Incentive Mode And Innovation Performance

Incentive can be divided into monetary incentive and non-monetary incentive.Non-monetary incentives include material incentives,in-service consumption,control right incentives,etc.On the one hand,theories and literature believe that currency has an incentive effect.Monetary incentives are better than no monetary incentives.Large monetary incentives are better than small monetary incentives.Monetary incentives with equal value have the same incentive effect as non-monetary incentives.On the other hand,some theories and literature believe that monetary incentives are sub-optimal.In some cases,monetary incentives will reduce people's behavioral performance.Monetary incentives of the same amount are not as good as material incentives of equal value.Motivation Crowding-out theory believes that human behavior is affected by external and internal motivations.Monetary incentives,as an external motive,may reduce people's internal motives under certain circumstances.If people are satisfied by doing good or fulfilling their social obligations,then giving additional monetary incentives will reduce people's effectiveness in helping others,and the performance of their behaviors will also be negatively affected.In addition,the amount of money will also affect the role of monetary incentives,and the role of small incentives and large incentives is different.In the street survey,people are more willing to choose souvenirs worth 1 yuan instead of 1 yuan in cash.Although monetary incentives have greater control and autonomy,non-monetary incentives sometimes have more advantages than monetary incentives,such as when non-monetary incentives have commemorative value.Therefore,monetary incentives and non-monetary incentives have been used and studied in practice and research,but there are still different conclusions in some aspects.According to the equity theory,organizational justice includes four types: distributive justice,procedural justice,interpersonal justice and information justice.Among them,distributive equity is people's perception of the fairness of work results and resource distribution,and emphasizes the perception of results.Procedural fairness means that the process of producing results is fair.Satisfaction is highest when individuals can control the process and results at the same time.If the individual can only control one of the process and the result,then the degree of satisfaction when controlling the process is higher than the degree of satisfaction when controlling the result.A sense of fairness can improve behavioral performance.According to the equity theory,distributive justice helps to improve individuals' identification with the organization,thereby increasing performance output.In the face of unfair results,as long as the procedures that produce the results are fair,individuals will also act in favor of the organization.At present,the importance of scientific and technological innovation has become increasingly prominent,and the country and society have paid unprecedented attention to scientific and technological innovation.Science and technology are the primary productive forces.This fully explains the importance of science and technology to the development of a country.General Secretary Xi Jinping once pointed out that scientific and technological innovation is the soul of a nation's progress,an inexhaustible driving force for the prosperity of a country.Throughout the history of human development,scientific and technological innovation has always been an important force in the development of the country,and has always been an important force in promoting the development of human society.In the face of fierce and complex international competition,the ability of scientific and technological innovation has increasingly become a decisive factor in the competition of comprehensive national strength.The 19 th National Congress of the Communist Party of China(NCCPC)proposed that innovation is the first driving force for development and the strategic support for building a modern economic system.We must aim at the frontiers of world science and technology,strengthen basic research,and achieve major breakthroughs in forward-looking basic research and leading original results.We should establish a technological innovation system with enterprises as the main body,market-oriented and in-depth integration of production,education and research,strengthen support for innovation of small and medium-sized enterprises,and promote the transformation of scientific and technological achievements.Entering a new historical period,China's economy has entered a "new state".General Secretary Xi Jinping has put forward the new development concept of "innovation,coordinated,green,open and shared".In the new concept of development,innovation takes the first place.In this context,the state has continuously increased its funding for scientific research.In2019,China invested a total of 2,214.3 billion yuan in research and development(R&D),with an increase of 246.5 billion yuan or 12.5 percent over the previous year.Among them,133.5billion yuan was spent on basic research,with an increase of 22.5% over the previous year.However,to improve the ability of scientific and technological innovation,we need not only to increase the total investment of funds,but also to pay attention to improve the quality and structure of the use of funds.In the process of investment and use of scientific research funds,the major issue facing my country is how to effectively play the role of investment funds,how to effectively motivate the vast number of scientific researchers,and produce high-quality and efficient innovation results.The National Natural Science Foundation of China(NSFC)is the main channel for China to fund basic research.General Secretary Xi Jinping pointed out that basic research is the source of the entire scientific system and the central authority for all technical issues.For a long time,NSFC has accounted for one quarter of the national basic research funding and one half of the central government's basic research funding.By the end of 2020,NSFC has approved a total of more than 600,000 projects of various types,with an approved funding amount of more than 300 billion yuan,and has produced many outstanding results and cultivated a large number of scientific and technological talents.Since 2014,in the context of the reform of “decentralization,management and service”,the state have successively issued a number of policy documents on the management and reform of scientific research funding to promote the start of a new round of evolution in the management of scientific research funding.In 2015,NSFC and the Ministry of Finance issued the "Measures for the Management of Funds for Projects Funded by the National Natural Science Foundation of China",and began a comprehensive management reform of the funds for projects funded by NSFC.The establishment of indirect cost and the decentralized budget adjustment authority management reform are the two most important.Indirect cost includes performance expenses for researchers.This part of the performance is directly distributed to scientific researchers,which has never been a policy before.Indirect cost performance expenditure is regarded as a kind of monetary incentive for scientific research personnel.Before 2015,the budgets of science funded projects will not be adjusted.After the revision of the new fund management method,NSFC has successively delegated the adjustment authority of direct cost budget items,and further liberalized it in 2016-2019.Up to now,in addition to the increase in the total equipment costs,all direct budget adjustment rights have been delegated to scientific researchers and project undertaking units.With the delegation of budget adjustment power,the autonomy of scientific research personnel in the use of funds has been greatly increased.Decentralized budget adjustment power is regarded as a non-monetary incentive for scientific research personnel.This research draws on the exogenous policy impacts of NSFC's establishment of indirect costs and decentralization of budget adjustment rights,and uses the large sample data of the 2012-2019 completed projects,as well as the indirect cost allocation ratio data of 562 project undertaking unit collected manually.Through systematic data statistical analysis,combined with management practice,and using DID differential method,empirically study the impact of indirect cost monetary incentives and decentralized budget adjustment power non-monetary incentives on the innovation performance of scientific research projects.This research includes the following chapters: The first chapter is an introduction,which mainly introduces the research background,purpose and significance,research content,methods and innovations.The second chapter is the theoretical basis and literature review,introducing incentive theory,equity theory and other theoretical basis,as well as the literature review of monetary incentive,non-monetary incentive,distributive justice,procedural justice and other domestic and foreign literatures.The third chapter is the background and data analysis of scientific research funding management reform,systematically combing the institutional background of the scientific research funding management policy reform,introducing the reform content of the establishment of indirect costs and decentralizing budget adjustment power of NSFC,and systematically analyzing the data of the science fund project.The fourth chapter is about the impact of monetary incentives on scientific research innovation performance.Using the data of the concluded projects of NSFC from 2012 to 2019,and using DID method,an empirical study is conducted on the impact of monetary incentives on scientific research innovation performance.The fifth chapter is about the impact of non-monetary incentives on scientific research innovation performance.Using the data of the concluded projects of NSFC from 2012 to 2019,and using DID method,the empirical study is conducted on the impact of non-monetary incentives on scientific research innovation performance.The sixth chapter is research conclusions,policy recommendations and future prospects.Through empirical research,this study finds that the indirect cost policy has a significant impact on the innovation performance of scientific research projects,and the policy of decentralizing budget adjustment power also has a significant impact on the innovation performance of scientific research projects.Our institute found that the monetary incentive effect of younger researchers is more significant,while the non-monetary incentive effect of older researchers is more significant.The effects of monetary incentive and non-monetary incentive are more significant for senior researchers.The monetary incentive is more significant for the researchers who undertake the science fund projects for the first time,and the non-monetary incentive is more significant for the researchers who do not undertake the science fund projects for the first time.The monetary incentive effect of projects with small funding amount is more significant,while the non-monetary incentive effect of projects with large funding amount is more significant.For projects with short project execution period,the monetary incentive effect is more significant,while for projects with long project execution period,the non-monetary incentive effect is more significant.The monetary incentive effect of “talent projects” is more significant,while the non-monetary incentive effect of “research projects” is more significant.The monetary incentive effect is more significant in the central and western regions,while the non-monetary incentive effect is more significant in the eastern regions.The influence of monetary incentive is more significant in universities,and the influence of non-monetary incentive on the whole is greater.The monetary incentive effect of small units is more significant,while the non-monetary incentive effect of large units is more significant on the whole.The study also found that the higher the proportion of indirect costs,the greater the monetary incentives,and the better the performance of scientific research innovation;the higher the proportion of budget adjustment,the greater the non-monetary incentive effect,and the better the project innovation performance;the higher the proportion of surplus funds,the lower the efficiency of fund use,and the worse the project innovation performance.Based on the results of data analysis and empirical research,this article puts forward several policy recommendations: First,it is recommended to further increase the approved ratio of indirect expenses.Second,it is recommended to give full play to the incentive role of performance expenditure.Third,it is recommended to guide the project undertaking unit to give scientific research personnel sufficient autonomy in budget adjustment.Fourth,it is recommended to strengthen the management of surplus funds and reduce the proportion of surplus funds.The fifth suggestion is to use monetary incentives and non-monetary incentives in a targeted manner to improve funding management policies.Up to now,some of the above policy recommendations have been adopted and applied to the reform process of NSFC.This study combines incentive theory,fairness theory and the major needs of national scientific and technological innovation,draws on monetary incentives and non-monetary incentives related research,and uses the exogenous impact of the NSFC's financial management policy reform and 2012-2019 unique data of the completed project,systematically studied the impact of financial management policies and incentive methods on the innovation behavior and innovation performance of scientific researchers.This research makes up for the lack of existing research on monetary incentives and non-monetary incentives,which are mainly carried out by experimental investigations.In addition,this study makes an in-depth study of the mechanism and effect of monetary and non-monetary incentives,and makes an in-depth study of the difference in the effect of different incentives.Theoretically,this research can expand the related research content of incentive theory,find new factors affecting innovation from the aspect of corporate financial management and control,and enrich the research literature on innovation.This research also studies the impact of distribution justice and procedural justice on innovation behavior and performance,enriching the research on the economic consequences of equity theory.More importantly,in practice,this research uses NSFC project data to study innovative topics for the first time.The research results provide important policy references for improving my country's scientific research funding management policies,improving national technological innovation capabilities,and promoting innovation-driven development strategies.