestinationsandflightsservicesthatallowsuserstoplanandbookatripfromasmartphone.

CortanaresidesinMicrosoft’sWindows10,andcanhelpusersfindfilesona computer aswell as chat, tell jokes, trackpackages, give reminders andcreate appointments. Cortanaworks only inWindows 10, and is initiatedwhenaquestionistypedintothesearchboxonthetaskbarorvoicedusingthe microphone icon. With little exposure on mobile devices (0.7% ofmarket),MicrosoftisnowtestingAndroidfunctionalityforCortana.

Alexaisthecloud-basedvoicebehindAmazon’sin-homeroboticassistant,Echo.Echoanditsnewlyannouncedfamilymates,TapandDot,canallplaymusiconrequest,provideweatherreportsandcontrolavarietyofelectronicitemswithinthehome,includingWi-Fi-enabledthermostats.NewskillsareforAlexaarecontinuallybeingadded.

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Jibo, billed as the “world’s first social robot,” is the recipient of themostsuccessfulrobotcrowdfundingcampaignever.Theprojectraisedmorethan$3.7million on Indiegogo, but has been pushed back to anOctober 2016timeframeafteralreadybeingdelayedtwice—and,so,mayhavemisseditsgolden opportunity. With Amazon’s Echo already in homes at a cheaperprice, andalreadybeingenhanced toprovidenewskills and services, Jibofaces an uphill battle to become amajor player in the at-home personalassistantcategory.

For those looking for a personal assistant that ismobile and offersmorethanwhatEchocanprovide,AidoorBuddymaybetheperfecthouseholdsolution.Aido,apersonalrobotthatwillprovideassistance,entertainment,homeautomation,securityandmore,hasdrawnfundingfromitsIndiegogolisting. It has built-in object recognition and obstacle avoidancefunctionality,soitcanmovearoundthehouseonanomni-directionalball.Aido can also act as a desktoppersonal assistantwhen theuser detachesthe top half of the robot. Loaded with sensors and microphones andpowered by dual operating systems, Aido also has a projector in its headthattracksgesturesandanoptionalHDmultimediaprojectordesignedforwatchingmoviesandplayinggames.

Buddy,apersonalassistantrobotSource:BlueFrogRobotics

Two-foottallBuddy,fromBlueFrogRobotics,wasalsoanIndiegogo-fundedproject.Buddycanprovidehomesecurity,connecttosmartappliancessuchas lights and thermostats, connect to social networks, share photos andvideos,provideweatherandtrafficinformationandsearchforrecipes.Therobotalsohasinteractivespellingandcountinggamesandanoptionalarmthat can project photos and videos onto a wall or screen. Buddy movesaroundthehomeonwheelsandcastors,andisequippedwith3Dvisionanda personality: his screen shows faces that depict a range of emotions,includinganger(whenhisWi-Ficonnection isslow)andgrumpiness(whenhisuserignoreshim).Histeethevenchatterwhenitiscoldinthehouse.

NEWDEVELOPMENTSFORPEPPER

SoftBank’s humanoid robot, Pepper, has worked as a greeter in variousbusinessesandstoresandhasofferedadvicetocustomersinaphonestore.Now,PepperhasbeenenrolledinclassesatShoshiHighSchoolinWasedain Japan’s Fukushima Prefecture. It is the first time a robot will “study”alongside human students. Pepper can understand approximately 80% of

ForthoselookingforapersonalassistantthatismobileandoffersmorethanwhatEchocanprovide,AidoorBuddymaybetheperfecthouseholdsolution.Aido,apersonalrobotthatwillprovideassistance,entertainment,homeautomation,securityandmore.Buddycanprovidehomesecurity,connecttosmartappliancessuchaslightsandthermostats,connecttosocialnetworks,sharephotosandvideos,provideweatherandtrafficinformationandsearchforrecipes.

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conversations and has the ability to learn from conversations in bothJapaneseandEnglish.Itishopedtherobotwillhelpstudentswhostruggleto communicate with schoolmates and teachers and also help thosestudyingrobottechnologyandEnglish.

Pepper,ahumanoidrobotSource:TimHornyak

In Tokyo, a pilot program is underway inwhich Pepper robots are beingused tomentor newly released former prisoners in a halfway house. Thehope is that the former prisoners will tell Pepper things they would notsharewith another human,whichwill help keep them from slipping backintocriminality.AccordingtoJapan’sMinistryofJustice,morethan47%of2014arresteeshadpreviouslybeenconvictedofacrime,thehighestfigureseeninJapansince1989.

InFrance,sevenPepperrobotswereplaced indifferentpartsofastore inthe Claye-Souilly region to test their skill in suggesting food recipes andwine choices and assessing customer satisfaction. This was Pepper’s firstforayoutside Japan, and themain focusof the Frenchexperimentwas toentertainpeople,testhowtheyreacttoarobotinastoreanddealwiththechallengeofadaptingrobotstodifferentcultures.PepperisalsoheadedfortheUS,althoughnodatehasbeensetyet.

AnotherrobotmanufacturedbySoftBank,Connie,wastestedintheUSasaconciergeattheHiltonMcLeanhotelinVirginia.Connieansweredquestionsfrom guests about nearby restaurants, tourist attractions and more.Ultimately, though, Pepper is expected to replace Connie as the robotconciergeofchoice.

CANROBOTSHELPCHILDRENWITHAUTISM?

AccordingtotheCentersforDiseaseControlandPrevention,oneoutof68American childrenhasanautism spectrumdisorder,making it difficult forthem to interact with others. Recent research shows that many autisticchildren are more comfortable interacting with robots or toys than withhumans.Now,robotsarebeingdevelopedtomaketherapymoreaccessibletochildrenwithautism,Downsyndromeandotherdisabilities.

SoftBank’shumanoidrobot,Pepper,hasworkedasagreeterinvariousbusinessesandstoresandhasofferedadvicetocustomersinaphonestore.Now,PepperhasbeenenrolledinclassesatShoshiHighSchoolinWasedainJapan’sFukushimaPrefecture.

InFrance,sevenPepperrobotswereplacedindifferentpartsofastoreintheClaye-Souillyregiontotesttheirskillinsuggestingfoodrecipesandwinechoicesandassessingcustomersatisfaction.

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Leka,aroboticcompanionforchildrenwithspecialneedsSource:Leka.io

Asocial robotnamedLeka isdesignedto improvethesocialandcognitiveskills of children with special needs. The motion-sensitive robot providessensory stimulation through movement, lights, vibration and sound. Lekawill incorporateavarietyof singleandmultiplayergames tohelpchildrendevelopmotorandintellectualskills.

Using Robots4Autism’s research-based curriculum, humanoid robot Milohelps elementary andmiddle school childrenwith autismunderstand andinterpret emotions and expressions, and demonstrates appropriate socialbehavior and responses, according to Milo’s manufacturer, RoboKind.RecentresearchhasshownthatchildrenworkingwithatherapistandMiloare engaged 70%–80%of the time compared to just 3%–10%of the timewithtraditionaltherapeuticapproaches.OtherrobotsbeingusedorunderdevelopmentfortherapyandfriendshipincludeBuddy,Romibo,Kelly,ONEandRobotis-OP2.

RAPIDLYGROWINGEXOSKELETONMARKET

Companies that focusonexoskeleton technologiesarealso looking touseroboticsystemsasrehabilitationtools,toimprovequalityoflifeforcertainpopulations, and for commercial and industrial purposes. ABI Researchestimatesthattheroboticexoskeletonmarketincreasedfrom$68millionin2014to$1.8billionin2015.

Exoskeletonsystems foruse inheavy lifting,extendedstanding, squatting,bendingand carryingadditionalweightwill beuseful in the industrial andcommercial arenas. These systems have been used in the treatment ofthosewithspinalcordinjuriesandhaveenabledsomeparalyzedpatientstobecomemobile. The cost of exoskeletons (some are priced atmore than$70,000) has begun to fall as new and more versatile units have beendeveloped. In December 2015, the US Department of Veterans AffairsannounceditwillcoverthecostoftheReWalkRoboticssystemforeligibleparalyzed veterans and, since then, other manufacturers have debutedsystemsthatcostless.

Recentresearchshowsthatmanyautisticchildrenaremorecomfortableinteractingwithrobotsortoysthanwithhumans.Now,robotsarebeingdevelopedtomaketherapymoreaccessibletochildrenwithautism,Downsyndromeandotherdisabilities.

Companiesthatfocusonexoskeletontechnologiesarealsolookingtouseroboticsystemsasrehabilitationtools,toimprovequalityoflifeforcertainpopulations,andforcommercialandindustrialpurposes.Exoskeletonsystemsforuseinheavylifting,extendedstanding,squatting,bendingandcarryingadditionalweightwillbeusefulintheindustrialandcommercialarenas.

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ThePhoenixexoskeletonSource:SuitX

HomayoonKazerooni, oneof the co-foundersof EksoBionics (the currentmarketleaderforexoskeletonsystems),hasformedanewcompanycalledSuitXthathasdevelopeda lighter, lessexpensiveexoskeleton.Thesystemwill be produced in both adult and children’s sizes, and will be priced atapproximately$30,000,lessthanhalfthepriceoftheReWalksystem.

TheIndegoassistedwalkingdeviceSource:ShepherdCenterviaCrain’sClevelandBusiness

In the US, there are more than 270,000 patients with severe spinal cordinjuries.Althoughexoskeletonswillnothelpeverypatient,themarketisstillsubstantial.ParkerHannifinhasreceivedFDAapprovaltomarketandsellitsIndego system for clinical and personal use. Available for the last year inEurope,theIndegoisanexoskeletonthatfitsaroundthewaistandlegsandallowsmanyindividualswithspinalcordinjuriestostandandwalkforuptofourhours.Itweighsjust26pounds.

EksoBionicshasgainedFDAapprovalforitsEksoGTroboticexoskeletonforuseintreatmentofpatientswithspinalcordinjuries,andthesystemisthefirstof itskindtobeapprovedfortreatmentofstrokevictims.Thesystemprovides adaptive amounts of power to either side of the patient’s body,helping tomobilizepatientsearly in their recovery.Todate,patientshave

IntheUS,therearemorethan270,000patientswithseverespinalcordinjuries.Althoughexoskeletonswillnothelpeverypatient,themarketisstillsubstantial.ParkerHannifinhasreceivedFDAapprovaltomarketandsellitsIndegosystemforclinicalandpersonaluse.

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taken more than 41 million steps in over 115 rehabilitation institutionsaroundtheworldwiththehelpoftheEksoGT.

Awearable,softexosuitdevelopedbytheWyssInstituteSource:WyssInstituteatHarvardUniversity

ReWalkRoboticsispartneringwiththeWyssInstituteatHarvardUniversitytodevelopWyss’slightweight,softexosuit.Wyssdesignedthesuitwithsoftmaterialswovenintoapieceofsmartclothingthatthewearerpullsuplikeapairofpants.Thesuitmimicstheactionoflegmusclesandtendonswhena person walks, using compact, powerful actuators packaged in a belt toprovideassistancetothewearer’slegs.Thisnewestlightweight,lower-costdevicewill be targeted toward patientswho have suffered strokes, thosewho have been diagnosedwithmultiple sclerosis and senior citizenswhorequiremechanicalmobilityassistance.

ROBOTICSINOTHERMEDICALAREAS

A3D-printedrobotichandexoskeletondevelopedbyCurtinUniversitySource:CurtinUniversity

ReWalkRoboticsispartneringwiththeWyssInstituteatHarvardUniversitytodevelopWyss’slightweight,softexosuit.Wyssdesignedthesuitwithsoftmaterialswovenintoapieceofsmartclothingthatthewearerpullsuplikeapairofpants.

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Researchersanddevelopersarefindingnewwaystouse3Dprintinginthemedicalfield.InAustralia,researchersatCurtinUniversityhavedevelopedamotorized exoskeleton for hands that uses small, programmable linearmotors tomove the fingers ina rangeofmotionafterhandsurgery.Eachfinger of the exoskeleton has eight rigid parts that are made using a 3Dprinter, and the fingers are custom-made and fitted for each hand. Eachfingercostsapproximately$100,sothedeviceisaffordableformany.

OpenBionics’3D-printedprosthetichandsusingdesignsfromIronMan,FrozenandStarWarsSource:OpenBionics

In the UK, startup Open Bionics received permission to 3D-print robotichands for amputees based on Iron Man, Frozen and Star Wars designs,royaltyfree.Thedevicesareintendedtohelpchildrenwhowearprosthetichandswear themwithpride.Thecompanycan3D-scanayoungamputeeandbuild the custom-fit hand in less than twodays,which ismuch fasterthantheweeksormonthsittakesforsomeotherprosthesestobebuilt.

AbionicfingertipdevelopedbyateamfromÉcolePolytechniqueFédéraledeLausanne(EPFL)andScuolaSuperioreSant’AnnaSource:HilarySanctuary,EFPL

Swissresearchersareworkingonabionicfingertipthatprovidesasenseoftouchtoamputees.Atestsubjectwasabletofeeldifferenttexturesasthefingertipmoved across different pieces of plastic engraved with different

IntheUK,startupOpenBionicsreceivedpermissionto3D-printrobotichandsforamputeesbasedonIronMan,FrozenandStarWarsdesigns,royaltyfree.Thedevicesareintendedtohelpchildrenwhowearprosthetichandswear.

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patterns. A machine controlled the movement of the fingertip, and itssensors generated an electrical signal thatwas translated into a series ofelectricalspikes,imitatingthelanguageofthenervoussystem.Thesubjectthen felt the information via the nerves of his upper arm, where theelectricalleadshadbeensurgicallyattached.Inrealtime,thesubjectcoulddistinguish between rough and smooth surfaces 96% of the time throughthesystem.

ThomasDavis’3D-printedarmbraceSource:3printr.com

After breaking an arm in the 2015 NFC Championship game, CarolinaPantherslinebackerThomasDaviswasabletoplayintheSuperBowl,aidedbyacustomized,3D-printedarmbrace.Aftersurgerytoinsertametalplateand12screwstoholdthebonesinhisarmtogether,Daviswasfittedforthebrace by 3D Elite, a manufacturer of 3D-printed braces and casts forathletes. The brace was printed in 30 hours on a Stratasys Connex 3DprinterbyWhiteclouds,a3Dprintingcompany,andthen linedwithPoronXRD,asoftandflexiblematerialdesignedtoabsorbimpact.Aftertryingitinpractice for several days, Davis chose to wear it after testing it againstother,regularbraces.

Twoviewsofa3D-printedmodelofahumanheartsSource:BryceVickmark

Manyof thecardiacpatientsatBostonChildren’sHospital requiresurgerybecause the anatomy of their heart is irregular. To help surgeons betterplan their surgeries on these patients, researchers at the MassachusettsInstitute of Technology and Boston Children’s Hospital are developing a

Afterbreakinganarminthe2015NFCChampionshipgame,CarolinaPantherslinebackerThomasDaviswasabletoplayintheSuperBowl,aidedbyacustomized,3D-printedarmbrace.

ManyofthecardiacpatientsatBostonChildren’sHospitalrequiresurgerybecausetheanatomyoftheirheartisirregular.Tohelpsurgeonsbetterplantheirsurgeriesonthesepatients,researchersattheMassachusettsInstituteofTechnologyandBostonChildren’sHospitalaredevelopingasystemthatcantakeMRIscansofapatient’sheartand,inamatterofhours,convertthemviaa3Dprinterintoatangible,physicalmodel.

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system that can take MRI scans of a patient’s heart and, in a matter ofhours,convertthemviaa3Dprinterintoatangible,physicalmodel.

Scientists at Scotland’s Heriot-Watt University have developed abreakthroughinthe3Dprintingofstemcellsthatcouldleadtoindividuallytailoreddrugregimensanddecreasetheneedforanimaltesting.LedbyDr.Will Shu, the team has developed a 3D printer gentle enough to printinduced pluripotent stem (iPS) cells derived from a donor’s own cellswithout damaging their biological functions. The short-termgoal is to usethe process to make miniature, 3D human tissues for general testing ofpharmaceuticaldrugsandreducedependenceonliveanimaltesting.

RoboticlegprosthesisunderdevelopmentatCarnegieMellonUniversitySource:CarnegieMellonUniversity

ResearchersatCarnegieMellonUniversityhavebegunathree-yearstudytoimprove leg motion for prosthetic limbs, in hopes of improving patients’stable walking gaits over uneven terrain and allowing them to betterrecover from trips and shoves. The robotic leg prosthesis underdevelopment will aid researchers in understanding how humans controltheir limbs and help users recover their balance by using techniques thatmimic thewayhuman legsarecontrolled.Theprogram is funded throughtheNationalScienceFoundation’sNationalRoboticsInitiative.

ThePhoenix99bioniceyeSource:HuluMagazine

ScientistsatScotland’sHeriot-WattUniversityhavedevelopedabreakthroughinthe3Dprintingofstemcellsthatcouldleadtoindividuallytailoreddrugregimensanddecreasetheneedforanimaltesting.

ResearchersatCarnegieMellonUniversityhavebegunathree-yearstudytoimprovelegmotionforprostheticlimbs,inhopesofimprovingpatients’stablewalkinggaitsoveruneventerrainandallowingthemtobetterrecoverfromtripsandshoves.

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Scientists at Australia’s University of New South Wales have completedsuccessfultestinginpreclinicalworkandarereadytobeginhumantrialsofthePhoenix99,afully implantablebioniceyethatincorporatestheworld’sfirstneuralstimulationtechnology.Scientistshopetoimplantthebioniceyein12patientsoverthenexttwoyears.Asmalldiscisimplantedbehindtheearthattransmitsdataandpowersthedevice.Theuseralsowearsglassesequipped with a special camera that captures images; these define thestimulationofnervecellsinthepatient’sretina,sendingsignalstothevisualcortex of the brain. Scientists believe the Phoenix99 could be used in thetreatmentofretinitispigmentosaandage-relatedmaculardegeneration.

AttheUniversityofCalifornia,researchersaredevelopingapairofglassesthatcan“read”textandconvertitintospeech,allowingthosewithlimitedsight to read books, menus, newspapers and emails. The OrCam glasseshaveasmallcameraattachedonthesideanduseopticalcharacterreadingtechnology.Whenthewearerpointsthecameraatanobjectandpressesabutton, speech output describing the image is fed to the earpiece of theperson wearing the glasses. The audio feedback allows those with visualimpairments to dramatically improve their ability to read and theirindependenceindailyliving.

DRONEWORLDCONTINUESTODEVELOP

AnaerialdronedeliveringbloodforatransfusionSource:Stuffi.fr

Advances in robotics are also changing theworld of drones. For decades,United Parcel Service (UPS) has delivered packages to doorsteps via itsomnipresent brown trucks, but the company is now exploring the use ofdrones in delivery. The UPS Foundation has announced it will join dronestartup Zipline and Gavi, the Vaccine Alliance, to deliver blood fortransfusionsbydronethroughoutRwanda.Thefoundation’s$800,000grantwillhelpaidarriveviadroneinsomeofthemoreruralareasofthecountry,where roadsoftenwashout.Thedronescancarryabout threepoundsofsuppliesina75-mileroundtrip.

A doctor sends a text message stating what type of blood is needed toZipline, which has a central base and two employees within deliverydistance. One employee loads the drone and the other manages it. ThedeliverysiteGPSlocationisenteredintothedronebeforeitsetsoffonitspredeterminedroute.Thedronesendsatextmessagetothedoctorafewminutesbeforeitsapproachandthendropsthepackagewiththebloodviaparachuteover thepresetGPS coordinates. Thedrone then returns to its

ScientistsatAustralia’sUniversityofNewSouthWaleshavecompletedsuccessfultestinginpreclinicalworkandarereadytobeginhumantrialsofthePhoenix99,afullyimplantablebioniceyethatincorporatestheworld’sfirstneuralstimulationtechnology.

TheUPSFoundationhasannounceditwilljoindronestartupZiplineandGavi,theVaccineAlliance,todeliverbloodfortransfusionsbydronethroughoutRwanda.Thefoundation’s$800,000grantwillhelpaidarriveviadroneinsomeofthemoreruralareasofthecountry,whereroadsoftenwashout.Thedronescancarryaboutthreepoundsofsuppliesina75-mileroundtrip.

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base.Operatorscanalsocontrolthedronethroughanapp,anddeliveryisaccuratewithintheareaofthreeparkingspaces.

Dronesarealsobeingused for industrial inspectionsandconstructionsiteinspections, and in the agriculture, forestry, infrastructure and defenseindustries. Traditionally, roof inspectors used handheld thermal-imagingequipmentorequipmentmountedonmannedaircrafttoinspectroofs,andit could take a human crew up to a week to complete an extensiveinspection of a large roof. In Canada, Industrial SkyWorks has created asystem that uses aerial drones to photograph roofs and measure energyleakage in justhours.Thecompanyhas received the first FederalAviationAdministration (FAA) exemption for nighttime commercial operations,pavingthewayforexpansionintotheUS.

In Oregon, farmers and agricultural researchers are using drones foragricultural mapping and modeling, to determine more efficient ways togrowfood.DronesarebeingusedtoinspectcelltowersandwindturbinesandDroneSeed,acompanybasedintheNorthwest,isusingaerialrobotstomakereforestingcheaperandmoreefficient.

TheSeaDroneisanunderwaterdronethatcanbeusedforeverythingfromphotography and filmmaking to bridge and piling inspections. Its thrustersystem automatically regulates the propeller speed while monitoringcurrent, voltage, RPM and temperature. A simple, iOS-based interfacecombinedwith auto-depth and auto-heading systemsmakes control easy,and real-time video stabilization ensures smooth footage even in choppywaters.

TheiBubble.comautonomousdivingdroneSource:iBubble

iBubble’sIndiegogocampaignraisedmorethan$200,950,whichwasmorethan265%ofitsgoal.Theautonomous,battery-operatedunderwaterdroneis controlled by a bracelet worn by the owner/diver and can also beoperated manually. The drone has lights, sonar and a depth sensor, andautomaticallysurfacesincaseofemergency.Deliveryisanticipatedin2017.

Saab, a defense and security company, has developed a new, remotelyoperated vehicle (ROV) called the Sea Wasp that locates, identifies andneutralizesunderwaterimprovisedexplosivedevices(IEDs).Saableveraged

Dronesarealsobeingusedforindustrialinspectionsandconstructionsiteinspections,andintheagriculture,forestry,infrastructureanddefenseindustries.

TheSeaDroneisanunderwaterdronethatcanbeusedforeverythingfromphotographyandfilmmakingtobridgeandpilinginspections.Itsthrustersystemautomaticallyregulatesthepropellerspeedwhilemonitoringcurrent,voltage,RPMandtemperature.

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technologyfromitsSeaeyelineofcommercialROVsandaddedcapabilitiesfrom its military systems portfolio to create SeaWasp.Most underwaterIEDs are currently disposed of manually by trained divers. Sea Wasp isoperated remotely by a two-person team, allowing for a safe distancebetween operators and IEDs. The ROV is currently being tested andevaluated.

SELF-DRIVINGVEHICLES

Interest in self-driving cars continues to grow, but some recentdevelopmentshaveslightlycurtailedmanypeople’svisionsofthefutureofautomated cars. The National Highway Traffic Safety Administration iscurrently trying to determine what automation-based safety standards itwillgiveautomakersandtechnologycompaniestoguidetheminthefuture.Atthetopofthelistwillbetheneedforvehiclestocommunicatewithoneother,usingeitheroriginal,built-inequipmentorretrofitpackages.

Anotherfactoristhatthereare3millionmilesofroadintheUS,invariousstages of repair and disrepair: 65% of the roads are in poor condition,according to the Department of Transportation. Although somecarmakers—suchasTesla,Volvo,Mercedes-BenzandAudi—makecarsthatcandriveonhighways, change lanesandparkwithouthumanhelp, fadedlane markers, damaged or noncompliant lights, and poor signage can allcreateproblemsforself-drivingcars.Highwayinfrastructureismanagedbythousands of state and local bureaucracies, and there is littlestandardization in lighting, pavement marking paint and degree ofreflectivity.

Google’sself-drivingcarsSource:Roboticstrends.com

Unexpected traffic situations and obstacles can also be a problem. OnValentine’s Day, when Google’s self-driving car tried to navigate aroundsome unexpected sandbags, the car hit the right side of a public bus inMountain View, CA. Tesla has an Autopilot system of cameras, radar,ultrasonic sensors and data that allows a car to automatically steer downthehighway,change lanesandadjustspeed inresponsetotraffic.Butthesystem does not see nonmoving cars very well, and one YouTube videoshows a driver who was forced to slam on the brakesmanually to avoidhittingacarstoppedataredlight.Ontheotherhand,inadifferentcarin

UberintroduceditsfirsthybridFordFusionself-drivingcarstothestreetsofPittsburgh,andGoogleistestingitsself-drivingcarsinMountainView,AustinandKirkland,WA.GooglehasalsopartneredwithFiatChryslerAutomobilestobuildself-drivingminivans.

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Seattle, theAutopilot systemmade thecar slowdowntoavoidahead-oncollision.

Despite these problems, development surges ahead. Uber introduced itsfirst hybrid Ford Fusion self-driving cars to the streets of Pittsburgh, andGoogleistestingitsself-drivingcarsinMountainView,AustinandKirkland,WA. The National Highway Traffic Safety Administration has told Googlethatitsautonomousdrivingsoftwarecanbeconsideredalegaldriverunderfederal law, and the company has been awarded a patent for self-drivingdelivery trucks that would bring packages to homes using a mappingtechnologysimilartotheoneGoogle’sself-drivingcarsuse.

Google has also partnered with Fiat Chrysler Automobiles to build self-drivingminivans.Thisisthefirsttimethecompanyhasworkeddirectlywithanautomaker tobuild its self-driving technology intoapassenger vehicle.Manyfeelthehybridminivanswillendupservingasataxifleet,duetotheirsizeandslidingdoors.

GeneralMotors(GM)acquiredCruiseAutomation,aself-drivingcarstartupinSanFrancisco,forareported$1billiontohelpitsstalledself-drivingcarproject. Weeks later, it announced it would begin testing a fleet of self-driving Chevrolet Bolt electric taxis on public roads with Lyft. GM hasinvested$500million inLyft, themainrival toUber,andtheLyftprogramrelies on the Cruise Automation technology. During the test period, Lyftcustomers in the pilot city will have the opportunity to opt in for a self-drivingtaxiwhenhailingaLyftcarfromthecompany’smobileapp.GMalsoaims to target Lyft and its drivers as primary customers for the Bolt, anelectriccarsetforlaunchlaterthisyear.

AnApplecarconceptrenderingSource:MeniTsirbas

OneofthelatesthiresbyAppleisaclearindicationthattheiCarismovingtowardthetopofthecompany’sprioritylist,despitethefactthatApplehasyettoconfirmitsplansforthecar.ThecompanyhiredAIexpertJonathanCohen,who had been the director of deep learning for chipmaker Nvidiasince2008.Applecurrentlyusesdeep-learningtechnologyforitsmapsandvoicerecognitionwithSiri.Applelistedatleast86jobsformachine-learningexpertsatonepoint,andithasquadrupleditsnumberofemployeeswithAI

OneofthelatesthiresbyAppleisaclearindicationthattheiCarismovingtowardthetopofthecompany’sprioritylist,despitethefactthatApplehasyettoconfirmitsplansforthecar.

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expertise. Other reports suggest the company has been searching for atestingareaforautonomousvehicles.

CONCLUSION

Clearly,weareintheageofrobotsandrobotics.Investmentisatanall-timehigh,andgreatadvancesarebeingmadeintheuseofroboticstechnologyin industry,society,medicine,transportationandotherareas.There isstillwork to be done in terms of vision systems, decision making, cognition,gesture recognition and increased mobility, though, before robots andhumanscantrulycooperateandworkcloselytogethertocompletetasks.

There are also areas of concern. In Stow,MA, police received a call fromwomanwhowasstandinginhergarageandheardnoisesoverhead.Policeresponded and found a robot vacuum cleaning the floors in her home. InThailand, studentswere caught cheating on their exams at a topmedicalschool. They used spy camera glasses to send photos of questions tocollaborators,whoansweredthequestionsinrealtimeviamessagessenttothe students’ smartwatches. Each of the students had paid $23,000 to atutorgroupfortheequipmentandtheanswers.

Advances in robots and roboticswill result in challenges for somegroups,andbenefitsforothers.Forsomepeople,theincreaseduseofrobotscouldmean the loss of a job. For others, the technology could mean thedifferencebetweenlifeanddeathoranimprovedqualityoflife.

Advancesinrobotsandroboticswillresultinchallengesforsomegroups,andbenefitsforothers.Forsomepeople,theincreaseduseofrobotscouldmeanthelossofajob.Forothers,thetechnologycouldmeanthedifferencebetweenlifeanddeathoranimprovedqualityoflife.

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DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comRobertKellyGuestWriterHONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FBICGROUP.COM

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JULY 5, 2016 Robots, Robotics Continue to Move from Labs to … and Robotics b… · discovered. But robotics is still a small industry, despite being the recipient of nearly $600