DaimlerChrysler‘s Collaboration with Science Benefits and Risks

Horst Soboll

[email protected]

Benchmarking Industry-Science Relationship German-OECD Conference Berlin, October 17,2000 Research & Technology

Structure

l DaimlerChrysler as an Industrial Global Player l The Role of Innovation and Research & Development l Industry-Science Relationship l Evaluation of Research l Conclusions Research & Technology

Revenues of the DaimlerChrysler Group 1999

Total 149,985 m €

Mercedes-Benz Passenger Cars , 38,100 25.4% ®

Chrysler Group 64,085 42.7%

Commercial Vehicles Mercedes-Benz, Freightliner, Sterling, , 26,695 17.8%

Services 12,932 8.6% Aerospace 9,191 6.1% Other Business Units 5,411 3.6% COM/MD 1.05 E 3/2000 Research & Technology

In 1999 about 7,575 m€ were spent for R & D

Mercedes-Benz Passenger Cars, 27% smart®

Chrysler Group 26%

Commercial Vehicles Mercedes- 11% Benz, Freightliner, Sterling, Setra, Thomas Built Buses Aerospace 26%

Other business units 10%

In 1999 DaimlerChrysler registered almost 2000 patents and introduced 85 major new developments into Passenger Cars and Commercial Vehicles

COM/MD 1.08 E 3/2000 Research & Technology

Innovation through Central Research and Technology Annual budget of € 350 million for approximately lTechnological Basis lInnovative Products 2,000 researchers and 500 future projects for all lTechnology Carrier “F300” lFirst-to-Market with business units l“!” A platform for technological knowledge management in the Group Trainee pool for technological and scientific personnel lTechnology Carrier “F200” lFirst-to-Market with...

?

COM/MD 1.09 E 3/2000 Research & Technology

Research and selected co-operation sites

Berlin

Stuttgart Moscow Portland MIT Cambridge Twente Tokyo Palo Alto Pittsburgh Shanghai Stanford Bangalore

Pretoria Melbourne

Research Lab locations Co-operation sites Technology Offices Research & Technology

Interaction between Research and Innovation

Research

Transformation Money Knowledge

Innovation Research & Technology

Interaction between Technology, Market, and Society Research & Technology

Zero Emission Fuel Cell Car Research & Technology

Germany‘s Performance in International Ranking

R&D R&D Personnel in Company Development & Expenditure Business University Co- Application of Enterprises p.a. operation Technology

1. USA 1. USA 1. Finland 1. Finland 2. Japan 2. Russia 2. Singapore 2. Singapore 3. Germany 3. Japan 3. Israel 3. Israel 4. France 4. China 4. Netherlands 4. Canada 5. UK 5. Germany 5. Switzerland 5. Ireland 6. Korea 6. France 6. Sweden 6. Netherlands 7. Italy 7. UK ...... 8. Canada 8. Korea 13. Germany 29. Germany

Source: The World Competitiveness Yearbook (1999) Research & Technology R&D Intensity in OECD Countries

Total R&D Spending (per cent) of GDP Spending for R&D (per cent) of Private l Importance of Science for Industry Industry 4.4 4.4 4.2 4.2 4.0 4.0 3.8 3.8 3.6 3.6 3.4 3.4 3.2 3.2 3.0 3.0

2.8 2.8 2.6 2.6 2.4 2.4 2.2 2.2 2.0 2.0 1.8 1.8 1.6 1.6 1.4 1.4 1981 1983 1985 1987 1989 1991 1993 1995 1997 1981 1983 1985 1987 1989 1991 1993 1995 1997

JPN c) USA GER a) SWE b) FRA GBR

1998 Estimated. b) Strukturbruch in der Erhebungsmethode 1993/1995. Source: OECD: Main Science And Technology Indicators. a) Bis 1990: Früheres Bundesgebiet. - Berechnungen und Schätzungen des NIW. c) FuE-Ausgaben in Japan bis 1995 leicht überschätzt. Bericht zur technologischen Leistungsfähigkeit Deutschlands 1999 Research & Technology

Benefits of Research Collaboration

l Complementary Competence Profile l Join Forces (to attain critical mass) l Standards l Sharing High Risk Research & Technology

Partnership for a New Generation of Vehicles Annual budget of approximately € 273 million lAdvanced Prototypes lInnovative Products for 10 years lESX 1Powertrain lESX 3 A platform for technological exchange and cooperation between government and industry Draws on the resources of 7 federal agencies, the national laboratories, lESX 2 lProduction universities, suppliers and the United States Council for Automotive Research (USCAR), a cooperative, research effort between ? DaimlerChrysler Corp., Ford Motor Co., and Corp.

FTT/M: OECD, 17.10.2000COM/MD 1.09 E 3/2000 Research & Technology

Risks of Research Collaboration

l Intellectual Property Issues Drain of Know-how / Loss of Exclusivity Sharing of IPR (Patents and Licences) l Slowing of Research and Development Process Research & Technology

Industry Science Relationship l Importance of Science for Industry Education of Industrial Researchers Breakthrough Innovations based on knowledge oriented research Innovation Partners for Industry l Increase of External Research and Development Expenditures l Trend to Collaborative Research l Incentives for all Partners l Exploitation/Transfer Mechanisms (Problems, Results, Personnel) l Strategic Dialogue Moderated by Government l Importance of informal,human resource related linkages Research & Technology

Core Business Processes in R&T

Technology Innovation Project Transfer Strategy Planning Work of Results

Recruiting Development Transfer Research & Technology

Goals of Research Audit

Focus on Goals Focus on Competition Customer Quality

• International Determination • Company and State-of-the-art of current business unit position strategies •Competitors, Efficiency competitive • Technological

advantages Transfer needs

... to safeguard and improve research strategy decisions Research & Technology

Research Audit Process Technology Science Benchmarking with External Auditors (Top Scientists in the World)

Evaluation and Decision = Research Process Audit

Strategic Dialogue with Internal Key Customers Research & Technology

Results and Experiences of Research Audit

Contribution to Strategic Development of R&T Division

Improvement of Technology Position Research Audit Improvement of Market Position Research & Technology

Conclusions

l R&D Output is not necessarily Proportional to Money Spent l Competition amongst Research Institutes Ensures Excellence and Quality in R&D Results Periodic evaluations l Successful Technology Transfer is Based on Direct Collaboration Personnel Exchange Two-way-Transfer Strategic Dialogue