Author: Katherine Linton

Publisher:

Published: 2013

Total Pages: 0

ISBN-13:

This study provides a profile of innovation in industrial biotechnology, an emerging field characterized by the use of enzymes, micro-organisms, and other biocatalysts to create new products. Industrial biotechnology is used to make biofuels, chemicals, and other products in more sustainable and environmentally friendly ways by, for example, enabling the use of renewable resources rather than petroleum-based products, eliminating harmful byproducts created by conventional chemical processes, reducing energy requirements and greenhouse gas emissions, and/or lowering manufacturing costs. Because of these positive attributes, the demand for industrial biotechnology products and processes is increasing. This study uses patent data, survey results, and technology and firm level data from emerging sectors of industrial biotechnology to provide a detailed picture of innovation in the field. It builds on a recent report of the U.S. International Trade Commission (Commission or USITC) on the development and adoption of industrial biotechnology by the U.S. chemical and biofuel industries. Although patents have been shown to facilitate the movement of new products and processes from research and development (R&D) to commercialization, the literature has raised the question of whether too much patenting stifles innovation. This can occur, for example, when firms amass huge patent portfolios or when there are a very large number of patents in a narrow technology area, making it difficult for companies entering the market to find patentable space. Evidence considered in this study suggests that patents are not stifling innovation in industrial biotechnology. A diverse group of firms, large and small, is developing new patented products and processes, and new players are steadily entering the field. Strategic alliances between and among firms, the government, and universities also are prevalent. Moreover, as noted in the Commission's recent report, firms surveyed in the biofuel and chemical industries state that patent barriers are not creating a substantial impediment to the R&D or commercialization of their products and processes. These data suggest that patents are facilitating innovation in industrial biotechnology. These findings are consistent with those from broader studies of clean energy technologies which generally find that patent rights do not appear to be thwarting firms in developing countries like China and India from accessing and improving new technologies. No single firm or country dominates the market for particular renewable energy technologies; to the contrary, there is a relatively low degree of market concentration with new entrants joining the field on a regular basis. An emerging literature suggests that the patent system is working to facilitate innovation and the transfer of technology between firms in new technology fields.