CambridgeIP Climate Change Innovation & Partnership Models: Challenges and Opportunities WIPO July 2011 Quentin Tannock (Chairman and Founder, CambridgeIP) © 2011 Cambridge Intellectual Property Ltd. All rights reserved Outline: Climate change - Innovations & partnership models • A Global Technology Library • Intelligent knowledge transfer • Innovation & Technology Transfer – State of play – Challenges and Opportunities – Case Study: Wind • Accelerating deployment, enabling partnerships • Conclusions and policy implications • Appendix – CambridgeIP snapshot – Contacts 2 © 2011 Cambridge Intellectual Property Ltd. All rights reserved Climate Change Mitigation & Adaptation Technology exists UNFCC secretariat report on Technology Needs Assessments (TNAs) 2009: Mitigation technologies – Energy; Agriculture & Forestry; Transport; Industry; Waste Management Adaptation technologies – Agriculture and Forestry; Costal Zone; Systematic monitoring; Health; Natural disasters “The problem of climate change is solvable – many of the technologies required are available today while others can be developed if the right incentives are in place.” -The Copenhagen Communiqué, Corporate Leaders Group, Prince of Wales Trust 3 © 2011 CambridgeIP. All rights reserved Climate Change Mitigation & Adaptation Technology can be identified in the patent data – 100 Million patents and rising The patent system represents a significant global technological library • Patents as data are: – Structured – Comparable – Objective – Information rich • Multiple patent data sources are available (an opportunity and a challenge!) – USPTO – Espace.net – Google Patents – Boliven.com – Specialists like CambridgeIP 4 © 2011 CambridgeIP. All rights reserved A wealth of knowledge is available in the patent literature • Patents provide – Specifications of technologies, and their uses, with technical diagrams – Information on the relationships between technologies, and the R&D relationships underpinning developments and their intensity – Details of innovators and their research relationships GB2396666 Marine turbine support structure with vertically displaceable mounting arrangement5 © 2011 Cambridge IP. All rights reserved Outline: Climate change - Innovations & partnership models • The Global Technology Library • Intelligent knowledge transfer • Innovation & Technology Transfer • Accelerating deployment, enabling partnerships • Conclusions and policy implications • Appendix – CambridgeIP snapshot 6 © 2011 Cambridge Intellectual Property Ltd. All rights reserved The role of knowledge-management platforms e.g. Boliven.com: • Search technology: Facilitating access to information • Analysis tools: Enabling detailed understanding • Collaboration platform: Facilitating knowledge transfer Search literature & access full results Undertake your own analysis: e.g. trends over time, top corporations 7 © 2011 CambridgeIP. All rights reserved Outline: Climate change - Innovations & partnership models • The Global Technology Library • Intelligent knowledge transfer • Innovation & Technology Transfer – State of play – Challenges and Opportunities – Case Study: Wind • Accelerating deployment, enabling partnerships • Conclusions and policy implications • Appendix – CambridgeIP snapshot 8 © 2011 Cambridge Intellectual Property Ltd. All rights reserved Chatham House and CambridgeIP have developed a patent database focused on six energy technologies A recent patent landscaping research effort by CambridgeIP and Chatham House, regularly updated by CambridgeIP, has sought to identify: Facts on the ground – to move beyond myths and to practical solutions Building blocks for technology transfer practices in the low-carbon energy space Chatham House and CambridgeIP 1. Biomass to Electricity have developed a unique 2. Carbon Capture collection of 57,000 patents and 3. Cleaner Coal related analyses focused on 6 4. Concentrated Solar Thermal (CST) areas of energy technology 5. Solar PV 6. Wind Following the patent landscaping exercise, Ilien Iliev of CambridgeIP co-authored a report with Bernice Lee and Felix Preston of Chatham House: Who Owns Our Low Carbon Future? Full report available for download at Chatham House‟s website: www.chathamhouse.org.uk 9 Apart from wind and solar PV, patenting activities growth in other cleaner energy sectors are surprisingly sluggish 1,600 Biomass 1,400 Cleaner Coal Carbon Capture 1,200 CSP 1,000 PV 800 Wind Patent filings 600 400 200 0 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Patent applications may be unpublished for 18+ months. Therefore the number of reported patents for the last 2 years may be under-represented. 10 Policy works. Patenting has generally grown with deployment rate Wind Solar PV Annual PV shipments 25000 Annual Wind shipments 1600 4500 1600 Annual patents Annual patents 1400 4000 1400 20000 3500 1200 1200 3000 1000 1000 15000 2500 800 800 Patent filings Patent filings 2000 10000 600 600 1500 400 400 1000 5000 PV shipmentsAnnual (MWp) 500 200 Additional installed capacity (MW) capacity installed Additional 200 0 0 0 0 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 11 Sub-sector analysis indicates where value of inventions resides within these complex technology systems Solar PV CSP Biomass Wind 12 Patent families and Patent citations: Commercial value? • Patent family size can provide an indication of the commercial value of a patented innovation: Most commercial value is concentrated in a relatively small number of patent families Total Number of Patents Total Patent Families Patent citations Patent Families w. > 5 members Patent Families w. > 10 members can indicate the commercial and scientific 18,000 In each technology field there’s 250-500 relevance of patent families with >10 members patented 16,000 developments: 14,000 Our research with Chatham 12,000 House shows 10,000 that it takes between 19 to 8,000 30 years for top cited low carbon 6,000 technologies to 4,000 reach the „mass adoption‟ phase. 2,000 0 Biomass Cleaner Coal Carbon Capture CSP PV Wind 13 Patent ownership concentration rates: What does it tell us? The concentration of patent ownership cannot be assumed to be synonymous with a lack of competition or a monopoly: but it can slow innovation and diffusion in some types of markets depending on underlying business models. 45% Average of all fields 40% Wind 35% 30% PV 25% 20% Biomass 15% CSP 10% Top 20 Top companies 5% Cleaner Coal IPR ownership concentration:IPR 0% - 5,000 10,000 15,000 20,000 Carbon Capture Field Size: Total Number of Patents 14 High-carbon companies control some of the key knowledge assets underpinning the low carbon economy EXXONMOBIL HITACHI GENERAL ELECTRIC Wind MITSUBISHI H PV SHARP Biomass ENERCON CSP CANON Cleaner Coal BABCOCK HITACHI CCS SANYO MATSUSHITA ELECTRIC 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 15 The public sector is a key actor, and its role is likely to expand • Public-institution owned IP may be the easiest point at which we can implement innovative licensing practices • University and SME owned IP might also be relatively easy to access Unknown 100% 90% University 80% SME 70% 60% Public 50% 40% Other Patent filings 30% 20% National 10% Corporation Multinational 0% AverageBiomass Cleaner Carbon CSP PV Wind Note: The „expanded of all Coal Capture patent footprint‟ of fields Universities is likely to be much higher due to tech. licensing and spin-off/out activities 16 Outline: Climate change - Innovations & partnership models • The Global Technology Library • Intelligent knowledge transfer • Innovation & Technology Transfer – State of play – Challenges and Opportunities – Case study: Wind • Conclusions and policy implications • Appendix – CambridgeIP snapshot 17 © 2011 Cambridge Intellectual Property Ltd. All rights reserved Wind Energy: A range of applicable IPRs Patent: Prevent others from using your technology for a limited time E.g. Patents covering energy conversion Trade Secret: Protecting critical know-how. E.g. Modern technology Details of optimum products are system parameters protected by a range of IPRs Copyright: Protecting the form of expression. E.g. Control software for Wind Design rights: Prevent Trademark: others from using specific Protection of a physical forms / word/symbol denoting characteristics of your origin of product9s) technology E.g. Shape, e.g. SUZLON brand texture & materials name 18 © 2011 CambridgeIP. All rights reserved Wind Energy: Technology system & Value chain Wind turbines are complex technology systems Value chains are diverse: Various system components can be sourced from numerous industry sectors and a range of company types within these sectors. E.g. Wing/Blade technology from 19 Aerospace sector, Electronic components from Electronics sector Wind Energy: Key Components & Applications Wind Energy: Composition by Technology Components Components or and Application Areas 7 ,000 application level 6,000 analysis can help 5,000 4,000 us identify core 3,000 areas of 2,000 innovation, or 1,000 0 where new activities are Generator Blade/Wings emerging Offshore related Energy storage Gearbox & Drive Train Software/Control Systems © 2009 There are significant overlaps The complexity of underlying between some of these sub- technology systems and diversity spaces: revealing patents with of industry sectors / value chains multiple or systems-level claims can make identifying appropriate 20 interventions challenging Wind Energy: Top IP