Strong IP’s key to renewable development

While there is consensus that carbon-based energy sources will continue to meet the vast majority of the world’s energy needs for years to come, it is also clear that major breakthroughs across a range of clean energy technologies are essential to reconcile finite natural resources with seemingly infinite global energy demand. According to the U.S. Energy Information Administration (EIA), world energy consumption will increase by 44 percent by 2030, and the largest projected demands come from non- OECD countries where energy infrastructures are underdeveloped and the need for efficiency is paramount. Domestically, a national consensus is emerging that the U.S. must lead in the development and deployment of clean and efficient new sources of energy. It is clear that the nations of the world are responding to the clean energy challenge. Brazil has a National Action Plan on Climate Change; India has established a National Enhanced Energy Effi ciency Mission, and China is working on a set of indigenous innovation policies designed to stimulate development of a green technology program within China. Significant investments are being made in both the public and private sectors toward clean energy research. According to the World Economic Forum, global private sector spending on clean technology was $142 billion in 2008. Not surprisingly, the intellectual property system is playing a key role in clean tech innovation. As might be expected, clean tech patent filings are rising apace with increases in investment. And in clean tech innovation, patents are fulfilling their traditional role of incentivizing investment, mitigating investment risk, facilitating the sharing and transferring of technology through licensing, and enhancing collaboration. The outlook for clean technology innovation and commercialization is bright, and the U.S. has a unique set of talents and capabilities, including our IP system. It is clear that the IP system supports rather than undermines the development and deployment of clean technologies, and facilitates technology transfer to other nations. Our commitment to the IP system as a key element in our innovation system will continue to be tested, however, as others seek to promote their own competitive advantage by weakening ours.