Invention theft by employees may be more common than business leaders realize. A study from Tel Aviv University found that more than one in four workers in science and technology fields admit to keeping patentable ideas from their employers, often to use them later for personal gain or at a new job.
The motivations vary. Some employees want to start their own businesses or boost their appeal to future employers. Others see their inventions as personal property, feel unrecognized at work, or believe their company will mishandle their ideas. Financial resentment also plays a role, with workers withholding innovations because they expect no fair reward.
Firms often remain unaware of these losses. When an employee’s stolen idea fails to succeed in the wild, the theft stays hidden. Even when businesses detect such cases, most are settled privately to avoid bad press and costly litigation. However, these settlements barely scratch the surface of the economic damage.
Researchers stress that withholding inventions is different from other kinds of knowledge-hoarding. It stems from the inventor’s deeper attachment to their creations, which they see as extensions of themselves. This psychological ownership explains why invention withholding is more common than disclosure, even when companies offer rewards.
How Firms Can Respond
Legal contracts like invention disclosure agreements are not enough to curb the problem. Many businesses try rewards: tech giants like Google and Microsoft give bonuses for patents, while Whirlpool and 3M celebrate inventors at annual events. But while incentives may encourage disclosure, they do little to discourage withholding.
Instead, companies should focus on why employees withhold ideas. Researchers suggest letting inventors stay involved in their projects, which satisfies their sense of control. Managers should also distinguish between promoting disclosure and preventing withholding—different problems requiring tailored solutions.
Companies must accept that invention theft is real and happens often. It matters whether your ideas are stolen—or you hire someone carrying stolen ideas from elsewhere. To tackle this issue, firms must balance respect for inventors’ psychological and financial needs with clear policies for innovation management.
If businesses can assure employees that their ideas will be valued and fairly treated, they might avoid costly disputes and foster a culture of creativity. With better policies, firms can let employees move on without fearing they’ll take the next big idea with them.
