Clean Energy Patent Growth Index: CLEAN ENERGY PATENT GROWTH INDEX 3rd Quarter 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 second quarter of 2009 reveal the CEPGI to have a value of 274 granted U.S. patents which is the highest quarterly value since the tracking of the CEPGI began, along with being up 31 from the first quarter of 2009 and up from a value of 217 in the second 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 shows fuel cells up 1 granted patent relative to the second quarter at 157, the highest level since the first quarter of 2005. As is evident from the chart, fuel cell patents dominate the other components of the CEPGI in absolute numbers and in the third quarter were at a level greater than a combination of all the granted patents in the other sectors. Granted wind (35) and solar patents (33) continued to converge in the third quarter to within two of each other. Wind patents were down 8 relative to the second quarter (43) and up 3 compared to a year prior. Solar patents were down 3 compared to the second quarter and up 20 relative the third quarter (36) of 2008 which was a record low. Hybrid/electric vehicle patents (22) were up 2 from the second quarter returning to an upward trend after a big drop in the second quarter which ended a three quarter streak of gains. Biofuel patents tied the second highest number of patents granted in a quarter (11), which last occurred in the third quarter of 2007. Biofuel patents were down two from the all time quarterly high of 13 in the second quarter and up 8 over the same period in 2008. Geothermal patents (5) reached an all time quarterly high, which was up three over the second quarter of this year and the third quarter of 2008. Also, Tidal/Wave Energy granted patents (9) were up 1 over the second quarter and up 5 compared to the same period of the year before.

Toyota snatched the quarterly Clean Energy Patent crown from perennial holder Honda primarily based on its fuel cell (12) showing with an assist from its hybrid/electric vehicle (3) patents. Upstart Nissan tied GM for second place with 14 patents in fuel cell (11) and hybrid/electric vehicle (3) patents. GM had clean energy patents in both the fuel cell (10) and hybrid/electric vehicle (4) sectors. Honda and Samsung trailed GM by two. Honda’s patents were in fuel cells (11) and hybrid/electric vehicle (1) patents while Samsung’s were in fuel cells (11) and solar (1). GE followed with 4 fuel cell and 4 wind patents. Panasonic Corp. again followed GE this quarter with 5 fuel cell and 1 solar patent adding to its 17 earlier patents this year, while only having 6 in the entire seven-year period from 2002-2008. Toshiba had 5 fuel cell patents while Ford added 2 fuel cell patents and 3 hybrid/electric vehicle patents. Denso Corp., an automotive technology supplier from Japan, had 2 fuel cell and 2 hybrid/electric vehicle patents. Nordex Energy GmbH and Aloys Wobben of Enercon GmbH each had 4 wind patents. Nan Ya Printed Circuit Board Corporation and Delphi Technologies each had 4 fuel cell patents. If Delphi (4) had still been a division of General Motors then GM would have led the field by 3 patents with 18.

As depicted below in the geographic charts, Japan held steady relative to the last quarter at 75 granted clean energy patents to again lead the geographic areas tracked, which is up 18 over the same period in 2008, to again claim the geographical clean energy patent crown. California was again second with 25 granted Clean Energy patents, down 4 over the second quarter and up 10 over the second quarter of 2008. Michigan (down 6 from the same period in 2008) and Germany (up 6 over 2008) again tied for third with an identical 23 granted patents as in the second quarter. Korea (up 6 over the second quarter and 14 over 2008) beat New York with 21 clean energy patents. New York had 13 patents, which is down 2 from the second quarter and down 9 over the same period of 2008. Canada had 4 patents down 3 from the second quarter results and down one over the third quarter of last year. Connecticut trailed Canada with 5 granted clean energy patents, down one from the second quarter and the third quarter of 2008.