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BASF is realigning is R&D strategy to focus on growth markets and addressing the social challenges posed by the projected growth in global population, which is expected to rise by 2bn to 9bn by 2050.

“The growth is in poor countries, and this poses a huge challenge that cannot be solved with existing approaches,” says Andreas Kreimeyer, executive director /research at BASF. “These demographic challenges set the stage for the future of the chemicals industry – quality of life, food, healthcare, energy.”

BASF sees sustainability and innovation as the main future drivers of its business and the chemicals industry as a whole. Its R&D activities will focus on functionalised materials and system solutions, especially within socially relevant growth areas such as heat management, water treatment, and organic electronics.

The company employs 111,000 people, of which 10,000 are in R&D, working on 2,800 separate projects costing €1.6b (US$2.1bn), an increase of 50% since 2005. Product innovations (sales of products less than five years old) brought in sales of €8bn in 2011 – the year alone saw the launch of over 250 new products. Increasingly, the innovation takes place in R&D networks involving partners in industry and academia.

R&D focus changed fundamentally over the decades, it’s no longer sufficient to invent new molecules or even new applications but the focus for the future is on new systems and functionalities materials.

BASF’s research is increasingly global, and the company is driving forward the creation-integrated R&D centres outside Europe. R&D outside Europe rose from 17% to 24% over the last decade and Kreimeyer is determined to grow that share further, particularly with research bases in Asia and the Americas. “This does not necessarily mean that R&D will move away from Ludwigshafen, but we cannot solve the problems of China in Germany – we need local research and local solutions,” says Kreimeyer.

He cites water treatment as one of BASF’s future focus areas, and the company has already acquired significant expertise in this area with Ciba, which it now plans to expand further. A second area is healthcare, though Kreimeyer is adamant that BASF has no intention of re-entering pharmaceuticals. However, the company wants to provide materials and solutions to support healthcare, for example through anti-infective materials and coatings, and wound care. A third focus is plant biotech – traits to increase yield or to improve nutritional value of crops such as rape with omega 3 fatty acids.

Kreimeyer explains: “I’m certain that the challenges before us cannot be solved with yesterday’s technologies. We need nanotechnology, gene technology, white biotechnology and many more.

“If we offer those technologies we also need society to be open-minded and to consider new technologies free of prejudices to gain acceptance of the people. To this end we need to engage in open, frank discussions about technologies, risks and benefits. We have learned from the experience with green biotechnology what can happen when that communication does not take place and trust breaks down. We are determined to avoid a repeat with other new technologies, such as nanotechnology.”