We study the effects of a field experiment designed to motivate employee ideas, at a large
technology company. Employees were encouraged to submit ideas on process and product
improvements via an online system. In the experiment, the company randomized 19
account teams into treatment and control groups. Employees in treatment teams received
rewards if their ideas were approved. Nothing changed for employees in control teams.
Our main finding is that rewards substantially increased the quality of ideas submitted.
Further, rewards increased participation in the suggestion system, but decreased the number
of ideas per participating employee, with zero net effect on the total quantity of ideas.
The broader participation base persisted even after the reward was discontinued, suggesting
habituation. We find no evidence for motivational crowding out. Our findings suggest
that rewards can improve innovation and creativity, and that there may be a tradeoff between
the quantity and quality of ideas.
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