Graph: Oil Prices and Energy Technology Innovation
Economic theory and common sense would suggest that there is an innovation response to prices. This would appear to hold true for energy. Increased energy prices demonstrate a correlation with energy technology innovation. This might hold some cold comfort at this time, at which the world is experiencing sustained high oil prices.
The graph is drawn from a statistical multi-country analysis of patent data. The authors also surmise that a recent increase in the rate of climate technology innovation is partly associated with increased innovation among Annex-1 parties to the Kyoto Protocol.