Sustainability

Innovation Management

R&D Expenses

NGK Group R&D Expenses

FY2016 FY2017 FY2018 FY2019 FY2020
R&D expenses (in millions of yen)
18,653 21,100 23,271 22,928 22,448
R&D expenses as a percentage of net sales (%) 4.6 4.7 5.0 5.2 5.0

Open Innovation

The NGK Group uses open innovation as a means of facilitating collaborative new product development. We pursue open innovation through a variety of approaches, including joint development with outside partners, participation in demonstration testing carried out within the framework of bilateral national agreements, and obtaining unique technologies via acquisition of shares in other companies.

Examples of Open Innovation Initiatives

Efficiency improvement, cost reduction, sales creation
Contact with human resources, technology, and inventions; other positive results

Three Different Approaches

Collaboration with overseas partners (subnano-ceramic membranes)
Demonstration testing carried out within the framework of bilateral national agreements (NAS batteries)

Process Innovation

Within the NGK Group we undertake process innovation through a variety of approaches, including direct interlinkage of processes, process automation, and manufacturing method innovation. In fiscal 2020, our process innovation efforts contributed to an approximately 4% reduction in the cost of sales.