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The effects of compensation plans for employee inventions on R&D productivity: New evidence from Japanese panel data

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  • Onishi, Koichiro

Abstract

This article reports the first results on how monetary compensation plans for employee inventions affect R&D productivity, based on the notable panel data of Japanese firms. The study finds that the introduction of revenue-based compensation plans that are linked to patent performance lead to an increase in the number of high cited patents, while this never leads to an increase in the number of patent applications. Furthermore, this is strongly effective in smaller firms. These results indicate that the monetary incentives based on patent performance are effective on enhancing the motivation of employee inventors.

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  • Onishi, Koichiro, 2013. "The effects of compensation plans for employee inventions on R&D productivity: New evidence from Japanese panel data," Research Policy, Elsevier, vol. 42(2), pages 367-378.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:2:p:367-378
    DOI: 10.1016/j.respol.2012.09.001
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    4. ONISHI Koichiro & OWAN Hideo & NAGAOKA Sadao, 2015. "Monetary Incentives for Corporate Inventors: Intrinsic motivation, project selection and inventive performance," Discussion papers 15071, Research Institute of Economy, Trade and Industry (RIETI).
    5. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2017. "Does patenting always help new-firm survival?," Discussion Paper Series 159, School of Economics, Kwansei Gakuin University, revised May 2017.
    6. Armand Djoumessi & Shu-Ling Chen & Stephen Cahoon, 2019. "Deconstructing Lawson And Samson’S Concept Of Innovation Capability: A Critical Assessment And A Refinement," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-31, August.
    7. Bolaji Saheed HAMZAT & Bashiru Akande BELLO & Adedayo Mathias OPELE, 2018. "Compensation, Employee Performance And Organization Performance In Guarantee Trust Bank (Gt Bank) Plc," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(4), pages 14-28, December.
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    9. Cui, Victor & Ding, Waverly W. & Yanadori, Yoshio, 2019. "Exploration versus exploitation in technology firms: The role of compensation structure for R&D workforce," Research Policy, Elsevier, vol. 48(6), pages 1534-1549.

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