Siemens 2010 Annual Report Download - page 127

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

R&D indicators
FY  FY  FY 
Employees  30,100 31,800 32,200
Inventions ,  8,800 7,700 8,200
Patent applications ,  4,300 4,200 5,000
1 Average number of employees in fiscal year.
2 Prior-year information not adjusted for businesses disposed of.
3 Number of inventions submitted by Business Units based on an internal reporting.
4 First filings as part of the inventions submitted to patent offices.
The focus of R&D for the Environmental Portfolio is on increas-
ing the efficiency of both renewable and conventional power
generation as well as further improving low-loss power trans-
mission, new solutions for intelligent power networks (smart
grids), solar energy, carbon dioxide separation in power plants
and energy storage systems for volatile renewable energies.
Further focus areas are to promote more efficient energy use,
whether for industry, building technology, lighting (for exam-
ple light emitting diodes) or transportation, including electric
vehicles – from drives to rapid charging stations –, as well as
further development of water and air purification systems and
drinking water purification with new membrane technologies.
Collaborations with universities and non-university research
institutes make an important contribution to Siemens’ capacity
to innovate. The key goals of these partnerships are tapping
the potential for joint research and development projects, de-
veloping and extending the network of universities or research
institutes with which Siemens works and increasing commu-
nication between Siemens and these universities or institutes,
and strengthening the appeal of Siemens to highly qualified
young people as a potential employer. The Siemens Center of
Knowledge Interchange, in particular, is a strategic coopera-
tion program with a global network of selected partner univer-
sities around the world that focuses on the long-term promo-
tion of research, innovation, and knowledge transfer between
industry and science. This university program contributes to
the success of Siemens’ “Open Innovation” approach by foster-
ing the development of stable, long-term partnerships with
leading universities around the world. The objective of the
Open Innovation method introduced at Siemens in fiscal 
is to identify and foster new areas for innovation in a network
of researchers and developers. Specifically, this method aims
to ensure that information from science and technology is
brought into the Company as part of the innovation process at
Siemens, enabling us to benefit from outside knowledge while
opening up to others.
In addition, the Company takes part in publicly funded pro-
grams sponsored by such organizations as the European
Union, the German Federal Ministry of Research and Educa-
tion, the German Federal Ministry of Economics and Technol-
ogy, and the German Federal Ministry of the Environment,
Nature Conservation and Nuclear Safety. Siemens believes that
these activities not only promote an exchange with external
partners in the area of innovation, but also provide access to
complementary technological competence that enhances the
innovative strength of the entire Company.
CT works closely with the R&D teams of the Sectors and Divi-
sions. To facilitate this collaboration CT, which has more than
, employees, is set up as a worldwide network with pri-
mary locations in Germany, the U.S., Austria, Slovakia, Russia,
India, China, Japan, and Singapore.
The Sectors concentrate their R&D efforts on the next genera-
tion of their products and solutions, which they are preparing
for a successful market launch. In contrast, the research and
development specialists at CT are focused two generations
ahead and prepare the technological basis for that generation.
Due to their close collaboration with the product and custom-
er-related parts of the Company as well as their intensive inter-
change with global research establishments, the CT specialists
are not only able to identify technical and societal trends at an
early stage, but also to analyze and actively shape these trends.
CT is dedicated to the principles of Open Innovation and ac-
cordingly, continuously strives to ensure that information from
the science and technology sectors is introduced at Siemens.
The roughly  global technology fields covered by CT include
the subject areas materials and microsystems, production
methods, security, software and engineering, power engineer-
ing, sensors, automation, medical information systems and
imaging methods, information and communication technolo-
gies, the extraction and processing of raw materials, and off-
grid power generation. The technology portfolio also includes
lighthouse projects which are designed to create new business
opportunities for Siemens. They cover areas such as electromo-
bility and smart grid – for example, solutions for major strate-
gic challenges. The combination of the latest technologies and
intensive cooperation with the Sectors has the potential to
produce entirely new solutions. Our SMART (Simplicity, Main-
tenance friendly, Affordable, Reliable and Timely to market)
solutions implement new technologies in a manner that ren-
ders them competitive in low-price markets. These affordable
solutions are aligned with the needs of the relevant markets