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Research Papers
Intellectual Property and Competition Law

Setting the Right Innovation Incentives for Europe’s Green Transition

Hoffmann, JörgSetting the Right Innovation Incentives for Europe’s Green Transition (Max Planck Institute for Innovation & Competition Research Paper, No. 23-13), 2023, 31 pp.

Climate change poses a significant challenge to humanity. Building cleantech innovation systems and spurring innovation in Europe is critical to the revitalisation of the European economy to create long-term sustainable prosperity. Providing incentives for innovation is one of the key priorities of the EU climate policy. Yet, it is crucial to determine, which legal measures provide the right incentives for developing climate change technology. Market-based incentive mechanisms enabled by patent law and maintained by competition law may foster innovation. Does this hold true for a required green transition of the European economy currently proclaimed under the EU climate policy? What are the drawbacks and the limits? What guideposts should the EU follow in order to meet its climate goals? This contribution sheds light on those questions. It argues that the reasons that hold back patent and competition laws’ potential in accelerating “green” innovation are rather old wine in new bottles. The multiple crises do not require a specific redesign of patent and competition law and its dogmatic foundations in order to attain the European climate goals. One needs action and must address the still existing legal issues. This contribution outlines specific recommendations in this regard.

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