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.
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