Dupont’s Ellen Kullman on Science and Innovation

TL;DR

Ellen Kullman discusses DuPont's innovation and global competitiveness.

Transcript

MURRAY: Thank you all for coming. This is going to be a very interesting discussion this morning. I can -- I can tell you already, I think you've all been told to turn off your cell phones. I think would add to that the warning that if -- if you -- if you're thinking of writing any e-mails, assume they will be hacked someday and shown on the Jumbot... Read More

Key Insights

• DuPont identifies itself as a science company, focusing on intersections of different sciences to drive innovation, such as combining biology with chemistry and material science.
• The company has shifted its innovation model to include local research centers worldwide, fostering partnerships to scale innovations effectively.
• DuPont's recent innovations include Rynaxypyr, a low-toxicity insecticide, Solamet paste for photovoltaics, and AQUAmax, a drought-resistant corn variety.
• Kullman emphasizes the importance of biofuels like cellulosic ethanol and butanol, highlighting the need for partnerships and government support to achieve energy independence.
• DuPont actively manages its portfolio, recently spinning off its chemicals business and focusing on leveraging science across ag and nutrition, advanced materials, and industrial biosciences.
• The company faces challenges from activist investors like Nelson Peltz, who advocate for splitting DuPont's agricultural business from the rest.
• Kullman stresses the need for science education reform, advocating for engaging students with real-world scientific problems to prepare them for future challenges.
• DuPont navigates global trade and regulatory challenges, advocating for relevant tax policies and fair trade practices to remain competitive.

Questions & Answers

Q: What is DuPont's approach to innovation?

DuPont positions itself as a science company, focusing on the intersections of various sciences like chemistry, biology, and material science. The company has shifted its innovation model to include local research centers worldwide, fostering partnerships to effectively scale innovations. This approach allows DuPont to address specific market needs by localizing innovation and connecting globally through its processes.

Q: Can you provide examples of recent innovations from DuPont?

DuPont has introduced several significant innovations recently. Rynaxypyr is a novel insecticide with low toxicity that has achieved $1 billion in revenue within five years. Solamet paste, used in photovoltaics, has improved efficiency in solar cells. Additionally, AQUAmax is a drought-resistant corn variety that yields 9% more in drought conditions, covering 10% of corn acres in the U.S.

Q: How does DuPont view the role of biofuels in energy independence?

Ellen Kullman emphasizes that second and third-generation biofuels, like cellulosic ethanol and butanol, are crucial for energy independence. DuPont is investing in these areas, with a 30 million-gallon cellulosic ethanol plant in Nevada, Iowa. The company believes partnerships and government support, such as the renewable fuel standard, are essential for transitioning to these sustainable energy sources.

Q: How does DuPont handle challenges from activist investors?

DuPont actively engages with its investors, including activist investors like Nelson Peltz, who advocate for splitting the company. Kullman highlights DuPont's active portfolio management, focusing on leveraging science across various growth areas. The company has spun off its chemicals business and made several small dispositions to streamline its focus on innovation and growth.

Q: What is Ellen Kullman's stance on science education reform?

Ellen Kullman advocates for significant reforms in science education, emphasizing the need to engage students with real-world scientific problems rather than traditional, outdated curricula. She believes in starting science education at a young age, using practical examples to show students how science can build a better world, thereby preparing them for future challenges and fostering a passion for scientific inquiry.

Q: How does DuPont navigate global trade and regulatory challenges?

DuPont actively works with governments to address trade and regulatory challenges. Kullman advocates for relevant tax policies and fair trade practices to ensure competitiveness. The company considers factors like regulatory environments, talent availability, and intellectual property protection when deciding on plant locations, aiming to maintain a level playing field in the global market.

Q: What role does government support play in DuPont's operations?

Government support is crucial for DuPont's operations, especially in areas like infrastructure, trade policies, and research collaboration. Kullman highlights the importance of a strong infrastructure for moving goods and accessing low-cost energy. She also values government research contributions, which inform DuPont's long-term research efforts, helping to create a competitive industrial ecosystem.

Q: How does DuPont ensure the local relevance of its innovations?

DuPont ensures local relevance by establishing innovation centers worldwide, connecting its scientists and engineers with local markets and customers. These centers allow DuPont to tailor its innovations to specific regional needs, leveraging its global network to share knowledge and resources. This approach enables the company to address local challenges effectively while maintaining a cohesive global strategy.

Summary & Key Takeaways

• Ellen Kullman discusses DuPont's transformation into a science-driven innovation company, leveraging intersections of various scientific disciplines. The company focuses on localizing innovation through smaller research centers worldwide, creating a global network to address specific market needs.

• Recent innovations from DuPont include products like Rynaxypyr, Solamet paste, and AQUAmax, which have achieved significant market success. Kullman highlights the importance of biofuels and the role of partnerships and government support in achieving energy independence.

• DuPont actively manages its portfolio, recently spinning off its chemicals business to focus on science-driven growth areas. The company faces challenges from activist investors advocating structural changes, while Kullman emphasizes the importance of science education reform to ensure future competitiveness.