Canada ranks 4th in new global cleantech index

TORONTO, June 14, 2017 /CNW/ – Canada has jumped to fourth place globally in the 2017 Global Cleantech Innovation Index (GCII), scoring first for funding available and second for early entrepreneurship to improve three spots from the previous index in 2014.

For cleantech-specific drivers, Canada scores high for the number of cleantech funds, but there are only a few cleantech organizations and clusters. The country is a joint top-scorer for the amount of venture capital investment, together with three other countries in the index, while also having many companies in the Global Cleantech 100. Late-stage investment is well established in Canada, with the country ranking high for public cleantech companies and merger and acquisition activity, leading to a strong score for evidence of commercialized cleantech.

Late-stage investment is well established in Canada, with the country ranking high for public cleantech companies and merger and acquisition activity, leading to a strong score for evidence of commercialized cleantech.

Globally, the Nordic region has the strongest cleantech start-up creation leadership for the first time. The region provides the best conditions today for clean technology start-up creation according to the third edition of the Global Cleantech Innovation Index.

The report was released this week by Cleantech Group and global conservation organization WWF with support from partners United Nations Industrial Development Organization (UNIDO), Asian Development Bank (ADB), The Swedish Agency for Economic and Regional Growth and the Swedish Energy Agency.

The top three positions are held by Denmark, Finland and Sweden. All three appear to be gearing up for additional growth with increases in the numbers and amount of cleantech funds.

The lowest scoring Nordic country is Norway. There are challenges for Norway, but it is also the country with highest cleantech R&D budgets in 2013-15. The world would invest roughly four times more in cleantech R&D if it adopted the same level of cleantech R&D per GDP as Norway.

Poland has the biggest change from the 2014 Index, rising 13 places to 24th. This is mainly due to three notable increases in cleantech-specific drivers. Poland’s public cleantech R&D expenditure now sits at the global average, having been in last place three years ago. The country has also improved as a more attractive destination for renewable energy investments than before and moved up 16 places in measurement of cleantech patent filings.

The study covers 40 countries, including all of the G20. The index demonstrates that countries get ahead if they are:

• Able to adapt to the growing demand for renewable energy (at home and abroad);
• Connecting start-ups with multiple channels (e.g. multinational corporates, public procurement) to increase their success rates; and
• Increasing international engagement to spur widespread adoption of clean technologies.

The GCII identifies three country archetypes in the cleantech innovation landscape: the Top Innovation Ecosystem Creators, Start-Up Generators and the Strong Commercializers:

• The top innovation ecosystem creators are countries that scored very well across the board, but particularly well in both general and cleantech-specific drivers in the 2013-2016 period by providing the underlying parameters, incentives, and necessary support for a thriving cleantech innovation ecosystem. We see Denmark, Sweden and USA having these characteristics in the period researched.
• The cleantech start-up generators are countries that score well in all indicators, but score exceptionally well when it comes to producing patents for new cleantech innovations and venture capital to finance new business. Israel, Finland and Canada are economies that show these characteristics.
• The cleantech commercializers are countries that are scoring well in all indicators and drivers whilst well above average on market sophistication, size and finance to scale emerging cleantech innovations and create jobs. They have very high cleantech innovation conversion rates, i.e. are efficient in turning inputs to innovation into outputs in the economy. Countries like Germany, Singapore and South Korea display these characteristics.

The GCII also shows there is strong emerging convergence between clean transportation, energy efficiency and renewable energy, last year accounting for two thirds of early-stage venture capital investments, and a similar proportion of green bonds.  This emerging trend is crucial to accelerate towards achieving universal energy access by

This emerging trend is crucial to accelerate towards achieving universal energy access by 2030, and facilitate a just transition to a sustainable and fossil fuel-free energy system by 2050.

The report identifies a positive correlation between inputs to innovation and outputs of innovation. Countries that are facilitating investments in innovation, either through public R&D, cleantech-friendly policies, or any other of the inputs measured, tend to also reap benefits. These come in the form of commercialization of cleantech companies in terms of jobs, exports and growing numbers of publically traded companies showing strong growth in order to reduce environmental pressure.

Read more at the  Global Cleantech Innovation Index – Home