Patent Data as a Means of Evaluating Alternative Energy Technology Policy
Abstract
This article challenges the prevailing narrative that China has surpassed the United States and other Western nations in green energy innovation. While conventional wisdom frequently cites China’s dominance in manufacturing and its impressive volume of patent filings in solar and wind technologies as evidence of technological leadership, this analysis demonstrates that such a view is misleading. We introduce a novel, bottom-up methodology that uses network analysis of global patent data to evaluate patent quality through eigenvector centrality, rather than relying on mere quantity or top-down classifications. Examining solar, wind, and hydraulic fracturing technologies, we find that the United States continues to lead decisively in developing the most valuable and impactful innovations. U.S. patents consistently show higher quality, are more broadly distributed across technology clusters, and exhibit greater technological depth. Our findings reveal a critical disconnect: policies that drive manufacturing and market deployment do not necessarily translate into sustained innovation leadership. This study underscores the importance of distinguishing between manufacturing competence and innovation capability, providing a new tool for policymakers to assess where valuable innovation is actually occurring and to formulate more effective technology policy.
Read the full piece at SSRN.