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

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Author Info
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

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 5 (1993)
Issue (Month): 4 (December)
Pages: 261-69
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Handle: RePEc:kap:sbusec:v:5:y:1993:i:4:p:261-69

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