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Experimental evidence on the effects of innovation contests

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  • Brueggemann, Julia
  • Meub, Lukas

Abstract

Economic research on innovation has long discussed which policy instruments best foster innovativeness in individuals and organizations. One of the instruments easily accessible to policy-makers is innovation contests; however, there is ambiguous empirical evidence concerning how such contests should be designed. Our experimental study provides evidence by analyzing the effects of two different innovation contests on subjects´ innovativeness: a prize for the aggregate innovativeness and a prize for the best innovation. We implement a creative real effort task simulating a sequential innovation process, whereby subjects determine royalty fees for their created products, which also serve as a measure of cooperation. We find that both contest conditions reduce the willingness to cooperate between subjects compared to a benchmark condition without an innovation contest. However, the total innovation activity is not influenced by introducing innovation contest schemes. From a policy perspective, the implementation of state-subsidized innovation contests in addition to the existing intellectual property rights system should be questioned.

Suggested Citation

  • Brueggemann, Julia & Meub, Lukas, 2015. "Experimental evidence on the effects of innovation contests," Center for European, Governance and Economic Development Research Discussion Papers 251, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:251
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    Cited by:

    1. Isabelle Liotard & Valérie Revest, 2018. "Contests as innovation policy instruments: lessons from the US federal agencies’ experience," Post-Print hal-02067342, HAL.
    2. repec:idb:idbbks:7705 is not listed on IDEAS
    3. Gabriel Casaburi & Gustavo Crespi & Ignacio L. De León & José Fernández & Lucas Figal Garone & Matteo Grazzi & Carlos Guaipatín & Jorge Katz & Juan J. Llisterri & Alessandro Maffioli & Juan Carlos Nav, 2016. "La política de innovación en América Latina y el Caribe: Nuevos caminos," IDB Publications (Books), Inter-American Development Bank, number 94816 edited by Juan Carlos Navarro & Jocelyn Olivari, February.
    4. repec:eee:tefoso:v:127:y:2018:i:c:p:57-69 is not listed on IDEAS

    More about this item

    Keywords

    innovation prizes; competition; laboratory experiment; real effort task; creativity; innovation policy;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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