U.S. Cleantech Leadership Endures, but Start-Up Pipeline Is Narrowing

Energy innovation is crucial to meeting growing global energy demand, furthering economic growth, and mitigating climate change. In recent years, the United States’ most significant contributions to global energy innovation have been channeled through its robust clean technology start-up ecosystem. CFR’s “Global Energy Innovation Index” (GEII) ranks countries’ commitments and contributions to the innovation process. By and large, European countries placed the highest, while the United States stands at thirteenth place. Despite its lackluster overall position, the United States makes vital contributions to the creation and growth of markets for new clean energy technologies, as measured by the number of high-impact start-ups created, early-stage venture capital (VC) investment, and successful company exits.