Research and Development

Put simply, our role as the R&D Group involves the challenge of creating new values. It means that we will identify changes in society and technological trends (needs) ahead of others and create advanced original new technologies by mixing material technologies and information communications technologies (seeds), which are strengths of the SEI Group, thereby developing new products and new businesses contributing to establishment of a wealthy society.

Founded as an electric wire manufacturer, we have consistently contributed to development of Japan's social infrastructure including its electricity and communications systems. We have constantly developed cutting-edge products, as exemplified by the replacement of telecommunications (copper wires) with optical communications (optical fibers, compound semiconductors) in the communications field. This would have been impossible without our corporate culture placing emphasis on research and development.

To achieve the goals set in VISION2012, our mid-term management plan, it is essential to add new fields to the five business categories. The specifically targeted areas are: "Environment & Resources," "Life Sciences," and "Safety & Security, Ubiquitous Networking." For successful business development in such new fields, we need to make Group-wide efforts through integration of achievements in research, which have until now belonged separately to the respective business fields, and creation of new core technologies for horizontal development.

We also acknowledge the importance of proposal-based R&D free from existing models and are strongly promoting development of an R&D system that can address such structural changes. A sign of this initiative is our new "WinD Lab" R&D center, which was completed at Osaka Works in May 2009. The integration of the research divisions, which used to work independently at Osaka Works, has encouraged collaboration between different divisions and exchange between researchers.

Sumitomo Electric has valued a long-term viewpoint. As shown in the cases of compound semiconductors and superconductivity, we have established businesses based on long-term basic research of, for example, 20-30 years. In addition, our management system can reflect the value of research.

However, private companies usually conduct business-driven research and development and seek profits from such activities. If only R&D activities expected to generate profit within about three years were approved, it would be difficult for researchers to maintain a long-term perspective. Therefore, it is also important that the management team steps back and guides R&D activities based on company-wide strategies. The team needs to prepare a long-term vision for research by designing for society 30 years ahead and working backwards based on the anticipated social and economic structures. For example, it is inevitable in the near future to encounter energy reforms in relation to environmental problems. This will offer stages in which our technologies and products can play active roles. Meanwhile, if management looks at the arrival of the aging society, new business opportunities may be identified in relevant fields that SEI has not yet entered. Or it may assume that some core technology that SEI is good at can contribute to future society.

In an environment where the ideas of excellent researchers are carefully developed and with our management capacity, we will improve the speed and efficiency of research and promote structural reinforcement of existing business fields and expansion to new business fields through creative research and development. We are steadily solidifying the system to achieve these goals.