Clean Energy Patent Growth Index: June 2009

The CLEAN ENERGY PATENT GROWTH INDEX (CEPGI), published quarterly by the Cleantech Group at Heslin Rothenberg Farley & Mesiti P.C. provides an indication of the trend of innovative activity in the Clean Energy sector. Results from the first quarter of 2009 reveal the CEPGI to have a value of 243 granted U.S. patents which is down eighteen from the fourth quarter of 2008 and up from a value of 220 in the first quarter of 2008.

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The granting of patents by the United States Patent and Trademark (PTO) is often cited as a measure of the inventive activity and evidence of the effectiveness of research & development investments. Patents are considered to be such an indicator, because to be awarded a patent, it requires not only the efforts of inventors to develop new and non-obvious innovations but also successful handling by patent counsel to shepherd a patent application through the PTO. Thus, the granting of a patent is an indicator that efforts at innovation have been successful and that an innovation had enough perceived value to justify the time and expense in procuring the patent.

The CEPGI (shown below quarterly) tracks the granting of U.S. patents for the following sub-components: Solar, Wind, Hybrid/electric vehicles, Fuel Cells, Hydroelectric, Tidal/wave, Geothermal, Biomass/biofuels and other clean renewable energy.

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The components breakdown of the CEPGI continues to show fuel cells dominating the other components in absolute numbers. A downward trend for fuel cells continued for the second consecutive quarter with a decrease of 7 issued fuel cell patents relative to the fourth quarter to 133. Granted wind (34) and solar patents (30) both fell compared to the fourth quarter with wind patents dropping to a level not seen since 2007 and solar patents returning to a level reached four other times since 2002. Hybrid/electric vehicle patents rose slightly (up 2 relative to the fourth quarter), and were up for the third quarter in a row, to tie the number of granted solar patents this quarter. Biofuel patents were up 3 relative to the fourth quarter almost reaching an all time high (off 1), and geothermal patents were up slightly. Also, tidal/wave energy granted patents dropped five relative to the fourth quarter.

Honda took the Clean Energy Patent crown from GM, the 4th quarter leader, and led clean energy patent owners in the first quarter with 23 granted patents beating out GM and Toyota, both with 13. All three car companies dominated with continued high numbers of patents in fuel cells and smaller numbers in hybrid/electric vehicles. Panasonic Corp. followed with 12 patents (10 in fuel cells, 2 in solar), while only having 6 in the entire seven-year period from 2002-2008. GE rounded out the top five with 6 more patents (5 in wind, 1 in fuel cells). Samsung SDI Co. and Aloys Wobben (head of Enercon GmbH) each had 5 patents (fuel cell for Samsung and wind for Enercon). Also in the top ten were Genedics LLC (2 wind, 2 solar), receiving its first patents in the tracking period of the CEPGI, and Nissan (2 fuel cell, 2 hybrid/electric vehicle).

As depicted in the graphs below, Japan increased its number of granted clean energy U.S. patents sharply in the first quarter to 78 granted patents (up 16 relative to the fourth quarter) and continued to lead the U.S. states and other countries which have historically contended for the geographical clean energy patent crown. As is evident from the graphs below, Michigan was down (-8 relative to the fourth quarter) to 16 at a level last seen in 2005 followed by New York down 6 to 13 as last seen in 2005. Germany was down 4 relative to the fourth quarter at 19 issued clean energy patents and California held steady at 19, equal to the fourth quarter. South Korea was up three relative to the fourth quarter at 9 granted clean energy patents. Canada fell to 7, down 2. Connecticut fell to the lowest level since the first quarter of 2002 at two issued clean energy patents.