Once a researcher,
always a researcher ?
Ad Huijser
Executive Vice-President and CTO
Royal Philips Electronics
EUA conference
Maastricht, October 28, 2004
Disclaimer about terminologies used
Research and experimental development (R&D) comprise creative work undertaken on
a systematic basis in order to increase the stock of knowledge, including knowledge of
man, culture and society, and the use of this stock of knowledge to devise new
applications”.
As a consequence, researchers are described as:
“Professionals engaged in the conception or creation of new knowledge, products,
processes, methods and systems, and in the management of the projects concerned”.
source: www.eua.be
Researchers in Philips are those “creators of knowledge and product
concepts” that are employees of Philips Corporate Research.
Developers in Philips are those “creators of products and related
knowledge” that are employees of Philips’ Product Divisions.
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The content of this presentation
• Intro to Philips and its Research
• The purpose of Industrial Research: Value Creation
• Open Innovation and the relation with Universities
• The profile of our researchers
• What type of researchers are we looking for ?
• Trends to watch
• Some questions to conclude
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Royal Philips Electronics
a multi-national company since 1891
• 5 Product Divisions, 60 different
businesses
• Global electronics company,
established in 1891 as an
incandescent lamp factory
• 2003 Total sales 29,037 MEuro
Net income
695 MEuro
• R&D @ 9% of sales: 2,617 MEuro
Corp. Research
~300 MEuro
• Multinational with 164,000 FTE’s
• Over 120 R&D sites globally and
Research labs in 7 countries
• Sales and service in 150 countries
• >100,000 patent rights
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Sales balanced globally: most R&D still in Europe
regional profile 2002, FTE based except Sales in Euro
Asia/Pacific
100%
America’s
80%
60%
Europe
40%
20%
0%
Research
Netherlands
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R&D
Commercial
Rest Europe
USA & Canada
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Industrial
Latin America
SALES
Asia/Pacific
5
Philips Research
leveraging international presence, insights & resources
Eindhoven
Leuven
Briarcliff
h
Redhill
h
h
Hamburg
h
Aachen
Shanghai
h
Bangalore
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Some basic facts of Philips Research
founded on Jan.2, 1914, by Prof. Dr. Gilles Holst
• Research laboratories in The Netherlands, UK,
Belgium, Germany, USA, China, and India
• Investment in Research: 0.8-1 % of sales
• Funding:
2/3 by Divisions (through contracts)
1/3 by BoM discretion, e.g. ‘free’
• ~2100 people, of which 1200 scientists
• PHILIPS: 3000 (first) patent-filings per year,
of which 60% out of Philips Research,
i.e. 1.5 patents filed per scientist / year
• Patent position:
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#1 China & Europe,
#8 USA
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Research’ activities are clustered in 7 Programs
many options for cross-fertilization and exploring overlapping area’s
Lighting, Devices
& Micro-Systems
Healthcare Systems
Systems and Software
Imaging Technologies
Integrated Circuits
Connectivity Solutions
Storage
Research Services $$
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We contribute to the proliferation of knowledge
4th amongst over 200 European Institutes by impact of publications
1.
2.
Research Centre for Energy and Environmental Technology (E)
Glaxo Wellcome Smithkline Beecham Research (UK)
1.99
1.93
3.
4.
National Institute Physics and High Energy Physics (NL)
Philips Research (NL)
1.87
1.84
5.
6.
France Telecom (F)
University of Cambridge (UK)
1.56
1.55
7.
8.
Risø National Laboratory (D)
University Of Oxford (UK)
1.53
1.48
9. British Telecom (UK)
10. Rutherford Appleton Laboratory (UK)
11. Niels Bohr Institute (D)
12. Eindhoven University of Technology (NL)
13. Technical University of Munich (G)
14. Observatory Astronomy Rome (I)
15. Institute Pasteur (F)
1.46
1.42
1.42
1.40
1.40
1.40
1.39
Source: 3rd European Report on S&T indicators
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Characteristics of Industrial Research
industrial
research
short-term
goals
long-term
long
-term goals, short
-term deliverables
long-term
short-term
deliverables
academic
research
Universities do supply us
basic (new) knowledge, but
we value them in particular
for being a source of welleducated and trained talent
~
industrial
development
??
short-term
long-term
deliverables
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Philips Research
mission statement
Create value and growth for Royal Philips Electronics
through technology
-based innovations, improving its global
technology-based
competitive position in its current portfolio, and/or leading
the company into developing new businesses.
Philips Research continuously strives for its mission by:
•
•
•
•
•
exploring the unknown to create new technologies,
promoting and demonstrating innovative concepts based on multi
-disciplinary strength,
multi-disciplinary
building and sustaining a strong intellectual property position,
developing our key
-capabilities and technologies for future markets,
key-capabilities
leveraging our capabilities and international presence to influe
nce regional standards
influence
and markets,
• translating global trends in innovation into directions to help shape the strategy of
Philips and its Product Divisions
• creating and maintaining an exciting environment to attract inte
rnational top
-talent,
international
top-talent,
• being a source of highly skilled people for Philips
Philips..
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Many more ways to create VALUE than in the past
the need for competitive speed however is staggering ….
Transfer
Transfer of
of
skilled
skilled people
people
to
to our
our PD’s
PD’s
Transfer to an
existing LoB
Selling
Know-How
entrepreneurship
Creating a
new LoB
RESEARCH
RESEARCH
RESULTS
RESULTS
Spinning Out
incubator
Brand image &
Customer supp.
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creating
future
business
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capitalising
on past
investments
Licensing IPR
12
It takes many years from invention to innovation
there are no quick business results from new technologies
License
Income
(a.u.)
70
DOR
MD
60
NiH3Batt
I2C
50
8MM
GSM
MPEG-2
40
30
Original patent filing
20
10
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
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Potential value is not always valued!
being inventive << being innovative
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Researchers have to make their biz’-case explicit
innovation happens in the market; not in the laboratory !
• It is exceptional that new technologies are being developed without an
implicit notion of its application by the researchers involved
• These implicit notion is seldom explicitly expressed by researchers,
since their motivation and focus is more often determined by “science &
technology” , rather than creating a new business
• However, that implicit notion of application can be made explicit by
requiring from those researchers a “business rationale” before the
“green light” for their project is given
• This requirement makes researchers aware of the conditions for
success, roadblocks, competition, etc.
• The earlier one starts taking into account the economic potential of a
project, the more chance to create a true business success
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The “elevator-pitch-ability” of today’s researcher
less than 3 minutes to present your case to the decision-maker
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The Philips’ Corporate Research Exhibition (CRE)
our annual, international and ‘open’ marketplace: “Research @ Sale”
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From ‘closed’ to ‘open’ innovation
an evolution over the last 30 years to reduce risks and TTM
from ….
to….
Spin
-in of
Spin-in
Technology
External
suppliers
Research
Research
100%
Philips
Businesses
Internal supply
Technology
spin
-out
spin-out
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Philips
Businesses
Joint
Ventures
with Philips
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Philips: key element in Europe’s Innovation System
• ~25 % of all private R&D in The Netherlands
• ~25 % of all Dutch applications for European patents
• Strong network with public & private R&D actors worldwide
• 2200 partnership links in recent/current European and National
programmes (such as FP5, MEDEA(+), ITEA)
• Nearly 300 contract research projects with Universities & Institutes
• Some 40 part-time professors
• Numerous students, R&D trainees, post-docs
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Philips Research
-Universities relation matrix
Research-Universities
Individual
Universities
& Institutes
Institute
part of the open
-innovation model
open-innovation
model
• Part time professors
• Industrial affiliation
• Academic sabbaticals
• Strategic consortiums
• Secondments
• External programs
• Governing boards
• Subsidiary programs
0 5
3 8
• Peer-to-peer contacts
• Students (MSc/PhD)
• Conference visits
• Postdocs
• Guest lectures
• Industrial sabbaticals
• Committee participation • Advisors
Individual
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Philips Research
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Without contract
With contract
Cost in MEuro 2003
Institute
20
Characteristics of a potential hire
how much can the university curriculum influence ?
much influence
±
some influence
no influence
• High scores on a solid curriculum (e.g. ‘with honours’)
• Proven capabilities to in-depth research (PhD, MSc+)
• Communicative ( the 3-minutes elevator pitch)
± • Affinity to other disciplines and capability in combining them
(not multi-disciplinary per se)
± • Original & Creative: ‘out-of-the-box’ thinker
± • Entrepreneurial spirit or mind-set (understanding “value”)
• Team player (without compromising individual integrity)
• Social skills and experiences ( a net-worker)
• .. the ‘overall’ impression of personality ( in a split-second ?!)
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Our researchers are the only ASSET we have
… but, we aren’t seeking for clones but for complementary diversity !
• Analytical
• Broad interest
• Communicative
• Entrepreneurial
• Independent
• International
• Net-worker
• Pragmatic
• Responsible
It is a combination of,
but anyhow …
• Creative
The preferred profile of the Industrial
Researcher of today is a dynamic,
communicative, open-minded and
entrepreneurial individual.
However, we are not looking only for
the “entrepreneurial scientist” but
also for the “non-conformist
inventor”.
• Team-player
• ………
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Researcher at Philips is a temporary assignment
only a few researchers qualify to stay “researcher for life”
• Flow-through (“doorstroom”) model:
− Know-how transfer ⇒ transfer of people (also a career opportunity !!)
− 80-20 rule regarding “go-stay” (match to the ‘reference laboratory’)
− Full dual-ladder: both management and peer recognition
− Management Development: multi-disciplinary vs. multiple discipline
experiences incl. “business” experience
• Careers with both technical and non-technical elements:
−
−
−
−
−
−
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Developer
Patent attorney
Strategist
Business manager
Engineering
………….
−
−
−
−
−
Development Manager / CTO
(Initial) Purchaser
Product manager
HRM
Manufacturing
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Scientific staff
Young population with a variety of backgrounds
1000
1000
900
800
700
600
500
> 35
25-29
900
800
700
600
500
400
20-24
400
Elect. Engin.
300
< 20
300
Chemistry
200
100
Others
30-35
200
100
0
2000
2001
2002
2003
0
2004
100
Example:
Mathematics
Ind. Engineer.
Physics
Comp. Science
2000
2001
Mostly PhD’s
& MSc+’s
Philips Research
Eindhoven,
The Netherlands
# of new hires
80
60
40
20
0
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2000
2001
2002
2003
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2002
2003
2004
Netherlands
Bulgaria
Bolivia
Brazil
Belarus
Vietnam
Czech
Germany
Spain
Finland
France
Great Britain
Greece
Croatia
Indonesia
India
Iran
Italy
N-Korea
Marocco
Malta
Mauritius
Austria
Peru
Poland
Portugal
Romania
Russia
Sweden
Slovenia
China
Turkey
America
2004
24
Passion, Dedication and Pride are of all times ….
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… but ambitions for a research job are evolving
ambition
a changing environment with changing rules and requirements
science
application
project
career
start-up
consultant ?
TRIBE
NOMAD
TEAM
They
They all
all come/go
come/go for
for …..
…..
••
••
••
INDIVIDUAL
Scientific
Scientific challenges
challenges
Industry
-/leadership
Industry shaper
shaper-/leadership
Inspiring
Inspiring environment
environment
•• Personal
Personal experience
experience
1960
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1970
1980
1990
2000
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Fashion or non
-reversible trends ?
non-reversible
from researcher/employee to “independent” entrepreneur
• high mobility of people via job
-hopping
job-- & company
company-hopping
• growing consciousness about
about personal value
–– from
from ‘hire’
‘hire’ to
to ‘partnership’
‘partnership’ (participation
(participation in
in the
the value
value created)
created)
–– from
from accepting
accepting an
an offer
offer to
to dictating
dictating conditions
conditions
hire//
get//
one, get
five)
–– growth
growth in
in tribal
tribal behavior
behavior ((hire
fire
lose
fire one,
lose five)
• pay per (trans
-)action based on deliverables (performance driven)
(trans-)action
• working from home or anywhere in a 24
-hour economy
24-hour
• ongoing individualization and internationalization of the society
and our global economy
• the end of the “traditional” researcher ??
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Some key questions for a MNC like Philips wrt.
continuing its industrial R&D in Europe ……
• Is the European knowledge-base strong enough to compete ?
• Are young Europeans interested in science and technology ?
• Are the European universities good enough to support ?
• Is the European scene attractive enough to stay ?
• Is the EC committed enough to invest in S&T?
• Is Europe the market for us to innovate ?
• ………
• ….
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Is there reason for optimism ?
YES:
Although with some reserves, Philips is still regarding Europe as
an excellent place for its basic R&D, given the talent we can hire
and the quality of their contributions to our company’s
prosperity. Hence our ~600 MEuro investments in new R&D
facilities at the High-Tech Campus in Eindhoven (NL)
BUT: Can Europe stay attractive?
R&D in our industry is getting more and more a “commodity”
that is becoming widely available (smart people everywhere).
In particular, large emerging markets/economies like China and
India have a good educational systems (plus help from EC / US
universities) and are becoming attractive places to establish R&D
activities with excellent price/performance characteristics.
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