Philips 2005 Annual Report Download - page 47

Philips Annual Report 2005 47
multimedia. Together, the Technology Incubator and Philips
Software employ around 400 people.
Technology, competence and innovation management
TheOfceoftheChiefTechnologyOfcer(CTO)supports
technology management, competence management and
innovation effectiveness across Philips. It provides assistance
for cross-divisional programs such as digital rights and
security management and automotive technology
management, and strengthens R&D competencies by
offering a company-wide R&D core curriculum. The
CTOOfcealsopromotesinnovationeffectivenessby
facilitating a joint, market-driven approach by the functions
involved, principally R&D, marketing and supply management.
Feeding the innovation pipeline
In the areas of healthcare, lifestyle and technology,
Corporate Technologies feeds the innovation pipeline,
enabling its business partners to improve their time-to-
market and innovation effectiveness, and thus achieve
protablegrowth.
Corporate Technologies supports Philips’ operating
divisions in turning innovations into advanced products.
It stimulates the exploitation of technology synergies
across the operating divisions through its shared labs
and competencies. The High Tech Campus in Eindhoven,
Netherlands, and the Philips Innovation Campus in
Bangalore, India are prime examples of this.
Corporate Technologies invests in world-class competencies
and technologies that are essential for the divisions, but
also leverages these to external customers, in order to
realize maximum return on investment. Technologies are
made available in the form of patent and technology
licenses, software and hardware components, prototypes,
competencies and services (design, system integration and
testing). Where appropriate, emerging technologies are
incubated until they are ready for transfer to a division.
Innovations are developed in close interaction with users
and partners, in order to ensure that as well as being
advanced, they are designed around users’ needs and are
easy to experience.
Group-wide expenditures for research and development
activities amounted to EUR 2,559 million (8.4% of Group
sales) in 2005, EUR 2,514 million (8.6% of Group sales) in
2004 and EUR 2,571 million (9.2% of Group sales) in 2003.
In the operating divisions, approximately 16,000 people
are active in R&D in more than 25 countries throughout
the world. They are predominantly engaged in product
development and development of production methods.
Strategy and 2006 objectives
Corporate Technologies’ strategy for 2006 and beyond
will focus on:
developing advanced technologies to create meaningful
innovations;
generating patents to protect these innovations,
particularly in key areas of growth;
incubating new businesses in the areas of healthcare,
lifestyle and technology as a driver of sustainable growth;
improving innovation effectiveness by stimulating end-
user focus.
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3D solutions
Philips 3D Solutions, an emerging activity in the Philips
Technology Incubator, demonstrated examples of its
complete package of 3D displays and display signal-
processing technology at IFA 2005. New multi-view
3D displays provide a richer, more informative and
more entertaining user experience, without the need
for special viewing glasses.