Incubators for new technological solutions
Siemens’ Technology-to-Business Centers (TTBs) were founded by the company’s current Industry Automation and Drive Technologies Divisions, together with Corporate Technology. Their mandate is to systematically explore and transform external technologies into breakthrough product innovations, and thus also promote growth opportunities for Siemens’ core business. That’s why the TTBs are actively conducting research at universities, research labs, and early-stage companies. TTBs analyze new technologies and business ideas – especially those that could revolutionize whole sectors – and then work with the inventors and the Siemens business units to launch new products and solutions on the market.
TTBs also invest in startups that have strong technology synergies with Siemens’ own research and development activities. This gives young companies the opportunity to quickly become part of Siemens’ global partnership network and exploit the associated benefits. By the end of 2010 the TTBs had successfully transferred 28 new products or product features based on the “outside-in model” to various business units. Many of them are now included in Siemens’ product offerings. In addition, the TTBs are minority shareholders in nine start-up companies with the objective of gaining inside knowledge in new market segments.
Located near San Francisco, just a stone’s throw from the University of California campus at Berkeley and at the heart of the most vibrant venture capital market on earth, TTB Berkeley was founded in 1999. Home to a diverse spectrum of research and technology centers, the San Francisco Bay area has drawn in leading high-tech companies, innovators, and investors, creating an extremely innovative environment. TTB Berkeley’s close proximity to this environment allows it to regularly invite entrepreneurs and innovators to face-to-face meetings where it can discover emerging technologies and gauge the attractiveness of the associated opportunities. The high concentration of angel investors – affluent individuals who provide capital for a business start-up – and venture capitalists in this area enables TTB Berkeley to find attractive opportunities and reduce its investment risks by entering into partnerships with other financers.
TTB Shanghai was founded in 2005 to take advantage of the opportunities offered by the world’s fastest-growing market and to leverage the country’s potential for innovation. China offers not only an exciting environment for inventors, but also the potential for attracting millions of new customers. Opportunities in China have drawn a vast number of innovative companies from all over the world, providing a rich environment for TTB Shanghai to scout for new start-up prospects. Price pressures arising from new and established competitors emphasize the fact that cost-effective and innovative solutions are critical for long-term success. In order to strengthen Siemens’ portfolio, TTB Shanghai has positioned itself in such a way that it can mine China’s innovation know-how and use it to develop cost-effective, groundbreaking solutions that can revolutionize today’s markets.