Why diversification is important for technology companies, too
In a series of blog posts, Marco Coolen offers a glimpse into his work as a Dutch and European patent attorney at AOMB.
Published on June 28, 2026
Marco, a patent attorney at AOMB since 2013, shares his expertise on IO+ about patents—how they work, why they matter, and when they lose their value.
Diversification sounds like something for investors. It’s a term that belongs in the world of stock portfolios, risk spreading, and asset management—not something you, as an entrepreneur in the manufacturing industry, deal with on a daily basis.
Yet, especially now, it’s a topic worth giving serious thought to.
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Take the defense market, for example. It is currently emerging as a clear engine of growth. Budgets are rising, contracts often run for years, and demand for technology is growing rapidly. For many companies, this feels like a safe haven. Win one major contract, and your order book could be filled for years.
But behind that appeal lies a risk as well.
Defense is not a free market. It is a market that is heavily dependent on political decisions. Today, budgets are looking good; tomorrow, a new government might set different priorities. Anyone who becomes completely dependent on a single sector automatically becomes dependent on the whims of that sector.
Interestingly enough, you see something else happening simultaneously in the manufacturing industry. Technology originally developed for civilian applications is increasingly finding its way into defense. Sensors, control systems, coatings, materials, and maintenance technology are being adapted to meet stricter requirements and withstand harsher conditions.
This results in technically challenging projects. But beneath the surface, things often change less than you might think. A sensor remains a sensor. A control system remains a control system. A smart coating remains a smart coating. The environment changes, but the core technology often does not.
And that is precisely where the opportunity lies.
Companies that view their technology exclusively as a defense solution make themselves dependent on a single market. Companies that recognize their technology as a solution for multiple sectors are building something far more valuable.
The same knowledge applied today in a military context could be relevant tomorrow for a chip factory, an energy system, a food producer, or a maritime application.
From product to application
That’s when something interesting happens. You’re no longer building a portfolio of products, but a portfolio of applications. That makes a company more resilient—not because a single market will always keep growing, but because you’re keeping multiple options open. That does, however, require leadership.
Because diversification only works when you retain control over your technology. Anyone who transfers all intellectual property rights during a collaboration often gives up more than just a design or a solution. You’re also giving up future possibilities.
When a customer becomes the owner of the technology, it becomes difficult to apply that same knowledge in another market later on. Then your role slowly shifts from that of a technology company to that of an implementing supplier.
That’s why ownership and protection are so important. Not to exclude others, but to maintain strategic freedom. Only when you own your innovations yourself can you decide where, when, and under what conditions you deploy them.
The defense sector can be a wonderful pillar supporting a business. But a pillar is not the same as a foundation. Companies active in multiple markets view risk differently. A dip in one sector then becomes not a crisis, but a shift in the order mix.
The factory keeps running—just for a different customer.
The World of Patents
Every Sunday, Marco Coolen gives us a glimpse into the world of intellectual property and patents.