麦肯锡咨询报告原版Impact of

Research & Innovation on Profitable Growth in Chemicals GPCA Research & Innovation Summit

Dubai, March 12, 2014

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Skeptics say the "good old times for innovation are over"

1900

19201940

1960

1980

2000

"There is an overwhelming

consensus among analysts that chemical companies should not spend more on R&D"

European Chemical News

"Innovation will not be a

primary growth and value driver in chemicals"

UBS Equity Research

"Lack of innovation has been one of the industry's greatest

problems over the past decade"

Goldman Sachs "Rapid product innovation may not confer a competitive advantage"

ING

Decline of monomer innovation

Enthusiasts see a different picture

New products/ technologies

Industrial enzymes

Liquid crystals Agchem/GMO seeds Cultures

Alternative feedstock

Methanol to olefins Coal to olefins Biomass to chemicals, e.g., bioethanol to ethylene

Resource-efficient processes New catalysts

New processes, e.g., HPPO, fermentation, electrolysis Better and better solutions

Oilfield chemicals Films and coatings

for electronics, etc.

... and

many more

companies in chemicals –

Does Research & Innovation

play a role?

Bottom-up perspective Value creation through

innovation –

What does McKinsey’s

Innomatics TM database say?Top-down perspective Archetypes of successful

companies in chemicals –

Does Research & Innovation

play a role?

Bottom-up perspective Value creation through

innovation –

What does McKinsey’s

Innomatics TM database say?

30

20

10

100

40

90

50

80

70

60

Chemicals egment size, indexed

Global, 2011, USD bn

Adhesives Various

Enzymes Cultures Coatings Catalysts

▪

Broad application of a technology capability/

platform (across various applicat-ions, at scale)

5-15%

▪Customer intimacy ▪

Process chain insights and “system” capabilities

▪New processes/ process

improvements ▪New applications ▪

BUT –feedstock access and conduct often more relevant

5-15%

<5%

Nutritional Products

Top-down perspective Archetypes of successful

companies in chemicals –

Does Research & Innovation

play a role?

Bottom-up perspective Value creation through

innovation –

What does McKinsey’s

Innomatics TM database say?Innovation benchmarking –McKinsey's Innomatics™

Examples (all or selected businesses)

Industry benchmarking with > 20 companies and > 100 businesses

▪Return on innovation

▪Innovation best practices

In summary

Research & Innovation do contribute to

growth and value creation of the industry –

however, not necessarily for each company

There are very attractive “winning

positions” that rely heavily on the ability

to innovate at scale

Key observations/success factors for

innovation

▪Strategy –reflecting innovation

headroom/tailwind and own capabilities

▪Scale (and/or patience to build) –

critical mass and focus

▪Lab efficiency (and spirit) –work flows,

automation/IT, etc.