Independent Innovation Series Reports Degussa: Leading Advantages from Innovative Research and Development

As the world's leading specialty chemical company, the core element of Degussa's sustainable development strategy is innovative research and development, focusing on gaining competitive advantage in a knowledge-based value chain. Today, the company has approximately 55,000 patents worldwide and 3,100 employees work in more than 50 bases. Degussa's goal is to consolidate and expand its leading position and technological advantage through a steady stream of innovative solutions.
Linde Dein, chairman of Degussa (China) Investment Co., Ltd., told reporters recently that Degussa has been pursuing a research and development project that has a good balance and match, that is, some projects are short-term, some are in the medium-term, and some are targeted. Long-term goals. To carry out research and development activities, we must first have a good project portfolio before we can effectively carry out the project. Those unsuccessful projects will be stopped immediately, and Degussa will not invest in projects that are very promising in the future.
Linden specifically pointed out that to understand and accept that some projects fail to achieve the desired results, this is a necessary part of the research process. Because if there is no failed project, it can only indicate that the initial idea is not enough, which means that the company's ability to innovate is poor. In Degussa's annual R&D funds, 10% is devoted to the development of high-risk projects, during which they will try to eliminate those unsuccessful projects as soon as possible.
Degussa is mainly composed of 21 business units, which belong to chemical building materials, fine and industrial chemicals, functional materials, coatings and advanced fillers, and specialty polymers. Its basic research accounts for 85% to 90% of the total research and development activities. , R & D institutions in various business departments to carry out; the remaining 20% ​​to 15% of engineering technology research and development by an independent agency named "Creavis" bear. In order to ensure that Creavis has good relations and communication with various business departments, the company has assigned dedicated personnel to manage and coordinate.
Linden believes that Degussa's core strength lies in its ability to provide customized high-efficiency system solutions to customers in more than 100 countries around the world according to specific needs. It is precisely because of this advantage that more than 85% of the company’s products are in a leading position in the global market. According to reports, Degussa will continue to invest heavily in research and development of its core business. They plan to increase the proportion of R&D investment to sales from the current 3.2% to 4%, which means that the company's annual research and development funds will increase from the current 350 million euros to 450 million euros.
Degussa valued the R&D personnel's innovative spirit and sense of responsibility and believed that it could help the company generate and promote new ideas and integrate it into R&D and production processes to create value. They strive to promote innovation culture through internal reward mechanisms to enhance the creativity of employees. Each year, they reward project teams that have made outstanding contributions to improving their competitiveness. It is understood that the innovative projects awarded in 2003 have enabled Degussa to significantly strengthen its dominant position in the global market.
Degussa has invested in research and development in many countries, including China. The company is the most diverse of the world's 10 major R&D centers and was put into use in April 2004 in Shanghai. The R&D center with a total investment of 12 million euros includes a modern laboratory, applied technology research room, and after-sale technical service room, which is expected to greatly improve Degussa's ability to provide innovative system solutions to Chinese customers.
In June this year, Degussa and Jilin University signed a contract to establish a 80:20 joint venture company. According to the contract, Jilin University will provide the joint venture with the appropriate technology and become a long-term R&D partner of Degussa. The two sides thus established a strategic partnership that complements each other in the high-temperature polymer field and seeks win-win results. According to reports, Degussa will strive to integrate China into the company's global R&D network so that technological innovation will truly become the cornerstone of its Chinese operations.
Linden pointed out that if Chinese companies want to stand out in the international market, they must increase investment in research and development, but also pay attention to protect their own intellectual property rights. Many European and American companies have reported that it is difficult to invest in R&D activities in China. One of the important reasons is that some proprietary or knowledge products cannot be effectively protected. However, he stressed that the efforts made by the Chinese government and related departments to make this Degussa look forward to the future.

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