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The Effectiveness of Reward Systems on Innovative Output: An Empirical Analysis

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  • Honig-Haftel, Sandra
  • Martin, Linda R

Abstract

This study investigated the relationship of patent output to the reward systems for individual R&D scientists in high technology firms. A survey of technical managers in 57 Connecticut firms collected information on firm size, R&D expenditure, and the frequency of use of 18 different reward systems. Using a regression model, patent output was found to be dependent on firm size, R&D expenditure, and on monetary and non-monetary reward systems, informal award programs and variable bonuses based on the issue of patents. When a subset of small firms was investigated separately, non-monetary rewards were shown to be ineffective. However, variable bonuses remained important to patent output and large sum reward payments ($50,000) also demonstrated a significant effect. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Honig-Haftel, Sandra & Martin, Linda R, 1993. "The Effectiveness of Reward Systems on Innovative Output: An Empirical Analysis," Small Business Economics, Springer, vol. 5(4), pages 261-269, December.
    • Handle: RePEc:kap:sbusec:v:5:y:1993:i:4:p:261-69
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    Cited by:

    1. Oliver Baumann & Nils Stieglitz, 2011. "Motivating Organizational Search," DRUID Working Papers 11-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. S. Jayaraman & Parvaiz Talib & Ahmad Faraz Khan, 2018. "Integrated Talent Management Scale: Construction and Initial Validation," SAGE Open, , vol. 8(3), pages 21582440187, July.
    3. Leptien, Christopher, 1994. "Incentives for employed inventors: An empirical analysis with special emphasis on the German law for employees' inventions," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 345, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    4. 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.
    5. Bergmann, Rouven & Friedl, Gunther, 2008. "Controlling innovative projects with moral hazard and asymmetric information," Research Policy, Elsevier, vol. 37(9), pages 1504-1514, October.
    6. Burhop, Carsten & Lübbers, Thorsten, 2010. "Incentives and innovation? R&D management in Germany's chemical and electrical engineering industries around 1900," Explorations in Economic History, Elsevier, vol. 47(1), pages 100-111, January.
    7. So Young Kim & Eungdo Kim, 2018. "How Intellectual Property Management Capability and Network Strategy Affect Open Technological Innovation in the Korean New Information Communications Technology Industry," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    8. Delin Yang & Xibao Li & Jiagui Chen, 2010. "Patent Propensity in Small Technology‐based Firms: Evidence from Zhongguancun Science Park," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(1), pages 99-116, January.
    9. James M. Bloodgood & Harry J. Sapienza & James G. Almeida, 1996. "The Internationalization of New High-Potential U.S. Ventures: Antecedents and Outcomes," Entrepreneurship Theory and Practice, , vol. 20(4), pages 61-76, July.
    10. ONISHI Koichiro & OWAN Hideo, 2010. "Incentive Pay or Windfalls: Remuneration for employee inventions in Japan," Discussion papers 10049, Research Institute of Economy, Trade and Industry (RIETI).
    11. Claire Bonnard, 2011. "Les incitations à l'innovation dans le secteur privé," Post-Print halshs-00599700, HAL.
    12. 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.
    13. Yu-Wei Chang & Mu-Hsuan Huang & Hsiao-Wen Yang, 2016. "Analysis of coactivity in the field of fuel cells at institutional and individual levels," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 143-158, October.

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