Dow Chemical 2011 Annual Report Download - page 19

The Dow Chemical Company
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A DIVERSE PIPELINE FOR GROWTH
Dow has the creativity, knowledge and insight to innovate
and the resources, discipline and skill to deliver unique
solutions to multiple end-markets. Our diverse and renewed
innovation pipeline includes more than 300 master projects
(comprised of more than 500 sub-projects) that together have
a potential value of $33 billion on a non-risk-adjusted net
present value (NPV) and $13 billion in risk-adjusted NPV.
By connecting science with societal needs, our robust
innovation engine allows us to be a powerful partner for
our customers. We multiply the power of our innovation with:
• Our vast and integrated portfolio of solutions.
Scale, integration and global reach all help to rapidly
bring our innovations to the marketplace. The breadth
and depth of our technological expertise allow us to
work on multiple fronts, developing game-changing
solutions that address growing business opportunities
in energy, transportation and infrastructure, health
and nutrition and consumerism. As a transformed
and integrated company, we easily transfer innovative
chemistries and processes across multiple businesses
and platforms. Dow‘s investments in high-throughput
research capabilities that dramatically shorten the time
spent in early-stage R&D continue to improve our R&D
productivity and have led to new products in coatings,
electronics, performance plastics and more.
• Industry-leading R&D investments. In 2011, we
invested $1.65 billion in R&D – one of the largest
investments in the global chemical industry. But make no
mistake: Our goal is not to spend the most … but to be
the most productive. We manage our R&D investments
with discipline and rigor and balance both long- and
short-term pipeline projects. In addition, Dow Ventures
and Business Development works seamlessly with R&D
to identify and incubate disruptive technologies that
have commercialization potential, both internally and
externally. Technology scouting, external collaborations
and innovative internal R&D all complement the organic
growth of our businesses.
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2011 Annual Report
• Broad geographic reach. We have a team of more than
5,500 researchers working at our R&D sites worldwide and
are growing our science and technology footprint globally. In
the past fi ve years, we have invested in new state-of-the-art
technology centers in China, Korea, the Middle East, Brazil
and Spain – strengthening our technical capabilities to meet
customer needs in high-growth regions and end-markets.
Through unique partnerships and solid recruiting programs
worldwide, we attract Ph.D.s from the world’s top universities.
By fi nding the best intellectual power wherever we are located,
we remain competitive in local end-markets and attract world-
class talent.
• Collaboration with leading institutions. By reaching
beyond our doors and partnering with the world’s best minds,
we extend our capability to become fi rst-movers into promising
new end-markets and innovate breakthrough solutions. In
2011, we introduced a landmark program with 11 leading
U.S. universities, funding $250 million in R&D partnerships
for the next 10 years and also supporting faculty, students
and academic infrastructure. Each university partnership
gives us access to emerging technologies and aligns with
areas of strategic interest for Dow, from solar to energy-
harvesting technologies.
KEY RECOGNITIONS
Dow was named one of the world’s most innovative
companies on the fi rst-ever Thomson Reuters‘ Top 100
Global InnovatorSM list in 2011
The Shanghai Dow Center was named Best R&D
Institute in China by Global Entrepreneur Magazine
Dow AgroSciences received an international Agrow
Award for “Best Novel Agricultural Biotechnology”
for SMARTSTAX® hybrids
Dow Brazil was ranked among the top fi ve most
innovative companies by Época Negócios Magazine