Our goal is to develop true breakthroughs that benefit society and create value for the company and our stakeholders. We will do that through our investment in Green Innovations, concentrating on our main areas of expertise.
We recognize that innovation is not limited to inventions brought about by basic research. Progress can also be driven by the development of original applications of technologies that already exist. One example is our energy efficient urban lighting solutions. In addition to Green benefits, these lighting architecture solutions improve safety, comfort and atmosphere.
We also know that we have to be flexible to truly maximize the value from our innovation efforts. Not every promising idea can be nurtured within the environment of our established businesses – sometimes because the idea is too much of a breakaway, sometimes because the expected returns or scale up are too slow for our global businesses. We would be destroying value if we just left those technologies on the shelf. That’s why we have set up our three Incubators – to develop these technologies in a separate, entrepreneurial environment that measures performance in terms of growth, not earnings.
After nurturing and developing these ideas for a few years, successful incubator initiatives make it into new businesses, often within Philips, but we have also spun out some of them as independent companies. Society at large profits, because promising technologies do not rust on the shelves and can be developed into new business. Philips profits, because the incubators allow us to extract more value from our R&D efforts.