Intellectual property rights, technology development and market dynamics in the renewable energy sector

Abstract

In the transition from fossil energy to renewable energy, innovation and thus the patent system, plays an important role. Using the solar photovoltaic (“PV”) industry as an example, this chapter presents a coherent approach to energy and innovation policy, necessary due to the externalities of the technology neutrality of patent law. Patent law inadequately incentivizes and fails to prioritize innovation in renewable energy technologies over fossil technologies. Furthermore, patent law does not stimulate sustainability in the renewable energy industry as such, evidenced by the reliance on coal-fired utilities in production of solar PV systems. The research question is whether an overreaching goal of sustainability can or should be part of the patent system. Energy or environmental policies that support sustainability in the dynamics of the market will indirectly include sustainability in patent law, as market dynamics are integrated in the normative rationale of patent law. The chapter discusses how such policies can support the functions of patent law, and drive innovation in renewable energy technologies to ensure that energy and industry markets are sustainable.