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 €2,155 million on research and development in the first nine months of 2011, including €691 million in the third quarter. Capital expenditures for property, plant and equipment and intangible assets totaled €890 million in the first nine months of 2011, including €354 million in the third quarter.
The emerging markets contributed significantly to sales growth in the first nine months 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 10.5% (Fx adj.) in the first nine months of 2011 to €9,746 million, of which the third quarter accounted for €3,331 million (Fx adj. +9.5%). All regions contributed to growth in the third quarter of 2011.