Our Strategy | Investor Relations | Corning

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Our sustained commitment to R&D yields the innovations that give us our competitive advantage-leading to privileged customer relationships, more intelligent products and processes, and our continued growth.

Investing in Our Future

Investing in Our Future

The Strategy and Capital Allocation Framework announced in October 2015 focuses our portfolio on a set of reinforcing capabilities with strong inter-connections.

We are best-in-the-world in 3 Core Technologies, 4 Manufacturing & Engineering Platforms, and 5 Market-Access Platforms. Our probability of success increases as we apply more of these world-class capabilities. Our cost of innovation declines as we reapply talent and leverage our existing assets. Additionally, by combining capabilities, we create higher and more sustainable competitive barriers.

Focusing our portfolio means we direct 80% of our resources to opportunities that use existing capabilities from at least two of our three focus areas.  Few competitors can match our expertise in any one of our focus capabilities, when we combine them, we can create market-leading positions and margins.

The Framework builds on the already high return we receive on our innovation investments. For example, over the last few years, we’ve invested in research and development at double the rate of our peers. On average, they’ve invested 4% of sales while we have invested 9% of sales.  But we have delivered more than two times the operating margin, or 18% versus their 8% average. Said another way, our additional $1.3 billion investment in RD&E returned an additional $2.5 billion dollars over a three-year period. That is a huge premium.

Of course, we recognize that Corning is the natural leader for some great opportunities that do not require multiple capabilities. Our framework allows us to apply up to 20% of our resources to these opportunities. However, we know that those initiatives are riskier, so we only pursue them if the potential payoff is exceptional.

Going forward, we will re-apply our talent and leverage our manufacturing and market access platforms, to receive an even higher return.

Innovation Opportunities

Innovation Opportunities

We pursue growth by innovating continuously, at all stages of a product lifecycle. These are some opportunities we are working on:

Larger, thinner LCD displays

As the consumer demand for larger, thinner LCD displays grows, Corning is well positioned to address the opportunity with a combination of manufacturing efficiency and capacity, outstanding product and process innovation, and market leadership. We’ll answer the trend of increased digital collaboration across devices with the latest LCD glass displays for touch devices worldwide.

More effective vehicle emissions control technologies

Working together with our automaker partners, we have exciting new opportunities with our breakthrough FLORA technology (designed to activate 20% faster than conventional substrates) and highly effective gasoline particulate filters.

Extending Corning® Gorilla® Glass into adjacent markets

We’re exploring the impact Gorilla Glass can have in many areas, including automotive and architecture. Already, we’ve earned BMW’s supplier innovation award for our lightweight automotive Gorilla Glass, introduced the first ever Corning® Gorilla® Glass auto windshield on the Ford GT and announced a joint venture with Saint Gobain to commercialize Corning® Gorilla® Glass for auto glazing applications.

Our Innovation Model

Our Innovation Model

Corning has a long track record of recognizing and capturing growth opportunities – especially disruptive opportunities. Every one of our five market-access platforms began with a disruptive innovation, and we have leveraged those initial disruptions to build valuable relationships, brands, and insights. Looking ahead, we are continuing to leverage each of our market-access platforms to seize more opportunities for disruptive innovation and growth.