The UK has developed a leadership position in the global cleantech industry, but is in danger of jeopardising that status due to a lack of investment.
That is the stark warning from Ash Patel, managing director of the European arm of Intel Capital, the investment arm of the global computer chip giant, who this week warned that international competitors would soon overhaul the UK's leadership position if more is not done to nurture cleantech startups.
Speaking in an interview with BusinessGreen.com's sister publication IT Week, Patel said that in terms of cleantech innovation the UK is streets ahead of many of its international counterparts. However, he added that while there are plenty of interesting and innovative ideas being developed in the UK, investment and support is required to ensure they are turned into commercial propositions.
"The UK holds a significant amount of intellectual property in cleantech, but if we don’t invest in it there is a risk that it will be taken over by other countries," he said. "We could potentially give away a lot of wealth-creation opportunities. Investment is all about making sure you capitalise on the good ideas."
The warning comes just weeks after new research from analyst firm Library House revealed that venture capital investment in European cleantech firms slumped by more than half in the first quarter of the year compared with the last quarter of 2007.
The study found that investment in clean tech fell 52 per cent from €255m (£203m) in the last three months of 2007 to €122m in the first quarter of 2008.
Analysts downplayed the figures, arguing that such investment volatility is to be expected in a still immature market. However, with recent research showing that US cleantech investment is continuing to grow rapidly, the findings will have further stoked concerns that European firms are failing to fully exploit the cleantech opportunities on offer.
Cleantech firms could be risking losing investment and partnerships through inadequate patents 03 Nov 2008
Fallout from the Lehman Brothers collapse will result in tighter credit conditions and falling share prices for cleantech firms, but experts are confident that the longer-term outlook still looks solid 16 Sep 2008
Schwarzenegger and co urge delegates at UN talks to follow their lead 10 Dec 2008
Experts claim too many investors lack appetite for backing early stage green firms 26 Sep 2008
Despite financial worries, investment in European cleantech firms is soaring after a sluggish first half of the year, with solar and marine power likely to prove the big winners 18 Sep 2008
Spat over use of green Union flag advertising image could end up in court 06 Jul 2009
New team of auditors and investigators to keep tabs on firms covered by the Carbon Reduction Commitment 06 Jul 2009
More news
As Businessgreen.com launches its new Asia-Pacific site, editor James Murray argues that green business leaders need to develop a more sophisticated view of the continent 06 Jul 2009
From record-breaking solar panels to the International Renewable Energy Agency's new home, we round up the top stories from the past week 03 Jul 2009
Well, I hope they got a no win, no fee deal. I don't like being cynical (it's more of a congenital thing)... 03 Jul 2009 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
