R&D and Intellectual Property Activities

Research and Development

The Group’s research and development is based on the Kawasaki Group Policy on R&D. Our R&D assumes a role in the creation of new value from the ground up and into the future, and it involves remaining up to speed with changes in the times as well as with market and client needs, to contribute to ambidextrous organization at the Group. Specifically, the Group will promote the development of competitive new products and solutions in cooperation with each business segment based on competitive trends and those in the market as well ongoing business conditions, toward the achievement of sustainable growth. We will meanwhile also reconfigure and enhance our fundamental technologies and develop and enhance our human capital in technical domains linked into respective technologies as means to increase our shared capacities in fundamental technologies, which will constitute the driving force behind value creation. We will also undertake initiatives toward the achievement of this goal, bringing together the collective wealth of technologies which the entire Group has to offer, and mobilizing “synergy of technological and manufacturing capabilities” to their maximum extent. Furthermore, engineers in each business segment and specialists in the Corporate Technology Division with expertise in various fields form project teams to share issues and develop new products and new businesses with the aim of consistent overall optimization. The Corporate Technology Division acts as an intermediary facilitating mutual access to the technological core competencies possessed by each business segment so that they can be applied to products in other segments. This approach enables the multifaceted expansion of technology and realizes major synergistic effects. Thus, by adopting so-called matrix management combining the core technologies of each business segment and the fundamental technologies of the Corporate Technology Division, we aim to create technological synergy throughout the entire Kawasaki Group and to further enhance corporate value.

Each business segment carries out R&D in areas specific to its business, while the Corporate Technology Division handles horizontal or forward-looking R&D on a Company-wide basis, and works together closely with the business segments on each project. In addition, the business segments, Head Office Presidential Project Management Division, Corporate Technology Division, Hydrogen Strategy Division, and DX Strategy Division are collectively endeavoring to bring together the wealth of technologies which the Group has to offer to realize Group Vision 2030; at the same time leveraging the latest system integration and digital technologies in R&D to provide value to our customers into the future.

Takumi Kawasaki, Managing Executive Officer, General Manager of Corporate Technology Division

The business segments and the Corporate Technology Division meet regularly to share information about the market environment and business strategy and form consensus regarding development themes. In addition, Company-wide Technology Committee serves to provide direction for company-wide responses to new and shared technological challenges and to the development of human capital in technical domains; while inter-company technical exchanges and interactions are deployed to facilitate the horizontal exchange and sharing of technologies and to promote synergistic effects.

Promotion of Innovation

We will maintain a steady view to the Group’s growth into the future, undertake to promote various innovations, and further expedite transformations of our business.

In addition to carrying out R&D within the Group, we will leverage open innovation, and utilize cutting-edge technologies from universities, research institutions, start-ups, and other sources in both Japan and overseas to expedite the pace of our R&D. Furthermore, the Group will proactively promote collaboration with external businesses.

The Microsoft AI Co-Innovation Lab Opened in Kobe to Drive Innovation

Microsoft Japan marked the opening of the sixth Microsoft AI Co-Innovation Lab worldwide in Kobe on October 11, 2023 with a ceremony at the Kobe Commerce, Industry, and Trade Center, where the Lab is located. Microsoft worked with Kawasaki Heavy Industries and the city of Kobe to establish the Lab—a facility for driving AI- and IoT-powered innovation and developing industry through supporting the endeavors of startups and other companies exploring new possibilities for products and services that leverage AI.

Kawasaki signs MOU on consortium toward expanding the introduction of renewable energy in the Republic of the Philippines

Kawasaki Heavy Industries has concluded an MOU^*1 on the establishment of energy systems which aim to realize decarbonized society with IKS Co., Ltd., Amber Kinetics, Inc. (hereinafter, “Amber”; Republic of the Philippines), and Aboitiz Power Corporation (Republic of the Philippines). The MOU was signed at a LOI^*2 signing/exchange ceremony, taking the opportunity of the official visit to Japan by H.E. Ferdinand R. Marcos, Jr., President of the Republic of the Philippines. Going forward, the four companies, including Kawasaki, will actively undertake research, development, and project structuring for an energy system in the Republic of the Philippines which will combine an inverter equipped with Virtual Synchronous Generator (VSG) software developed by Kawasaki and a flywheel developed by Amber, to realize the adoption of renewable energy without compromising grid stability.

*1 MOU: Memorandum of Understanding; a basic agreement document

*2 LOI: Letter of Intent

• Improved our product manufacturing processes using 3D scanners
• Improved our transportation process that applies 3D data
• Improved our production process with front-loading that utilizes VR technology
• Introduced an automated testing system that employs image processing technology

As an example of a notable achievement, a 3D scanner was used to measure the distortion of product parts, pre-verify for interference between parts, and institute measures to avoid interference, with the outcome of a 22% saving in labor hours when compared to the previous amount of time involved in assembly.

At Kawasaki, we have defined a set of in-house criteria to improve the environmental performance of our products through energy and resource conservation and to reduce our environmental footprint by reducing the amount of industrial waste produced and chemical substances used in our production processes. Products that meet these criteria are registered as the Kawasaki Ecological Frontiers system (formerly the Kawasaki-brand Green Products system).

The Kawasaki Group has positioned intellectual property (IP) as an important management resource supporting our efforts to develop businesses and brands with competitive advantages by leveraging creative and innovative solutions and taking full advantage of our core competencies. These assets are therefore essential to achieving ongoing improvement in corporate value. On the basis of this recognition, and in accordance with the Kawasaki Group Policy on Intellectual Property, we endeavor to ensure and utilize the IP rights of the Group and strive to respect and prevent violation of the valid IP rights of third parties by promoting three-pronged activities with IP added to business and R&D.

To promote strategic intellectual property activities, we maintain a structure whereby the Intellectual Property Department in the Corporate Technology Division drafts and implements corporate measures and works with the intellectual property supervisor and the intellectual property management departments of each business segment to carry out intellectual property activities in line with each segment's business.

Director in charge of intellectual property: Hiroshi Nakatani, Representative Director, Senior Corporate Executive Officer

The Intellectual Property Committee formulates operating and basic policies regarding Company-wide intellectual property activities, and holds committee meetings as it deems necessary.

The Group sets forth the three pillars of “deliberating on and formulating intellectual property strategies aligned to business strategies”; “securing intellectual property to serve as a source of non-price competitive power”; and “ensuring scrupulous and thorough intellectual property risk management,” through which intellectual property should contribute to our business, toward the aim of realizing continuous growth and discontinuous innovation. To achieve this, we strive to implement IP activities in coordination with management and the business strategy by taking part in business planning from the earliest stages; providing information useful for developing a business strategy that leverages IP information; making suggestions regarding strategy; and developing and promoting an IP strategy that will strengthen the business strategy.

We have in place appropriate countermeasures based on trademark and other rights for dealing with commercial activities that make unauthorized use of Kawasaki Group brands, the manufacture and sale of counterfeit products, the use and application for registration of trademarks similar to those of the Kawasaki Group, and related issues. By further developing such activities, we are committed to contributing to the protection and further enhancement of market confidence in our brands.

Based on the Patent Law regulation pertaining to inventions by employees, Kawasaki has established a provision in its internal rules regarding inventions by employees to reward employees at specific milestones, such as the filing of a patent application (application reward), patent registration (registration reward), and practical application (performance-based reward). The Company faithfully adheres to this provision. In addition, the same reward system is applied even when the invention is not made public for strategic reasons. Of note, the performance-based reward is fairly awarded after duly taking into consideration how the Company has benefited from the invention, using an evaluation standard based on comparisons with other companies in the same industry as well as trends in society.

Intellectual property is an important management resource for increasing our business competitiveness. As such, Kawasaki’s basic policy is to secure and effectively utilize its own intellectual property while respecting the valid intellectual property rights of third parties. In line with this policy, we carry out grade-specific activities to foster correct awareness of intellectual property.

*1 Numbers are for Kawasaki Heavy Industries + major consolidated subsidiaries as of the end of each calendar year

*2 Numbers of patents granted by EPOs with ongoing patent rights