California’s lead in the global clean technology race is growing and that leadership is supporting the state’s economic rebound, while also driving California’s ability to cut emissions, according to a new study by the nonprofit nonpartisan group Next 10 and compiled by Collaborative Economics Inc. of San Mateo.
“We think there’s something happening here that’s pretty exciting in terms of investment, which we think is private investment,” says Doug Henton, chairman and chief executive officer of Collaborative Economics and author of the report.
(Listen to CVBT’s exclusive audio interview with Mr. Henton about the report by clicking on the link at the end of this article.)
The report, the fourth since 2008, tracks the economic impacts of policies that help reduce carbon emissions in California. This latest edition finds that California is setting an accelerating pace for the United States in terms of venture capital (VC) investment, clean tech patent registration, energy productivity levels and renewable energy generation levels.
From 2010 to 2011, clean tech investment in California rose by 24 percent to reach $3.5billion, and clean tech patent registration increased by 41 percent from the period 2005-2007 to 2008-2010.
“VC investment and patent filings are two economic indicators that signal positive future growth in terms of jobs and businesses,” says F. Noel Perry, businessman and founder of Next 10. “California’s commitment to an economy that is cleaner will also give us an economy that is stronger.”
The report also finds that renewable energy generation levels reached new heights in 2010, accounting for 13.7 percent of the state’s energy portfolio. This year, in the wake of the Solyndra bankruptcy, the report examines the state’s solar industry.
Key solar sector findings include:
• In 2011, the state earned 62 percent of total worldwide VC investment in solar, representing $1.2 billion.
• 105 patents were registered in California in 2010 in solar and related processes — that represents a doubling of registrations since 2009.
• In 2011, California surpassed 1,000 MW of installed solar capacity, putting the state among the top solar adopting countries in the world.
• From January 1995-January 2010, 1,503 solar businesses were born in California, an increase of 171percent.
• From January1995-January 2010, employment in the solar sector rose 166 percent with solar installation and contracting jobs representing the bulk of new growth.
“Despite what we heard in the news this year, the data show that Solyndra’s story is not the story of solar in California,” says Mr. Perry. “California’s solar industry is recording significant growth and innovation that is being driven by our world class entrepreneurs, savvy population of early adopters and our forward-looking policies.”