Innovation
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The content of this section is voluntary, unaudited information, which was critically read by the auditor.
Innovations based on chemistry play a pivotal role in overcoming the greatest challenges of our time. Our activities are aimed at improving and developing new products and processes, further increasing our competitiveness and enabling our customers’ green transformation.
Innovations are one of the essential factors in BASF’s success. The knowledge and skills of our highly qualified employees are our most valuable resources and the source of our innovative strength. In 2025, approximately 9,000 employees (2024: approximately 10,000) worldwide were working in research and development (R&D).1
In 2025, we generated sales of around €11 billion (2024: around €11 billion) with products launched on the market in the past five years that stemmed from research and development activities.2 In the long term, we aim to further increase sales and earnings with new and improved products and processes.
Our research and development expenses amounted to €1,995 million in 2025 (2024: €1,969 million). R&D activities in our operating divisions, which are mainly application- and customer-related, accounted for 87% of this figure (2024: 86%). Cross-divisional and strategic topics were responsible for 13% (2024: 14%) of these expenses.3
Our innovation focus encompasses the development of new products and solutions as well as product and process improvements that ensure our long-term competitiveness and enable our customers’ green transformation. Another focus is on innovation for more sustainable agriculture.
By using resources more efficiently, manufacturing our products in a more environmentally friendly way and helping to recycle them, we support our customers in reducing their carbon footprint. At the same time, we contribute to decoupling growth from the consumption of limited resources. In the area of electromobility, we develop materials for batteries and electric powertrains in close cooperation with vehicle manufacturers to enable safer and more efficient driving. We are also driving forward innovative technologies in catalyst manufacturing that enable customized, particularly high-performance catalysts to be produced. To help farmers control resistant weeds, we are investing in the development of herbicide-tolerant cotton traits. In addition, we are working on novel production processes that significantly improve the manufacturing of detergent enzymes. We are researching circular solutions for textiles, biodegradable polymers for home and personal care applications, as well as biodegradable UV absorbers for sunscreens, thus supporting our customers in achieving their sustainability goals. At the same time, we are working on new process innovations such as methane pyrolysis, a virtually emission-free process for producing hydrogen (see E1 Climate Change).
Our research and development units explicitly address the industry-specific needs of our customers. Customer-focused activities are directly integrated into the operating divisions. Research activities that are relevant to several operating divisions are bundled in the cross-functional global division Group Research, which supports the R&D activities of the operating divisions. Corporate funding is used to finance Group Research projects that are of strategic relevance to the BASF Group and go beyond the industry-specific focus of the individual operating divisions. These include process innovations for our green transformation, the circular economy of our products, as well as digital tools. The unit is globally positioned with research centers in Asia Pacific, Europe and North America. Together with the research and development units in our operating divisions, Group Research forms the core of our global Research and Development Verbund.
The number and quality of our patents demonstrate our innovative power and our long-term competitiveness. In 2025, we filed 898 new patents worldwide (2024: 1,159). Of these, 45% (2024: 44.5%) were for innovations with a particular focus on sustainability. The Patent Asset Index, a method that compares patent portfolios, once again ranked us among the leading companies in the chemical industry in 2025.4
Our global research and development presence – and its effectiveness – is vital to our long-term success. This enables us to respond to the needs and requirements of the regional markets in a differentiated way, establish strong customer relationships and leverage potential in growth markets.
The largest site in our Research and Development Verbund is Ludwigshafen in Germany. There we work on a variety of overarching research topics.
Innovation Campus Shanghai, China, is our largest research and development site in Asia Pacific. Here, we work on new products and processes for a variety of customer industries, including in growing sectors such as electromobility and renewable energies. Innovation Campus Mumbai, India, with its research focus areas of crop protection, process development, specialty chemicals and analytics, represents a key pillar of our growing research network in the Asia Pacific region.
At our largest research and development site in North America, Research Triangle Park, North Carolina, we work on new crop protection products. At the Biodegradation and Microplastics Center of Excellence in Wyandotte, Michigan, our teams research the biodegradability of materials and solutions for the circular economy.
Our global network of top universities, research institutes and companies gives us direct access to external scientific expertise, talented minds from various disciplines as well as new technologies. This strengthens our Research and Development Verbund and makes BASF an even more attractive partner and employer. In 2025, we collaborated with multiple companies as well as with 269 (2024: 260) universities and research institutes.5
1 Number of employees including employees of the discontinued coatings business
2 Sales from the discontinued coatings business are not included in the figure for the 2025 business year. Its sales are included in the prior-year figure.
3 The discontinued coatings business is not included in the disclosures on our R&D expenses in the 2025 business year and the previous year.
4 The discontinued coatings business is not included in the patent figures for 2025. Its patents are included in the prior-year figure.
5 The figure for 2025 excludes the discontinued coatings business. The prior-year value includes collaborations of the discontinued business.
