Using information from both Exhibit 2 in the case and R&D expenses table (below), (1) calculate Research and Development (R&D) intensity in five segments (Game & Network Services, Home Entertainment & Sound, Imaging Products & Solutions, Mobile communications, Semiconductors) in 2017 and 2018, and then (2) identify the segments with highest R&D intensity in each year. (Note: R&D intensity = R&D expense Sales)

R&D Expenses (Yen in billions) Segment FY 2017 FY 2018 Game & Network Services 95.6 106.2 Home Entertainment & Sound 47.3 58.0 Imaging Products & Solutions 58.6 58.6 Mobile Communications 117.6 107.2 Semiconductors 44.4 44.9For the exclusive use of D. KENDRICK, 2021. Northwestern KEI 1 65 June 5, 2020 Kellogg MASAHIRO TORIYAMA, MOHANBIR SAWHNEY, AND KATHARINE KRUSE Sony Computer Science Laboratories: Sustaining a Culture and Organization for Fundamental Research In late 2019, Dr. Hiroaki Kitano, the president, CEO, and director of research at Sony Computer Science Laboratories (Sony CSL), was considering the future of the organization, a blue-sky* research facility in Tokyo funded by Sony Corporation. It was a job like no other-just as Sony CSL was a place like no other. Kitano, a polymath with expertise in particle physics, robotics, systems biology, and artificial intelligence, had been handpicked by Dr. Mario Tokoro, the founder of Sony CSL. His charter was to lead the organization and its 30 world-class researchers in exploring "wild," cutting-edge scientific research with the lofty mission of improving the future of humanity. After ten years at the helm of Sony CSL, Kitano had decided he would be stepping down sometime over the next few years. To ensure that Sony CSL would continue to execute on its mission of fundamental research, Kitano wanted to make a transparent plan for the future of the organization before the leadership transition. The plan for Sony CSL's future involved three key decisions. First, what should be the optimal structure and governance for the organization: should "Blue-sky" research is driven primarily by the desire to increase scientific understanding, without necessarily having a real-world application. 2020 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Masahiro Toriyama (Ritsumeikan University), Professor Mohanbir Sawhney (Kellogg School of Management), and Katharine Kruse. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Some details may have been fictionalized for pedagogical purposes. The strategic alternatives and the supporting data presented in the case have been created by the case authors for pedagogical purposes. They do not purport to represent the actual strategies that Sony CSL had considered in the past or might consider in the future. To order copies or request permission to reproduce materials, call 800-545-7685 (or 617-783-7600 outside the United States or Canada) or e-mail custserv@hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording, or otherwise-without the permission of Kellogg Case Publishing. This document is authorized for use only by DIANE KENDRICK in BUS 582 (Fall 2021) taught by C. CHRISTOPHER LEE, Central Connecticut State University from Sep 2021 to Dec 2021