CambridgeIP

Accelerating innovation and diffusion of renewable energy
technologies: technology capabilities, business practices and
policy options

The Costs and Benefits of Renewables: Biomass

Center for the Study of Democracy, Sofia Bulgaria




26th April 2011

ILIAN ILIEV
CEO of CambridgeIP
Associate Fellow, Chatham House



                                                    © 2011 Cambridge Intellectual Property Ltd. All rights reserved
Scope of policy support measures/interventions
• Tick boxes for EU obligations/regulations?
     – Focus on the boxes... But missed opportunities for industrial renewal
• Support migration of domestic economy to greater energy
  efficiency?
     – Accelerated technology deployment
     – Value chain strategy/ sequencing
• Support employment? Stability and sustainability in
  agriculture?
     – Sustainable policies – whether biofuels or foodstock
• Higher value-added in domestic economy? Boost value of
  exports?
     – Value chain strategy
     – Focus on value retention, processing plants


                                           © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
 2
Outline



  •   CambridgeIP’s work in renewable energy
  •   Primer on IP, innovation and tech. diffusion
  •   IP and cleantech
  •   Biomass and Biofuels
  •   Policy questions




  3
Our offerings

IP Landscape®             Open innovation          Technology                 Technology
                                                   mapping                    market review

Expert built patent       Identify technology      Pinpoint emerging          Identify market –              Knowledge transfer
datasets focused on       ownership in complex     technology patterns        technology niches in           portal
your technology           spaces                   & hotspots                 rapidly developing             Access over 100
                                                                              markets                        million scientific
Identify prior art in a   Shortlist acquisition    Understand                                                documents, including
technology space          opportunities            technology value           Inform in-house R&D            the latest patents
                                                   chains                     strategy
Uncover inventor &        Identify overlaps with                                                             Conduct technology
collaborator networks     your own technology      Identify technology        Influence public               literature searches
                          portfolio                market &                   sector innovation
Clarify strengths &                                commercialisation          support strategies             Perform high-level
weaknesses of patent      Conduct due              scenarios                                                 analytics on patent
portfolios                diligence on external                                                              data
                          partners                 Locate prospective         Prioritise key market
Confirm freedom to                                 partners, acquisitions     segments and identify          Collaborative patent
operate & technology      Identify open            and clients                strategic partners &           landscaping with
white space analyses      innovation                                          collaboration                  your colleagues
                          opportunities in your    Information on             opportunities
Support investment        own and others’ IP       partner/acquisition                                       Boliven Landscapes
due diligence and         portfolios               candidates operating       Identify in what areas         Access valuable
preparation for fund                               in your area of            you need to build an           patent datasets
raising                   CxO compatible           interest                   IP Landscape                   combined with
                          materials, workshops                                                               industry expert
Understand market         and seminars                                                                       analyses
trends
                                                                         ©2011 Cambridge Intellectual Property Ltd. All rights reserved
    4
Clean tech and energy

     Wind energy        Fuel cells                                   Nano devices
     systems                                                         & materials



     Biomass            Advanced                                     Geothermal
                        refrigeration                                energy
                                                                     Systems

     Photovoltaic &     Clean coal
                                                                     Refineries,
     component          carbon capture
                                                                     power gen,
     technologies       CO2-EOR
                                                                     co-gen.

     Concentrated       Marine                                       Desalination
     solar & other      transport                                    and water
     energy storage                                                  sanitation
     systems
                        Smart grid

                                     ©2011 Cambridge Intellectual Property Ltd. All rights reserved
5
Outline



  •   CambridgeIP’s work in renewable energy
  •   Primer on IP, innovation and tech. diffusion
  •   IP and cleantech
  •   Biomass and Biofuels
  •   Policy questions




  6
Types of IPRs

 A modern and complex technology product is protected by
   different forms of IPRs
                                         Patents: ability to prevent others from
                                         using your technology
                                         e.g. patents around turbine
                                         transmission systems

                                         Trade secrets: non-disclosed and
                                         commercially valuable information
                                         e.g. production or installation
                                         methods
                                         Trademark: protection of the
                                         word/symbol denoting the origin of a
                                         good


                                         Copyright: protecting the form of
                                         expression
                                         e.g. control software written by/on
                                         behalf of company

  7
                                     © 2011 Cambridge Intellectual Property Ltd. All rights reserved
IPRs as a way of promoting innovation

 • IPRs are a state-created mechanism allowing inventors to capture a
   return on their investment by giving them the rights to decide how
   their invention will be used




 • At the heart of IPRs is a trade-off between static efficiency (best
   use of today’s knowledge) and dynamic efficiency (creating
   tomorrow’s knowledge)




  8
                                               © 2011 Cambridge Intellectual Property Ltd. All rights reserved
Close relation between IPRs and R&D financing

 • Various studies have shown a relationship between levels of R&D
   and inventiveness and patenting trends




  9
                                            © 2011 Cambridge Intellectual Property Ltd. All rights reserved
How are IPRs used in practice?
 The IPR mechanism/arrangement used at each part of the technology innovation chain can
                  determine next stage options for technology transfer/diffusion
  The full range of stakeholders have an influence on how IPRs are used, from investors to
                                   competitors to governments




                                                                                                     Product
           R&D/commercialis




                              In-house
             ation Channel
                Choice of




                              Collabo-
                               ration
                                                                                                      Services

                              Licensing

                                                                                                      Licence
                              Spin-off

                                           Role of IPRs in Each Part of Innovation Chain
              Multiple business models and ways of using IPRs, depending on industry history,
                  ?             ?            ?             ?             ?            ?
                             economics, inherited business models, norms, etc.


                                               Investors/Shareholders


                                          Value Chain Partners/Collaborators


                                                     Competitors        © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
   10
                                                                               © 2011 Cambridge Intellectual Property Ltd. All rights reserved
Outline



  •    CambridgeIP’s work in renewable energy
  •    Primer on IP, innovation and tech. diffusion
  •    IP and cleantech
  •    Biomass and Biofuels
  •    Policy questions




  11
IPRs and cleantech: increasingly complex and rapidly
maturing environment
Different studies all show accelerated patenting in low-carbon energy
technologies




   12
                                                    © 2011 Cambridge Intellectual Property Ltd. All rights reserved
…accompanied by accelerated deployment of
technology in the market place
                                                                                 Wind                                                                                                                                   Solar PV
                                     25000                                                                               1600                                                                         Annual PV shipments
                                                         Annual Wind shipments                                                                                               4500                                                                                             1600
                                                                                                                                                                                                      Annual patents




                                                                                                                                                 Annual PV shipments (MWp)
                                                         Annual patents                                                                                                      4000
                                                                                                                         1400                                                                                                                                                 1400
Additional installed capacity (MW)




                                     20000                                                                                                                                   3500




                                                                                                                                                                                                                                                                                     Patent filings
                                                                                                                         1200                                                                                                                                                 1200
                                                                                                                                                                             3000




                                                                                                                                Patent filings
                                                                                                                                                                                                                                                                              1000
                                     15000                                                                               1000                                                2500
                                                                                                                                                                                                                                                                              800
                                                                                                                         800                                                 2000
                                                                                                                                                                                                                                                                              600
                                     10000
                                                                                                                         600                                                 1500
                                                                                                                                                                             1000                                                                                             400
                                                                                                                         400
                                      5000                                                                                                                                    500                                                                                             200
                                                                                                                         200                                                    0                                                                                             0
                                         0                                                                               0



                                                                                                                                                                               6
                                                                                                                                                                                     8
                                                                                                                                                                                           0
                                                                                                                                                                                                 2
                                                                                                                                                                                                        4
                                                                                                                                                                                                              6
                                                                                                                                                                                                                   8
                                                                                                                                                                                                                            0
                                                                                                                                                                                                                                2
                                                                                                                                                                                                                                     4
                                                                                                                                                                                                                                           6
                                                                                                                                                                                                                                                 8
                                                                                                                                                                                                                                                       0
                                                                                                                                                                                                                                                             2
                                                                                                                                                                                                                                                                   4
                                                                                                                                                                                                                                                                         6
                                                                                                                                                                             197
                                                                                                                                                                                    197
                                                                                                                                                                                          198
                                                                                                                                                                                                198
                                                                                                                                                                                                      198
                                                                                                                                                                                                            198
                                                                                                                                                                                                                  198
                                                                                                                                                                                                                        199
                                                                                                                                                                                                                              199
                                                                                                                                                                                                                                    199
                                                                                                                                                                                                                                          199
                                                                                                                                                                                                                                                199
                                                                                                                                                                                                                                                      200
                                                                                                                                                                                                                                                            200
                                                                                                                                                                                                                                                                  200
                                                                                                                                                                                                                                                                        200
                                             6

                                                   7

                                                         8

                                                                9

                                                                          0

                                                                                 1

                                                                                      2

                                                                                            3

                                                                                                  4

                                                                                                        5

                                                                                                              6

                                                                                                                    7
                                         199

                                                  199

                                                        199

                                                              199

                                                                      200

                                                                              200

                                                                                     200

                                                                                           200

                                                                                                 200

                                                                                                       200

                                                                                                             200

                                                                                                                   200




                                        Hence an increased need and urgency to understand the role of IPRs
                                            in technology development and transfer of climate-related
                                                 technologies, and implications for policy makers

                                     Source: CambridgeIP – Chatham House (2009) ‘Who Owns Our Low-Carbon Future’
                                             13
                                                                                                                                                                                            © 2011 Cambridge Intellectual Property Ltd. All rights reserved
Outline



  •    CambridgeIP’s work in renewable energy
  •    Primer on IP, innovation and tech. diffusion
  •    IP and cleantech
  •    Biomass and Biofuels
  •    Policy questions




  14
What about Biomass/biofuels ?


Several relevant technology spaces in biomass/
  biofuels, incl.
• Biomass production techniques
      – 1st generation: pre-dating oil production
      – 2nd generation: use of waste, non-competitive to food stocks
      – 3rd/4th generation: GM, algal-biofuels,etc
• Biomass – to – electricity and/or heat technologies
• Transport technologies adaptation
      – E.g. dual-fuel auto, jet engines
• Industrial processes/chemicals production
      – E.g. biomass-based glycol



                                            © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
 15
Biomass production: 3rd/4th Generation: E.g. Algal biofuels


• Backed by oil-majors, incl. Exxon, Shell
        – E.g. Exxon $600mln investment in Synthetic Genomics
• Various government initiatives for development
        – E.g. Carbon Trust (UK): value chain initiative to boost country’s
          position in 3rd/4th generation biofuels




                                               © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
   16
Biomass-to-electricity: patenting trends




                                                                  Biomass: Patent Applications by Year
5 00
                                                                                                                                                                                                                         438
450

4 00                                                                                                                                                                                                                            368
                                                                                                                                                                                                    337
350                                                                                                                                                                                   327 318                     323
                                                                                                                                                                                                           310
3 00
                                                                                                                                                                               256
250
                                                                                                                                                          207
2 00                                                                                                                                                             183 185
                                                                                                                                     160
                                                                                                                                                   145
150                                                                                                                    131                  134
                                                 123                                                                          114
                                   111                         112                                       104
                                          93                          86 82                92     90            90
1 00                        68                          77
                                                                                    61
                     48
 50    34     26

  0




                                                                                                                                                                               2000




                                                                                                                                                                                                                  2005
                                                                                                                                                                                                           2004



                                                                                                                                                                                                                         2006
                                                                                                                                                                                             2002

                                                                                                                                                                                                    2003
                                   1980




                                                                                                         1990
                                                                      1985




                                                                                                                                            1995
                                                                                           1988




                                                                                                                                                                 1998




                                                                                                                                                                                      2001




                                                                                                                                                                                                                                2007
                                                               1984



                                                                             1986




                                                                                                  1989




                                                                                                                                     1994



                                                                                                                                                   1996




                                                                                                                                                                        1999
                                                 1982




                                                                                                                       1992
                                                        1983




                                                                                                                              1993
                     1978




                                          1981




                                                                                                                1991
                                                                                    1987




                                                                                                                                                          1997
       1976




                            1979
              1977




                                                                                                                                                                    © 2009 CambridgeIP. All rights reserved..
                                                                                                                                                                                      © 2009
17
Industrial processes: Glycol production

• Petrochemical-based glycols are a $50bln market, used for
  plastics, pharma applications
• Process innovations allow production of glycol from 1st and
  2nd generation biomass

                                         Possibility to boost productivity of
                                         agriculture + retain more value in
                                         domestic economy


                                         Synergies with H2 production – also for
                                         transport industry




                                             © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
   18
Outline



  •    CambridgeIP’s work in renewable energy
  •    Primer on IP, innovation and tech. diffusion
  •    IP and cleantech
  •    Biomass and Biofuels
  •    Policy questions




  19
Scope of policy support measures/interventions
• Tick boxes for EU obligations/regulations?
      – Focus on the boxes... But missed opportunities for industrial renewal
• Support migration of domestic economy to greater energy
  efficiency?
      – Accelerated technology deployment
      – Value chain strategy
• Support employment? Stability and sustainability in
  agriculture?
      – Sustainable policies – whether biofuels or foodstock
• Higher value-added in domestic economy? Boost value of
  exports?
      – Value chain strategy (e.g. Brazil – 20 years’ support for ethanol)
      – Focus on value retention, processing plants
      – Technology adaptation & development
                                             © 2011 Cambridge Intellectual Property Ltd. All rights reserved.
 20
…and finally…

  Feel free to discuss your specific technology intelligence requirements with Ilian

  Visit CambridgeIP’s www.boliven.com for free patent searches

                                              Thank you !

                                Ilian Iliev
                                (CEO and Co-founder)
                                E: ilian.iliev@cambridgeip.com
                                M: +44 (0) 778 637 3965
                                T: +44 (0)1223 778 846


        Corporate office                                Internet resources
                                                        Website:      www.cambridgeip.com
        Cambridge Intellectual Property Ltd                           www.boliven.com
        8a Kings Parade, Cambridge                      Blog:         www.cambridgeip.com/blog
        CB2 1SJ, United Kingdom
        UK: +44 (0) 1223 777 846                        Sign up for our free newsletter
        Fax: +44 (0) 20 3357 3105                       on our home page

                                                            ©2011 Cambridge Intellectual Property Ltd. All rights reserved
   21

Accelerating innovation and diffusion of renewable energy technologies: technology capabilities, business practices and policy options

  • 1.
    CambridgeIP Accelerating innovation anddiffusion of renewable energy technologies: technology capabilities, business practices and policy options The Costs and Benefits of Renewables: Biomass Center for the Study of Democracy, Sofia Bulgaria 26th April 2011 ILIAN ILIEV CEO of CambridgeIP Associate Fellow, Chatham House © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 2.
    Scope of policysupport measures/interventions • Tick boxes for EU obligations/regulations? – Focus on the boxes... But missed opportunities for industrial renewal • Support migration of domestic economy to greater energy efficiency? – Accelerated technology deployment – Value chain strategy/ sequencing • Support employment? Stability and sustainability in agriculture? – Sustainable policies – whether biofuels or foodstock • Higher value-added in domestic economy? Boost value of exports? – Value chain strategy – Focus on value retention, processing plants © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 2
  • 3.
    Outline • CambridgeIP’s work in renewable energy • Primer on IP, innovation and tech. diffusion • IP and cleantech • Biomass and Biofuels • Policy questions 3
  • 4.
    Our offerings IP Landscape® Open innovation Technology Technology mapping market review Expert built patent Identify technology Pinpoint emerging Identify market – Knowledge transfer datasets focused on ownership in complex technology patterns technology niches in portal your technology spaces & hotspots rapidly developing Access over 100 markets million scientific Identify prior art in a Shortlist acquisition Understand documents, including technology space opportunities technology value Inform in-house R&D the latest patents chains strategy Uncover inventor & Identify overlaps with Conduct technology collaborator networks your own technology Identify technology Influence public literature searches portfolio market & sector innovation Clarify strengths & commercialisation support strategies Perform high-level weaknesses of patent Conduct due scenarios analytics on patent portfolios diligence on external data partners Locate prospective Prioritise key market Confirm freedom to partners, acquisitions segments and identify Collaborative patent operate & technology Identify open and clients strategic partners & landscaping with white space analyses innovation collaboration your colleagues opportunities in your Information on opportunities Support investment own and others’ IP partner/acquisition Boliven Landscapes due diligence and portfolios candidates operating Identify in what areas Access valuable preparation for fund in your area of you need to build an patent datasets raising CxO compatible interest IP Landscape combined with materials, workshops industry expert Understand market and seminars analyses trends ©2011 Cambridge Intellectual Property Ltd. All rights reserved 4
  • 5.
    Clean tech andenergy Wind energy Fuel cells Nano devices systems & materials Biomass Advanced Geothermal refrigeration energy Systems Photovoltaic & Clean coal Refineries, component carbon capture power gen, technologies CO2-EOR co-gen. Concentrated Marine Desalination solar & other transport and water energy storage sanitation systems Smart grid ©2011 Cambridge Intellectual Property Ltd. All rights reserved 5
  • 6.
    Outline • CambridgeIP’s work in renewable energy • Primer on IP, innovation and tech. diffusion • IP and cleantech • Biomass and Biofuels • Policy questions 6
  • 7.
    Types of IPRs A modern and complex technology product is protected by different forms of IPRs Patents: ability to prevent others from using your technology e.g. patents around turbine transmission systems Trade secrets: non-disclosed and commercially valuable information e.g. production or installation methods Trademark: protection of the word/symbol denoting the origin of a good Copyright: protecting the form of expression e.g. control software written by/on behalf of company 7 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 8.
    IPRs as away of promoting innovation • IPRs are a state-created mechanism allowing inventors to capture a return on their investment by giving them the rights to decide how their invention will be used • At the heart of IPRs is a trade-off between static efficiency (best use of today’s knowledge) and dynamic efficiency (creating tomorrow’s knowledge) 8 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 9.
    Close relation betweenIPRs and R&D financing • Various studies have shown a relationship between levels of R&D and inventiveness and patenting trends 9 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 10.
    How are IPRsused in practice? The IPR mechanism/arrangement used at each part of the technology innovation chain can determine next stage options for technology transfer/diffusion The full range of stakeholders have an influence on how IPRs are used, from investors to competitors to governments Product R&D/commercialis In-house ation Channel Choice of Collabo- ration Services Licensing Licence Spin-off Role of IPRs in Each Part of Innovation Chain Multiple business models and ways of using IPRs, depending on industry history, ? ? ? ? ? ? economics, inherited business models, norms, etc. Investors/Shareholders Value Chain Partners/Collaborators Competitors © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 10 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 11.
    Outline • CambridgeIP’s work in renewable energy • Primer on IP, innovation and tech. diffusion • IP and cleantech • Biomass and Biofuels • Policy questions 11
  • 12.
    IPRs and cleantech:increasingly complex and rapidly maturing environment Different studies all show accelerated patenting in low-carbon energy technologies 12 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 13.
    …accompanied by accelerateddeployment of technology in the market place Wind Solar PV 25000 1600 Annual PV shipments Annual Wind shipments 4500 1600 Annual patents Annual PV shipments (MWp) Annual patents 4000 1400 1400 Additional installed capacity (MW) 20000 3500 Patent filings 1200 1200 3000 Patent filings 1000 15000 1000 2500 800 800 2000 600 10000 600 1500 1000 400 400 5000 500 200 200 0 0 0 0 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 197 197 198 198 198 198 198 199 199 199 199 199 200 200 200 200 6 7 8 9 0 1 2 3 4 5 6 7 199 199 199 199 200 200 200 200 200 200 200 200 Hence an increased need and urgency to understand the role of IPRs in technology development and transfer of climate-related technologies, and implications for policy makers Source: CambridgeIP – Chatham House (2009) ‘Who Owns Our Low-Carbon Future’ 13 © 2011 Cambridge Intellectual Property Ltd. All rights reserved
  • 14.
    Outline • CambridgeIP’s work in renewable energy • Primer on IP, innovation and tech. diffusion • IP and cleantech • Biomass and Biofuels • Policy questions 14
  • 15.
    What about Biomass/biofuels? Several relevant technology spaces in biomass/ biofuels, incl. • Biomass production techniques – 1st generation: pre-dating oil production – 2nd generation: use of waste, non-competitive to food stocks – 3rd/4th generation: GM, algal-biofuels,etc • Biomass – to – electricity and/or heat technologies • Transport technologies adaptation – E.g. dual-fuel auto, jet engines • Industrial processes/chemicals production – E.g. biomass-based glycol © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 15
  • 16.
    Biomass production: 3rd/4thGeneration: E.g. Algal biofuels • Backed by oil-majors, incl. Exxon, Shell – E.g. Exxon $600mln investment in Synthetic Genomics • Various government initiatives for development – E.g. Carbon Trust (UK): value chain initiative to boost country’s position in 3rd/4th generation biofuels © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 16
  • 17.
    Biomass-to-electricity: patenting trends Biomass: Patent Applications by Year 5 00 438 450 4 00 368 337 350 327 318 323 310 3 00 256 250 207 2 00 183 185 160 145 150 131 134 123 114 111 112 104 93 86 82 92 90 90 1 00 68 77 61 48 50 34 26 0 2000 2005 2004 2006 2002 2003 1980 1990 1985 1995 1988 1998 2001 2007 1984 1986 1989 1994 1996 1999 1982 1992 1983 1993 1978 1981 1991 1987 1997 1976 1979 1977 © 2009 CambridgeIP. All rights reserved.. © 2009 17
  • 18.
    Industrial processes: Glycolproduction • Petrochemical-based glycols are a $50bln market, used for plastics, pharma applications • Process innovations allow production of glycol from 1st and 2nd generation biomass Possibility to boost productivity of agriculture + retain more value in domestic economy Synergies with H2 production – also for transport industry © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 18
  • 19.
    Outline • CambridgeIP’s work in renewable energy • Primer on IP, innovation and tech. diffusion • IP and cleantech • Biomass and Biofuels • Policy questions 19
  • 20.
    Scope of policysupport measures/interventions • Tick boxes for EU obligations/regulations? – Focus on the boxes... But missed opportunities for industrial renewal • Support migration of domestic economy to greater energy efficiency? – Accelerated technology deployment – Value chain strategy • Support employment? Stability and sustainability in agriculture? – Sustainable policies – whether biofuels or foodstock • Higher value-added in domestic economy? Boost value of exports? – Value chain strategy (e.g. Brazil – 20 years’ support for ethanol) – Focus on value retention, processing plants – Technology adaptation & development © 2011 Cambridge Intellectual Property Ltd. All rights reserved. 20
  • 21.
    …and finally… Feel free to discuss your specific technology intelligence requirements with Ilian Visit CambridgeIP’s www.boliven.com for free patent searches Thank you ! Ilian Iliev (CEO and Co-founder) E: [email protected] M: +44 (0) 778 637 3965 T: +44 (0)1223 778 846 Corporate office Internet resources Website: www.cambridgeip.com Cambridge Intellectual Property Ltd www.boliven.com 8a Kings Parade, Cambridge Blog: www.cambridgeip.com/blog CB2 1SJ, United Kingdom UK: +44 (0) 1223 777 846 Sign up for our free newsletter Fax: +44 (0) 20 3357 3105 on our home page ©2011 Cambridge Intellectual Property Ltd. All rights reserved 21