Protect Your Cleantech - IP May Play A Role In Determining Who Leads The Pack

With Vancouver named one of the top 10, "New Silicon Valleys" of the clean tech industry, worldwide that is, the role of innovation and the associated pitfalls is on my mind these days. Burnaby based, Ballard Power Systems may be said to have pioneered the fuel cell industry and ex employees are busily creating new companies and uses for the technology.

In the midst of all of this activity certain essential tasks associated with successful innovation can be overlooked. In any rapidly evolving industry, inevitably innovation will overlap and application of existing technologies will tend to be "discovered" by several, if not many different companies. So, it is in cleantech.

That activity that will play such an important role in the ultimate success of a clean technology product turns out to be protection of intellectual capital.

I've written before about the importance of intellectual property protection. A post Mass High Tech.com, Energy, Clean Tech and IP: Protecting Innovation, speaks specifically to the challenges firms in the cleantech industry face.

While an important component to any technology-based company's success, intellectual property is especially important for "clean tech" ventures encompassing energy or environmentally related technologies.

For clean tech companies, it's important to note that investors consider strong IP essential for both first to market companies and those that follow (to protect a key technology for later market entry or licensing/acquisition.)

Cleantech is, of course, an umbrella term that encompasses a wide variety of technologies and spans a variety of different industries. The rationale for application of intellectual property protection therefore varies by industry. Does it promote investor confidence? Is it important as a defensive strategy? Can it be used to encourage licensing down the road?

Clearly, whether or not the reason is immediately obvious, innovators in the space need to take steps early on to protect technological innovation and continue to revisit the applicability of those technologies as the company grows and the discovers new uses for existing patented processes.

Similarly, don't dismiss patent protection for clean tech ventures with a long time-frame to market or long technology lifespan. Strategic patent filing approaches may be available in some jurisdictions, increasing patent enforcement life, for example, until the effort reaches a certain state of commercial viability. It's also possible to file initial applications relating to core aspects of the technology, then stagger subsequent filings for incremental changes.

Like the early days of the dotcom boom, intellectual property protection will play a big role in who turns out to be the winners and the losers in cleantech. Those companies which use forethought and innovative thinking, in every aspect of their business, including legal protection, will be much better positioned to be on the winning end. As new uses for the current technology, as well as, new applications for technologies currently in development arise, appropriate intellectual property protection will be key.

I know I sound like an advertisement for the legal profession, but in an industry highly dependent on break through innovation, the appropriate IP may be the deciding point between leadership and second place.

Why Vancouver - The City's Surprising Rebirth as an Innovation Centre

Does Silicon Valley in California come to mind when I mention innovation? How about Boston or the Research Triangle in North Carolina?

How about Vancouver?

Traditionally a western outpost far from the major city centers of Toronto and Montreal, In Canada, Vancouver as often played second fiddle. Yes, it's a large metropolis but, compared to the large companies of Eastern Canada, Vancouver was a backwater devoted to mining and timber.

No Longer.

Increasingly fast growing high tech companies are locating major operations in Vancouver. Microsoft recently opened a new development center where software engineers and developers will work on over half of Microsoft's products. And of course, Vancouver is home to a thriving cleantech community.

Sure, Vancouver's proximity to high tech centers in Washington and California plays a part, but that's not the only reason. So, what makes Vancouver so special? The cost of living is high as compared to many Canadian and US cities. It's a long way from San Francisco and New York. It's not all that well known on the international scene, though that is changing.

Probably the better question is what makes any city good for innovation.

Jeffrey Chu, of Fast Company in a podcast discusses some of What Makes a City Fast. Chu cites a confluence of different factors including diversity and in migration. Both of which characterize Vancouver. He goes on, in a specific piece, Fast Cities - 2007 discussing Vancouver, that besides being named one of the world's most livable cities in a Mercer survey...

Its EcoDensity initiative aims to focus that growth by developing more crowded neighborhoods at the city center. The dual goal: to build sustainable neighborhoods with the scale to make green energy technologies affordable and to preserve surrounding forest and mountain ecosystems.

Our take is that Vancouver has much of what is needed to support thriving companies. Our diverse population brings an international flavor. Like many West Coast cities, proximity to the Far East and Far Eastern manufacturing centers has brought a highly educated foreign workforce to our shores. The relatively mild climate has made them stay, bringing diverse perspectives on life and on business, a key for successful innovation as we've mentioned in previous posts.

Vancouver's highly skilled workforce and established technology companies like Electronic Arts has attracted other and often younger workers to the city and created a cultural center with nightlife and activates that attract still more workers.

Vancouver's proximity to major tech centers in the US plays an important role as well as we've mentioned, but there's more. Canadian government support for development of newer, innovative industries and the spotlight that has turned to Vancouver, as host of the 2010 Olympic Games has encouraged companies to take another look at the city.

We believe that cities that are prepared to host innovation in the 21^st need to be diverse, green, creative and influential. Vancouver is certainly one of them.