Possible industrial espionage reveals the value of Dyson’s innovation

Many Business students get round to considering the importance of research and development (R+D) and innovation to firms. To many, it’s seen as a crucial component to business success. Firms often keep all kinds of secrets and guard them jealously. Now a story has emerged of a possible spy at Dyson, long seen as a key UK-based innovator.

There’s always a debate about where innovation comes from. You might be thinking that innovation is best fostered by nimble start-ups, or perhaps it’s by larger organisations. Then there’s the debate that perhaps it’s better not to be an innovator, but rather a copycat. But as this Telegraph article suggests, another solution could be to employ spies to steal secrets.

The accusation is that a rogue employee in its digital motors facility was handing company secrets to Bosch divisions in the UK and in Germany. Dyson claims that Bosch "paid the mole via an unincorporated "business" created specifically for this purpose". When Dyson asked for information to be returned, Bosch allegedly “refused to engage”. Dyson has now filed proceedings against Bosch in the High Court in London.

Dyson’s Research and Development Director added: “Bosch’s Vice President for engineering employed a Dyson engineer and benefitted from our confidential know-how and expertise. We have spent over fifteen years and £100m developing high-speed brushless motors, which power our vacuum cleaners and Airblade hand dryers. We are demanding the immediate return of our intellectual property”. Dyson says its digital motors are key to the company's success. Using so-called digital impulse technology the motors are able to generate revs five times faster than a Formula One racing car. They have fuelled the success of Dyson's cordless vacuum cleaners and the Dyson Airblade hand dryer.

Dyson is well known as an active defender of its patents. It has invested very heavily in its valuable intellectual property – and wants to defend it.