Hitachi discusses strategy in R&D initiatives around the world
Conglomerate giant, Hitachi, operates in several industries around the world and invests heavily in research and development across many sectors. As a for-profit company, Hitachi funds their own research and development, and so must strategize in choosing which R&D projects or industries to invest in to be most effective and lucrative.
According to Hitachi’s co-head of Social Innovation Business, Patrik Sjoestedt, Hitachi’s strategy is to address major issues that have the biggest affect on society. These issues and their affects vary greatly by region, but typically these projects tackle issues such as climate change, water management and energy use. Hitachi addresses modern day problems with technology to create solutions for society, such as developing sensors to deal with traffic congestion.
Determining which issues to invest R&D in is heavily influenced by region. For example, in Southeast Asia, development is heavy as cities are being built up, and so importance of research and development is on issues such as energy efficiency and security. Another example exists in Germany, where manufacturing is one of the biggest industries. Here, R&D would aim to solve issues resulting in reducing waste, optimizing energy, managing pollution and increasing overall efficiency. Similarly, in cities such as London and New York, transport (including transport of goods) is a major contributor to issues like pollution and congestion. R&D invested in transportation would aim to reduce emissions and optimize transport loads, perhaps through technologies such as self-driving vehicles.
Hitachi will continue innovating to solve major issues faced around the world today through R&D. The R&D tax credit is another strategy available to Hitachi any other companies developing new and improved products and processes, allowing a credit of up to 14% of eligible spending.
If you would like to find out how your company could benefit from Research and Development Tax Credits, please contact a Swanson Reed R&D Specialist today.