Business Weekly - Cambridge, UK

A mechanical model of the heart is used in investigations on dedicated X-ray imaging for cardiac applications. Picture courtesy: Philips

The move is a major coup for the city and provides it with yet another high profile multinational innovation force, comparable to other global giants already in Cambridge such as Microsoft, Toshiba, Kodak and Hitachi.

Headquartered in the Netherlands where it was first established by Gerard Philips – a cousin of Karl Marx – in 1891, Royal Philips Electronics now employs over 128,000 people in more than 60 countries, generating sales of €27.0bn (£20bn).

The company has been at the forefront of some of the most important technological innovations of the last hundred years including the introduction of the first compact audio cassette tape and development of the world’s first compact disc.

It is now a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics.

Philips Research is staffed by around 1,800 people worldwide, working from laboratories in six countries: The UK, Germany, the Netherlands, India, USA and China.

Currently based at Redhill, Surrey, where it has been downsizing for several months, Philips Research is expected to move to Cambridge in 2008 where it will initially place up to 50 scientists in Cambridge.

The company added that it is also taking the move as an opportunity to review its use of the site at Redhill, which also includes Philips Applied Technology, though it is yet to reach any conclusions.

Philips Research would not be drawn on where exactly its new facility will be based or how much the move will cost, though a spokesperson did say that a “significant investment is being made” in relocating to the new Cambridge facilities.

Precise details of the research projects at the new Cambridge site were not given either, only that they will be aligned within the division’s healthcare, lifestyle and technology strategy.

“Cambridge is the obvious choice as it is recognised as one of the top global innovation centres and is the European R & D hub for many multinational companies,” said the spokesperson. “The location provides invaluable opportunities for collaborations with the innovation community.

“It allows the scientists to work alongside other like-minded businesses and offers better facilities, access to better people and investment.”

Founded in 1914, Philips Research has since expanded the scale and scope of its activities, which has led to more than 130,000 patent and design rights, and the publishing of many thousands of technical and scientific papers.

Its annual research budget is slightly less than one per cent of Philips’ annual sales.

Roughly two-thirds of the corporate research work is geared to the activities of the Product Divisions of Philips, with contractual agreements about programmes and costs.

The remainder is research of a more exploratory nature – total R & D efforts across all of Philips amount to some 6.2 per cent of sales.

In healthcare Philips Research’s is particularly strong in cardiovascular X-ray, digital X-ray and ultrasound, patient monitoring systems, nuclear medicine, cardiology systems and critical care systems.