Energy Security Drives New Innovation Wave

Why It Matters

Prioritising energy‑security‑driven innovation will determine which economies lead the next wave of low‑carbon technologies, affecting global competitiveness and geopolitical stability.

Key Takeaways

• Energy security tops innovation drivers, surpassing cost and emissions
• Batteries hold 40% of 2023 energy patents, rising further
• Public R&D yields returns multiple times cost despite funding dip
• China, Korea, Japan dominate lithium‑ion battery patent landscape

Pulse Analysis

Energy security has moved from a policy buzzword to the central engine of the global clean‑tech agenda. Governments are reshaping research portfolios to safeguard supply chains and industrial competitiveness, prompting a surge in patents across storage, advanced photovoltaics, and next‑generation geothermal. This shift mirrors broader macro‑economic pressures: volatile fossil‑fuel markets and geopolitical tensions have heightened the urgency for resilient, domestically sourced power solutions, positioning energy innovation as a strategic national asset.

Patent analytics reveal that the energy sector now accounts for about 10 % of all global filings, with battery technologies alone commanding 40 % of those patents in 2023. The dominance of lithium‑ion patents in China, Korea and Japan underscores Asia’s manufacturing edge, while perovskite solar cells capture over 70 % of solar‑cell material patents, signaling a material‑science breakthrough. Yet, despite the robust pipeline, public R&D budgets fell to $55 bn in 2025 and venture capital flows to energy start‑ups dropped to $27 bn, suggesting a funding gap that could slow commercialization unless policy incentives are recalibrated.

For industry leaders and investors, the report’s insights translate into actionable signals. Sustained, well‑targeted public support can amplify the multiplier effect of R&D, delivering economic returns several times the outlay. Regions that align funding with emerging domains—fusion, carbon‑capture, critical minerals—stand to capture early‑mover advantages. Meanwhile, corporations should diversify portfolios toward technologies where private capital remains active, such as advanced batteries and modular geothermal, while lobbying for stable policy frameworks that mitigate the recent dip in public and venture financing. The convergence of security imperatives and technological progress promises a new competitive frontier for economies that can balance innovation incentives with strategic resilience.

Energy security drives new innovation wave

Published 17 February 2026 08:46

The IEA says the global energy innovation landscape is entering a new phase shaped by energy security, industrial competitiveness and infrastructure resilience.

The agency’s latest State of Energy Innovation report finds that energy technologies now represent multi‑trillion‑dollar markets, with around one in ten patents worldwide relating to energy.

The 2026 edition identifies more than 150 major innovation highlights spanning solid‑state air conditioning, perovskite solar cells, fusion energy, sodium‑ion batteries and next‑generation geothermal systems.

The report notes that energy security was the leading driver of innovation in 2025 ahead of affordability and emissions reduction.

IEA executive director Fatih Birol said energy innovation has become a strategic priority for governments worldwide.

“Energy innovation has become a strategic priority for governments around the world,” said Birol. “With energy security and industrial competitiveness at the top of the agenda, countries that sustain investment in research, demonstration and early deployment will be best positioned to lead the next generation of energy technologies.”

The report highlights the impact of public support in enabling technologies such as floating liquefied natural gas, lithium‑ion batteries and next‑generation geothermal.

Energy storage has moved to the forefront of global innovation activity, with batteries accounting for 40 % of all energy patenting in 2023 and the share set to rise further.

China, Korea and Japan remain major sources of lithium‑ion battery patents, while perovskite solar cells now account for more than 70 % of solar‑cell patents by material.

The IEA says comprehensive evaluations of public R&D programmes show economic benefits several times greater than their costs.

However, funding trends are shifting, with public energy R&D spending down 2 % in 2025 to $55 bn and corporate R&D growth slowing to 1 % in 2024.

Venture‑capital investment in energy‑technology start‑ups also declined for the third consecutive year to $27 bn in 2025, with increased competition from artificial‑intelligence ventures weighing on flows.

New growth areas are emerging across fusion, nuclear fission, critical minerals, geothermal, carbon‑dioxide removal and low‑emissions industry.

The report finds regional innovation pathways diverging, with China expanding its footprint in storage and industrial efficiency, Europe approaching record levels of public R&D intensity and the United States remaining a global VC leader.

Japan continues to specialise in batteries while advancing in perovskite solar, hydrogen‑based fuels and fusion.

The IEA stresses that sustained and well‑targeted public support will be essential to align innovation strategies with broader competitiveness and resilience goals.

According to the report, strategic support for energy innovation can deliver transformative economic and security benefits over decades.

The findings will be presented at the 2026 IEA Energy Innovation Forum on 18 February, held on the margins of the IEA Ministerial Meeting.