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31LINTEC ANNUAL REPORT 2018FINANCIAL INFORMATIONESGSTRATEGYOVERVIEWR&D PolicyWe are pursuing R&D to ensure that our focus themes make a real contribution to strengthening the competitiveness of existing businesses and creating new businesses and products. LINTEC is working to improve development efficiency based on two key- words: “front-loading design,” which entails scrutinizing cus-tomer needs and development processes from the initial R&D stages, and “one-stop development,” in which new materials and mass production processes are developed in parallel. In April 2017, we brought the R&D Strategy Dept., which advances the creation of new businesses and other initiatives, under the wing of the Research Center. We have established an R&D scheme, called the “Stage Gate System,” which facilitates coordination among the R&D Strategy Dept., the New Materials Research Dept., the Product Research Dept., and business operations. Under this scheme, we are taking steps to speed up the creation of new products.Intellectual Property ActivitiesLINTEC aims to increase corporate value by developing original products that fully satisfy customer needs. We therefore position intellectual property, including patents, trademarks, and design rights acquired through these development activities as important management resources. While placing the utmost emphasis on respecting the rights of other companies, the Intellectual Property Dept. of the Research & Development Div. coordinates with respective operations and R&D departments in promoting Companywide and strategic intellectual property activities. These activities aim to increase and improve intellectual property rights, which are the lifeblood of LINTEC given that it is a technology-centered company.By such means as building a patent portfolio for our founda-tion and growth business domains and securing intellectual property in step with the globalization of our business, we aim Image of Stage Gate SystemConceptionExaminationIncubationR&DProduct DevelopmentCorporate ResearchBusiness OperationsMedium- and Long-Term ThemesBusiness OperationsBusiness OperationsNew Materials Research Dept., Product Research Dept.New Materials Research Dept., Product Research Dept.R&D Strategy Dept.R&D Strategy Dept.CheckpointCheckpointCheckpointCheckpointThe Stage Gate SystemUnder this system, R&D themes are divided in the five stages of conception, examination, incubation, R&D, and product devel-opment, and gates are set up as checkpoints when moving to each of the next stages. Screening is performed at each check-point to determine whether to advance the theme or cancel it.The aim is to steadily and quickly give shape to each theme, preventing setbacks in development through full verification at key points. Through close coordination between the Research Center and respective business operations, we are creating new value in response to customer needs and evolving markets.(Fiscal year ended March 31)to increase profitability based on intellectual property that has high business value. Japan Overseas2,5002,0001,5001,0005001,7971,5991,4361,2971,1802,0411,8481,6991,5261,272201420152016201720180Number of Patents

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