Toyota 2006 Annual Report Download - page 44

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42
Based on guiding principles that call on us to “dedicate ourselves to providing clean and safe products and
to enhancing the quality of life everywhere through all our activities” and “create and develop advanced
technologies and provide outstanding products and services that fulfill the needs of customers world-
wide,” we actively pursue R&D in order to offer high-quality, low-cost products with enhanced appeal
that accurately reflect increasingly diverse and advanced demand. Viewing intellectual property created
by R&D as a key management resource, Toyota uses it to contribute to its business activities.
R&D Policy
Every year, Toyota actively advances R&D based on the belief that technological capabilities
are the source of automobile manufacturers’ forward-looking enhancement of competi-
tiveness. In fiscal 2006, Toyota’s R&D expenses increased 7.6% year on year, to ¥812.6
billion, which represents 3.9% of consolidated net revenues. Toyota’s high R&D expenses
in recent years have resulted from stepped-up prior investment in R&D for the introduction
of new-model vehicles, environmental technology, safety technology, and other initiatives.
At Toyota, we are convinced that continuous investment in research is needed to
maintain the competitive superiority of products and technologies in a worldwide
automobile industry that will likely see intensified technology competition. Against that
backdrop, the Company realizes efficient, advanced R&D activities that underpin the
creation of high-quality, appealing products through close integration and coordination
among three R&D phases—basic research, forward-looking technology development,
and product development. Toyota controls research expenses appropriately by undertak-
ing regular evaluations and reviews, in light of consultations with external parties, of
such long-term basic research themes as energy, the environment, information technology
and telecommunications, and materials. The Company also pursues efficient investment
in forward-looking technology development and product development through the
establishment of clear investment standards for each project.
R&D Organization
In Japan, Toyota Central Research & Development Laboratories, Inc., mainly conducts
Toyota’s R&D activities. Also, Toyota Group companies, including Daihatsu Motor Co.,
Ltd., Hino Motors, Ltd., Toyota Auto Body Co., Ltd., and Kanto Auto Works, Ltd.,
advance product development in close collaboration with Toyota’s R&D. Further, Toyota
is constructing a global development organization. We have established technical centers
in North America, Europe, Asia, and Oceania in order to build cars that cater accurately
to customer needs in respective regions. In addition to those centers, we have also created
design and motorsports R&D bases in respective regions.
R&D and Intellectual Property
600
200
400
800
1,000
’02 ’03 ’04 ’05 ’06
0
FY
R&D Expenses
(¥ Billion)
Development theme discovery
Research on basic vehicle-related technology
Technological breakthroughs related to components and systems
Development of leading-edge components and systems ahead of competitors
Primary responsibility for development of new-model vehicles
Development of new-model vehicles and upgrading of existing vehicles
Basic Research Phase:
Forward-Looking
Technology
Development Phase:
Product Development
Phase: