Input versus Output Incentives in Idea Generation – An Experimental Analysis
Abstract
In an experimental idea generation context, we study the effect of input incentives, rewarding time invested to generate ideas, and output incentives, rewarding the number of innovative ideas generated. Compared to a fixed wage, we find that both input and output incentives increase the average number of innovative ideas to a similar extent. We can show that the mechanisms behind this increase in innovative ideas varies. The improvement under input incentives arises merely due to an increase in the time spent generating ideas. The improvement under output incentives arises due to both an increase in the time spent and in the number of ideas generated per unit of time. We can show that the increase in the number of ideas generated per unit of time is associated with a shift in the types of ideas generated, i.e., with the generation of less complex ideas.
About the speaker
Marina Schroeder is professor in innovation economics at the Leibniz University Hannover. She conducts experimental research analyzing the early stages of an innovation process. Currently, her research focuses on the effect of incentives on idea generation, path-dependencies in innovation and discrimination.
Language
English
This is a free seminar. Registration is mandatory.
Supported by the Luxembourg National
Research Fund (FNR) 19441346