The exposure of EU inventive efforts to critical raw materials: evidence from an AI based patent indicator

Fabrizio Fusillo, Maria Manera, Gianluca Orsatti, Francesco Quatraro and Francesco Rentocchini ()
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Francesco Rentocchini: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC141261, JRC Research Reports from Joint Research Centre

Abstract: Reducing uncertainty around critical raw materials (CRM) supply is a policy priority for the EU in view of their role for advanced carbon neutral and digital technologies. A new, AI based indicator is introduced to measure the exposure of inventive activities to critical raw materials, outperforming existing approaches by identifying CRM relevance even when not immediately evident. High exposure sectors, such as aerospace & defence and ICT services, intensify inventive efforts in response to CRM supply risk, indicating strategic shifts towards substitution and diversification. European regions differ significantly in CRM exposure: some areas (e.g. parts of France, Germany, Italy, and Scandinavia) show con-siderable hidden CRM based inventive activity. Firms in CRM exposed sectors adapt by both increasing their inventive efforts and seeking alternative inventive routes, suggesting that innovation can mitigate supply risk vulnerabilities.

Date: 2025-03
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