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20 Seiko Epson Annual Report 2005
Epson’s Development Vision
Printers
imaging on paper
i1
Development of next-
generation color laser
elemental technologies
for digital office markets
Projectors
imaging on screen
i2
Technological
improvement and
product development for
home imaging sector
Core Devices
imaging support devices
i0
Development of unique
core devices to support
differentiation of i1, i2
and i3 products
Displays
imaging on glass
i3
Development of next-
generation display
technology that allows
ubiquitous imaging
R&D Strategies
Epson implements a unique R&D program that anticipates future developments, and enables
the Company to seek new business domains and the next-generation of core technologies
for realizing its goal of “Digital Image Innovation.”
R&D Costs
In the fiscal year ended March 31, 2005,
R&D costs declined ¥1.4 billion, or 1.6%,
year on year to ¥89.0 billion. The ratio of
R&D costs to net sales was 6.0%, down
0.4 of a percentage point from the pre-
vious year. By segment, R&D costs con-
sisted mainly of expenditures of ¥35.6
billion in information-related equipment,
¥19.5 billion in electronic devices, and
¥2.1 billion in precision products. An
additional ¥31.8 billion was spent in other
business areas and for company-wide
R&D projects, largely for next-generation
core technologies, displays, semicon-
ductors, and other technologies for
development over the medium and
long term. Going forward, Epson
intends to maintain R&D costs at
roughly 6.0% of net sales.
Pathfinder-Style R&D Programs
Epson’s course as set forth in its SE07
medium-to-long-term business vision
is summed up in the phrase “Digital Im-
age Innovation.” To achieve this, Epson
is focused on developing captivating
products in the i1, i2, and i3 fields, as
well as robust development in the
so-called “i0” field of device technol-
ogy that underpins finished products
and which sets Epson apart from its
competitors. The corporate Head
Office conducts major medium-to
long-term R&D in the 3i business
areas, while supporting the efforts of
business units in developing products
and technology within a timeframe of
three years, pursuant to their respec-
tive mid-range business plans. To
retain technological superiority over the
long term, Epson implements what it
calls a pathfinder-style R&D program
that strives to anticipate future
developments and which is built on a
platform of core technological strengths.