Philips 2006 Annual Report Download - page 79

Philips Annual Report 2006 79
Innovations are increasingly 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. Working with partners in
Open Innovation enables Philips to offer a wide range
of technologies that deliver on the brand promise of
“sense and simplicity”.
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 and applications 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
or spin-out, in part or in whole, to a third-party investor.
With approximately 4,500 highly skilled employees at
some 20 locations worldwide, Corporate Technologies
comprises organizations dedicated to technology,
competence and innovation management, research,
intellectual property and standards, software development,
applied technologies and new business development.
Technology, competence and
innovation management
The Offi ce of the Chief Technology Offi cer (CTO)
supports technology management, competence
management and innovation effectiveness across
Philips. It provides assistance for cross-divisional
programs such as personal healthcare, molecular
healthcare, solid-state lighting applications and digital
rights and security management as well as strengthening
R&D competencies by offering a company-wide R&D
core curriculum. The CTO Offi ce also promotes
innovation effectiveness by facilitating a joint, market-
driven approach by the functions involved, principally
R&D, marketing and supply management.
Philips Research
Philips Research supports Philips’ operating divisions
with innovations, inventions and long-range vision, and
employs approximately 1,800 technology experts around
the globe. Founded in 1914, Philips Research is one of
the world’s major private research organizations,
with main laboratories in the Netherlands, the United
Kingdom, Germany, the United States, India and China.
Philips Intellectual Property & Standards (IP&S)
Philips IP&S is responsible for managing Philips’ intellectual
property on a group-wide basis, employing around 500
people. IP&S protects and exploits the value
of Philips’
portfolio of intellectual property rights consisting
of more
than 80,000 patent rights, 26,000 trademarks, 15,000
design rights and 1,600 domain names, e.g. through
licensing. It also participates in new standards in areas
such as healthcare, lighting and content management.
Non-sector-related license income is reported under
Consumer Electronics (optical licenses) and Corporate
Technologies (technology licenses, trademarks, etc.).
Philips believes its business as a whole is not materially
dependent on any particular patent or license, or any
particular group of patents and licenses.
Philips Applied Technologies
Philips Applied Technologies supports its customers
in the areas of healthcare, lifestyle and technology with
turnkey solutions based on innovative technology and
with consultancy services. Approximately 900 highly
skilled professionals work at six locations across Europe,
Asia and the US.
In April 2006, Philips Research and New Venture Partners LLC
announced the successful funding of their fi rst spin-out. Liquavista
has been created to exploit the commercial possibilities of
electrowetting displays, a technology invented by Philips Research
that offers bright, vivid colors, video speed, exceptional viewability
even in bright sunlight, and substantial power savings compared
with existing display technologies.
54 The Philips sectors
Other Activities
86 Risk management 100 Report of the Supervisory Board 110 Financial Statements