Compensating for innovation: Do small firms offer high-powered incentives that lure talent and motivate effort?

  • Zenger T
  • Lazzarini S
  • 55


    Mendeley users who have this article in their library.
  • 48


    Citations of this article.


Empirical studies commonly confirm that small firms enjoy efficiency advantages in generating innovation. However, the origin of this advantage remains poorly understood. This study explores the hypothesis that small firms enjoy advantages over large firms in crafting effective, incentive-intensive employment contracts that lure top engineering talent and motivate high effort. These hypotheses are tested using data from a sample of R&D engineers in Silicon Valley and the Route 128 area.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Get full text


  • Todd R. Zenger

  • Sergio G. Lazzarini

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free