Siemens 2012 Annual Report Download - page 189

135 D. Consolidated Financial Statements
239 E. Additional Information
130 C. Siemens AG (Discussion on basis of
German Commercial Code)
134 C. Notes and forward-looking statements
129 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report

CT has more than , employees and is set up as a world-
wide network with primary locations in Germany, the U.S.,
Austria, Russia, India, and China. Among CT’s employees, approx-
imately
, software engineers at locations in Asia, Europe
and the Americas develop and implement software for new
products and services for our Sectors. CT makes important
contributions along the entire value chain, from research and
development to production technology, manufacturing pro-
cesses, and testing procedures.
The technology fields cover all technological areas of Siemens.
They include research on materials that help make our prod-
ucts more efficient and the creation of IT platforms, security
solutions, software architecture, technical systems, energy
technologies, sensors, and electronic components. CT also
conducts research into new solutions for automation, medical
information systems, and imaging processes. This portfolio is
supplemented by innovation projects for electric mobility, sus-
tainable urban development, and biotechnology – in other
words, fields with major strategic importance for us. All of CT’s
activities are chosen to optimize the allocation of R&D resourc-
es, with a balance between support for the Sectors’ current of-
ferings and development of longer-term opportunities.
CT also strategically handles the intellectual property of
Siemens. Around  experts help the Company register pat-
ents and trademarks, establish them, and put them to profit-
able use. CT also acts as a coordinator and leader with regard
to key strategic issues at Siemens, such as lean management
and production, standardization, and project management.
Cooperations with universities and non-university research in-
stitutes 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,
> developing and extending the network of universities or
research institutes with which Siemens works and
increasing communication between Siemens and these
universities or institutes, and
> strengthening the appeal of Siemens to highly qualified
young people as a potential employer.
In addition, Siemens takes part in publicly funded research pro-
grams. The most important research areas include the develop-
ment of sustainable technologies, the networking of machines,
and the creation of new materials and sustainable recycling.
...  &  
In fiscal , we recognized research and development ex-
penses of €. billion, compared to €. billion in fiscal
 and €. billion in fiscal . The resulting R&D inten-
sity, defined as the ratio of R&D expenses and revenue, of .%
was higher than in fiscal  and fiscal .
& 
Research and development
expenses (in billions of €)
Research and de-
velopment intensity 
FY 2012 4.238 5.4%
FY 2011 3.899 5.3%
FY 2010 3.547 5.2%
1 R&D intensity is defined as the ratio of R&D expenses and revenue.
R&D expenses and intensities for the Sectors in fiscal ,
 and  were as follows:
& 
(in millions of €) FY  FY  FY 
Energy 840 756 651
Healthcare 1,314 1,173 1,116
Industry 1,215 1,128 993
Infrastructure & Cities 699 696 591
& 
FY  FY  FY 
Energy 3.0% 3.1% 2.9%
Healthcare 9.6% 9.4% 9.0%
Industry 5.9% 5.8% 5.7%
Infrastructure & Cities 4.0% 4.1% 3.6%
Corporate Technology incurred additional R&D expenses.
&  
(in thousands) FY  FY 
Employees  29.5 27.7
Inventions 8.9 8.6
First patent applications 4.6 4.3
1 Continuing operations.
2 Average number of employees in fiscal year.
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.