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Corporate Technology - Rolf Hellinger

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Research and Development at Siemens<br />

Research and development (R&D) are the key driving forces<br />

behind the innovations that safeguard the future of a company.<br />

That’s been true of Siemens ever since the company was founded<br />

in 1847. Today the company employs some 32,300 researchers<br />

and developers worldwide who work on innovations that secure<br />

existing business and open up new markets. In business year<br />

2008, Siemens spent €3.8 billion on R&D. That represents<br />

4.9 percent of its sales and some €17 million per workday. With<br />

around 2,875 employees worldwide, <strong>Corporate</strong> <strong>Technology</strong> plays<br />

a key role in R&D at Siemens,<br />

A Network of Expertise —<br />

A Partner for Innovation<br />

<strong>Corporate</strong> <strong>Technology</strong> (CT) and its worldwide<br />

network of experts is a powerful<br />

innovation partner for Siemens’ business<br />

units. The organization provides expertise<br />

regarding strategically important areas to<br />

ensure the company’s technological future,<br />

and to acquire patent rights that safeguard<br />

the company’s business operations. Against<br />

the background of megatrends such as climate<br />

change, urbanization, globalization,<br />

and demographic change, CT focuses on innovations<br />

that have the potential to change<br />

the rules of the game over the long term in<br />

business areas that are of interest to<br />

Siemens.<br />

The Chief <strong>Technology</strong> Officer (CTO) at<br />

Siemens, Prof. Hermann Requardt, who also<br />

serves as the Head of <strong>Corporate</strong> <strong>Technology</strong>,<br />

is at the heart of the innovation network. For<br />

an integrated technology company such as<br />

Siemens, it is vital to develop technological<br />

synergies beyond its individual operational<br />

units — within the Siemens Sectors and between<br />

them, as well as between the Sectors<br />

and <strong>Corporate</strong> <strong>Technology</strong>. One of the responsibilities<br />

of the CTO is to make sure that<br />

these possibilities are fully exploited (see p.<br />

64). Another responsibility is to analyze the<br />

company’s technological foundations and<br />

generate powerful momentum for improvement.<br />

In addition, the CTO is charged with<br />

increasing the efficiency of research and development<br />

activities and creating open innovation<br />

networks all over the world — both<br />

inside and outside the company.<br />

4 <strong>Corporate</strong> <strong>Technology</strong><br />

A major role in Siemens’ innovation activities<br />

is played by <strong>Corporate</strong> Research and<br />

Technologies (CT T, see pp. 10-37). The<br />

2,250 men and women who work within<br />

CT T’s global research network focus primarily<br />

on key technologies and cross-sector<br />

technologies that have strategic significance<br />

for more than one business unit.<br />

For example, researchers are working on<br />

pioneering technologies in areas such as<br />

materials development and software, production<br />

processes and system integration,<br />

energy and sensor technology, imaging<br />

processes, and information and communication<br />

technology.<br />

In its Global <strong>Technology</strong> Fields (GTF), CT T<br />

brings together experts from globally operating<br />

research teams all over the world in order<br />

to pool their expertise and become a preferred<br />

innovation partner for the Siemens<br />

Sectors. Together with the business units,<br />

CT T is working on the development of new<br />

solutions in numerous application-oriented<br />

projects.<br />

In order to ensure efficient and effective<br />

operations, a large proportion of the budget<br />

of <strong>Corporate</strong> Research and Technologies is<br />

covered through project agreements with<br />

the business units, which serve as its customers.<br />

CT T also receives corporate funding<br />

for the long-term development of new technologies<br />

and the establishment of new areas<br />

of expertise. All in all, CT T is responsible<br />

for approximately 7.5 percent of Siemens’<br />

total expenditure on research and develop-<br />

Berkeley<br />

Siemens research<br />

locations (CT T)<br />

Princeton<br />

ment. This figure is made up of contract research<br />

for the Sectors (about 60 percent),<br />

corporate financing (31 percent), and external<br />

funding (9 percent).<br />

Particularly important factors for CT T are<br />

its close connections with its customers and<br />

top universities. These enable CT T to offer<br />

faster and more target-oriented solutions<br />

that are ideally adapted to local requirements,<br />

and also to be perceived as an appealing<br />

employer for the brightest candidates.<br />

That’s why CT T has supplemented its locations<br />

in the U.S. and Europe in recent years<br />

by opening research centers close to its business<br />

operations — for example, in Beijing,<br />

Moscow, Bangalore, and Singapore — and<br />

has expanded its cooperation with top universities.<br />

CT T research teams are now<br />

located in the world’s most important technology<br />

strongholds: Princeton, New Jersey<br />

(see p. 22); southern England (see p. 30);<br />

Munich, Erlangen, and Berlin, Germany;<br />

Moscow and St. Petersburg, Russia (see p.<br />

28); Beijing and Shanghai, China (see p. 24);<br />

Bangalore, India (see p. 26), Singapore and<br />

Tokyo, Japan (see p. 32).<br />

In all of these places, CT T researchers are<br />

supporting Siemens business units with<br />

their product development, maintaining<br />

contacts with universities, analyzing global<br />

trends, and observing developments in their<br />

local markets. In addition, “incubators” such<br />

as the Siemens <strong>Technology</strong> Accelerator in<br />

Munich (see p. 33) and the Siemens <strong>Technology</strong>-to-Business<br />

Centers in Berkeley, Cali-<br />

Romsey

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