HP's Innovation Incentives Pay OffHP's Innovation Incentives Pay Off

Hewlett-Packard has been putting its money where its mouth is regarding technological innovations across the company, and it's bearing fruit. Since HP launched its "Invent" campaign in December 1999 to spur innovation, its patent application filings worldwide have risen 30% in 2000 and 67% last year, to 5000.

HP pays $175 to employees for submitting inventions and another $1,750 if HP files for a patent for the idea, says HP director of intellectual property Stephen Fox. HP shelled out roughly $1.75 million last year for innovative ideas. That's a bargain, Fox says, to keep the innovation pipeline full.

"Patents are very valuable assets," says Wayne Kennard, senior partner with law firm Hale and Dorr L.L.P. "Patents can be used effectively against competitors for a period of time while a company is building market share."