Sustainability
Innovation Management
R&D Expenses
NGK Group R&D Expenses
| FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | |
|---|---|---|---|---|---|
| R&D expenses (million yen) |
21,100 | 23,271 | 22,928 | 22,448 | 23,551 |
| R&D expenses as a percentage of net sales (%) | 4.7 | 5.0 | 5.2 | 5.0 | 4.6 |
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
Established Ena Electric Power as a step towards making a carbon neutral city a reality
Established the Environment Innovation Laboratory with the Nagoya Institute of Technology
Invested in perovskite solar cell spin-off from Kyoto University
Process Innovation
The NGK Group works to achieve process innovation through a variety of approaches, including direct interlinkage of processes, process automation, and manufacturing method innovation. In FY2021, our process innovation efforts contributed to an approximately 1.9% reduction in the cost of sales.
Managing Emerging Markets
The following is the percentage of NGK Group sales coming from emerging markets*.
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Percentage of sales | 27 | 25 | 24 | 27 | 31 |
The following is the percentage of NGK Group employees in emerging markets*.
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Percentage of employees | 30 | 28 | 27 | 23 | 23 |
Emerging markets are defined as all markets outside of Japan, North and Central America, and Europe
Production Measures for Emerging Markets
The NGK Group works to ensure that all of our overseas production bases operate in accordance with the NGK Group Code of Conduct and obtain ISO 9001 or IATF 16949 certification. We also encourage them to carry out quality assurance, quality control, quality improvement, quality-related training, and other activities. In FY2020, NGK Ceramics (Thailand) obtained IATF 16949 certification, and now all production bases are certified. We are working now to secure certification within three years of new sites, including those in emerging markets.