Environmental policy, technological innovation and patent activity

Technological innovation can allow for the realisation of environmental objectives in a manner which is less costly than would otherwise be the case. As such, understanding the role that technological innovation can play in achieving environmental objectives is important for policy debates. This chapter provides a review of the theory and evidence with respect to the role that environmental policies can play in inducing innovation, and provides an introduction to case studies undertaken. On the basis of patent data, the nature, extent, and causes of innovation with respect to renewable energy, wastewater treatment and motor vehicle emissions control were explored. While particular focus has been placed on the role of public policy in bringing about the innovation documented, it is recognised that other factors play a key role in inducing innovation which has positive environmental implications.