Case How Innovation Drives Research and Development

How innovation drives research and development
An ARM case study
Introduction
Using a laptop computer, Smartphone or iPad has become an
essential part of everyday life for many people. Few, however,
will be aware of how the technology that drives these tools is
created.
ARM is the world's leading semiconductor intellectual

property (IP) supplier. Intellectual property is that which
originates in the mind such as ideas, literary works, music and
designs. ARM’s business model is not typical. It does not own
any factories but instead designs and licenses its technology to
a network of partners who carry out the manufacturing. Over
900 licenses have been sold to more than 250 different partner
companies. These include the world's leading semiconductor
and systems companies, such as Samsung, NVIDIA, Texas
Instruments and Qualcomm.
From its founding in 1990 in Cambridge in the UK, it has
grown to become a major developer of digital electronic
products. The company has offices around the world,
including design centres in the UK, USA, India, Scandinavia,
France and China.
ARM is a Research & Development (R&D) focused business.
Its ‘products’ are intangible and cover a diverse range of
applications. They are used in everything from sensors to
servers. Mobile phones, tablet computers, washing machines,
car braking systems and network routers all use ARM
technology. In return for its technology, ARM receives a
license fee for the original IP from the partner and a royalty
on every microchip produced. To date, over 20 billion chips
containing ARM technology have been manufactured.
ARM relies on the high levels of creativity, innovation and

knowledge of its people to continue to develop new ideas and
provide customers with the benefits of emerging technology.
Its R&D activity is collaborative and generates innovation in
other companies. For example, leading brand Smartphones
contain ARM technology that has been incorporated into
chips manufactured by a variety of semiconductor companies.
In turn, they use diverse software and applications running on
various operating systems such as Android. This sharing of
information contributes to increasing the industry’s
knowledge base.
New Product Development at ARM
Development involves transforming ideas into a product fit

for market. From numerous ideas at the research stage, ARM
will take only a few with potential into the development stage.
The key elements of the development process include:
A product brief – identifying what market need it fills. To
produce a product brief,
 ARM works with around 1,000 companies. These
companies may be ARM customers, competitors and
collaborators all at the same time. ARM’s engineers talk to
partners who make the microchips to establish what is
possible technically and its market-focused people identify
what the market is asking for.
 A product specification – outlining the main features,
benefits and costs. ARM combines this feedback and
establishes priority needs. These are then evaluated to focus
on the application which will lead to a deliverable product.
 A process of evaluating alternative solutions – through
computer modelling, samples or prototypes. ARM will select
lead partners for specific projects. The partners’ R&D teams
then work with ARM’s R&D team to develop the initial idea.
 A sequence of testing – to check the product meets
requirements. Once tested, the design is then licensed to the
partners to manufacture, on which ARM receives royalties.
Development of the Cortex-M0+ processor
The development of ARM’s Cortex-M0+ processor, which

was released in early 2012, is a world-leading innovation. It
has the lowest energy consumption of any processor and
generates low carbon.
The Cortex-M0+ (M class) is a very simple processor.
However, its profile reflects the concept of ‘machine to
machine communication’. It is believed that this is the next
major step in technology. For example, it could automatically
control a fridge’s temperature depending on whether it is full
or empty.
Typically projects take around 18-24 months. However, the

Cortex-M0+ had a relatively short timescale. Initial
conception of the idea was in December 2010. The project
team was set up in April 2011 and delivery to the customer
was in February 2012 – just 10 months of development time
after the specification was finalised. The ARM team involved
is proud of achieving completion to such a tight timescale.

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How innovation drives research and development

An ARM case study

ARM is the world's leading semiconductor intellectual

ARM relies on the high levels of creativity, innovation and

New Product Development at ARM

Development involves transforming ideas into a product fit

Development of the Cortex-M0+ processor

The development of ARM’s Cortex-M0+ processor, which

Typically projects take around 18-24 months. However, the

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