Prizes versus Contracts as Incentives for Innovation

Incentives for Innovation : Patents , Prizes , and Research Contracts Matthew

Innovation is essential for sustaining growth and economic development in a world that faces population increase, natural resource depletion, and environmental challenges. Incentives play a critical role in innovation because the required research and development activities are costly, and the resulting knowledge has the attributes of a public good. This paper discusses the economics of institu...

Incentives , prizes , and innovation

How to Design Prizes - Incentives in Innovation Contests

This research paper focuses on the use of prizes in innovation contests as means to encourage participation and efforts in open innovation activities. Building on a systematic review of 69 innovation contests, we investigate differences in the design of prizes between innovation contests focusing on ideation and those with a development orientation. Results show a very heterogeneous picture, in...

Prizes for Technological Innovation

Science, technology, and innovation are essential to America’s continued economic growth, and can help achieve a wide range of national and global policy objectives. One currently underutilized tool for stimulating technological innovation is inducement prizes, which encourage efforts by contestants to accomplish a particular goal. A related policy instrument is an Advanced Market Commitment, u...

Private versus social incentives for pharmaceutical innovation.

We provide a theoretical framework to contribute to the current debate regarding the tendency of pharmaceutical companies to direct their R&D toward marketing products that are "follow-on" drugs of already existing drugs, rather than toward the development of breakthrough drugs. We construct a model with a population of patients who can be treated with drugs that are horizontally and vertically...