Driving innovation: reviewing the role of rewards

Abstract

The role of rewards in promoting innovation has received considerable atten-tion in both theory and practice. The fact that rewards have a positive impacton promoting innovation is well established. However, this relationship iscomplex since different types of rewards are suited for various kinds andstages of innovation. Further, an alternate view undermines the role of re-wards in promoting innovation. Through an exhaustive literature review, thisstudy illustrates the complex relationship between rewards and innovation aswell as the role of rewards in promoting innovation. This analysis throwslight on the utility of various rewarding practices in promoting innovation.Thus, understanding the complexities of rewards systems for engaging talentsin processes of creativity and innovation reflects the needs to design rewardssystems, which strategically and ethically fits any organizational entity. Hence,both theorists and practitioners need a more holistic approach in designing adynamic rewards system that encompasses issues of role, timing and magni-tude of the rewards in order to drive innovation.