Underinvestment: The energy technology and R&D policy challenge

This Viewpoint examines data on international trends in energy research and development (R&D) funding, patterns of U.S. energy technology patents and R&D funding, and U.S. R&D intensities across selected sectors. The data pre sent a disturbing picture: (i) Energy technology funding Levels have declin ed significantly during the past two decades throughout the industrial worl d; (ii) U.S. R&D spending and patents. both overall and in the energy secto r, have been highly correlated during the past two decades; and (iii) the R &D intensity of the U.S. energy sector is extremely Low. It is argued that recent cutbacks in energy R&D are Likely to reduce the capacity of the ener gy sector to innovate. The trends are particularly troubling given the need for increased international capacity to respond to emerging risks such as global climate change.