"Material saving technologies" by Paolo Castelnovo

Topic

The digital and green transitions increasingly depend on critical raw materials (CRMs) like cobalt, lithium and rare earths, vital for energy storage, renewables, and semiconductors. Rising demand and supply risks make resilient CRM supply chains a policy priority. This paper analyzes CRM-saving innovation using European Patent Office data (1978–2020), distinguishing CRM-reliant from CRM-saving patents, which involve efficiency, substitution, recycling or waste reduction. Although a small share, CRM-saving patents have grown steadily, especially in green tech, metallurgy, and battery minerals. Econometric results support the induced innovation hypothesis: CRM-saving innovation rises with price increases and production volatility. The study highlights the role of policy and market incentives and maps the technological, geographical, and sectoral patterns of CRM-saving efforts.