Why Corporate Research? The Case of Elf Aquitaine

Abstract

Partisans of corporate versus divisional RD chlorine, fluorine and sulfur derivatives; organic and mineral peroxides; additives for plastics; adhesives and sealants. * Health, Beauty and Bioactivities Division (under the name of Sanofi), which includes drugs, veterinary products, food additives, flavors, fragrances and perfumes. This whole is becoming more and more a true group rather than a conglomerate; our chairman has clearly stated that each of the three branches must interact with the other two and draw upon all the synergies as much as possible, especially where research is concerned. Corporate research has thus been given the role of cement between the branches. I shall come back to this issue. No Labs, Few People Corporate research is run by a senior VP of Corporate R&D, who reports directly to the group's chairman and frequently discusses with him the global results of the group's research. He also functions as its primary spokesman inside and outside the company. Each division has its own research setup which is run by a VP of R&D (two of them for the hydrocarbons division, one for exploration-production and one for refining). The important point is that each one of these VPs of R&D is under the authority of his own division's president, while reporting also to the senior VP of Corporate R&D (see diagram next page), as far as the workings of Corporate research are concerned. Therefore, the enactment of corporate research policy can be directly influenced by the heads of research for the divisions. Furthermore, the senior VP of Corporate R&D presides over a corporate research committee which includes the VP of R&D for each of the three divisions as well as directors from his own staff. This committee is the true forum where not only information regarding the group's research activities is exchanged, but also where the possibilities for interaction between the branches' R&D for joint actions and for exchanges of personnel are discussed at a high level. Corporate research has no laboratories and very few people. But its expertise, its knowledge of the divisions' R&D needs, and a budget of more than $70 million allow it to play an important role in the company. …