Why do so many manufacturing companies leave their innovations unprotected?

Dutch companies submit approximately 4,000 European patent applications every year. That seems an impressive number, but when you consider that these applications come from just 900 companies, it becomes clear that 96% of manufacturing companies in the Netherlands leave their innovations unprotected. That means thousands of companies are missing out on valuable opportunities.

The question is: why are so many companies not protecting their innovations? And by doing so, are they really missing an open-ended opportunity?

Why manufacturing companies underestimate themselves

One common reason is the way manufacturing entrepreneurs view their own work. Many companies see their activities primarily as custom work performed according to the requirements of their customers. From this perspective, they do not view their work as innovative. Yet this is often a blind spot: custom solutions regularly contain clever adjustments or unique components that are indeed innovative and valuable.

In addition, secrecy plays a major role. Many entrepreneurs fear that patenting requires too much openness. They think keeping their processes and innovations secret is better, hoping competitors will not discover them. While secrecy can sometimes be effective, it is not a guarantee. A competitor can develop a similar innovation and then get it patented, leaving you out as the first creator. It can even lead to you being barred from using your own innovation!

Seeing the real value of innovation

What is often overlooked is that innovation does not always have to be big or radical. Small improvements, clever optimizations, and unique applications can also be valuable innovations. For example, consider a special part, a more efficient production process, or a new application of an existing product. These improvements can provide a competitive advantage only if they are adequately protected.

Protecting innovations not only provides legal certainty but also strengthens your market position. Patents signal to customers and investors that your company is at the forefront of innovation. It can also open up new partnership opportunities, as other parties are more likely to invest or partner with a company that takes its intellectual property seriously.

Make conscious choices

The problem lies not so much in whether or not to patent but in the lack of conscious consideration. If 96% of manufacturing companies do not apply for patents, it is not because there are no innovations but because the importance of protection is not recognized or considered. That is a missed opportunity.

The solution lies in creating more awareness in the industry. Entrepreneurs must learn how to analyze their operations to recognize and evaluate innovations. Not every innovation needs to be patented, but making an informed choice is essential.