Cleantech encompasses knowledge-based products or services that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or pollution.

Technologies are clustered in diverse industry sectors, including: Energy (about 2/3 of total investment); water and wastewater treatment; manufacturing; advanced materials; transportation; and agriculture.

The products or services range from energy efficient lighting, to wind and solar energy, to water filtration, to next generation batteries, to advanced materials to make products lighter, stronger and/or cheaper, to non-toxic pesticides, and to enabling technologies for smart electricity grids.

Strategic drivers are pushing clean technology into the mainstream and driving rapid growth and expansion.

1. The availability of private and public capital,
   

2. Decreasing cost of technologies which drives scalable solutions,
   

3. Competition between governments to build the jobs of the green economy,
   

4. The certainty of climate change that is influencing companies to disclose and mitigate their exposure risks,
   

5. A changing consumer base demanding sustainable goods and services, and
   

6. The resource demands of emerging economies such as India and China. 
   

Cleantech innovation implies the integration of new clean technology or services with business models that offer competitive returns for investors and customers. Hence, development of this sector is driven by productivity-based purchasing, enjoys broader market economics, with greater financial upside and potential for sustainable businesses see also sidebar on ‘Types of Innovation’).