Dr Jan van den Biesen, VP Public R&D Programs

Philips Research

Attracting and maintaining the R&D talent

pipeline for the future – a challenge for industry

CESAER Seminar, TUD, October 18, 2012

JvdB/12.024

Founded in 1891 Headquartered in Amsterdam, the Netherlands

Sales EUR 22.6 billion (2011) ~33% in emerging economies

122,000 employees Sales and service outlets in 100 countries

€1.6 billion investment in R&D, 7% of sales 54,000 patent rights – 39,000 registered trademarks –

70,000 design rights – 4,400 domain names

A leading multinational company

26%

40%

34%

Healthcare

Lighting

Consumer Lifestyle

JvdB/12.024

Mature

67%

Operating in the right markets Addressing key societal issues

Demand for

affordable healthcare

Need for energy

efficient solutions

Desire for increased

personal well-being

67% Mature Geographies 33% Growth Geographies Group Sales:

JvdB/12.024

Creating meaningful innovations Improving lives in new ways

4

Gain deep insights into people‟s

needs and aspirations by following a process requiring

end-user input at every stage

Transform insights into innovations by combining the diverse perspectives of

different disciplines

“Learn fast, fail cheap” by applying a rigorous process to assess value

potential early

Lead in open innovation by working closely together with partners in a

spirit of open innovation

JvdB/12.024 5

Research footprint enables global and local role

Briarcliff 100

Clinical sites

Healthcare

Lighting

Burlington 16

Lighting

Eindhoven/Aachen 910

Healthcare

Lighting

Lifestyle

Cambridge 27

Home & Oral

Healthcare

Bangalore 89

Healthcare

Lighting

Shanghai 210

Healthcare

Lighting

Lifestyle

Hamburg 85

Healthcare

Paris 34

Healthcare

Note: overview only includes direct Research FTEs (actuals for 2012)

5

EU share (indicative percentages)

% of Research FTEs 70

% of R&D FTEs 50

% of all FTEs 30

% of sales 30

JvdB/12.024

People at Philips Research Scientists from different disciplines

and > 50 nationalities

Disciplines examples

• Chemists

• Electrical engineers

• Physicists

• Biologists

• Computer scientists

• Physicians

• Biomedical engineers

• Sociologists

• Psychologists

• Business developers

• 1500 employees

• Interdisciplinary teams

• Active stimulation of creative processes

• Discipline to excel in project execution

• Open attitude to take in new signals

from society and disruptions in technology

6

JvdB/12.024

Battle for Brains: Need for Human Capital Strategy

• The Talent Deal

– Requirements: what are we looking for?

– Employee Value Proposition: what can we offer them?

• Where do we find talent?

– Now and in the future expected mismatch in demand and supply

– How to attract talent GEN Y needs

– Co-operation with universities and research institutes (PRO‟s)

• Industry Dynamics

– Global vs local trend

– Need for flexible workforce strong mobility of people

7

JvdB/12.024

‘Expert’ ‘Connector’

What are our requirements for the Talent Deal?

Creative

Passionate

Networker

Zooms In & Out

Philips Talent

„Experts‟ and „Connectors‟ are both engaged to drive

meaningful innovations – but with a different emphasis …but what is talent looking for?”

“where I can develop myself further at the leading edge of research”

“in an environment where I can team up effectively with others in the value chain.”

8

JvdB/12.024

Where is the talent in the future?

9

JvdB/12.024

Education developments

Percentage of 15 year

old who plan a career

in engineering or

computing

10

JvdB/12.024 11

“Next generation” of researchers: Gen Y (1981-2000)

• Work Ethic and Values: What‟s next, Multitasking, Tenacity,

Entrepreneurial, Tolerant, Goal oriented

• Work is... A means to an end, Fulfillment

• Feedback and Rewards: Whenever I want it, at the push of a button,

Meaningful work

• Messages that motivate: You will work with other bright, creative people

• Work and family life: Balance

• Core Values: Realism, Confidence, Extreme fun, Social

• Dealing with Money: Earn to spend

Source: Greg Hammil, Mixing and Managing Four Generations

JvdB/12.024

University-Business Relations

• Industrial research organisations like Philips Research benefit from

collaborating with publicly funded research organisations (PRO´s)

• PRO‟s are important part of our research ecosystem

Role PRO Business Business PRO

Partner • Joint research programs

• Key factor in policy creation

• Joint research programs

• Application knowledge

Portal • Early access to S&T

breakthroughs

• Valorization and societal relevance

• Funding

People • Source for recruitment

• Extra temporary human

resources

• Outlet for scientific career

movement

• Future jobs for students

• Source of recruitment for

(part-time) professors

12

JvdB/12.024

PRO relations of Philips Research worldwide (2011)

Role Type of relation #

Portal/People Philips part-time professors 25

Portal/People PhD students and postdocs related to our programs 159

People Internships: master students and trainees 283

Portal/People Academic advisors/consultants 59

Portal/Partner Relations marked as important 298

Partner Clinical partner relations

(different partners)

288

(149)

Portal Involvement in research institutes 2

13

JvdB/12.024

108 135 188 209 227

548

738

795 830

845 93

174

263

314 344

330

369

360

368 352

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2007 2008 2009 2010 2011

Lin

ks

Large firms

SMEs

PROs

Other/unknown

14

Philips‟ partnership links in public R&D programs in EU

JvdB/12.024

Vision: People – Carriers of Knowledge

• Researchers are prime carriers of tacit knowledge

– Exchanging researchers is key for fast (open) innovation

– Mobility between academia and industry is particularly important

– Not only national, but also transnational mobility is necessary

• Strong education is essential

– Life-long learning is fact of life

– New models are needed

Education Research

Innovation

knowledge triangle

15

JvdB/12.024

Vision on Education: Building Bridges Model

school university

industry

teaching from practice,

information on careers

experiment days

at industrial labs

part-time professors, promovendi extranei,

career move to university

temporary positions for

trainees, PhD students

postdocs, visiting professors,

part-time advisors,

career move to industry

Pre-university classes

at universities

Information on careers,

open days

All parties in education should connect and contribute

Educational Exchange & Mobility Programs

16

JvdB/12.024

Handbook for Responsible Partnering in Open Innovation

• Initiated in 2004

– By EIRMA, EUA, EARTO, ProTon Europe

• First Handbook released in 2005

– Endorsed by European Commission

– 10 Guidelines for Responsible Partnering

– Checklists, e.g. for IPR and self-assessment

• Handbook updated in 2009

– Aspects of SMEs, State aid, Human Factors

See http://www.responsible-partnering.org/

17

JvdB/12.024

Recommendations

1. Foster scientific careers, especially for young women

– Start at schools, e.g. JetNet and Girls Day

2. Expand Marie Curie actions in Horizon 2020

– Encourage public-private exchanges, also of “older” staff

– Introduce attractive Industrial Doctorates scheme

3. Promote 2009 Handbook for Responsible Partnering in Open Innovation

4. Keep adherence to Charter for Researchers and Code of Conduct for

their Recruitment voluntary

– Strict compliance is unworkable in industry, incl. SMEs

5. Impose Open Access obligations only on publications, not on all results

18

JvdB/12.024 19