How R&D drives innovation and business value at Sandvik
Research and development (R&D) may sound technical, but at Sandvik it sits at the heart of business strategy. In this episode of the Meet Sandvik podcast, Annika Kaar, Head of Materials R&D for Rock Tools, shares how R&D connects engineering, customer value and long-term competitiveness — and why uncertainty is a necessary part of progress.
Episode 2
How R&D drives innovation and business value at Sandvik
From materials to customer value
Annika Kaar’s career path is anything but linear. Starting as a chemical engineer in materials development at Sandvik, she later moved into marketing communications, before returning to a leadership role in R&D.
"I have learned to connect to customer value, but also how it reflects the position of the company, the brand and the direction forward."
In Rock Tools, that value is very concrete. Her team develops cemented carbide — the material at the tip of drill bits — with a clear goal: improve performance in the field.
"The customers don’t want our products. They want the holes. In other words, they are buying the outcome: faster drilling, fewer interruptions and higher productivity."
Why R&D is central to the competitiveness of Sandvik
Sandvik invests heavily in R&D, approximately 4 percent of revenue. According to Annika Kaar, this isn’t optional. It’s fundamental.
"We are built on having superior products. And better products come from R&D."
Without continuous innovation, the company would struggle to maintain profitability and market position. R&D enables Sandvik to stay ahead of competitors and consistently deliver leading performance that supports customers’ success.
The reality of innovation: hard work, not eureka moments
At the same time, innovation is not about sudden breakthroughs. It is a structured, ongoing process.
"It is seldom a eureka moment. It’s more often to have an idea, improve it together and then test and try."
Teams balance short-term improvements with long-term opportunities, working across multiple time horizons. Uncertainty is part of the process, but also what makes new solutions possible. Sustainability is integrated in this work, with circular approaches that recycle materials like cemented carbide without compromising performance.
Ultimately, R&D at Sandvik is not a separate function, it is how the business continues to evolve, compete and create value.
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In each episode of the podcast Meet Sandvik you will meet different persons that give their perspective on Sandvik. Sometimes it´s an employee telling his or her story. Sometimes you will meet experts discussing how a hot topic can affect Sandvik.