Innovate or Perish: Managing the Enduring Technology Company in the Global Market

Background on Open Innovation at Air Products and Chemicals, Inc.

Air Products and Chemicals, Inc. (NYSE: APD) is the world’s only combined gases and chemicals company, headquartered in Allentown, Pennsylvania (www.airproducts.com). It is rated approximately 300 in the Fortune 500 rankings. In 2004, sales were about $7.4 billion, with $604 million in net profit. The company operates in over 30 countries, serving customers in the technology, energy, health care, and industrial markets. More than half of the company’s sales come from outside the United States. With about 20,000 employees worldwide, the company is known for its innovative culture and operational excellence.

Gases range from cryogenic air separation products to specialty gases for the electronics industry. Our chemicals business is focused on intermediates such as epoxy additives and surfactants. Our home care business serves the in-home market for services such as respiratory therapy.

Prior to 1995, external technology partnering was conducted by each business area and the supporting research and development (R&D) group, without any coordination of efforts between business areas and R&D groups—it was a “silo” mentality. There was no coordination of work processes or central repository of the related contracts. In 1995, Corporate Technology Partnerships was formed to centralize our external technology efforts and to develop and implement best practices across the company. This was the beginning of our open innovation ...