Invention and Diffusion of Water Supply and Water Efficiency Technologies

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Invention and Diffusion of Water Supply and Water Efficiency Technologies

Invention and diffusion of water supply and water efficiency technologies: Insights from a global patent dataset

There is little doubt that technology – including drip irrigation, drought-resistant crops, rainwater collection, grey-water reuse and water-saving devices for residential water supply – will play a major role in addressing the challenge of global water security. In a recently published paper, we provide the first comprehensive empirical evidence on the geographic distribution and global diffusion of water-related inventions based on a global patent dataset compiled by the authors.1

Our analysis focuses on water availability and considers a wide range of technologies that address both supply-side approaches (e.g. rainwater collection, groundwater collection, water storage, desalination) and demand-side approaches (e.g. water control in agriculture, water efficiency technologies in power production, domestic water recycling, efficient water distribution systems).

We use patent applications as an indicator of invention activity and of international technology diffusion. While we omit some water treatment technologies, in particular those relating to water quality, our data covers most of the technological adaptation options for water supply and demand identified by a recent overview in the context of climate change.2

The dataset is drawn from the  EPO World Patent Statistical Database  (PATSTAT), from which we develop a new patent data set that includes over 50,000 patents filed worldwide in various water-related technologies between 1990 and 2010 (this represents less than 0.2% of all inventions patented worldwide during this period). Despite the limitations of using patents as proxies for invention and technology diffusion, the richness of the information available in patent data allows for an in-depth analysis of inventive activity, international diffusion of technologies, and international collaboration in research.

Three results stand out from our analysis:

First, although invention activity in water-related technologies has been increasing over the last two decades, this growth has been disproportionately concentrated on supply-side technologies, suggesting that market incentives for innovation are stronger in the domain of expanding water resources than in technologies directed at reducing consumption by means of water-efficiency measures.

Differences in underlying characteristics of water demand versus water supply management (market structure, propensity to patent, reliance on technological solutions) might help explain the observed differences in patenting trends. For example, water demand management creates a dilemma for water utilities as it relies on both consumer participation and, in situations of volume-based rate structures like the UK, it compels them to implement actions that result in loss in their own revenue.3 Nevertheless, the challenges posed by water scarcity in the face of a growing population and per capita consumption are unlikely to be solved solely by increasing water pumping and resorting to desalination, a highly energy-intensive technology. More invention on the demand-side is needed.

Second, over 80% of inventions worldwide happen in countries with low or moderate water scarcity (see Figure 1). While this reflects the fact that most developed economies are at the technology frontier and do not face severe water stress, Fig1-300x218.pngit highlights the importance of balancing between providing incentives to innovate through protection of intellectual property and facilitating diffusion of technologies through international technology transfer policies in water-stressed countries.

Some countries with chronic and absolute water scarcity issues, such as Australia, Spain and Israel, seem to be relatively specialized in water efficiency technologies. Moreover, when we look at the  proportion  of inventions targeted at water technologies, we find a positive clustering between specialization in water invention and water scarcity, suggesting that countries with important water scarcity issues – irrespective of their size and their overall invention capabilities – seem to specialize in water efficiency technologies, even if, as shown by Figure 1, their contribution to global water invention efforts are low. This suggests that the development of local R&D capabilities could boost water-scarce countries’ contribution to global innovation.

Third, although we observe a positive clustering between water scarcity and the proportion of local patent filings in water technologies – filed by either domestic or foreign inventors – (Figure 2), some countries with high water availability, in particular Switzerland and Norway, nevertheless appear as significant markets for water-efficiency technologies, suggesting that drivers other than local demand, such as regulation and social and cultural factors, play a key role in explaining the global flows of technologies.

Source: Global Water Forum

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