A new study from Tel Aviv University’s Coller School of Management addresses an issue often overlooked in business: employees holding back their inventions from their employers.

While the law and employment contracts usually give companies ownership of employees’ inventions, it turns out that withholding inventions is quite common. This poses significant risks, especially in industries where innovation is key.

Keeping quiet

The study’s findings are striking: one in four employees in commercial organizations has, at some point, withheld an invention from their employer. Often, this is done on purpose, with the intention of using the invention after leaving the company.

“Innovation is critical for businesses, particularly in knowledge-driven sectors,” the researchers explain. “To secure their rights, companies rely on legal protections and employment contracts that require employees to disclose any inventions they make while on the job. This allows the company to patent the invention and protect it.”

To encourage disclosure, many companies offer financial rewards or recognition to employees who share their inventions. Yet employees often face a dilemma: should they disclose the invention, losing their claim to it, or keep it secret in hopes of profiting from it after they leave?

Legal battles

It’s not uncommon for employees to move to a new company or start their own business, developing an invention they came up with at their previous job. This can lead to legal battles, with employers claiming that the invention belongs to them.

For the study, the researchers conducted an anonymous survey of inventors, asking if they had ever withheld an invention. Out of 199 valid responses, 27% admitted to withholding at least one invention. Of those, 28% said they did so specifically to use it after leaving the company or to bring it to their next employer.

Others gave reasons ranging from emotional attachment to their invention, fear that others would take credit, to dissatisfaction with their employer, whether due to low pay or lack of trust in management.

The researchers developed a new scale to measure the tendency of employees to either disclose or withhold inventions. They found that these two behaviors are not simply opposites. Some employees may delay disclosure because they think the invention needs more work, but deliberate withholding—done to retain ownership—stems from different factors, like dissatisfaction with how they are treated by the company.

“This distinction is crucial,” the researchers note. “Financial incentives or recognition may encourage disclosure, but these measures won’t help if an employee is deliberately withholding an invention for personal gain later on.”

The researchers hope this new scale will spark further research and help companies develop better strategies to manage innovation and reduce the withholding of inventions.