How do Patents Act as an Incentive for Tech Innovation?

2 November.2022

4 min.

Now that we are living in a digital age, the importance of tech innovation has transcended the technology industries and now extends to virtually every company and sector. As such, every business owner should find ways to promote it.

There are several reasons why embracing patents can actually motivate teams towards innovation. First of all, the process of filing for a patent forces companies to articulate their ideas in a clear and concise manner. This can help to spark new ideas and ways of thinking about the problem at hand. Secondly, the act of obtaining a patent can help to build team morale and create a sense of pride in one's work. Finally, patents can serve as a defensive measure, deterring competitors from stealing an idea. In other words, there are several compelling reasons why companies should embrace patents as part of their innovation strategy.

What Are Tech Patents?

Experts at UpCounsel explain that: “Technology patents are those that give an inventor the legal right to his or her invention, whether it be a product, a design, or a process related to the technology sector”. Given that the major tech companies like Microsoft, Facebook, and Apple will file thousands every single year.

This alone should show that tech patents, which usually last for 20 years, have a key role to play. Even as SMEs, their importance for inspiring innovation can be key.

Six Reasons Patents Incentivize Tech Innovation

By now, you will be aware that innovation encourages increased profits. In fact, 62% of high-growth companies plan to invest in technologies that lead to higher rates of innovation. Utilizing patents plays a big role in the process. Here’s why:

1. Patents encourage increased ROIs

For businesses in all industries, every new concept will be scrutinized for its ability to boost the company’s bottom line. Research has shown that patents increase the financial returns of a technology by up to 50%. Meanwhile, technology is less likely to even hit the market if its patent application was rejected.

Patents can instantly boost a company’s confidence as it bids to navigate the market because it is statistically in a far stronger position.

2. Patents cover the full tech life cycle

When considering tech innovation, it’s imperative that you consider the full tech life cycle. Patenting is particularly important during the initial stages of Research & Development while it subsequently drives the project along in the Advanced Research & Development and Demonstration phases.

In turn, patents take ideas from theoretical concepts to the stage of market introduction while also laying the foundation for future marketing.

3. Patents help to encourage innovation from all team members

The best innovations are born from the minds of individuals who put their heart and soul into developing them, and patents are considered a recognition of the time and effort put into this development. As such, setting a patent application as a goal can inspire team members to engage and share ideas.

Aside from actively promoting a company’s chance of unlocking the next big idea, it goes a long way to cultivating the right company culture.

4. Patents support the idea of innovation at all times

Time for innovation should be something you have in your everyday operations. Patents protect technological ideas for up to 20 years, enabling companies to park their concepts until the opportune moment. This could mean waiting until the technology is more accessible for consumers.

The ability to protect intellectual property without needing to work on them right away, means that creativity and innovation become un-disruptive.

5. Patents encourage healthy internal competition

When employees are engaged with their work, they are the greatest asset at a company’s disposal – and striving to produce a patent can be extremely motivating for a team. A suitable innovation method can be chosen when aiming for a patent application while using tools like KICKBOX Intrapreneurship, which allows for collaboration and record key developments. This encourages intrapreneurship and healthy competition.

Workers will develop a mindset where they want to innovate, not least to prove themselves to colleagues for example.

6. Patents direct focus on continued growth

Finally, patents encourage all relevant parties to focus on future developments and radical idea. Whether it’s a product, design, or process is almost irrelevant. For patents to be accepted, new concepts and technologies must bring something new to the table. As a result, it avoids stagnation and can generate enthusiasm both within the company and externally for new innovations.

Patents can be a valuable way for companies to motivate their teams and encourage them to innovate. By offering innovators incentives and recognition for their work; patents can significantly boost morale and motivation among teams. This in turn, fosters a culture of appreciation and encouragement, and ultimately leads to a more dynamic and forward-thinking work environment where innovation thrives.

rready's host of innovation solutions can provide the perfect platform for your team to build upon. To find out more, get in touch with our experts to start implementing innovation tools today.