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Small Business Economics

, Volume 5, Issue 4, pp 261–269 | Cite as

The effectiveness of reward systems on innovative output: An empirical analysis

  • Sandra Honig-Haftel
  • Linda R. Martin
Article

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 eighteen 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.

Keywords

Regression Model Empirical Analysis Firm Size Small Firm Technical Manager 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1993

Authors and Affiliations

  • Sandra Honig-Haftel
    • 1
    • 2
  • Linda R. Martin
    • 1
    • 2
  1. 1.Center for Entrepreneurship W. Frank Barton School of BusinessWichita State UniversityWichita
  2. 2.Economics Department Barney School of Business and Public AdministrationUniversity of HartfordWest Hartford

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