Green and digital patents: Europe accelerates, Italy grows but lags behind in AI

Patent activity is growing in Europe, driven in particular by the development of green and digital technologies. Italy is also experiencing a positive trend, albeit at a slower pace than the continent's major economies. Specifically, the country is showing growing interest in green technologies, a field in which even some southern regions are excelling, despite a more limited performance in the artificial intelligence sector. This is according to data from the study " The geography of innovation: patent insights into Europe's green and digital transitions ," conducted by the Bank of Italy , which analyzed patent applications in the green technologies and artificial intelligence sectors filed with the European Patent Office between 1990 and 2021.

This growth, however, is not limited to Europe; it is part of a global trend that sees China surpass the United States, Japan, and Europe in patent filings for the first time. This leap signals the Asian giant's rapid advancement in knowledge-intensive technologies, particularly in artificial intelligence and green solutions.

The study shows that innovation remains highly concentrated in certain areas. This trend is evident both when comparing different EU countries and at the regional level within them. Germany dominates in both the volume and quality of patents , while France leads in specialization in artificial intelligence . Italy, although ranking fifth in total patent applications at the EPO, shows a more modest performance , with a strong industrial base but weaker diffusion across regions and sectors. Nevertheless, along with Spain, it is experiencing continued growth , suggesting a slow but steady rebalancing of the European innovation landscape.

Looking at the main European innovation ecosystems by city , Berlin, Amsterdam, Stockholm, Paris, Barcelona, Madrid, Helsinki, and Copenhagen are among them . These hubs not only stand out for their patent volume, but also represent crucial nodes in international research and development networks, capable of significantly influencing the continent's technological trajectories.

The Italian innovation ecosystem is characterized by strong regional imbalances. Patent activity is heavily concentrated in the Center-North regions, particularly Lombardy, Piedmont, and Emilia-Romagna, which host the country's main innovation ecosystems, thanks to the concentration of large companies, top-level universities, technology hubs, and advanced infrastructure. The cities of Milan, Turin, and Bologna emerge as key hubs, not only for the volume of patents filed, but also for their importance in technology-intensive sectors.

Southern regions lag behind, with only Rome standing out as a significant innovation hub, reflecting structural constraints such as smaller average firm size, informality, and limited innovation infrastructure. These regional disparities suggest the need for targeted, place-based innovation policies to unlock untapped potential, particularly in green sectors.

Overall, Italy shows a relatively stronger focus on green technologies than on artificial intelligence, where it lags behind other European countries. Specifically, Italy shows a particular specialization in climate change mitigation technologies applied to transportation , reflecting the historical strength of the country's automotive and mechanical engineering sectors.

At the regional level, Northern Italy once again dominates both in terms of patent activity related to artificial intelligence (Lombardy, Piedmont, and Emilia-Romagna) and in terms of patents in green technologies (Veneto, Emilia-Romagna, Lombardy, and Trentino-Alto Adige).

The South and the islands (for example, Puglia, Sicily, Sardinia) are not sitting idly by, however, but are gradually specializing in green patents. In these contexts, green patents come not only from businesses, but also from universities, individual inventors, and public sector actors, signaling a broader and more distributed innovation ecosystem than the digital one, which, instead, remains largely concentrated in the hands of the private sector.

Innovation is increasingly concentrated in the hands of established firms , while the share of new patenting firms and those filing only once is declining. Furthermore, the average age of first-time patenting firms is increasing , indicating rising barriers to entry, financial constraints, and the increasing complexity of cutting-edge technologies.

Finally, although innovative firms enjoy higher survival and acquisition rates, many struggle to maintain sustained innovation over the long term . This requires policies that not only support the entry of new firms but also help young and small firms scale their innovation efforts through access to financing, R&D partnerships, and innovation ecosystems.