Need for stronger patent protection.

• Position: Views of James J. Renier, Chairman and CEO of Honeywell Inc. - Special Section: Being a Global Leader

Need for Stronger Patent Protection

Business faces unprecedented challenges in the rapid evolution of global markets. In this new world economic environment, corporations must integrate their activities globally if they are to achieve competitive advantage. Thus, many companies are now redefining their business plans to address a crucial question: What is the key to competitiveness in this new global marketplace?

As Honeywell has found in its more than 100 years of operation, several critical factors are inherent in achieving global competitiveness. They include: * Ability to evolve as customer needs change; * Creating a structure and corporate perspective dedicated to making certain customers have products they can count on, wherever they are in the world; and * Nurturing and protecting technological innovation.

Honeywell has long understood and practiced constructive change in order to remain competitive. When the company was formed in 1885, it manufactured just a few products - in the United States, for domestic consumption. Today, Honeywell provides control systems and services for homes and buildings, aviation and space, and industrial applications all over the world. Most of this growth beyond U.S. borders occurred in the past 60 years as Honeywell evolved from an international to a multinational to a truly global enterprise. Honeywell employees speak more than 30 languages, represent over 50 national cultures, and serve customers in 90 countries through 38 wholly owned subsidiaries, nine joint ventures, and 75 distributors.

While Honeywell does not have all the answers on the most effective ways to achieve global competitiveness, it is an issue we have paid close attention to for decades. Certainly, one critical competitive advantage has remained constant: providing Honeywell customers with consistent, quality products and services anywhere in the world. We attained this advantage by identifying six components necessary to achieving and maintaining our rank as a successful global company. * Global business must be perceived as a long-term opportunity for profitable growth. * The company must also take a worldwide view of its businesses, managing activities to meet customer needs more efficiently than regionally focused competitors. * An effective global infrastructure will enable the company to overcome national parochialism and cultural and language differences. * The company must be able to coordinate activities worldwide to take...