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1 Battelle: International Partnership Strategy Richard C. Adams Senior Vice President, Battelle February, 2007.

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Presentation on theme: "1 Battelle: International Partnership Strategy Richard C. Adams Senior Vice President, Battelle February, 2007."— Presentation transcript:

1 1 Battelle: International Partnership Strategy Richard C. Adams Senior Vice President, Battelle February, 2007

2 2 Agenda Battelle Overview Forces Driving International Partnerships Next Steps for Battelle

3 3 Battelle: World’s Largest Non-Profit R&D Organization Pacific Northwest National Laboratory Richland, Washington Corporate Headquarters Columbus, Ohio Brookhaven National Laboratory Long Island, New York Oak Ridge National Laboratory Oak Ridge, Tennessee National Renewable Energy Laboratory Golden, Colorado Idaho National Laboratory Idaho Falls, ID $3.7B in R&D; 20,000 employees worldwide

4 4  Non-profit, charitable trust  Distributions that provide “the greatest good to humanity”  Purposes:  “Creative and Research Work”  “Making of discoveries and inventions”  Better education of men and women for employment  Governed by a self-perpetuating Board of Directors For over 75 years, we have been engaged in scientific discovery and refining approaches to translating discovery into practical applications Battelle’s purposes, defined in the Will of Gordon Battelle, focus on innovation 4

5 5 This approach has helped Battelle expand its role in US laboratory management Lockheed Martin U of California (TBD) U of California U of Chicago (TBD) Battelle/MRI Battelle/ Stony Brook Battelle Battelle/UT Battelle Energy Alliance 2005 1995 U of California U of Chicago MRI AUI Battelle Lockheed Martin Now the leader in management of the energy and science national labs $2.8B in managed R&D and 15,000 affiliated staff

6 6 Integrated S&T and Business Strategies Generate Battelle Signatures Homeland Security National Defense Energy/Environment Health and Life Sciences Management & Operations of R&D Laboratories Advanced Materials 6

7 7 Battelle Ventures – an independent seed/early stage venture fund

8 8 International Partnerships

9 9 Forces Driving International Partnerships Changing geography of science and technology Changing nature of technology innovation New perspectives on what it takes to be a globally preeminent R&D organization

10 10 R&D: Increasingly a Global Enterprise R&D is widely recognized as key to creating competitive advantage, economic growth, wealth and social benefits Growing international markets –Global R&D expenditures will likely increase 3-4 times over the next 20- 25 years –US and European shares will decline –Largest growth in Asia (increase from ~30% today to over 50% in 2030)

11 11 Dissatisfaction with returns on R&D Investments Public sector R&D investments –Expensive and inefficient operations –IP of limited value –Limited translation to commercial value –Limited investment in and development of human resources Private sector R&D investments –Focusing on “engines” or “platforms” to drive future business –Increasing focus on outsourcing and in-licensing –Looking for technology fusion opportunities –Cost driving reductions in size and scope of R&D

12 12 Changing Nature of Technology Innovation Higher value (and increasingly complex) products are responsible for most of the growth in global trade Innovation of higher value products increasingly a product of technology fusion Innovation processes are increasingly complex and based on: –Clear market targets –Self organizing teams –Trust among a diverse array of organizations (not just R&D)

13 13 International R&D Partnerships: Key to Success Growing focus on international collaborations –Too expensive to go alone –Technology and knowledge – a two way flow

14 14 New Perspectives on what it takes to be a Globally Preeminent R&D Organization Partner first and partner often –e.g., joint Global Research Alliance Gain access to the best technology and ideas wherever they are located Develop an enhanced understanding of global challenges and local perspectives –e.g., global climate change, biofuels in Asia Gain access to high quality and well trained scientists and engineers wherever they are located (sometimes at a substantially lower cost)

15 15 In Sum …… Ultimately, a global perspective is critical to achieving a substantial positive impact on the world – this is what drives Battelle And, not unimportantly, a global perspective is also key to establishing competitive advantage for Battelle and substantial return on investment

16 16 Next Steps

17 17 International Path Forward Strong focus on Asia Established Battelle-Korea and Battelle-Japan earlier this year –Battelle-Japan – a joint venture with Mitsubishi Corp. –Battelle-Korea – wholly owned subsidiary Next areas of focus is likely India Seek to build R&D operations with strategic partners Seek to tackle the tough challenges with global consequences

18 18 Battelle International initiatives Japan (Tokyo, 2005) Italy (Rome, 2005) Korea (Seoul, 2005) India (2007/08) Under One Roof Program Office Organization Types Mexico (Mexico City, 2003) Geneva (Current) UK (current, 2006)

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