Over the past 25 years, the number of international patents dedicated to clean and sustainable technologies has surged to over 750,000 worldwide, constituting nearly 12% of all international patent families (IPFs). This growth trend notably outpaces overall patenting activity. However, in a report jointly by the European Investment Bank and the European Patent Office on Friday, finance emerges as a “particularly severe challenge for smaller companies” seeking to commercialise clean and sustainable technologies.

Patents

Notably, the report delineates two distinct phases of acceleration in cleantech patenting. Initially, spanning from 2006 to 2012, the surge was predominantly propelled by the European Union and Japan, with respective contributions of 27% and 26% to the overall increase in IPFs. Subsequently, from 2017 to 2021, China assumed a leading role, spearheading a remarkable 70% of the surge in patent applications during this period and capturing nearly 16% of cleantech IPFs in the process. Despite China’s surge, the EU maintains its prominence, boasting a 22% share, closely trailed by Japan and the United States at 21.1% and 20.2%, respectively.

Company size

The report underscores the importance of patents in commercialising clean and sustainable technologies, especially for small and micro firms. While medium and large firms typically commercialise their technologies independently, firms with fewer than 50 employees often opt for collaborative approaches, such as joint ventures or partnerships. Thus, patent registration is crucial for enabling external collaboration and securing financing, particularly for smaller firms.

Financing hurdles

According to the report, access to finance emerged as a significant barrier to commercialising clean and sustainable technologies, especially for smaller companies. While over 30% of EU companies identify lack of finance as a significant hurdle, this figure rises to 43% for micro and small companies, indicating a more acute problem within this segment.

Regulation

EU cleantech innovators cite consistent regulation within the EU and expedited access to funding as their “most desired form of policy support”, the report stated. Addressing this issue, the EIB Group has introduced initiatives like the European Tech Champions Initiative (ETCI) and the Scale-up Initiative. These programmes offer diverse financing options, such as loans, guarantees, seed capital, venture capital support and strategic venture debt, with the aim of bridging the financing gap and assisting firms at various stages of growth.

Nadia Calviño, president of the EIB, emphasised in a press statement the leading role of EU cleantech innovation and the importance of a unified single market within the EU in driving its growth. She reiterated, “The EIB Group is committed to supporting Europe’s competitiveness by investing in net-zero technologies and resource efficiency.” Calviño highlighted that by providing venture capital and strategic financing to cleantech innovators, with the aim of fostering the development and adoption of cutting-edge technologies for greener, more equitable growth and a sustainable future.

António Campinos, president of the EPO, noted the timeliness of the report amidst rising temperatures and growing urgency around sustainable development goals. He added, “The EU’s legal framework for protecting innovation was strengthened last summer when the EPO was entrusted to administer the new Unitary Patent system, providing cheaper and simpler patent protection in 17 EU member states as a single right.”