R&D/innovation at Saint-Gobain: reaching out

R&D/innovation at Saint-Gobain: reaching out

Armand AJDARI

Deputy R&D Vice President Saint-Gobain

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Saint-Gobain: an ancient company

Saint-Gobain today

(2006)

Plus de 1 400 sociétés consolidées

Capital expenditure Cash flow

Net income Sales

€ bn

Sales

Saint-Gobain: 5 sectors

Historically, materials fabrication based B to B:

- a huge number of Business Units, a great variety of markets, an immense number of products and technologies

- traditionnaly: great autonomy of businesses

Flat Glass

Base product Building Automotive _Specialties

High Performance Materials

Grains& Powders Ceramics Crystals Plastics Abrasives Glass textiles

Building Products

Saint-Gobain’s strategy

« worldwide leadership in the construction market, offering innovative solutions

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R&D : figures

USA Europe Asia

Northboro Bluebell Jackson Stow Milford Pont-à-Mousson Aviles Chalon/Saône Chantereine Rantigny Aubervilliers Cavaillon Herzogenrath Shanghai East Leake Gunsan Ladenburg > 3 500 employees

> 390 millions euros in 2007 (growing)

> 15 research centers + 101 development teams > 300 new patents filed each year

R&D’s mission

SAINT-GOBAIN’S MISSION STATEMENT

« worldwide leadership in the construction market, offering innovative solutions

to meet the challenges of our time: growth, energy, environment. »

Support businesses by product and process innovation on our existing markets (incremental innovation)

Generate and support strategic moves and penetration of new markets (radical innovation)

Organization designed to make sure first mission fulfilled: deeply integrated in the businesses (each has its R&D organization) Challenge: how to succeed in second mission in parallel ?

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Actions: recent moves

A- Projects organization: drive from corporate R&D

Strategic Projects (reaching out towards new markets) Transversal programs (reaching out internally)

B- Centers organization:

Transversal Research Centers Moving towards Asia

C- Reaching out externally

Partnerships

Techno-Marketing External venturing Academic contacts

A- Strategic projects

Market-oriented

Already existing market SG wants to enter

Emerging markets

Innovation means of penetrating these markets

Validated by the board of the company Strong support from corporate R&D

Harbored by a business

Innovative, expensive, risky projects with high technical content

Transversal programs

reaching out internally …

Multi-sector/multi-center programs

on technology topics of strategic interests shared by different businesses

Objectives :

Leverage our cross-disciplinary expertise Identify and satisfy common needs

Upstream competencies (academia, consultants) Downstream (market knowledge + contacts)

Remember:

>1400 companies consolidated

Aubervilliers, France Northboro, USA

Main competencies : Glass, coatings, materials Number :

320 employees Budget 2006 :

40 M€ Main competencies :

Ceramics, Abrasives, Plastics Number :

410 employees Budget 2006 :

50 M€

B- Strengthening transversal R&D centers :

Cavaillon, France Main competencies : Ceramics, catalysis Number : 240 employees Budget 2006 : 35 M€

• In charge of developing our key competencies • Critical mass to carry out breakthrough work

home of our strategic projects

• Hubs for academic contacts (reaching out) • Attractive place for talented young scientists

A new transversal R&D center: SGR Shanghaï

Architecte: Arte Charpentier & associés Grand opening in September 2007

A center to serve the specific needs of Asian markets

C- Anticipate, move fast:

-> Reach out (more than before)

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This is a cultural change

1- Partnerships as part of the R&D projects:

essential for new markets

not traditional for R&D people (secrecy)

eased if proper IP position (beyond defensive)

Aim at co-developments: JDAs, JVs

Provides better understanding of market/techno Reduces time to market

Lighting: start-ups + big players Photovoltaics: JV Avancis (Shell)

Acquisitions combined with R&D

to get access to new markets

2- A Techno-Marketing Team

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Cross-fertilizing core strengths

Beyond what current BUs already do well For large market & application potentials

3- An External Venturing initiative

Started 22 months ago by establishment of a dedicated team

in Europe, US and Asia

Combine ideas stemming from Innovative start ups with the

industrial strength and assets of Saint-Gobain

Variety of working methods: licenses, partnerships, equity investments and joint ventures

~400 companies reviewed, 4 partnerships agreed and 20 under active due diligences or discussion

Focused area: Construction Products, Energy and Environment

Can lead to acquisitions providing access to new markets,

to codevelopment partnerships, or simply stimulates our R&D !

Input: from Venture Capital funds + internal (marketing, R&D) Output: transfer to Businesses (sponsors identified early on)

To develop long-term interactions with the best research teams in our domains

To keep an eye on technological developments To hire of students from top universities in

countries of strategic importance for Saint-Gobain by making our technologies better known

Saint-Gobain University Network:

SUN

Specific links with the French System

Many contracts (50 per year) with CNRS in France:

A framework agreement signed between CNRS and Saint-Gobain 2007

Two joint labs with CNRS within our centers (CNRS and Saint-Gobain researchers)

A lab in Saint-Gobain Recherche, Aubervilliers. A lab in CREE research center, Cavaillon.

SUN :

signed 2007

, under way 2008

Wide line ◘ ◘ ◘ _◘ ◘ ◘ Lomonosov University Harvard University of California at SB NIMS University of Sao Paolo ◘ IIT Madras . CNRS Chair X/ESPCI MIT Aachen Mûnchen ◘

Reaching out to innovate:

for efficiency, anticipation and strategic moves

Leverage transversality internally to reach critical mass Some specific dedicated structures

A cultural change: systematic support + incentives

.. while remaining focused on serving efficiently existing businesses