In the laboratory View through confocal laser microscope of human iPS cell into which cell-penetrating peptide (under development) has been transduced 2011 is the first year of our rethink of approaches to R&D. In that connection, we have compiled a four-point basic policy for Groupwide R&D activities. (1) Encourage collaboration within Toagosei and beyond: We will form internal (at both Company and Group level) collaborative arrangements between the corporate management division and the operations management division, and also with external research institutes. (2) Achieve steady progress in each R&D field: We have separated research themes into development that feeds directly into new product creation, and research to establish necessary key technologies for all kinds of product development. In the former category, the priority is on rigorous schedule management, while in the latter, we will study and tackle the challenge of complex and difficult-to-realize technologies. Launch of management reform: Four key points (3) Explore and propose new themes: By collating seed technologies and studying needs across the Company, we are creating a useful mechanism for collaboration and cooperation for proposal of new themes across departmental boundaries. (4) Train and deploy research talent: We will establish a 10-year plan for training and optimally deploying R&D talent, and operate R&D training programs to give a strong R&D grounding to not only young and mid-career employees but also future Company leaders. We expect establishment of the General Center of R&D to spur a change in employee mindsets regarding R&D. In 2011, we will launch a new phase of development of high-value-added products in areas such as adhesives, UV-curable resins and other core products, as well as semiconductor materials and high-purity inorganic chemicals. Toagosei Co., Ltd. 17