Rewarding employee inventions in corporations

Pavel Svačina

European Journal of Innovation Management, 2020, vol. 24, issue 2, 258-289

Abstract: Purpose - Reasonable remuneration of employee inventions is a controversial issue causing court litigations among employees and employers in many countries. The paper aims to shed light on the missing economic interpretation of the reasonable remuneration of employee inventions. Specifically, it focuses on the concept of “reasonability” at the issue. Design/methodology/approach - In an empirical qualitative multiple case-study setting, the paper explores inductively Czech corporate employee inventors' remuneration systems, using typological analysis and M. Weber's interpretative theoretical construct of “ideal type.” Findings - At the first level, reasonability is a function of multi-amount rewarding, a certain level of total remuneration and identifiable benefits being a decisive factor. Additionally, the reasonability is conceptualised as a function of two dimensions – timing/risk and benefit–reward relation. At the second level, the reasonability is interpreted as a concept balancing seven points of view: timing, materiality, equity, risk management, transparency, system costs and exactness. At the third level, the paper offers an optimal remuneration system like the one that optimises developed seven-criterion framework. Research limitations/implications - Even if analysed within one-country and nine-company context, the insights are generalisable across a broader sample of countries with statutory rules for employee inventions. Studying more cases may enrich the findings. The findings are based merely on a rational perspective and do not deal with psychological aspects of employees. Practical implications - The results may be helpful for intellectual property or R&D managers in building or reorganising employee invention remuneration systems within corporations. The developed seven-criteria model can serve as a discussion framework; the suggested optimal system as a reference point. The results may serve as well to consultants, judges or other parties involved in currently growing employee–employer controversies and litigations. The analysis may fuel public policy decisions, too. Originality/value - The paper brings unique and detailed empirical insights into the issue of employee inventions. It offers a complex multi-perspective (employee/employer) framework through which the reasonability can be discussed and suggests an optimal system, which can serve as a reference point.

Keywords: Employee invention; Patent; Remuneration; Typology; Ideal type; Case study; O31; O34; J33; M52 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ejimpp:ejim-06-2019-0178

DOI: 10.1108/EJIM-06-2019-0178

Access Statistics for this article

European Journal of Innovation Management is currently edited by Dr Vincenzo Corvello

More articles in European Journal of Innovation Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().