Werner Wenning, chairman of the board of management of Bayer, said one of the company's keys to success was research which translates into new products.

Of the ¤1.9-billion budget, about ¤950 million is dedicated to healthcare research and development, with ¤630 million for crop science and ¤280 million for material science research.

"This is the biggest R&D budget of any chemical and pharmaceutical company in Germany. Our aim is to apply our expertise. The results of our research are hoped to improve people's lives," said Wenning.

Bayer's research activities result in about three new patents a day on average. In 2005, the company launched new products or applications which flowed from its own research accounting for more than ¤4 billion of group sales.

For healthcare, the firm has acquired Schering AG to strengthen its own research activities, particularly in the field of pharmaceuticals. The new Bayer Schering Pharma, headquartered in Berlin, will be one of Germany's biggest pharmaceutical companies. It mainly plans to strengthen the areas of cardiovascular risk management and oncology.

In the crop science area, the company plans to provide innovations for the food industry. It intends to increase research spending from ¤630 million to ¤750 million by 2015. This includes a substantial increase for the seed and bio-science businesses.

"Plant biotechnology has major potential with respect to many unsolved problems. We are also convinced that plant biotechnology will become a much more important factor in the commercialisation of renewable energy sources," said Wenning.

The company is also planning the production of bio-diesel and bio-ethanol as part of the global move towards alternative fuels.

In the material science area, the research activities are focused on new applications, environmentally sustainable production methods and customised products. Another focus is on hi-tech polymers, which will be used in vehicles.

Meanwhile, the company will also focus on nanotechnology and biotechnology for future-oriented research platforms. This will be the responsibility of Bayer Technology Services.

"Nanotechnology is one of the key technologies of the future. It offers endless possibilities, ranging from surfaces that repel dirt to coatings that repair themselves following minor damage, and possibly even nano-particles that can guide active substances directly to diseased cells in the body," said Wenning.

Jirapan Boonnoon

The Nation

LEVERKUSEN, GERMANY