How does openness affect the importance of incentives for innovation?

Xiaolan Fu

Research Policy, 2012, vol. 41, issue 3, 512-523

Abstract: When firms open up to external resources for innovation, do internal incentives still matter? This paper investigates the moderating effect of open innovation on the relationship between incentives and innovation using a survey database of British firms. Whilst both openness and incentives are positively associated with innovation efficiency, a substitution effect is found between openness and incentives. Whilst long-term incentives appear to enhance efficiency to a greater extent than short-term incentives, the substitution effect of openness is stronger regarding long-term incentives.

Keywords: Incentives; Open innovation; Innovative efficiency (search for similar items in EconPapers)
JEL-codes: J33 L24 O31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (32)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:41:y:2012:i:3:p:512-523

DOI: 10.1016/j.respol.2011.12.011

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