The asset management industry is undergoing substantial change due to megatrends including the energy transition, increased emphasis on intangibles, demographic changes and the emergence of new technologies (e.g. Artificial Intelligence). These trends are reshaping market dynamics and creating new challenges for investors seeking to anticipate long-term opportunities. 

The SDI Innovation Outlook provides a transformative dataset for forward-looking investment strategies by leveraging patent data to identify trends in innovation and sustainability. It’s encompassing key domains such as energy transition, health technology, and future mobility and addresses the increasing need for investors to integrate actionable, sustainability-aligned insights into their portfolios. Through structured methodologies and advanced AI tools, the SDI Innovation Outlook ensures consistency and replicability. It empowers investors to align financial performance with sustainability objectives and capitalize on opportunities in a world increasingly focused on achieving the SDGs. 

The SDI Innovation Outlook leverages patent data as a predictive tool for technological advancements. By analyzing over 20 million patent filings, it offers granular, objective, and forward-looking insights into corporate innovation.

James Leaton, Research Director SDI AOP: “Unlike traditional financial metrics, patent data offers a unique, predictive perspective. Firms file patents to secure intellectual property for economically significant innovations. This inherent economic relevance, coupled with historical depth and objectivity, makes patent data invaluable for identifying trends in transformative technologies”. 

Use cases:

This dataset aligns with the United Nations Sustainable Development Goals (SDGs) to spotlight firms driving sustainable change in domains like energy transition, health technology, and mobility. The data can be used: 

• Portfolio Construction: Identifying innovative companies with potential for high future returns. 

• Quantitative Analysis: Using historical patent performance to incorporate sustainability innovation as an investment factor. 

• Trend Monitoring: Evaluating the future revenue potential of firms through patent activity trends. 

• Leading Indicators: Using patent data to predict market shifts and revenue opportunities. 

Pieter Laurens Baljon, Principal Sustainability Research at Entis: “The historical dataset, spanning over a decade of patent activity, is a cornerstone of the SDI Innovation Outlook. It reveals pervasive trends, assesses the economic relevance of emerging technologies, and validates thematic investment hypotheses with robust quantitative evidence. This innovative approach marks a major leap in utilizing non-traditional data for investment decision-making. By unlocking the untapped potential of patent data, it provides forward-looking insights that align with sustainability goals, uncover thematic opportunities, and drive innovation-led growth.

Hans op ‘t Veld, Chair Members & Markets Committee SDI AOP: “For this paper we had the opportunity to engage with some of our earliest users on how they’re getting the most out of this new dataset. Especially the approach to start from the technologies and then cut across sectors proved so insightful”. 

Download the whitepaper here.