Management Report
9. Growth and Innovation
Innovation and the development of new markets drive the company’s growth. Bayer has the necessary research and development resources to steadily add to its product portfolio, optimize production processes and expand capacities in the emerging markets. We plan to invest a total of €15 billion in our company’s future through 2013, with research and development accounting for two thirds of this amount and capital expenditures for one third.
We spent €1,464 million on research and development in the first half of 2011, including €727 million in the second quarter. Capital expenditures for property, plant and equipment and intangible assets totaled €536 million in the first half of 2011, including €298 million in the second quarter.
The emerging markets contributed significantly to sales growth in the first half of 2011. For reporting purposes we have defined these markets as the Asia/Pacific region (excluding Japan, Australia and New Zealand), Latin America, Eastern Europe, Africa and the Middle East.
Our sales in these emerging markets advanced by 11.1% (Fx adj.) in the first half of 2011 to €6,415 million, of which the second quarter accounted for €3,297 million (Fx adj. +6.9%). Growth in the second quarter was strongest in Eastern Europe and Asia.