From Patents to Partnerships

How IP Strategies Evolve to Drive Green Innovation

In the race to combat climate change and transition to a sustainable future, green innovations play a crucial role. But how can intellectual property👉 Creations of the mind protected by legal rights. (IP) strategies best support the development and widespread adoption of these eco-friendly technologies? A new study provides intriguing insights by analyzing the IP approaches of award-winning green innovators across different phases of the innovation process👉 A structured journey of creating and implementing new ideas..

The research, published in the Journal of Cleaner Production, examines 57 green innovations recognized by the European Patent👉 A legal right granting exclusive control over an invention for a limited time. Office’s prestigious European Inventor Award. By mapping out the IP strategies employed by new ventures, universities, and established firms, the study reveals how organizations strategically adapt their approach to IP as green innovations move from research to development to widespread diffusion.

Key Findings

The study provides valuable insights into how intellectual property strategies evolve across different stages of green innovation👉 Practical application of new ideas to create value. development. Here are the key findings that emerged from analysing the IP approaches of award-winning eco-friendly technologies:

IP protection remains critical, especially in early stages

Despite recent pushes for more open innovation models, the study found that obtaining patent protection is still viewed as essential by most green innovators, particularly during the initial research phase. New ventures use patents to attract investment, universities to entice industry partners, and established firms to gain competitive advantage.

Sharing increases as innovations mature

While closed IP models dominate in the research stage, organizations become increasingly open to sharing their IP as innovations progress. The probability of adopting semi-open IP models rises from 20% in the research phase to 34% in development/commercialization and 42% in the diffusion phase.

Licensing emerges as a key mechanism for impact

Non-exclusive licensing👉 Permission to use a right or asset granted by its owner. was found to be the most common form of IP sharing, used by innovators to expand into new markets, accelerate diffusion of green technologies, and generate revenues. Some new ventures even built their entire business model👉 A business model outlines how a company creates, delivers, and captures value. around licensing their green IP.

Universities play a unique role

Unlike firms, universities showed a strong tendency to shift from closed to semi-open IP models during the development/commercialization phase, typically through exclusive licensing to industry partners. This highlights universities’ important function in bridging research and real-world application of green technologies.

Established firms remain more closed

Large incumbent firms were the most likely to maintain closed IP models throughout the innovation process, only becoming somewhat more open to collaboration in the final diffusion stage. This presents both challenges and opportunities for driving wider adoption of green innovations.

IP strategies vary by technology domain

The propensity to adopt semi-open IP models was higher in certain green technology areas like water treatment, materials/packaging, environmental management, and energy-related climate change mitigation technologies.

Implications for Driving Sustainability

The findings carry important implications for how IP can be leveraged to accelerate sustainability transitions:

• Balancing protection and sharing: The study reveals that successful green innovators employ a nuanced approach to intellectual property, strategically balancing protection and sharing. In the early stages, patents play a crucial role in incentivizing R&D investment and attracting funding. As innovations mature, licensing and collaboration become increasingly important for achieving widespread impact and accelerating sustainability transitions.
• Tailored approaches needed: The research emphasizes that a one-size-fits-all approach to IP strategy👉 Approach to manage, protect, and leverage IP assets. is ineffective for green innovations. Organizations should tailor their IP strategies based on factors such as the specific phase of innovation, the type of organization involved, and the particular technology domain. This customized approach allows for more effective management of IP assets throughout the innovation lifecycle.
• Facilitating connections: The findings highlight a critical need for platforms that can facilitate connections between universities, new ventures, and established firms. These connections are particularly important during the development and commercialization stages, when many promising green innovations are at risk👉 The probability of adverse outcomes due to uncertainty in future events. of failing to reach the market. Such platforms could help bridge the gap between research and practical application, accelerating the adoption of sustainable technologies.
• Rethinking university IP policies: The study suggests that universities may benefit from adopting more flexible licensing approaches for their green innovations. Rather than relying primarily on exclusive licensing, universities could explore strategies that maximize the potential applications and impact of their inventions. This might include non-exclusive licensing, humanitarian licensing, or other models that balance revenue generation with broader societal impact.

• Encouraging established firm openness: The research indicates that large incumbent firms, despite controlling significant technological resources, showed the least tendency to share their green IP openly. Policy initiatives could focus on creating incentives for these established firms to adopt more open IP sharing practices. This could help unlock the potential of valuable green technologies and accelerate their diffusion across industries.
• Moving beyond patents: While the study confirms the continued importance of patents in green innovation, it also emphasizes the value of a more comprehensive IP strategy. Organizations should consider strategically combining different forms of IP protection, such as patents, trademarks, and trade secrets, with various sharing mechanisms like licensing and collaborations. This holistic approach can more effectively drive green innovation forward and maximize its impact on sustainability.

Evolving Perspectives on IP and Sustainability:

This research contributes to an evolving understanding of how IP relates to sustainability goals. It moves the conversation beyond simplistic views of IP as either purely beneficial or detrimental to green innovation.

Instead, it reveals a more nuanced picture where IP strategies dynamically shift to meet different needs across the innovation lifecycle. The key seems to be striking the right balance between protecting inventions to incentivize R&D and sharing them to achieve widespread impact.

The study also challenges the notion of a universal “Green Patent Paradox” where patents hinder the diffusion of eco-friendly technologies. While this effect may exist in some cases, particularly with established firms, the research shows many organizations do eventually open up their IP as innovations mature.

Looking Ahead:

As the urgency of sustainability challenges intensifies, finding ways to accelerate the development and adoption of green technologies becomes ever more critical. This study suggests that evolving approaches to IP management👉 Strategic and operative handling of IP to maximize value. could play an important role in this process.

Future research could delve deeper into the specific mechanisms and outcomes of different IP sharing models in the sustainability context. There’s also a need to explore how policy initiatives could more effectively encourage strategic IP sharing for environmental benefit.

Ultimately, the goal is to create an innovation ecosystem where green technologies can flourish and rapidly scale to meet pressing environmental challenges. By shedding light on the complex interplay between IP strategies and sustainability outcomes, this research takes an important step toward that vision.

As we confront the monumental task of transitioning to a sustainable future, every tool at our disposal matters. This study reveals intellectual property as a powerful and flexible instrument that, when wielded strategically, can help drive the green innovations our planet urgently needs.

About the author

Ilya Kazi, Business focussed expert IP advisor. IAM world leading IP strategist. Whether you want the highest level strategic contentious IP work, a trustworthy EP associate. Chartered and European Patent Attorney; EPO Opposition specialist and Higher Courts Litigator. Expertise: >4000 patent applications and ~100 Oppositions and Appeals spanning IT/Telecoms/Software; AI; Semiconductors; Materials/Nanotechnology; Packaging; Cleantech; Energy/Utilities; Capacitors and batteries; Healthcare devices from every conceivable catheter to digital; Aerospace. Litigated patents in IPEC and UK High Court. EPO Appeal Board and legal case experience. Creative IP strategy advice. Large portfolio management👉 Strategic management of diverse assets to optimize returns and balance risk. cost and quality control. Funding, investment, due diligence and exit of growing / early-stage companies.