Philips 2012 Annual Report Download - page 81

6 Sector performance 6.4 - 6.4.1
Annual Report 2012 81
innovation leader. Based on deeper customer insights,
enhanced capability and competency building, we are
driving value more effectively.
6.4.1 Philips Group Innovation
Philips Group Innovation (PGI) feeds the innovation
pipeline, enabling its business partners – the three Philips
operating sectors – to create new business options
through new technologies, venturing and intellectual
property development, to improve time-to-market
efficiency, and to increase innovation effectiveness via
focused research and development activities. In addition,
PGI opens up new value spaces beyond current sector
scope or focus (Emerging Business Areas, EBAs), manages
the EBA-related R&D portfolio, and creates synergy for
cross-sector initiatives.
PGI encompasses Philips Research, Philips Intellectual
Property & Standards (IP&S), Philips Innovation Services,
the Philips Innovation Campus, Philips Design as well as
Emerging Business Areas. In total, PGI employs some
4,800 professionals around the globe.
PGI actively participates in ‘Open Innovation’ through
relationships with academic and industrial partners, as
well as via European and regional projects, in order to
improve innovation efficiency and share the related
financial exposure. The High Tech Campus in Eindhoven
(Netherlands), the Philips Innovation Campus in
Bangalore (India), and Research Shanghai (China), are
prime examples of environments enabling Open
Innovation. In this way, we also seek to ensure proximity
of innovation activities to growth geographies.
Philips Research
Philips Research is the main partner of Philips’ operating
sectors for technology-enabled innovation. It creates new
technologies and the related intellectual property (IP),
which enables Philips to grow in businesses and markets.
Together with the sectors, Philips Research also co-
creates innovations and game-changers to strengthen the
core businesses as well as to open up new business in
adjacencies beyond the core. Research’s innovation
pipeline is aligned with our vision and strategy and inspired
by major societal challenges as well as unmet customer
needs.
One such challenge is the huge increase in the number of
patients living with cancer. In the Netherlands, Philips
Research and University Medical Center Utrecht have
started a pilot clinical study to evaluate a new personalized
treatment for breast cancer based on a technology called
MR-guided High Intensity Focused Ultrasound (MR-
HIFU). MR-HIFU has emerged as a technology with the
potential to non-invasively destroy tumors by heating
them up while they are still inside the body. Magnetic
Resonance (MR) imaging provides real-time imaging of
soft tissue structures so that the HIFU beam can be
accurately focused onto the tumor.
Building on its expertise in LED lighting applications,
Philips Research has been testing and validating new LED-
based retail lighting concepts, designed to enhance the
product appearance of fashion merchandise in shops, at
multiple customer locations.
On January 1, 2012, the front-end innovation
competencies of Lighting and the Healthcare R&D lab in
Paris were integrated into Philips Research, thereby
strengthening cooperation in the early stages of the
innovation chain.
Philips Intellectual Property & Standards
Philips IP&S proactively pursues the creation of new
intellectual property in close co-operation with Philips’
operating sectors and Philips Group Innovation. IP&S is a
leading industrial IP organization providing world-class IP
solutions to Philips’ businesses to support their growth,
competitiveness and profitability. Philips’ IP portfolio
currently consists of around 59,000 patent rights, 35,000
trademarks, 81,000 design rights and 4,200 domain name
registrations. Philips filed approximately 1,500 patents in
2012, with a strong focus on the growth areas in health
and well-being. IP&S participates in the setting of
standards to create new business opportunities for the
Healthcare, Consumer Lifestyle and Lighting sectors. A
substantial portion of revenue and costs is allocated to the
operating sectors. 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 Innovation Services
Philips Innovation Services supports internal and third-
party customers by offering services in concept creation
support, product, process and equipment development,
prototyping and small-series production, quality and
reliability, sustainability, safety and health, and industry
consulting.
Innovation Services is playing an increasing role in the
operating sectors’ digital transformation, supporting the
move into internet and network applications/services.
Philips Innovation Campus
Philips Innovation Campus Bangalore (PIC) hosts activities
from all three operating sectors, Philips Research, IP&S
and IT. Healthcare is the largest R&D organization at PIC,
with activities in Imaging Systems and Patient Care &