As one of the world’s leading specialty chemical companies, Degussa has built its sustainable development strategy around innovation and research. The company focuses on creating value in a knowledge-driven market, leveraging its strong R&D capabilities to maintain a competitive edge. With over 55,000 patents globally and more than 3,100 employees spread across 50 bases, Degussa continues to push the boundaries of scientific advancement. Its long-term goal is to strengthen its leadership position by consistently delivering innovative solutions that meet evolving market needs.
Linde Dein, Chairman of Degussa (China) Investment Co., Ltd., recently emphasized the importance of a balanced R&D portfolio. Projects are categorized into short-, medium-, and long-term goals, ensuring that the company can adapt to changing demands while maintaining strategic direction. According to Dein, effective R&D requires careful selection of projects, with unsuccessful ones being terminated quickly to avoid unnecessary investment. This approach not only optimizes resource allocation but also fosters a culture of continuous improvement.
Dein also highlighted the necessity of accepting failure as part of the innovation process. He explained that if no projects fail, it may indicate a lack of ambition or creativity. To encourage bold thinking, Degussa allocates 10% of its annual R&D budget to high-risk projects, aiming to identify and eliminate underperforming initiatives early. This strategy ensures that the company remains agile and forward-thinking.
Degussa operates through 21 business units, covering areas such as chemical building materials, fine and industrial chemicals, functional materials, coatings, and specialty polymers. Approximately 85–90% of its R&D efforts focus on basic research, carried out within each business unit. Meanwhile, the remaining 10–15% is managed by an independent agency called "Creavis," which specializes in engineering technology. To ensure seamless collaboration, dedicated personnel are assigned to coordinate between Creavis and the business departments.
According to Dein, Degussa's core strength lies in its ability to provide customized, high-efficiency system solutions to customers across more than 100 countries. This capability has helped the company secure a leading position in the global market, with over 85% of its products considered industry leaders. In line with this vision, Degussa plans to increase its R&D investment from 3.2% of sales to 4%, raising its annual R&D budget from 350 million to 450 million euros.
The company places great value on the creativity and responsibility of its R&D staff, believing that their contributions drive innovation and create tangible value. Internal reward systems are used to recognize and motivate teams that make significant improvements in competitiveness. For example, the innovative projects awarded in 2003 played a key role in reinforcing Degussa’s global market dominance.
Degussa has also invested heavily in R&D across multiple countries, including China. The Shanghai R&D center, established in April 2004 with a total investment of 12 million euros, features modern laboratories, applied technology research rooms, and after-sales service facilities. This center significantly enhances Degussa’s ability to deliver tailored solutions to Chinese customers.
In June of this year, Degussa signed a joint venture agreement with Jilin University, forming an 80:20 partnership. The university will provide the necessary technology, becoming a long-term R&D collaborator for Degussa. This strategic alliance aims to advance high-temperature polymer research and achieve mutual benefits.
Dein noted that for Chinese companies to succeed internationally, they must invest more in R&D while also protecting intellectual property. Many Western firms have faced challenges in China due to inadequate IP protection. However, he expressed optimism about the progress being made by the Chinese government and relevant authorities, which he believes will support future growth and innovation.
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