Employee inventions: how to foster them within the company and convert them into value

Bringing inventions to light and converting them into value

If there is one factor that stifles internal innovation, it is not a lack of ideas, but uncertainty. The employee does not know what will happen if a proposal is submitted; the employer fears being unable to manage expectations, costs and timelines. Both parties risk acting informally, with the result that the idea remains unused or is lost within the department.

For this reason, before addressing specific tools, a common foundation is required, based on two key principles: clarity and confidentiality.

Clarity entails defining, in straightforward terms, what constitutes a relevant “idea/invention”, where it should be reported, who will assess it, within what timeframe, the possible outcomes (proceed / test / archive with reasons), and the forms of recognition available.

Confidentiality requires protecting the idea from the outset, avoiding premature external disclosure.

On this basis, three practical mechanisms have proven particularly effective in corporate practice for identifying and enhancing inventions.

1. Structured collection of ideas (invention disclosure form)

The simplest — and particularly effective for SMEs and start-ups — is a standardized reporting form: concise, accessible, and uniform for all employees. Its value is not bureaucratic; rather, it transforms an intuition into something capable of assessment.

A limited number of essential questions suffice: What is the problem? What solution is proposed? What technical advantage does it provide (even if estimated)? Who contributed? Has the idea already been disclosed outside the company?

Such a structure prevents two common errors: partially described ideas (and therefore not assessable) and unclear attribution (potentially leading to disputes).

The form becomes truly effective when accompanied by two concrete organizational commitments: prompt acknowledgment (for example, an initial response within 10 working days) and confidential handling of the submission. Even a decision not to proceed may represent a positive outcome, provided it is communicated promptly and supported by clear reasoning: this preserves trust in the system and encourages better-formulated future proposals.

2. Internal company contests

Alongside a permanent submission channel, many companies achieve excellent results through a more collective mechanism: an internal contest in which ideas are gathered, briefly pitched, and selected for testing.

This approach offers a specific advantage: it makes innovation visible — and visibility is a powerful accelerator. Employees understand that proposing ideas is legitimate and appreciated; they observe examples; they learn how to present improvements effectively; and cross-departmental exchange is fostered (often the context in which the best solutions arise).

To avoid a merely symbolic exercise — enthusiasm followed by inaction — transparency is again essential: clear selection criteria, a minimum budget or dedicated time for experimentation, and genuine follow-up on selected ideas. The contest should not promise patenting; it should promise what matters most — that meritorious ideas will follow a defined pathway.

3. Recognition and professional development (including non-monetary)

The third instrument — and the one that truly fosters a long-term culture of innovation — is recognition of contributors. It is important to emphasize that recognition need not be exclusively monetary.

Many employees are primarily motivated by professional factors: formal acknowledgment of inventorship, the opportunity to present the idea internally, participation in a strategic project, targeted training, inclusion in a task force, or responsibility for overseeing testing or industrialization. Such signals carry significant weight — particularly in SMEs and start-ups, where career development often arises from concrete opportunities rather than standardized career paths.

The legal framework: article 64 CPI as the “rules of the game”

Once a company has established a clear process for identifying and evaluating ideas, the function of the law is principally to eliminate ambiguity: when a technical improvement qualifies as an invention, to whom do the rights belong?

Article 64 CPI does not constitute an obstacle; rather, it sets the “rules of the game”, rendering roles and consequences foreseeable for both employer and employee.

Service inventions

Where inventive activity falls within the scope of the employee’s contractual duties (typically in R&D roles), the economic exploitation rights vest in the employer, while the employee retains recognition as inventor.

Company inventions (Article 64, paragraph 2)

Often the most frequent scenario in SMEs: the employee is not hired to invent, yet the invention arises by reason of the employee’s duties and the company environment (tools, know-how, data, working time). In this case, the economic exploitation rights belong to the employer; the employee retains inventorship and, where the statutory requirements are met, the right to equitable remuneration (“equo premio”).

Case law has clarified that entitlement to equitable remuneration is linked to the grant of a patent (Italian Supreme Court, Civil Division I, 20 November 2017, no. 27500), providing an additional reason to manage confidentiality and timing appropriately.

Occasional Inventions (Article 64, paragraph 3)

As a general rule, where the invention is developed outside the employee’s duties and without significant contribution from the employer’s organization, the rights remain with the employee. However, if the invention falls within the employer’s field of activity, the employer retains a strategic advantage: a right of option to use the invention (whether exclusively or non-exclusively) or to acquire the patent, as well as the right to extend protection abroad, subject to payment of consideration determined also in light of the assistance provided to the inventor.

In summary, understanding — and expressly incorporating into corporate policies — Article 64 CPI helps prevent misunderstandings. The invention may thus be managed as a natural pathway — identification, evaluation, protection, enhancement — through which the company consolidates value, while the employee retains recognition and, where applicable, an economic return.