Advanced Search
MyIDEAS: Login to save this paper or follow this series

Intrinsic and Extrinsic Motivations of Inventors

Contents:

Author Info

  • OWAN Hideo
  • NAGAOKA Sadao

Abstract

This paper theoretically and empirically evaluates the relationship between the strength of inventors' motives and their productivity, and the interaction between intrinsic and extrinsic motivation. For our empirical analyses, we use novel data from a survey of Japanese inventors on 5,278 patents conducted by the Research Institute of Economy, Trade and Industry (RIETI) in 2007 matched with a firm-level survey of remuneration policies for employee inventions conducted by the Institute of Intellectual Property (IIP) in 2005. The RIETI survey contains rich information about inventors, patents, and project characteristics, as well as two new measures of inventor productivity. Our study first reveals that satisfaction from contributing to science and technology and interest in solving challenging technical problems are highly associated with inventor productivity. Most notably, the science motivation measure has the largest and the most significant correlation with our measures of inventor productivity. Science orientation may be strongly associated with high R&D productivity because early access to scientific discoveries gives inventors an advantage or because interest in science correlates with inventive ability. However, careful analysis using additional measures of knowledge spillovers from academia and a proxy of inventor ability find little support for either explanation. This result makes the third explanation (science orientation) plausible, that is, the above two task motives simply encourage researchers to dedicate themselves to challenging projects. In order to explore further and based on our interpretation of motivation mentioned above, we present a principal-agent model where the agent selects the type of research projects and exerts effort in the presence of monetary incentives. The model offers the following two empirical implications: (a) firms with many intrinsically motivated employees are less likely to introduce revenue-based pay; and (b) the average value of patents is more positively correlated with the strength of intrinsic motivation in the absence of revenue-based pay than in its presence. Finally, we test the above empirical implications using the matched dataset from the RIETI and IIP surveys and we find little significant support for either prediction. We offer possible explanations for the result.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.rieti.go.jp/jp/publications/dp/11e022.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11022.

as in new window
Length: 51 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:eti:dpaper:11022

Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Phone: +81-3-3501-1363
Fax: +81-3-3501-8577
Email:
Web page: http://www.rieti.go.jp/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. KURODA Sachiko & YAMAMOTO Isamu, 2009. "How are Hours Worked and Wages Affected by Labor Regulations?: The white-collar exemption and 'name-only managers' in Japan," Discussion papers 09031, Research Institute of Economy, Trade and Industry (RIETI).
  2. Nathalie Lazaric & Alain Raybaut, 2014. "Do incentive systems spur work motivation of inventors in high tech firms? A group-based perspective," Journal of Evolutionary Economics, Springer, vol. 24(1), pages 135-157, January.
  3. Nathalie Lazaric & Alain Raybaut, 2014. "Do incentive systems spur work motivations of inventors in high-tech firms," Post-Print halshs-00930186, HAL.
  4. John P. WALSH & NAGAOKA Sadao, 2009. "Who Invents?: Evidence from the Japan-U.S. inventor survey," Discussion papers 09034, Research Institute of Economy, Trade and Industry (RIETI).
  5. 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).
  6. Jing-Yuan, Chiou, 2012. "In the shadow of giants," MPRA Paper 37033, University Library of Munich, Germany.
  7. DeVaro, Jed & Prasad, Suraj, 2013. "The Relationship Between Delegation and Incentives Across Occupations: Evidence and Theory," Working Papers 2013-05, University of Sydney, School of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:11022. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.