1. Innovation Networks in Second-Generation Ethanol Luiz Gustavo Antonio de Souza Márcia Azanha Ferraz dias de Moraes Maria Ester Soares Dal Poz José Maria Jardim da Silveira 17th ICABR Conference “Innovation and Policy for the Bioeconomy” Ravello (Italy): June 18 - 21, 2013

2. Context  There is an increasing demand for bioenergy;  The global market has seen second-generation (2G) ethanol – produced by bioconversion of lignocellulosic material - as an essential alternative to reach this demand;  There is no defined technology path to hydrolysis conversion;  There are higher economic gains to be the patent holder;  The production process of 2G ethanol is high- technology intensive;  The investments in 2G ethanol could generate spill- overs effects across sectors of economy; and  Enterprises have tried to initiate a production of 2G ethanol in a commercial scale.

3. Research Question  What is the state-of-art on innovation of second-generation ethanol? Objective  To build and to analyze Second-Generation Ethanol Innovation Networks

4. Construction of a Hypothetical Network Isolated nodes Bidirectional flow Node Undirectional flow Edges ActorInteractions A01A02, A05, A09, P01 A02A01, A03, A06, A09, A11, A12, P01 A03A02 A04None A05A01, A02, A12, A14, P01 A06A05 A07None A08A02, A14, P01 A09A01, A02, A12 A10A11, A12, P01 A11A02, A10 A12A02, A09, P01 A13None A14P01 A15None P01A01, A02, A03, A05, A06, A08, A10, A11, A12, A14  Each actor represents a node with their respective interactions  Each node could have an edge shared between nodes  The number of links represents the relationships between agents in the network  A network with a large number of relationships has higher density compared to single actors.  It is possible to check if an actor is central in relation to others, ie, greater number of relationships occur only with a specific actor  It is possible to analyze the density of relations, ie, how strong are the links between the actors.

5. Dataset Construction  Pre dataset: Second-generation ethanol background – first approach in ISI Web of Science (scientific papers), USPTO, WIPO and EPO (patents) databases;  To help the query definition  Final dataset: Definition of a 2G ethanol query  to build the final database: query was used to search in titles, abstracts and key-words of papers, plus claims in patent cases  Available data until 24 th October 2012;  Databases: ISI Web of Science (scientific papers) and PatBase (patents);  Final result: Importing data to The VantagePoint software to deal, clean and export data  Networks Measures: Exporting data to UCINET software  Networks Visualization: Exporting UCINET files to Gephi software

6. Query TS=(*ethan* OR *energ*) AND TS=(*sugar* OR *cane* OR bagas* OR straw* OR cogener*) AND TS=(*conversion* OR *lign* OR *cellul*) AND TS=(*hydrolys* OR *ferment* OR *enzym* OR fung* OR *bac* OR *pressur* OR steam* OR chem* OR sacch* OR microb* OR clostrid* OR thermocell* OR *spor* OR *cocc* OR erwinia* OR strept* OR sclerot* OR phaneroch* OR trichod* OR asperg* OR schizoph* OR *penicill* OR SCP OR “Single Cell” OR *xyl*) Databases=SCI-EXPANDED, SSCI, A&HCI, CPCI-S, CPCI-SSH Timespan=All Years Lemmatization=On Searching for scientific papers in topics: key-words, title, abstract - ISI Web of Science* Source: ISI (2012). *6.053 papers until 24th oct. 201 2. Query ((((TAC=(ethan* OR energ*)) AND (TAC=(sugar* OR cane* OR bagas* OR straw* OR cogener*))) AND (TAC=(conversion* OR lign* OR cellul*))) AND (TAC=(hydrolys OR ferment* OR enzym* OR fung* OR high pressure OR steam* OR chemic* OR sacch* OR microb* OR clostridium OR thermocellum OR thermomonospora OR ruminococcus OR erwinia OR streptomyces OR sclerotium OR phanerochaete OR trichoderma OR aspergillus OR schizophyllum OR penicillium OR scp OR single cell OR xylose))) Searching for patents in topics: title, abstract and claims - PatBase* Fonte: PatBase (2012). *3.334 papers until 24th oct. 2012. Query for Scientific Papers Query for Scientific Patents

7.  US has the leadership in publishing papers (22.44%) focused in second-generation ethanol and correlated areas;  The red central area shows the relationship of US and other countries – international collaboration (23.67%) - and the papers produced in national collaboration (76.33%);  After US the main countries are: China (9.84%), Brazil (4.99%), Japan (4.78%), India (4.30%), Germany (4.17%), Canada (3.96%), UK (3.51%), Spain (3.45%) and Sweeden (3.32%). Second-generation cluster of papers by country

8.  US and Germany are prefered in a scientific collaboration point of view (preferential attachement);  US have the higher centrality index  Considering the knowledge diffusion, US have higher probability of being a leader in technology process of lignocelullosic convertion;  There is a relevant global interest of developing process in 2G ethanol. Innovation Network in 2G ethanol: countries

9.  Institutional efforts in 2G ethanol is concentrated in USDA, University of California, USP and NREL;  Brazil: only USP (University of São Paulo) places among the main institutions – reflects the expertise of Brazillian production of ethanol based on sugarcane;  USA: there is an intense relationship between government and university, reflected in USDA (government) and University of California position – US focused in programs promoting advanced fuels and low emissions specifications. Californa State has a special normative system focused to biofuels. Innovation Network in 2G ethanol: institutions

10.  KeyWord Plus is a special algorithm provided by ISI WoS (Thomson) that not evolves the author’s choice in traditional key- words. The process corroborates the methodological procedure of searching;  The Innovation Network shows the main research areas related to 2G ethanol; and  After direct areas like ethanol and fermentation, there are research related to Enzymatic Hydrolysis (Hydrolysis, Simultaneous- Saccharification, Escherichia-Coli). Innovation Network in 2G ethanol: KeyWord Plus

11.  The Network have a scale- free configuration – There are prefered actors to cite or make papers in a collaborative perspective; Innovation Network in 2G ethanol: citations  Lynd, Mosier, Wyman and Sun are the prefered in the network – the papers are focused mainly in 2G process and enzymatic hydrolysis;  Efforts to intensificate a international collaboration focused in 2G ethanol have to reflect the aspect that rich-get-richer (people prefered to collaborate with famous against unknown researchers).

12.  USPTO and WIPO are the prefered agencies to request a patent; and  Policies to promote firms in 2G ethanol sector must focus in the main agencies against local Patent agencies

13.  Networks based on Patents in 2G ethanol show that the main efforts are being made by enterprises who have large production in medical sector (P&G, Lilly, Oreal);  University of California has an important place among firms who patented in 2G and correlated areas of ethanol – shows that the US efforts in a collaborative perspective (government- university) are effective; and  The results of IPC8 patent class shows that the main efforts are made in enzymes development, DNA recombinant technology and medical activities. Second generation papers by companies/institutions

14.  The agregate class of IPC8 reveal a Network based on patents in 2G ethanol not exclusively based on fermentation and enzymatic hydrolysis. There are a large sinergy with medical and reengineering areas (specially A61 area); Innovatgion Network in 2G ethanol: IPC8 patent class  The economic gains of investing in 2G ethanol technology could overflow to other areas; and  Firms in medical areas may have advantages (scope economies) to develop new methods in enzymatic hydrolysis and fermentation.  National Policies have to reflect this aspects.

15. Final Remarks  US places as principal actor in the state-of-art in second-generation ethanol with higher centrality position and effective institutional efforts;  There are larger benefits to medical enterprises making relationships through lignocellulosic procedures of obtaining 2G ethanol;  There is a diversity of countries who wants develop technology in 2G ethanol specially in a partnership with US;  The policemakers have to considerate that US already have a important position in state-of-art in 2G ethanol, making him a potential seller of technology based in that efforts; and  Countries like Brazil, who have a significant production in first generation ethanol (in this case sugarcane), do not play a central position on inovation on 2G ethanol  Should increase the efforts on research and development otherwise will be technology path- dependent of the main countries

16. Márcia Azanha Ferraz dias de Moraes mafdmora@usp.br Innovation Networks in Second-Generation Ethanol