Olympus 2005 Annual Report Download - page 53

O LYMPUS 20 05 51
Core Technologies and Business M odels
> O lympus’ management focuses on strengthening the Company’s
technological capabilities to ward becoming a technology-o riented
company.
O lympus’ core competence is in “O pto-Digital Technology,” a
fusion o f the latest digital technologies and optical techno logies
accumulated by the Company over many years. In order to further
strengthen this core competence, O lympus has positioned optical
technology, electro nic imaging technology, precision technology,
and cell-related technology as fundamental technologies common to
the entire Company. By channeling research and development
resources to build up a competitive edge, the Co mpany co ntinues to
create new levels of value fo r its imaging, medical, life science,
and industrial systems businesses.
The Company’s strong commitment to technological research and
develo pment is reflected by its R&D investment of approximately
¥47.7 billion (US$434 million), representing almost 7.4 % of sales,
during the fiscal year under review.
R&D Segment and Intellectual Property Overview
> The following graphs sho w the number of O lympus’ published
patents in its areas of core competence, as well as the ratio of such
patents in relation to its overall patent portfolio.
The number o f published patents in optical and electronic imag-
ing technologies has declined due to the Company’s adoption of
more stringent selection standards for patent applications as part of
its policy of emphasizing higher overall quality o f applications. By
contrast, cell-related technology is becoming increasingly impor-
tant, and despite stricter selection standards, the number of appli-
cations has risen steadily as the Company has stepped up its
emphasis on applications.
Approximately 70% of O lympus’ acquired patents are related to
core competence technologies, and serve as a wellspring of the
Company’s competitiveness in each area of business.
N ote: The number of domestically published patents is commonly used as an
indicator of research and development activity.
O verview of Intellectual Property Strategy
> In its quest to become a technology-oriented company, O lympus
pursues research and development activities aimed at establishing
a leading position in intellectual property rights, based on an intel-
lectual property strategy that is linked with its business and tech-
nology strategies.
O ne goal of O lympus’ intellectual property strategy is to achieve
an advantageous balance of patents that places the Co mpany
ahead o f its competitors in terms of patent portfolio mix. By
strengthening our techno logical capabilities in this way, we will
bring to market exclusive products distinguished by their intellectu-
al property content, which will in turn boost earnings and enhance
O lympus’ brand and corporate value.
R&D and Intellectual Property Organizational Chart,
R&D Alliances
> O lympus’ research and development efforts are conducted at the
corporate level by its Corporate R&D Center and Future Creation
Laboratory, and by research and development departments that
focus on product development at each business group.
Intellectual property management is handled by the co rporate
Intellectual Property and Licensing Division and by departments
established for that purpose within each business group. This
enables each group to integrate its business, technology, and intel-
lectual property strategies. Meanwhile, the Intellectual Property and
Licensing Division strategically integrates and handles licensing-
related activities and administrative tasks. In an effort to enhance
the quality and efficiency of intellectual property management, the
Company established O lympus Intellectual Property Services Co.,
Ltd., in April 2005.
IN TELLECTUAL PRO PERTY REPO RT
Number of Published Patents in Area of Core Competence
(Number of patents)
01 0 2 0 3 04 05
Ratio of Patents Held in Core Competence
(%)
O ptical Technology
Electro nic Imaging
Technology
Precision Technology
Cell-Related Technolo gy
8
O ptical
Technology
38
18 Electronic
Imaging
Technology
Precision
Techno lo gy
Cell-Related
Techno lo gy
2
34
Applied
Technology
05
900
600
300
R&D in Intellectual Property Rights
New Unique Products Good Balance
of Patents
Secure Earnings
Higher Brand and Corporate Value
Higher Non-asset
Va lue