Analyzing Trends in Smart Grid Technology Innovation: A Focus on Specialization and Patent Quality
The global push for a cleaner energy sector has led to a surge in smart grid technology innovation, with a recent report highlighting key trends in the field. In 2011, there was a peak in smart grid inventions, with 2,000 unique innovations representing 11% of all power sector innovations. While there was a slight decline in the following years, the relative share of smart grid innovations has increased to 13% in 2022, aligning with the trajectory of the IEA Net Zero by 2050 Scenario.
One of the key areas of focus in smart grid technology has been monitoring and controlling equipment for energy generation units, as well as supporting power network operation or management. In 2020, these technologies accounted for 41% of total smart grid patent registrations, reflecting the increased capital investment in power equipment in recent years.
East Asia, particularly Japan and China, has emerged as a dominant force in smart grid innovation, accounting for over half of all inventions in the sector. North America, mainly the United States, and Western Europe, mainly Germany, also play significant roles in driving innovation in smart grid technologies.
Over the past two decades, there has been a shift in the geographical distribution of smart grid innovation, with Asia taking on a more prominent role. More than 40% of smart grid innovation is concentrated in ten cities worldwide, with Tokyo, Seoul, Beijing, Nagoya, Nuremberg, and the San Francisco Bay Area emerging as top metropolitan areas for innovation.
Europe has emerged as a hub for smart grid technology specialisation, as indicated by the Revealed Technological Advantage (RTA). On the other hand, Japan, the United States, and China show lower RTAs, suggesting a lack of distinct specialisation in smart grid innovation despite their significant efforts in the field.
While the number of family size patents in smart grid inventions has decreased in recent years, patent claims have increased since 2009. This trend indicates a shift towards more valuable inventions and suggests a growing market value for smart grid technologies in the coming years.