Philips global ecosystem for Open Innovation
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1 Philips global ecosystem for Open Innovation JIIP Symposium, Fourth European Innovation Summit European Parliament, Brussels, October 9, 2012 Dr Jan van den Biesen Vice President Public R&D Programs, Philips Research
2 Philips driving innovation & growth Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales 22.6 billion in 2011 About 70% of sales generated outside EU Globally recognized brand (world top 50) Our brand value doubled to $8.7bln since ,000 employees Sales and service outlets in over 100 countries 1.6 billion investment in R&D, 7% of sales 50,000 patent rights 36,000 registered trademarks 63,000 design rights 2
3 Operating in the right markets Addressing key societal issues Demand for affordable healthcare Need for energy efficient solutions Desire for increased personal well-being Mature 67% Group Sales: 67% Mature Geographies 33% Growth Geographies
4 Creating meaningful innovations Improving lives in new ways Gain deep insights into people s needs and aspirations by following a process requiring end-user input at every stage Transform insights into innovations by combining the diverse perspectives of different disciplines Learn fast, fail cheap by applying a rigorous process to assess value potential early Lead in open innovation by working closely together with partners in a spirit of open innovation 4
5 Customer intimacy and speed Essentials for successful innovation Understanding local relevance and customer insights Increasing entrepreneurial power in the markets Innovating in regional hubs in both mature and growth geographies Partnering with (local) customers, companies, universi ties, governments 5
6 Our global reach Focused portfolio through strategic acquisitions* Tomcat (2008) Interactive Medical Developments (2008) Genlyte (2008) Traxtal (2009) MedSage (2011) Sectra (2011) Dameca (2011) Street Controls (2010) Burton (2010) Lighting Technologies (2007) Discus (2010) InnerCool Therapies (2009) AllPartsMedical (2011) Raytel (2007) Povos(2011) Indal (2011) Saeco (2009) Somnolyzer (2010) Teletrol (2009) CDP Medical Ltd. (2010) Shenzhen Goldway (2008) Optimum (2011) Ilti Luce (2009) NSW (2010) Luceplan (2010) Visicu (2008) Medel (2008) Apex (2010) Respironics (2008) Meditronics (2008) Alpha X-Ray (2008) Wheb Sistemas (2010) Preethi (2011) Dynalite (2009) Emergin (2007) Tecso Informatica (2010) VMI-Sistemas Medico (2007) Dixtal Biomedica e Technologia (2008) Selecon (2009) Healthcare Lighting Consumer Lifestyle * Strategic acquisitions since mid-september 2007 until May 2012 Growth geographies
7 Philips in China Today A leading multinational company with strong local-for-local and local-for-global innovation competences Philips in China Extensive presence across China One of the largest multinationals in China Operates in more than 500 cities With 26 legal entities Provides employment in excess of 18,500 Increasingly important position in Philips' global landscape In 2010, China was redefined as a global home in Philip s global landscape. Achievements of Philips China In 2011, the total revenue increased close to 20% Currently, China is the 2 nd largest market of Philips globally Philips innovation competences in China Significant investment in R&D 12 Philips R&D centers in China With over 2100 dedicated R&D staff Annual investment of over 100 million Philips Research Asia Shanghai Established in nd biggest Lab of Philips Research Evolving from innovate for China to innovate in China to stay ahead of the competition Based on local insights, accelerates creation & commercialization of innovations to improve Chinese peoples health and well-being Innovating for China and for Global 7
8 Research footprint enables global and local role Note: overview only includes direct Research FTEs (actuals for 2012) Briarcliff 100 Clinical sites Healthcare Lighting Burlington 16 Lighting Cambridge 27 Home & Oral Healthcare Hamburg 85 Healthcare Eindhoven/Aachen 910 Healthcare Lighting Paris 34 Lifestyle Healthcare Bangalore 89 Healthcare Lighting Shanghai 210 Healthcare Lighting Lifestyle EU share (indicative percentages) % of Research FTEs 70 % of R&D FTEs 50 % of all FTEs 30 % of sales 30 8
9 From Closed to Open Innovation Closed Philips Research HQ, Eindhoven Open High Tech Campus Eindhoven, NL hectares > 100 companies, including 40 start-ups 5 institutes > 8,000 R&D staff > 60 nationalities 45,000 m 2 laboratory space 185,000 m 2 operational office space 6,000 m 2 space for start-up companies More than 500M invested by Philips Real estate sold to private investor in
10 Open Innovation is part of our DNA OEM/ODMs Knowledge Institutes Consortia Suppliers Business alliances IP Licensing IP acquisition Venturing MiPlaza NGO alliances Philips High Tech Campus Eindhoven Public Private partnerships Consultancy External Contract research Universities Eco-systems Start-ups Innomediairies Crowd sourcing Inside-out: Open up our skills to the world Outside-in: Leverage the skills of the world 10
11 A broad, global network of partners Example: clinical research relationships US: Oncology, IS EU: Cardiology, IS China: Cardiology, Oncology, IS, HH 9 India: Ramping Up 9 EU: NL (17), GE (16), UK (10), BE, CZ, DA, FR, IT, SP, SWE, SWI Other: AUS, CAN, TUR 11
12 Links Philips partnership links in public R&D programs in EU Large firms SMEs PROs Other/unknown *:Public Research Organisation (university, research institute) 12
13 Fostering global networks for open innovation in H Allow companies to address global challenges and serve worldwide markets in most efficient way 2. Refrain from protectionist IP policies No In Europe First IP policy as advocated in KET HLG report 3. Extend access rights of FP participants to their associated companies, also outside EU Essential for proper exploitation of results from EU-funded research 4. Pay more attention to reciprocity aspects in internal cooperation Access for local R&D labs of European MNCs to third country programmes 5. Ensure global level playing field in external and internal competition Provide competitive framework conditions and funding Take account of global dimension in 2013 revision of EU State aid rules 13
14 14
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