To remain competitive and meet customers' expectations, BHEL lays great emphasis on the continuous upgradation of products and related technologies, and development of new products. BHEL's commitment to advancement of technology is reflected in its involvement in the development of futuristic technologies like fuel cells and superconducting generators. BHEL's investment in R&D is amongst the largest in the corporate sector in India. During the year 2011-12, BHEL invested Rs.11,620 Million on R&D efforts- 18% higher than the previous year.

R&D and technology development are of strategic importance to BHEL as it operates in a competitive environment where technology is a key driver. Technology development efforts undertaken by BHEL have led to the filing of patents and copyrights at the rate of nearly one a day, significantly enhancing the company's intellectual capital. In 2011-12, BHEL filed 351 patents and copyrights, enhancing the company's intellectual capital to 1,786 patents and copyrights filed, which are in productive use in the company's business. The companay establised four new Centers of Excellence, taking the total tally 13.

Significantly, BHEL is one of the only four Indian companies and the only Indian Public Sector Enterprise figuring in 'The Global Innovation 1000' of Booz & Co., a list of 1,000 publicly-traded companies which are the biggest spenders on R&D in the world. BHEL has also won the coveted CII-Thompson Reuters Innovation Award 2010 in the 'Hi-tech Corporate' category. The award recognises BHEL's innovation and entrepreneurship in India based on number of patents and efficiency and impact of innovation as measured by patent citations.

The company's Corporate R&D division at Hyderabad leads BHEL's research efforts in a number of areas of importance to BHEL's product range. Research and Product Development (RPD) centres at all its manufacturing divisions play a complementary role. BHEL has introduced, in the recent past, several state of the art products. Commercialisation of products and systems developed by way of in-house Research and Development contributed Rs.95,120 Million corresponding to around 19.3% to the company's total turnover in 2011-12.

In keeping with the National commitment to a clean environment, BHEL has developed the technology for Integrated Gasification Combined Cycle (IGCC) power plants and is pursuing the development of Advance Ultra Supercritical Thermal Power Plants in the country. BHEL is also actively working on a number of projects in futuristic areas like Clean Coal Technology, Nano Technology, Fuel Cells, Superconductivity and thin film solar cells, etc. to advance the development of technologies for power and industry sector. The engineering and technology character of the organisation will be further enhanced with increased focus on innovation and R&D.