BASF SE (BAS), the world’s largest chemical company, will change the way it organizes research and development as it increases the budget to bring new products to market to 1.7 billion euros ($2.3 billion) this year.
BASF, which spent 1.6 billion euros last year on R&D, more than any other chemical company, said today that it will stop bundling such efforts in so-called growth clusters. Instead it will back research and development in 13 growth fields, including plant biotechnology, water filtration techniques and systems for medical use, to supply seven key industries.
The effort is part of a plan to reach sales of 115 billion euros by 2020, with 30 billion euros of revenue generated by innovations, defined as products and offerings less than 10 years old, BASF said at a press conference at its headquarters in Ludwigshafen, Germany.
BASF’s targets by 2020 include 1.9 billion euros in gross trait sales from genetically improved crops, more than 800 million euros in sales of water technology, and more than 500 million euros in sales to the medical industry with products such as anti-infective coatings for devices, the company today said.
The company plans to double its research activities in Asia and North and South America by 2020 and conduct 50 percent of its research and development outside Europe by that year, it said in an e-mailed statement today.
BASF increased the number of research and development personnel by 500 last year to 10,100, working on a total of 2,800 projects.
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