To better understand the opportunities and challenges facing the Canadian forest bioeconomy, Foresight partnered with New Ventures BC and UnitedLex to develop a Forest Bioeconomy Landscape Study, which looks at the global innovations ecosystem around forestry and the bioeconomy, building off our Ventures to Value Chains report.
The forest bioeconomy is a complex and dynamic landscape. Canada is the world’s second-largest forest products exporter. The sector is a large contributor to Canada’s real GDP and has historically been a crucial economic driver for many regions across the country.
The forestry sector is particularly integral to the province of BC, contributing over $17 billion to the province's GDP and employing nearly 50,000 people. In fact, BC has more certified forest land than any other jurisdiction in the world—with the exception of Canada as a whole—ensuring a sustainable biomass supply chain to support the bioeconomy.
To maintain Canada’s status as a global supplier of forestry products it is imperative that we embrace innovation as the market changes and demand for new products like biofuels, biochemicals, and biomaterials grows. Additionally, it is essential to safeguard these innovations by securing intellectual property rights and patents to protect our advancements and maintain our competitive edge. One of the ways we can accomplish this is to examine and quantify the patent landscape, giving us a deeper understanding of how innovation is progressing in Canada, and globally.
Globally, Canada ranks 9th in number of forestry patent assets, holding roughly 150 compared to China's 14,228.
China is followed by Korea with 1,012, the United States (US) with 580, India with 273, and Europe with 213. Canada has significantly fewer filings than these other key jurisdictions. Over the past five years, the average number of filings in Canada has been approximately 11. In contrast, Korea and the US have average filings of around 79 and 61, respectively, during the same period.
If BC and Canada want to ensure the longevity of the forest bioeconomy sector, innovators must have the tools they need to protect their IP. The Forest Bioeconomy Landscape Study is a foundational document that innovators, industry members, and governments can use to strategically plan and advance the sector, and contains actionable insights, opportunities, and risks to be aware of for companies operating in the industry.
Key Findings: Opportunities & Risks
Protect Your Innovations by Filing Patents
A defensive patent portfolio can protect your innovations, and give you freedom to operate in the marketplace. Having protected IP can give you a competitive advantage in the Canadian and global markets. It can help attract investors, who are far more likely to invest in technologies that cannot be infringed upon or copied by competitors. Preferred jurisdictions to file patents in are Canada, the U.S., and the European Union.
Freedom to Operate Risks Globally
Securing your IP is a mechanism that ensures you will have the freedom to operate in the marketplace without having your technology stolen. Currently, there are strong patent protections in the U.S., China, and EU, while Canada is considered weak in patent protection. These conditions can make it much harder for ventures to operate in other jurisdictions, as there is a larger probability of patent infringement and higher competition. It is imperative that innovators do due diligence before expanding operations into other countries and approach each new market with a tailored approach based on that country’s laws and regulations.
Increase Collaborative Efforts
Many innovations in the sector are designed to eliminate waste streams, increase productivity, use fewer resources, and reduce emissions. These partnerships can be economically beneficial for all parties involved and can provide access to secure IP assets, additional resources, and talent. Investing in these partnerships can lead to further innovations.
Litigation Risks
While compiling the report, UnitedLex observed ongoing patent litigation in the bioeconomy sector. Lawsuits relating to patent infringement can be lengthy and costly and can be avoided by obtaining patent licenses for relevant products and understanding the competitive landscape before entering the marketplace with a new product. Litigation can limit sales, lead to loss of revenues, and drive customers away. It can be a death sentence for smaller ventures with limited resources and very difficult to regain momentum after the litigation is complete. It is therefore a best practice to approach IP protection defensively.
Watch the Market for New Innovations
Patent filings are increasing every year, and monitoring what’s being filed will give good insights into where the market is heading. Monitoring patent filings can help determine new areas for innovation, discover new opportunities for existing technologies, and equip you with knowledge about potential risks and competitors.
Highly Competitive Landscape
The forest bioeconomy sector is highly competitive, with new startups emerging each year. These conditions make it difficult for new entrants to attract investment, find customers, and achieve growth. Having unique product features and understanding the competitive landscape can give ventures an edge, allowing them to make strategic business decisions and forecast upcoming opportunities.
Consider Partnerships with Academic Institutions
Globally, universities file 5,000 to 6,000 patents each year in each of the modules covered in the Forest Bioeconomy Landscape Study, including sustainable bioprocessing, forest management, and value-added products. There are tremendous opportunities for innovators to partner with academic institutions, license patents filed by universities, or leverage research done by academics to file patents and create new innovations.
Adapting New Technologies
The technological landscape in the forest bioeconomy is constantly evolving. New technologies like AI and blockchain, and changes to operations like bioprocessing are creating opportunities for new innovations. Being out of touch with the latest or future technology and IP trends can cost your business significantly. Loss of market share, loss of customers, and rendering existing solutions obsolete can decimate businesses. Keeping your products and services up to date with the most cutting-edge technological breakthroughs can ensure longevity.
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