Let me pull back the curtain on something I’ve been asked a hundred times since I became a Honeywell supplier three years running: Does Honeywell really partner with other companies on R&D, or do they keep all their innovation locked up in-house? The short answer is yes—so much so that it’s become a core part of how I run my own engineering side of this business, and I’ve sat in on enough cross-company workshops to know it’s not just marketing fluff. Before I dive into the specifics, let me set the scene a little. I’m not some Fortune 500 big wig; I run a mid-sized electromechanical components firm out of Indianapolis, 50 people on payroll, most of them mechanical and electrical engineers with a thing for solving problems that big players either can’t or won’t touch. Three years ago, we landed our first Honeywell contract to supply small current sensors for their commercial HVAC line. That job turned into a seat at the table for their R&D ecosystem, and now I can tell you: Honeywell’s collaboration strategy isn’t an afterthought—it’s a blueprint. Honeywell
Let’s start with why they do this. I used to think big companies hoard R&D to keep competitive edges, but Honeywell’s portfolio is so broad—aerospace, building tech, safety and productivity solutions, even advanced materials—that no single team could master every niche. For example, last year I was in a meeting for their new connected building suite, and their in-house team was brilliant at developing the cloud sync for HVAC controls, but they didn’t have the specialized software for predicting wear on air filters that I developed after a year of testing with local universities. They brought us in not just to make parts, but to co-design the prediction algorithm that would sit alongside our sensors. That’s the model, right? Co-creation, not just procurement. I’ve also seen them partner with startups—smaller firms that can pivot faster on blue-sky ideas—and with universities, to pull in academic rigor that wouldn’t fit their tight, production-focused timelines. It’s not a one-way street, either. We shared our sensor calibration data, and they shared their long-term field test data, which cut our R&D cycle for the next sensor line by 18 months.
The aerospace side is where Honeywell’s R&D partnerships really shine, at least from what I’ve observed. Their aerospace division works on everything from jet engine components to satellite systems, and a couple years back, they teamed up with a composite materials startup out of Ohio to develop lightweight, heat-resistant parts for next-gen small business jets. That startup had a new polymer blend they’d tested for drone parts, but they lacked the aerospace certification and the scale to get it into production. Honeywell brought both—their FAA-approved R&D lab, their global supply chain network—and in return, they got a material that’s 25% lighter than traditional metal parts, which improves fuel efficiency. I sat in on a check-in for that project last winter, and what struck me was how open it was. No NDA walls that blocked critical data, just engineers from both sides scribbling on whiteboards at 8 a.m. and troubleshooting field issues together. That’s not the closed R&D model I grew up seeing. Even more surprising is how they work with other corporate giants, not just small suppliers and startups. Last year, Honeywell partnered with a global tech firm on a smart industrial safety system that combines their own pressure sensor tech with that partner’s AI analytics. Again, each brought what they did best: Honeywell’s expertise in harsh-environment testing, the other company’s machine learning algorithms for accident prediction. It’s the kind of cross-industry collaboration that moves faster than any single team could.
But here’s what I’ve learned as a supplier—this isn’t just a buzzword. There are rules to how Honeywell collaborates, and if you don’t follow them, you get left out. First, they want partners that add specific, verifiable expertise, not just extra hands. When we first pitched our sensor for the connected building project, we didn’t come in saying “we can make sensors cheaper.” We came in with data that our calibration accuracy was 99.8%, 0.5% higher than Honeywell’s in-house sensors. That’s what got us a spot at the R&D table, not just a purchase order. Second, they value transparency. We had to share our entire R&D roadmap for the next two years, and they shared theirs. No hiding flaws, no sandbagging on timelines, because if either side does, the whole project slips. I remember one point last year where our component had a durability issue at extreme temperatures, and Honeywell’s aerospace team shared their thermal testing protocol with us, which helped us fix the problem in two weeks instead of the four we’d budgeted. That’s the value of collaboration, right? Not just working together, but lifting each other up.
There’s also a less talked-about angle: Honeywell’s open innovation platform, which I’ve used for two of our own new products. They run regular challenges, like their 2022 Connected Community Challenge, where they invite external teams to submit ideas for improving building energy efficiency. We submitted a prototype for a low-power sensor that syncs with local utility demand response programs, and even though we didn’t win, they connected us to a utility partner to test the prototype. That led to a side project that’s now a 10% add-on to our Honeywell supply contract. It’s not just for big players—small suppliers like us can bring ideas that fit their broader R&D goals, and they’ll invest in making them real. I’ve seen startups go from a concept in the challenge to a formal R&D partnership within 12 months, which is unheard of when you’re dealing with most legacy corporations that move at a glacial pace.
Wait, but let’s be honest—this isn’t all sunshine and whiteboards. There are hurdles. One big one is intellectual property (IP). As a small supplier, IP is everything; it’s how we protect our work and stay competitive. Honeywell gets that, and they have a structured IP agreement for collaborative projects, but it still requires careful negotiation. For our connected building project, we negotiated that any new IP we developed together would be split 50-50 for non-aerospace applications, and Honeywell got an exclusive license for building and industrial use, while we got to use the tech for other small commercial projects. That took six months of back-and-forth, but it was worth it because it meant we didn’t give away our ability to grow beyond Honeywell. Another hurdle is aligned timelines. Honeywell works on 1-3 year R&D cycles for big projects, which is tighter than some academic or startup timelines. We’ve had to adjust our internal team’s priorities to match theirs, and that means turning down smaller, shorter-term contracts that would pull engineers away from our joint projects. But the tradeoff is that the work is more meaningful, and the revenue is more stable, so it’s worth it.
What has this meant for my business? Three years ago, we were a one-product firm. Today, we have three new sensor lines, all developed in partnership with Honeywell, and we supply not just their building tech division, but also their safety and productivity line. Our R&D team has grown from two people to five, and we’ve hired two aerospace engineers specifically because of the knowledge we’ve gained from collaborating with Honeywell’s aerospace lab. It’s been a two-way street: they’ve brought us into projects that have pushed our engineering capabilities, and we’ve brought them insights from the field that their in-house teams wouldn’t have. That’s the big takeaway here—when people ask if Honeywell collaborates on R&D, I tell them yes, but it’s not just about checking a box. It’s a core part of their strategy because their own breadth of products means they can’t do everything alone.
For any supplier or startup that wants to work with Honeywell on R&D, here’s what I’d advise based on my experience: don’t just sell them a product. Solve a problem they haven’t been able to solve with their own team. Do your homework on their current projects—they publish a lot of their R&D goals on their website, so show up with an idea that fits that. Be transparent about your capabilities and your limits, because that’s what builds trust. And be prepared to put in the work to negotiate fair IP terms, because that’s how you protect your business while partnering with them.
At the end of the day, collaboration is what’s driving a lot of Honeywell’s most recent innovations. The lightweight composite parts for small jets? The connected building suite that cuts energy use by 20%? The AI-powered safety systems for factories? All of those came from partnerships, not just in-house work. As someone who’s on the ground in that ecosystem, I can say this isn’t just corporate speak—it’s how they operate. If you’re a supplier with a niche expertise, or a startup with a bold idea, Honeywell isn’t just a customer. They’re a potential partner, and that’s something I didn’t fully understand when I first walked into their offices three years ago.
If you’re a supplier or industry professional looking to explore collaborative R&D opportunities with Honeywell, we invite you to connect with our procurement team to discuss how your expertise can align with Honeywell’s innovation goals.
B&R References:
- Honeywell. (2023). Open Innovation Strategy & Partner Ecosystem. Honeywell Advanced Technologies Division Report.
- National Supplier Development Council. (2022). Case Study: Mid-Sized Supplier Co-Innovation with Fortune 500 Aerospace Firms. NSDC Industry Collaboration Series.
- Aerospace Industries Association. (2023). Collaborative R&D in Commercial Aviation: Balancing Speed and Regulatory Compliance. AIA Research Brief.
Yuntengbao Automation (Xiamen) Co., Ltd.
Address: Room 013, 4th Floor, No. 606-4, Xinglong Road, Huli District, Xiamen City, Fujian Province, China
E-mail: lrene@plcsupplychain.com
WebSite: https://www.plcsupplychain.com/
