Innovation policies: The role of emerging countries

Technological innovation in the energy sector plays an important role in contributing to global security of supply. However, little research has been conducted on the interplay between fossil fuel rents — the difference between resource production at world prices and their total cost in percentage of gross domestic product (GDP) — and research and development (R&D) expenditure, particularly in developing economies. Now, Elina Brutschin from Webster University and Andreas Fleig from Heidelberg University use a Poisson process to model R&D expenditure and patent grants in 116 countries between 1980 and 2012, finding that countries such as China, Brazil, India and Turkey represent a growing share of patent activities in the energy sector.