NEC 2008 Annual Report Download - page 31

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*Based on “OPEN INNOVATION” by Henry W. Chesbrough, with some additional content by NEC



Industry collaboration,
combining technologies


Industry and academia
collaboration, licensing in


Expand businesses and
create new business
OUT
Generate earnings by
licensing out
Spin offs
OUT OUT
Generate earnings
from software and
technology expertise
Business
model
IN
Accelerate
research
IN
Accelerate
research
IN
Accelerate
development
IN
OEM
expertise
Current
NEC domains
Business Division
New Business
Expand NEC
domains
Transfer
business
Create new
business


Fundamental Research
Primary Research Divisions
Applications/
Applied Research
Prototype Creation/
Mass Production and Use
Primary Business Divisions
Academia
National research
institutes
Other
companies
Narrow down
choices





Research
projects



To be successful in global business, NEC believes
that it is essential to carry out R&D activities in line
with regional characteristics in terms of markets,
technologies and other factors. For example, in
China, mobile communications networks are more
fully developed than fixed-line communications
networks. For this reason, one regional characteristic
of China is that it is strong in developing leading-edge
applications for mobile handsets. NEC has estab-
lished global research bases in North America,
Europe and China, and through collaboration
between these research bases and its Japanese
research base.
To raise the effectiveness and quality of R&D
activities, NEC proactively utilizes outside resources
in addition to its in-house R&D assets based on an
Open Innovation approach. Operating under a basic
policy of global Open Innovation, NEC aggressively
incorporates knowledge from domestic and over-
seas universities and research institutions. Measures
to bring in knowledge include accepting student
trainees under internship programs, carrying out joint
research, and inviting researchers from outside the
Company to work with NEC. In conjunction with
these efforts, NEC aims to acquire knowledge
through collaborative innovation with companies in
other industries. Through such measures, NEC
seeks to discover competitive core technologies and
continuously deliver research achievements that
spur on business development.


NEC positions intellectual assets as a foundation for
driving sustained growth of the group’s business
activities. To build a powerful operating base, NEC
is pursuing strategic patent projects in growing
business domains, such as NGN, as an effort to
establish a group-wide patent network. Furthermore,
in line with global business expansion, NEC has
established IA centers in the U.S., China, and Europe
and is reinforcing intellectual asset development
activities at overseas bases and stepping up patent
applications worldwide. Organizationally, NEC has
appointed a CPO (Chief Patent Officer) in all business
units and research laboratories, to formulate intel-
lectual asset strategies that unify business and R&D
strategies to establish a powerful patent network
that includes essential patents in standards. To
ensure stable and efficient business execution, NEC
forms cross license arrangements and alliances, and
acquires intellectual assets from outside the Com-
pany. As for the development of open source soft-
ware, NEC has invested in and participates in OIN
(Open Invention Network), which is the organization
established for both Linux software development
and Linux collaborative patent protection.
To develop a high-quality patent portfolio, NEC is
nurturing its human resources and reinforcing col-
laboration between R&D departments and patent
engineers. In conjunction with these efforts, NEC is
strengthening its compensation systems for employ-
ees’ inventions and training courses on patents. NEC
carefully monitors infringements of its patents,
trademarks, and designs by other companies as well
as illegal copies of products. Through warnings and
lawsuits, NEC works to protect its rights.
As of March 31, 2008, the NEC group held
approximately 71,000 patents worldwide, including
32,000 patents in Japan.
