Omron 2005 Annual Report Download - page 37

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3) R&D system and organization
Beginning with our core technologies, the scenario for
building a growth structure in three to five years was estab-
lished at the management level. This scenario is divided
into three themes: group growth strategy, group company
growth strategy, and core technology development. The
first and second themes are carried out jointly by the busi-
ness companies and R&D headquarters, while the third is
carried out solely by the R&D headquarters. As of March
31, 2005, there were 1,384 R&D personnel, their organiza-
tion detailed in the chart below.
INTELLECTUAL PROPERTY STRATEGY
At the Omron Group, our fundamental intellectual property
strategy is to strengthen our IP portfolio, including patents,
know-how, copyrights and trademarks and utilizing it effec-
tively to maximize corporate value.
To that end we have created a structure for effectively
sharing management resources, technology and intellectual
property. Our aim is to construct scenarios for success that
will lead to tremendous business growth through utilizing
intellectual property in business and technology strategies.
Specifically, we will create technology that will form the core
for business growth, and further expand business opportuni-
ties through the acquisition of strong intellectual property.
Company-wide intellectual property strategy that aligns
technology with business strategy is led by the Intellectual
Property Department of the Corporate Planning Division,
which maintains close contact with intellectual property
departments established in each business segment.
To ensure that intellectual property does not leak out-
side of the company, we have adopted a system of rules
for managing confidential information.
In recent years, the circulation of large numbers of imi-
tation Omron brand products, mainly in China, has resulted
in damage to our corporate value. In response, we have ini-
tiated countermeasures by first, stationing representatives
in Shanghai; second, creating an original “Omron Anti-
Counterfeit Manual,” and distributing it to administrative
agencies; and third and lastly, periodically conducting anti-
counterfeiting campaigns.
Intellectual Property and R&D-related Data
FY2005 Plan FY2004 FY2003 FY2002
Number of patents Applied for 1,300 1,216 1,170 1,141
Registered 700 676 580 543
Number of patents 4,500 4,426 4,154 4,068
R&D expenses Total 50.0 49.4 46.5 40.2
(Billions of yen) IAB 17.5 16.7 14.5 13.4
ECB 9.5 7.9 6.7 6.0
AEC 7.5 6.4 5.2 4.0
SSB 3.5 5.3 7.6 5.4
HCB 3.0 2.7 2.7 2.5
Other businesses (Business Development
Group and other segments) 9.0 10.6 9.8 8.9
R&D expenses ratio 8.0% 8.1% 7.9% 7.5%
R&D staff (persons) 1,384 1,594 1,378
Research and
Development
Headquarters
Business
Company
CEO
R&D Organization
Advance Device
Laboratory
Sensing &
Control Laboratory
R&D Center
SBU
(Strategic Business Unit)
Product
Development
Department