Technological innovation

The appearance of new electronic devices, an advanced medical technique, a new production system, or new agricultural techniques are examples of technological innovations. But what is technological innovation and what do these improvements have in common?

In essence, it can be defined as the introduction of significant changes in the way in which activities are carried out and human needs are met through the use of technology. It covers a wide range of activities and processes related to the creation, development, implementation, and dissemination of new products, services, processes, or business models that incorporate significant technological advances.

Technological innovation always leads to change. But depending on how far it breaks with previous technology, how it affects the market, and the risk and potential benefit it generates, we can speak of three types of innovation:

• Progressive innovation. When technological innovation has a gradual impact on the company's processes or products, but does not entail a change in them or in the values associated with them, it is considered to be progressive in nature. If the improvement implemented is of a progressive nature, the customer already knows the product or service that is the object of the innovation, in the same way that the workers already know the processes, which change only slightly. This change has little or no risk for the company, but the benefits are also small.
• Disruptive innovation. Disruptive innovation involves an abrupt change in processes, products, and services, to the point of transforming the market. It entails greater risk, but also greater benefits for the company. In this case, change attracts new customers and generates new values.
• Radical innovation. When it is radical, it isn't that innovation generates new products or services, but that it generates the appearance of new needs, business models, and markets. These changes have high risk and large benefits.

Repsol's technological innovation is born at the Technology Lab, our innovation and technology center, where over 230 scientists develop in-house R+D, complementing them by establishing alliances with research centers, universities, startups, and corporations around the world, through its investment vehicle, Corporate Venturing, and an open innovation strategy.

These are some examples of projects that the Repsol Technology Lab is working on:

• Renewable fuels. At Repsol, we've been designing and producing renewable fuels for over 20 years, created from resources such as biomass and organic waste. As Dolores Cárdenas explains, industrial engineer doctor at the Repsol Technology Lab, "technology is vital for the efficiency of vehicles and integrating lower-carbon footprint fuels."
• Nanoparticles to create smart materials. One of the projects we are working on is the use of magnetic nanoparticles in raw materials and materials. They are used, for example, to vary the viscosity and temperature of fluids and thus facilitate their transport, and to develop smart materials such as Smart Cement, which allows us to know the state of the material at all times.
• Synthetic fuels. At the Repsol Technology Lab, we innovate in the production of fuels generated from renewable hydrogen and captured CO₂, and which will be able to be used in current vehicles, from cars to planes.
• CO₂ capture. We not only work on the reduction of CO₂ emissions, but also on carbon capture and its use as a raw material through CO₂ Capture, Usage, and Storage (CCUS) technology, as part of our commitment to achieve net zero emissions by 2050.
• Renewable base lubricants. We have developed renewable base lubricants from vegetable oils and other biodegradable raw materials, which in many cases offer superior lubrication properties and protection against wear.
• Collaborative robots. Among Repsol's projects is the Self-driving Lab, which has incorporated Artificial Intelligence and robotics into our company's new generation of laboratories.
• Blockchain. Blockchain technology allows us to share information more securely and ensure its traceability.
• Artificial Intelligence. At Repsol, we apply Artificial Intelligence to our processes: both when formulating our renewable fuels and in logistics, the use of predictive models in production, or decision-making, among others.
• Geothermal exploration. Technological advances have allowed us to incorporate geothermal energy into our exploration and production activity, a renewable and low-environmental impact energy source.