Bayer Group

Research at Bayer

As a research-based company, the Bayer Group firmly believes in innovation as a key driver for future growth. We have the necessary resources in place to realize further growth opportunities for the future through research and development activities. In 2007 we invested a total of €2,578 million in research and development, compared with €2,297 million in the previous year. It is particularly important for us to develop new products that strengthen our core businesses while at the same time continuously optimizing our product portfolio and our manufacturing processes. Our research activities are closely aligned to the requirements of our markets, with customer needs and technological advances presenting opportunities for future innovation. With innovation projects in particular, our own research and development activities are supplemented by our international network of collaborations with leading universities, public-sector research institutes and partner companies. Through this pooling of expertise, we aim to rapidly translate new ideas into successful products.

Research in the three subgroups

Of the Group’s entire R&D expenditures, Bayer HealthCare accounted for 66 percent, Bayer CropScience for 25 percent and Bayer MaterialScience for 8 percent.

Research Spending

Research and Development Expenses 2007
by subgroup in %

Research and Development Expenses 2007
by subgroup in € million

Responsibility for the development of innovative products and completely new fields of business outside of the subgroups’ core activities lies with Bayer Innovation GmbH, headquartered in Düsseldorf, Germany. The goal of this company is to add to Bayer’s business portfolio and facilitate access to new growth markets. The current focus is on medical and security technology and the use of plants to develop and manufacture new pharmaceutical products.

More than 3,000 suggestions have already been submitted in response to the innovation initiative launched by Bayer AG in 2007, entitled “Triple-i: Inspiration, Ideas, Innovation.” Many of these proposals are currently undergoing further evaluation by our subgroups. The initiative is designed to motivate employees throughout the Group to submit ideas for new products and thus help to strengthen Bayer’s innovation capability.