Canon's emphasis on technological development is illustrated by its annual research and development investment, an amount equivalent to at least 10% of the net sales of Canon Inc. These allow us to maintain our technology leadership by working now on products for 10 years in the future.

The global nature of our operations also allows us to synergize fundamental research and product development, in addition to sales and marketing activities. Canon's corporate philosophy of kyosei, living and working together for the common good, is one of the driving forces behind the globalization of our activities. To keep the innovations coming, our R&D organizations often conduct research in collaboration with educational and research institutions worldwide. The results of these projects are shared throughout the Canon Group, and many develop into global collaborations.

Multinational corporations must be able to respond to divergent needs in individual regions through localized operations, from R&D and production through sales. Guided by Canon's Excellent Global Corporation Plan, we are making steady progress toward this objective.