Arkema’s Portfolio Management Strategy for Innovation Across Horizons
Innovation strategy in the chemical industry is often discussed in terms of breakthrough technologies, digital transformation, and sustainability targets. Yet in practice, much of corporate R&D effort remains concentrated on short-term business continuity.

Dave Moss, Director of Technology & Innovation, Arkema
During the session “Adding Elasticity To Innovation For Growth: Arkema´s Portfolio Management Strategy For Innovation Across Horizons” at CIEX, Dave Moss, Director of Technology & Innovation at Arkema, addressed a structural issue that many chemical organizations recognize but struggle to correct: the imbalance between near-term operational priorities and long-term innovation investment.
Drawing on prior experience, he described a business environment in which annual churn approached 30%, requiring the organization to generate equivalent levels of new revenue each year simply to maintain its position. Under such conditions, R&D resources become concentrated on immediate replacement activity, limiting capacity for longer-horizon innovation.
“That was Horizon 1,” Dave noted. “And that business isn’t with us anymore.”
You can explore the full executive summary from the presentation below or watch the complete presentation recording via the link below.
📹 Watch the full Arkema presentation: [Link]
Arkema´s Portfolio Management Strategy For Innovation Across Horizons
Presentation executive summary
The Compression of the Innovation Horizon
The traditional McKinsey three-horizon framework remains a useful reference point for structuring innovation portfolios. Horizon 1 typically addresses immediate product support and incremental improvements. Horizon 2 builds capability in adjacent technologies and emerging markets. Horizon 3 creates options for future businesses.
However, in Arkema’s markets, Moss emphasized that the timeframes associated with these horizons have shortened significantly. In his segment of the business, Horizon 1 may span zero to one year, Horizon 2 one to two years, and Horizon 3 two years and beyond.

Arkema’s presentation slides at CIEX 2025
This compression alters the risk profile. Organizations that delay Horizon 3 investment are unlikely to feel the impact in five years. They may feel it much sooner.
At the same time, business unit leaders are naturally focused on short-term performance. Horizon 1 supports today’s revenue. Horizon 3 requires protected investment without immediate return.
Without deliberate governance mechanisms, resource allocation tends to drift toward the near term.
“You can Horizon 1 yourself right out of busines,” Dave cautioned.
Structuring Horizon 2 and 3 Innovation: From Strategy to Execution
For Arkema, success in long-term growth depends on a disciplined approach to mid- and long-term innovation, or Horizon 2 and Horizon 3 projects. These initiatives are focused on emerging markets, adjacent technologies, and “out-of-the-box” opportunities where the company may not yet have full capability or commercial presence. To manage this, Arkema leverages Discovery Hubs and engages business unit stakeholders to generate and evaluate potential projects.

Arkema’s presentation slides at CIEX 2025
The process begins with a clear understanding of the playing field: market needs, application opportunities, and competitive technologies. Projects are then assessed for their potential to differentiate Arkema in the marketplace, with feasibility evaluated against internal capabilities. Where gaps exist, the company actively considers open innovation models, partnering with startups, universities, suppliers, and even select competitors to bridge capability gaps without incurring excessive capital or headcount requirements.
Once feasible projects are identified, they are screened for strategic fit, ensuring alignment with the company’s broader innovation strategy and targeted markets. Prioritization follows a value-driven approach, taking into account potential impact, resource availability, and technical risk. FTE allocations are mapped across business units and time horizons to avoid bottlenecks, ensuring that the company can advance the most promising initiatives efficiently.
This structured methodology not only ensures that Horizon 2 and 3 projects remain aligned with corporate objectives, but also provides transparency and accountability across global R&D operations. Visual tools, such as the horizon planning map, illustrate the allocation of resources, the stage of each initiative, and the integration of open innovation efforts, allowing Arkema to maintain flexibility while systematically pursuing growth options that secure long-term competitive advantage.
Portfolio Governance as Strategic Discipline
A recurring theme in the presentation was the distinction between portfolio management and project management.
Project management governs execution. Portfolio management governs direction.

Arkema’s presentation slides at CIEX 2025
Within Arkema’s framework, portfolio management serves to align R&D investment with future market positioning rather than current revenue concentration. The objective is to anticipate shifts in customer demand and technology requirements and ensure that capability development is synchronized accordingly.
This requires clarity around innovation pillars, market positioning, and internal capability assessment. Arkema conducts global portfolio reviews at least twice annually to maintain alignment across business units and geographies. These reviews provide visibility into resource allocation and ensure that Horizon 3 initiatives remain structurally supported.
Equally important is transparency around resource deployment. Moss described mapping full-time equivalent (FTE) allocations across business units and quarters. With multiple business units drawing from the same technical resource pool, bottlenecks are inevitable unless proactively managed.
By visualizing these allocations, Arkema can identify future constraints early and make informed decisions about reprioritization, collaboration, or external engagement.
This level of visibility transforms innovation strategy from aspiration into accountable investment management.
Open Innovation as a Resource Strategy
Arkema’s Horizon 3 approach also relies heavily on open innovation, though not in the conventional venture-capital model.
The company does not operate a corporate venture fund. Instead, it seeks structured partnerships that create value for both parties.

Arkema’s presentation slides from CIEX 2025
With startups, Arkema may provide analytical capabilities, laboratory infrastructure, or access to customers rather than direct capital investment. Such arrangements can accelerate technology development while minimizing capital intensity.
University collaboration forms a structured component of the company’s external innovation model. While funding doctoral research is standard practice across the industry, the focus extends beyond early-stage science to commercial translation. Academic innovations frequently face barriers in scaling and market access; established industrial relationships can provide the route-to-market and application validation required to convert laboratory research into viable product platforms.
Collaboration with suppliers and, increasingly, with competitors also plays a role. In a fragmented industry, one company may hold market access while another possesses complementary technical capabilities. Under carefully defined scopes, such collaborations can create value where independent efforts might stall.
In each case, the objective is not openness for its own sake but the efficient extension of Horizon 3 capacity without proportional increases in fixed cost.
Internal Visibility and Organizational Complexity
Large, diversified chemical companies face another challenge: internal fragmentation.
Moss acknowledged that even within Arkema, it can be difficult to maintain full visibility across global business units. In some cases, technical solutions to current challenges may already exist elsewhere within the organization.
Improving internal communication and knowledge sharing is therefore not merely an efficiency initiative. It is part of ensuring that existing capabilities are fully leveraged before external resources are pursued.
Stage-Gate and the Management of Risk
At the project level, Arkema applies a Stage-Gate framework to manage development risk. Project selection is addressed at the portfolio level; Stage-Gate governs execution once strategic alignment has been established.
Training is central to making this system effective. Project teams must understand gate expectations, and gatekeepers must align their evaluation criteria with the appropriate development stage. Without this shared understanding, governance processes can become counterproductive.
The objective is not bureaucracy but controlled acceleration — balancing speed with informed decision-making.
AI Integration: From Operations to Formulation
Artificial intelligence is becoming an increasingly important component of Arkema’s technology strategy, with applications spanning manufacturing, supply chain operations, and R&D.

Arkema’s presentation slides at CIEX 2025
At the manufacturing level, structured process data supports performance optimization and operational efficiency. In supply chain management, digital tools improve asset utilization, logistics coordination, and decision-making accuracy. These operational applications are already delivering measurable value.
R&D applications are more complex, particularly in formulation chemistry. Unlike simpler systems, Arkema’s products may involve six or more interacting components, requiring extensive, structured datasets to enable reliable predictive modeling.
Legacy data often lacks the consistency required for machine learning. Arkema’s response has been forward-looking: ensuring that new experimental data is captured in electronic lab notebooks and laboratory information management systems in formats suitable for future AI deployment.

Arkema’s presentation slides at CIEX 2025
The long-term objective includes predictive modeling of structure–function relationships and, potentially, toxicity and ecotoxicity profiles. If realized, such capabilities could fundamentally alter how sustainability considerations are integrated into product development.
Sustainability as Forward Design
Sustainability pressures continue to intensify across chemical markets. Rather than treating regulatory compliance as a late-stage requirement, Arkema is exploring how predictive tools might inform material design at the earliest stages.
The ability to anticipate environmental and toxicological impact during formulation would shorten development cycles, reduce regulatory uncertainty, and strengthen market positioning in sectors where environmental performance is increasingly scrutinized.
In this context, sustainability becomes a design parameter rather than an afterthought.
Structural Lessons for the Industry
Arkema’s experience illustrates a broader point relevant to chemical industry leadership. Long-term competitiveness is not secured through incremental optimization alone. It requires disciplined portfolio governance, transparent resource allocation, strategic external collaboration, and sustained investment in emerging capabilities such as AI.
Horizon 3 cannot be left to residual capacity. It must be intentionally structured and protected.
For organizations facing compressed innovation cycles, sustainability pressures, and digital transformation simultaneously, that discipline is no longer optional.
Where These Strategic Questions Move From Theory to Practice
The structural issues outlined above are not isolated operational matters; they are shaping board-level conversations across the chemical sector.
CIEX North America 2026 is designed as a working forum for senior leaders addressing disciplined portfolio governance, AI integration, capital efficiency, and sustainability-driven product design. It focuses on the operational realities behind these strategic imperatives.
Join us for two focused days with senior leaders in R&D, innovation, and sustainability across the consumer, industrial, and specialty chemical sectors — tackling:
• Scaling new technologies beyond the pilot phase
• Embedding AI and digital tools into real R&D workflows
• De-risking innovation through the right partnerships
• Turning sustainability targets into profitable product pipelines
Expect practical case studies from leading global brands, proven methodologies, and direct access to senior decision-makers across the chemical industry.
📍 CIEX North America | September 9–10, 2026
If you influence innovation strategy, R&D direction, or technology investment — this is where you need to be.









