Setting the Right Innovation Incentives for Europe’s Green Transition

31 Pages Posted: 6 Jul 2023 Last revised: 12 Jul 2023

See all articles by Jörg Hoffmann

Jörg Hoffmann

Max Planck Law Network - Max Planck Institute for Innovation and Competition

Date Written: June 26, 2023

Abstract

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.

Keywords: Green Deal, EU’s Green Transition, Sustainability, Climate Change Mitigation, Innovation, Incentives, Patent Law, Competition Law, Markets, Fundamental Research

Suggested Citation

Hoffmann, Jörg, Setting the Right Innovation Incentives for Europe’s Green Transition (June 26, 2023). Max Planck Institute for Innovation & Competition Research Paper No. 23-13, Available at SSRN: https://ssrn.com/abstract=4493903 or http://dx.doi.org/10.2139/ssrn.4493903

Jörg Hoffmann (Contact Author)

Max Planck Law Network - Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

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