Research & Development

An R&D Strategy geared towards Growth

Based on the belief that technology and product competitiveness will be the main drivers of its growth, Panasonic seeks to create new businesses based on black-box technologies and become a results-driven company underpinned by technology and intellectual properties. Accordingly Panasonic is concentrating its Research & Development management resources into strategic growth areas and new technologies which will become key over the next decade.

In fiscal 2006 Panasonic spent EURO 3.4 billion (¥564.8 billion) in R&D expenditures, a sum equivalent to roughly 6% of the company's Net Sales. These R&D activities were focussed on nanotechnologies, digital network software technologies for AV equipment, next-generation mobile communications, component and device technologies such as plasma displays and media drives for next-generation high-capacity Blu-ray Discs, and High Definition Power Line Communications (HD-PLC). In the field of environmental technologies it is continuing its ground breaking work in fuel cell co-generation systems.

The Company is pushing ahead with its value chain strategy in order to maximize synergy benefits across a wide range of business domains. Components and devices are the key to adding value to finished products, whereby R&D which produces high-performance and differentiated components and devices is essential. In this respect, Panasonic creates value-added products not only through in-house production, but also through a sophisticated network of cooperation between materials, components and devices, and finished product divisions. In digital cameras, for example, comprehensive integration of lens, image sensor and system LSI technologies has resulted in the development of products with compact design and enhanced picture quality.

One of Panasonic’s main strengths is in its ability to manufacture system LSIs, which are the determining factor in the competitiveness of finished products. With the progress of product convergence and networking in the digital networking era, compatibility is crucial. Panasonic therefore developed an Integrated Platform that can be used in a variety of products, and will continue to utilize this platform to add value to finished products, improve efficiency in software development and achieve advances in design quality.

At the same time, the Company has drawn up a vision for the next decade in order to guide the selection and concentration of R&D projects. In addition, Panasonic will efficiently allocate R&D resources through continuous investment in priority areas, while actively leveraging R&D initiatives outside of the Company through collaboration with other companies and academic institutions.

In fiscal 2007, Panasonic will focus on priority R&D projects, including broader application of the Integrated Platform across product lines, high-resolution PDP development, Blu-ray Discs that usher in a new era of digital picture quality through high-speed and high-capacity technologies, fuel cell cogeneration systems that contribute to environmental preservation, and healthcare infrastructures and products to make healthcare at home a reality.

Intellectual Properties Strategy
Because the results of Panasonic’s R&D initiatives are evaluated in the form of intellectual property rights, they represent valuable management assets that can be used to generate earnings in the future. The Company places a high priority on these intellectual property rights, which help to secure and maintain Panasonic’s competitive edge in a wide range of businesses. For this reason, Panasonic is pursuing an intellectual properties strategy that will consistently contribute to improved business results.

Through proactive patent applications on a global scale, Panasonic maintained its top patent application position in Japan in 2005, and also secured a leading position overseas. The Company also effectively utilized its previously patented assets in a variety of ways—either by protecting differentiated technologies or using those of other companies in cross-licensing agreements—in order to reinforce competitiveness.

Panasonic continues to actively pursue the global patenting of designs and trademarks. Through the simultaneous launch of VIERA flat-panel TVs, Panasonic successfully patented the design in 25 countries, and the trademark in more than 50 countries.

In fiscal 2007, Panasonic will further intensify efforts to enhance earnings by actively applying for patents, design and trademark rights on a global basis, while also using intellectual properties in a strategic manner