Olympus Corporation
2004 Intellectual Property Report
Basic Business Policy
As a member of society that shares the values of the people, Olympus Corporation adheres to a “Social IN” philosophy, emphasizing the proposal of new values and the health and happiness of humankind as fundamental goals of its business activities. Based on this philosophy, Olympus aims to become a “Value Creation Company” that seeks to progress with society, and promptly and responsively create new value that society seeks.
In October 2004, we established Olympus Imaging Corp. and Olympus Medical Systems Corp. in a split-off of our core imaging systems and medical systems businesses. Through this reorganization, Olympus aims to maximize corporate value through the establishment of a decision-making framework that will accelerate its ability to respond to changing market conditions on a global basis in each business area.
Core Technologies and Business Models
Olympus’ management focuses on strengthening the Company’s technological capabilities toward becoming a technology-oriented company.
Olympus’ core competence is in “Opto-Digital Technology,” a fusion of the latest digital technologies and optical technologies accumulated by the Company over many years. In order to further strengthen this core competence, Olympus has positioned optical technology, electronic imaging technology, precision technology, and cell-related technology as fundamental technologies common to the entire company. By channeling research and development resources to build up a competitive edge, the Company continues to create new levels of value for its imaging, medical, life science, and industrial systems businesses.
The Company’s strong commitment to technological research and development is reflected by its R&D investment of approximately ¥47.7 billion, representing almost 7.4% of sales, during the fiscal year under review. Net Sales to R&D Expenses, R&D Efficiency
Olympus is continually enhancing its research and development efficiency. It has positioned the Corporate R&D Center as its “value creation center,” with the primary objective of swiftly creating new businesses and technological assets backed by patents.
 
Note: Research and development efficiency is calculated on the basis of the intellectual property strategy index set down by the Ministry of Economy, Trade and Industry.
R&D Segment and Business Strategy Orientation
In an effort to further strengthen its Opto-Digital Technology, Olympus is currently engaged in the research and development activities described below.
Optical technology has been one of Olympus’ greatest strengths since its founding. The Company has significant technology assets in optical design, manufacturing, and measurement/analysis, and conducts research in these areas on an ongoing basis. It is currently reinforcing its emphasis on developing optical technologies to accommodate advances in device compactness, thinness, and precision.
Electronic imaging technology at Olympus is aimed at meeting the needs of several different business sectors. Here, the Company is conducting research and development in such areas as digital image processing, custom imager design, high-definition digital movie systems and other areas.
Precision technology research and development focuses on MEMS (Micro Electro Mechanical Systems) incorporating ultra-miniaturized processing technologies, ultraprecise processing, micro mounting, micro sensors and actuators, and other related technologies. These technologies are essential elements of the key parts and components that distinguish Olympus products from those of its competitors in various fields.
Cell-related technology at Olympus is aimed at creating new business opportunities in the fields of bioscience and regenerative medicine, and covers research and development in such areas as cellular technologies, DNA computing, and bone tissue culturing.
Olympus Technologies Created from Opto-Digital Technology
R&D Segment and Intellectual Property Overview
The following graphs show the number of Olympus’ published patents in its areas of core competence, as well as the ratio of such patents in relation to its overall patent portfolio.
No. of Published Patents in Areas of Core Competence Ratio of Patents Held in Areas of Core Competence
The number of published patents in optical and electronic imaging technologies has declined due to the Company’s adoption of more stringent selection standards for patent applications as part of its policy of emphasizing higher overall quality of applications. By contrast, cell-related technology is becoming increasingly important, and despite stricter selection standards, the number of applications has risen steadily as the Company has stepped up its emphasis on applications.
Approximately 70% of Olympus’ acquired patents are related to core competence technologies, and serve as a wellspring of the Company’s competitiveness in each area of business.
Note: The number of domestically published patents is commonly used as an indicator of research and development activity.
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 2004 Intellectual Property Report
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