1. Energy Technology Innovation
Kelly Sims Gallagher, Ph.D.
Director, Energy Technology Innovation Project Kennedy School of Government, Harvard University
February 18, 2007

2. Outline The process of energy-technology innovation (ETI)
Global investments in ETI
Chinese investments in ETI
U.S. government investments in ETI
Concluding thoughts

3. “Stages” of Innovation
R&D
Research
Development
Demonstration
Deployment
Early deployment
Widespread diffusion and uptake by market
RD3

4. Dynamic Process Government
Research Development Demonstration Deployment

5. Measuring Energy Innovation
Quantitative vs. qualitative metrics
Input metrics
Output metrics
Outcome metrics

6. Carbon Factor
(carbon emissions per unit of energy use)

7. Global Investments in Energy Innovation

8. Public vs. Private No international data
Best estimate is that private industry accounts for 2/3 of energy RD&D in the United States (NRC report: Energy Research at DOE: Was It Worth It
National Science Foundation’s annual survey of industrial R&D shows an almost continuous decline in the 1980s and 1990s, with the 1999 levels about one-fifth of the peak value in 1980 (in real terms).
What about venture capital?

9. Global Investments
Source: Gallagher, Holdren, and Sagar 2006, “Energy-Technology Innovation” Annual Review of Environment and Resources, 31:

10. China’s Investments
During the Eleventh Five-Year Plan (starting Sept. 2006) MOST budget authority for energy research, development, & demonstration is about 3.5 billion RMB (approx. $425 million).
Budget authority for advanced coal technology is about 0.7 billion RMB (approx. $85 million). It accounts for 21 percent of the total budget.
5 coal co-production and gasification demonstration projects planned

11. Source: Dr. Lifeng ZHAO, ETIP, Harvard University

12. U.S. Government Investments in Energy RD&D

15. Concluding Thoughts

16. Thanks
ETIP is currently supported by the William and Flora Hewlett Foundation, U.S. Energy Foundation, U.S. Environmental Protection Agency Office of Transportation and Air Quality, Winslow Foundation, and an unrestricted gift from Shell Exploration and Production.