Formulation and execution of strategies based on intellectual property information and non-intellectual property information

The strategy on how to build and utilize our intellectual property portfolio for the maximization of business value is important. At AGC, we are advancing formulation and execution of strategies through the following steps:
1.Clarification of the ideal state: We clarify the ideal state in order to achieve business objectives.
2.Information analysis: We carry out an information analysis that includes intellectual and non-intellectual property, to clarify the gap between the current state and the ideal state.
3.Strategy formulation: We formulate the strategy to fill the gap.
4.Strategy execution: We transition to the execution phase of the strategy.

Formulation and execution of standardization strategies and rule-making

At AGC, we are actively promoting initiatives towards standardization and rule-making. With the aim of creating a new society and market, the CTO oversees company-wide standardization strategy activities, promoting human resource development through the implementation of standardization activities in corporate departments, business departments, and overseas bases, as well as the implementation of standardization education. A department dedicated to standardization, placed in the corporate department, serves a cross-company function and supports activities in each department. Moreover, the CTO hosts a company-wide standardization strategy meeting composed of representatives from each department and overseas bases, promoting the formulation and execution of strategic activities that contribute to the creation of the next generation society and establishing a competitive advantage.

Specifically, the steps for standardization and rule-making are divided into five stages: (1) rule investigation, (2) rule analysis, (3) strategy formulation, (4) rule-making, and (5) rule dissemination and utilization. In particular, we are strengthening strategic planning by positioning the processes of up to planning of strategy formulation as rule intelligence.

For example, in the ISO (International Organization for Standardization) led rule-making, we have taken the lead in the standardization of ZEB and are using its technical specifications to promote ZEB dissemination activities, primarily targeting emerging countries in Asia. In IEC (International Electrotechnical Commission), we have led the standardization of methods for evaluating the strength of smartphone cover glass, contributing to healthy market growth and the proper evaluation of AGC’s products.

Furthermore, we are actively participating in the standardization efforts for circular economy and biodiversity within ISO, and for reduction contributions and fuel cells within IEC. We are also engaged in the standardization of BIPV (Building-Integrated Photovoltaics), which is being developed by both ISO and IEC.

Award system for inventors for creating patents that contribute to the business

AGC emphasizes employee training on patent applications, patent searches, and other aspects of intellectual property rights, and has introduced the Award System for Inventors to incentivize R&D members to work on inventions that influence the industry and result in the granting of patents. Inventors receive awards when patent applications are made and when patents are registered. The award paid upon registration of a patent is determined by AGC using original criteria, including the innovativeness and originality of the invention and its impact over competitors.
The current system was introduced in 2018. Compared with the previous system - in which most of the awards were paid to a small minority of inventors of technologies relating to highly profitable products - the current system has significantly extended the scope of awards, increased the percentage of inventors who receive awards, and shortened lead times from creating an invention until the award is paid. As a result, it is expected that there will be an increase in patents that truly contribute to the business.

Evolution of the intellectual property portfolio

For the second consecutive year, AGC was selected as one of the “100 Innovative Companies Leading the Future of Science and Technology Worldwide” in the “Innovation Momentum 2024: The Global Top 100” report, published by LexisNexis (headquartered in the U.S.), which provides patent information analysis services offering strategic insights based on patent data from around the world.
This selection is considered to be in recognition of the evolution of AGC’s intellectual property portfolio that influences the industry through various systems that we have introduced so far.
The figure below is a graph showing the annual changes in the quantity and quality of AGC’s patent portfolio, drawn using LexisNexis^® PatentSight+. You can see that both the quantity and quality have improved in recent years.
”Innovation Momentum 2024: The Global Top 100” uses the academically validated proprietary indicators of LexisNexis^® PatentSight+ to evaluate the competitiveness of companies based on the value of the patents they hold and the strength of their momentum in changing their intellectual property portfolios over the past two years. The top 100 companies are selected from across all industries around the world.