Xx Company R & D Incentive Program Design

The growth of a hi-tech enterprise is dependent upon an innovative environment and mechanism, particularly on the role of R&D personnel. However, small and medium private hi-tech enterprises generally focuses only on short-term gains while neglect long-term development, which results in want of truly effective incentives to R&D personnel. Therefore, sensible and competitive motivation modes are especially important against the increasing competition in hi-tech industry. A competitive motivation mode may not necessarily mean high salary or good welfares, but the internal fairness and personal competitiveness in labor market.This article starts with narrating the relevant incentive theories, including theories in management and economics, and generalizing the status quo of the incentives to R & D personnel at home and abroad. Then, it takes an example of a private hi-tech enterprise, analyses the problems existing in the motivation modes to the R&D personnel in the company, and designs a motivation mode incorporating incentives in economic, spiritual and personal growth aspects, with economic incentive highlighted. In view of its R&D projects being small, peripheral and non-core, compared with state-owned research institutes in the same sector, the article suggests to closely link incentives for the R&D personnel with the R&D projects and evaluate the performance of the whole project team, then practice a combined mode of incentives with the materialistic one as the main form.