Epson 2006 Annual Report Download - page 20

Seiko Epson Annual Report 2006
18
Research and Development Strategies
Epson has extensively refined its family of core technologies developed and organized over the
years around the three key concepts of compact, energy saving, and the creation of fine images.
Now Epson is enhancing the research and development of new business domains and products
that will support its long-term growth.
Medium-Term R&D Roadmap
As it seeks business opportunities in the
area where imaging domains converge,
a key goal of the SE07 medium- to long-
term corporate vision, Epson’s medium-
term roadmap for R&D will see the
Company further hone the core technolo-
gies it has cultivated over the years around
the themes of compact, energy-saving
products and the creation of fine images.
The ultimate aim is to offer Epson cus-
tomers greater convenience and to help
them exceed their visions and expecta-
tions. To this end, Epson is steadily
refining one of its strengths—distinctive
technology—in each of its three main
imaging domains, while giving renewed
attention to creating attractive products
and further reinforcing existing business
domains. Always forward-looking, Epson
is also busy developing new business
domains and product lines that will sup-
port its long-term growth.
R&D Costs
In the fiscal year ended March 31, 2006,
R&D costs rose ¥3.9 billion, or 4.4%, year
on year, to ¥92.9 billion. The ratio of R&D
costs to net sales was 6.0%, a level
unchanged from the previous fiscal year.
By segment, R&D costs consisted mainly
of expenditures of ¥37.7 billion in
information-related equipment, ¥19.0
billion in electronic devices, and ¥2.4
billion in precision products. An additional
¥33.8 billion was spent in other business
areas and for company-wide R&D
projects, largely for next-generation core
technologies, displays, semiconductors,
and other technologies slated for
development over the medium- and long-
term. Going forward, Epson intends to
maintain R&D costs at roughly 6.0% of
net sales as it invests in the research
and development of new business
domains and product lines that will
ensure long-term growth.
R&D Structure
To generate synergies among depart-
ments, improve the speed of research,
and develop value-added products and
technologies, Epson’s R&D organization
has been divided into corporate and
operations division R&D functions. The
former is responsible for medium- and
long-term projects such as R&D of base
technologies, and development of
applied technologies including industrial
inkjet applications. Operations division
R&D functions are in charge of product
development and other projects
expected to come to fruition within three
years. In line with its policy of optimizing
R&D locations, Epson has a global net-
work of R&D laboratories including Epson
Research and Development, Inc. in San
Jose, California, U.S.A., and The Cam-
bridge Research Laboratory of Epson in
Cambridge, U.K.
Establishment of New R&D Site
The Epson Innovation Center, a new R&D
site for next-generation information-
related equipment, began full-scale
operations from April 2006. Established
on the grounds of Epson’s Hirooka
Office in Nagano, Japan, the center is a
cornerstone of Epson’s medium- to
long-term strategy to reinforce its R&D
structure, and brings together the R&D
organizations of the information-related
equipment divisions, corporate R&D, and
corporate R&D support departments.
This step will motivate mutual improve-
ment among R&D teams, encouraging
the fusion of ideas and technologies by
bringing engineers and researchers
Mid-Range R&D Policies
Offer customers convenience and help them exceed their vision
by merging our imaging technologies and advancing our core competencies
Epson DNA Future vision
Imaging on glass
i3
Imaging on screen
i2
Imaging on paper
i1
Compact
Fine Images
Energy Saving
Personalized/localized
printing and photofinishing
Big-screen
home entertainment
Mobile multimedia
High-performance engines
Ultra-low power/resource
Professional photo quality
High cost-performance
Ultra-low power consumption
Mobile video
Ultra-compact, thin big-screens
Ultra-low power/resource
Ultra-high-quality images