FinancingandcommercialisationofcleantechinnovationApril2024FINANCINGANDCOMMERCIALISATIONOFCLEANTECHINNOVATION02ForewordTheglobalshifttowardssustainabilityhasbroughtthegreentransitiontotheforefrontoftheEuropeanagenda,withtheEUGreenDealleadingtheway.IfEuropeistobeclimate-neutralby2050,thenourindustriesmustbetransformedinthisprocess.Innovationinnew,cleanertechnologiesispivotalinthiscontexttoreshapeEurope’seconomyandensureitssustainedcompetitiveness,requiringingenuityandinvestment.Withthisstudy,theEuropeanInvestmentBank(EIB)andtheEuropeanPatentOffice(EPO)haveteameduptoofferkeyinsightsintoEurope’spositionintheglobalraceforinnovationincleanandsustainabletechnologies.Thisstudyfocusesoncompaniesthatarecommercialisingnovelpatentedtechnologies,therebysheddinglightonthecentralplayersoftheEuropeanUnion’scleantechecosystems.ItbenchmarksthemagainsttheirpeersinotherEuropeancountriesandtheUnitedStates,usingthecombinedexpertiseoftheEIBandtheEPOtodocumenttheirfinancingandpatentingprofiles.Patentprotectioniskeyforcompaniesthatinvestininnovation.AsthepatentofficeforEurope,theEPOprovideshighqualitypatentstoprotectinnovationinupto39memberstates(includingall27EUmemberstates).Itisattheforefrontoftechnologicalprogress,classifyingandpublishingmillionsofpatentdocumentsinawiderangeoffields.Importantly,patentsbenefitnotonlylargemultinationalcompanies,butsmallerfirmsandevenuniversityresearch.Thisreportclearlyshowsthattheyarecriticalassetsforsmallercleantechcompaniestoattractinvestorsandraisefunding(EPO-EUIPO,2023),withaviewtocommercialisingnewtechnology.IntheEuropeanUnion,innovativefirmssufferfromalackofsuitablefinance,whichlimitscompanies’abilitytogrow.Cleantechinnovatorsarenotanexception.Underdevelopedcapitalmarketsarepartoftheexplanation,withtheEUfinancialsectorbeinglargelybankbased.TheEuropeanInvestmentBankGroup,comprisingtheEuropeanInvestmentBank(EIB)andtheEuropeanInvestmentFund(EIF),isattheforefrontintermsofaddressingthischallenge.Astheworld’slargestmultilateralfinancinginstitution,theEIBGrouplentnearlyEUR88billionaroundtheworldin2023alone,withmorethanhalfofitgoingtoclimateactionandenvironmentalsustainability.TheEIBGroupsupportsadiversespectrumofplayers,fromstartupstowell-establishedcorporations,throughmechanismsrangingfromloansandguaranteestobanks,directfinancingandguarantees,seedcapital,venturecapitalsupport,tostrategicventuredebtforsmallandmedium-sizedenterprises(SMEs).Withtheaimofclosingthescale-upfinancinggap,theEIBGrouphaslaunchedtheEuropeanTechChampionsInitiative(ETCI),afundoffundsmanagedbytheEIF,andtheEIBScale-UpInitiative(ESI),withafocusonquasi-equityproducts.ThefindingspresentedinthisstudyconfirmtherelevanceoffocusingonEuropeancleantechinnovatorsasacoherentcohort.EuropeanfirmsthatcommercialisepatentedtechnologytypicallyaimtoscaleupfromtheirdomesticmarkettotheEUsinglemarket.SinceJune2023,theyhavebeenabletousethebroadgeographicprotectionofferedbytheUnitaryPatentforthatpurpose.AsEuropeancleantechinnovatorsclearlyseetheirfutureintheEUmarket,awell-functioningsinglemarketandcoherentregulationemergeascrucialassetstoexploitthefullpotentialoftheEuropeanUnionincleantechinnovation.YannMénièreChiefEconomist,EPODeboraRevoltellaChiefEconomist,EIB<Tableofcontents|Executivesummary|Content|AnnexFINANCINGANDCOMMERCIALISATIONOFCLEANTECHINNOVATION03TableofcontentsForeword02Listoftablesandfigures0...