Innovation

R&D Activities and Intellectual Property Activities ICT-AI Platform Technology Strategy
Olympus provides solutions to customers by helping to increase their business efficiency and enhance satisfaction through the use
of ICT and AI technology. These solutions are integrated and offered in the form of our ICT-AI Platform.
Product innovation at Olympus, and the eventual commercialization of all Olympus products, is rooted in In hospitals, we plan to offer an environment that enables the collection and utilization of information by linking various devices.
Further, by continuing to increase the sophistication of our solutions by leveraging external networks and clouds, such as remote
the Company’s policy of developing advanced technologies with the next 10 years in mind. New ideas and
monitoring and maintenance of equipment and advanced analysis of operating conditions, we can improve the operational quality
new technologies from Olympus lead to brighter futures for individuals and society. and work efficiency of healthcare providers. In addition to strengthening earnings through the effective utilization of our products, we
aim to maximize the advantages that come with the use of these products through solutions that support operations based on AI
and other technologies.
R&D Activities
ICT-AI Platform Medical
Basic Policy
Olympus provides value in the form of early diagnosis and minimally invasive therapies through the supply of endoscopes, Physical Space Cyber Space
microscopes, digital cameras, and other proprietarily developed products. We refer to the differentiated technologies that allow Hospital Cloud Microsoft Azure
us to create such value for customers as “core technologies,” and these core technologies arise from our core competencies in
optical technologies, electronic imaging technologies, precision technologies, and biological-based technologies. It is the goal of the Medical Devices Data collection/ On premises
ICT Cloud
Storage
Solution
R&D Group to support Olympus in creating value that exceeds customer expectations into the future and in constantly providing conversion/transmission Gateway Platform Gateway

competitive products and services. We will therefore continue striving to enhance and develop new core technologies. Device log Remote monitoring/
Endoscopy Log

Uploaded Data
Data maintenance
Error log
Core Technology Groups Arranged from the Perspective of Workflows to Create Customer Value • Endoscope video camera
Support for proper
• Disinfection/cleaning device Picture/Video
Picture/ use of devices
• Other Video Olympus etc.
AF and IS 4K and 3D Medical AI services* (examination/

ACCESS
AI Technologies Robotics Technologies ICT Technologies
Technologies Technologies Cloud diagnosis support, etc.)
Gateway
I. Access II. Imaging and Sensing III. Recognition and IV. Treatment and V. Report and Surgical Log
AI learning environment

Internal Data
Technologies Technologies Analysis Technologies Therapeutic Technologies Evidence Technologies Data Customer data
• HF generator
etc. Creation of examination reports
• Insufflation device
Construction of barrier to entry through • Generation of innovations through reinforced alliances Picture/
*Technology not yet approved under the Act on
• Others Video
reinforcement of core technologies • Creation of opportunities and avoidance of risks Pharmaceuticals and Medical Devices, etc.

New value for customers

Intellectual Property Activities
Management of Intellectual Properties for Core Technologies
Approach toward R&D Expenditures
Olympus’ core technology management practices are designed to provide balanced support for five technology groups with regard
In order to leap ahead as a truly global medical technology company, it is R&D Expenditures
to intellectual properties. In addition to acquiring intellectual property rights for technologies developed by Olympus, we implement
critical for Olympus to quickly provide competitive products to the market. (¥ Billion)
other initiatives for creating a more diverse and stronger patent portfolio and ensuring greater freedom in product development,
Shifting from our traditional “all by ourselves” approach to R&D to one 100 94.0 93.0
89.5 which includes incorporating technologies developed by other companies. Of the five technology groups, we recognize that
focused on alliances and open innovation will enable the active pursuit 9.4
79.2 10.2
80 23.0 strengthening technologies related to groups from III to V will be of particular importance to future growth. Accordingly, we are
of initiatives to secure required technologies, in turn resulting in shorter 5.9
stepping up patent applications in these groups while advancing intellectual property strategies that coincide with the growth of our
development times and a reduction in overall costs. Further, efforts will be 60
business.
made to optimize R&D expenditures by placing priority on R&D themes
79.2 84.6 In recent years, we are moving ahead with the replacement of our patent portfolio with a focus on new patents that will generate
based on return on investment (ROI). 40 73.3
70.0 synergies when considering the Company’s strategies. By sustaining a sound patent portfolio while maintaining upkeep fees for
Olympus aims to reduce selling, general and administrative (SG&A)
20 intellectual property rights at an appropriate level, we aim to support innovative R&D activities by Olympus. In addition, we are
expenses in fiscal 2020 to the level of fiscal 2018 and a key point will be
improving the quality of our patents through careful selection of patent applications and choosing the countries in which to file
improving efficiency in R&D to achieve this. With the adoption of International
0 patents, thereby securing the patents required to drive sustainable development for Olympus.
Financial Reporting Standards (IFRS), capitalization begins during product (FY) 2017 2018 2019 2020
(Forecasts)
development, so it is important to appropriately manage these expenditures, IFRS

which includes product lifecycle management. Under the responsibility of the R&D Expenditures Recorded in SG&A Expenses
Ratio of Total Applications Accounted for by Groups III, Share of Patent Applications by Business Portfolio
Capitalization of R&D Expenditures
Chief Technology Officer (CTO), we are monitoring progress in capitalization. IV, and V That Must Be Strengthened
Others
（％） 2%
35
X (cross) INNOVATION Activities
29％ Imaging
Olympus has announced three futures that it would like to realize led by the Technology Innovation Office, a structure that drafts 30
25%
and executes innovation strategies, based on analyses of the operating environment and risks of the overall medical industry. 25 23％

For example, we will look to reduce the burden on healthcare professionals and support the simplification of processes in the 20
19％
16％
endoscopic examination workflow by utilizing artificial intelligence (AI) and information and communications technology (ICT). We FY2019
15 Medical
10％
refer to these activities as X (cross) INNOVATION, in which we collaborate with other companies through open innovation that 45%
10
extends beyond our walls. We will challenge initiatives for innovation in step with new technological advancements based on Scientific
unprecedented new ideas and bold strategies and policies. 5 Solutions
28%
X (cross) INNOVATION 0
(FY) 2015 2016 2017 2018 2019
https://www.olympus-global.com/technology/crossinnovation/

38 Olympus Integrated Report 2019 39