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Quantity, Quality, and Originality: The Effects of Incentives on Creativity

Author

Listed:
  • Katharina Laske

    (University of Cologne)

  • Marina Schroeder

    (University of Cologne)

Abstract

We introduce a novel experimental design in which creativity is incentivized and measured along three dimensions: quantity, quality and originality of ideas. We implement piece rate incentives for quantity alone, quantity in combination with quality and quantity in combination with originality and compare the results to a baseline with a fixed wage. We find that incentives significantly affect the quantity and average quality of ideas, but not the average originality. Incentives for both quantity and originality perform best in fostering innovative ideas.

Suggested Citation

  • Katharina Laske & Marina Schroeder, 2016. "Quantity, Quality, and Originality: The Effects of Incentives on Creativity," Cologne Graduate School Working Paper Series 07-01, Cologne Graduate School in Management, Economics and Social Sciences.
  • Handle: RePEc:cgr:cgsser:07-01
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    References listed on IDEAS

    as
    1. Pierre Azoulay & Joshua S. Graff Zivin & Gustavo Manso, 2011. "Incentives and creativity: evidence from the academic life sciences," RAND Journal of Economics, RAND Corporation, vol. 42(3), pages 527-554, September.
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    4. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
    5. Katharina Eckartz & Oliver Kirchkamp & Daniel Schunk, 2012. "How do Incentives Affect Creativity?," CESifo Working Paper Series 4049, CESifo Group Munich.
    6. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
    7. Dirk Sliwka, 2007. "Trust as a Signal of a Social Norm and the Hidden Costs of Incentive Schemes," American Economic Review, American Economic Association, vol. 97(3), pages 999-1012, June.
    8. Omar Al-Ubaydli & Steffen Andersen & Uri Gneezy & John A. List, 2015. "Carrots That Look Like Sticks: Toward an Understanding of Multitasking Incentive Schemes," Southern Economic Journal, Southern Economic Association, vol. 81(3), pages 538-561, January.
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    11. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
    12. Harhoff, Dietmar & Hoisl, Karin, 2007. "Institutionalized incentives for ingenuity--Patent value and the German Employees' Inventions Act," Research Policy, Elsevier, vol. 36(8), pages 1143-1162, October.
    13. Christiane Bradler & Susanne Neckermann & Arne Warnke, 2016. "Incentivizing Creativity: A Large-Scale Experiment with Tournaments and Gifts," Tinbergen Institute Discussion Papers 16-035/VII, Tinbergen Institute.
    14. Daniel P. Gross, 2016. "Creativity Under Fire: The Effects of Competition on Creative Production," Harvard Business School Working Papers 16-109, Harvard Business School, revised Sep 2018.
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    Cited by:

    1. Florian Englmaier & Stefan Grimm & David Schindler & Simeon Andreas Dermot Schudy, 2018. "The Effect of Incentives in Non-Routine Analytical Team Tasks - Evidence from a Field Experiment," CESifo Working Paper Series 6903, CESifo Group Munich.
    2. repec:eee:jeborg:v:149:y:2018:i:c:p:74-87 is not listed on IDEAS

    More about this item

    Keywords

    creativity; multitasking; laboratory experiment; real-effort; incentives;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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