Technology Diffusion through Intellectual Property Rights: Innovating to Combat Climate Change

"The technological revolution required by climate action, aimed at mitigating the impact of climate change, can be achieved by existing technology, but would benefit immensely from continued innovation to lower costs. Such a revolution will enable developing countries to ‘leapfrog’ technologies prevalent in developed countries. However, the sheer scale of investment required necessitates the wholesale participation of the private sector, motivated to innovate by intellectual property rights (IPRs). This paper shows evidence that IPRs can accelerate the diffusion and transfer of new climate-friendly technologies, and that their benefits are greater than their costs."