The Research Of Incentive Mechanism On R&D Staff Based On The Risk Allocation

Technology research and development (R&D) is one of the most crucial drivingforces of economy. Alone with the surge of economy progress, the strength of R&Dhave become the primary criteria of its national economic strength. There’s no need toprove the importance of R&D strength for which is a necessity from enterprises tostates who acquire long-term advantage of competition. Since the R&D personnel isthe most cherishable resource, how to encourage the staff is of primary importance.Currently most of the incentive mechanisms designed by domestic and foreignscholars are based on the prerequisite hypothesis of Risk-Neutral of management andRisk-Aversion of R&D personnel, which were considered contain narrow-mindednessto a great extent. Most of the relevant studies also stay on the materially (on Payrollmostly) incentive mechanism design but neglecting the spiritual motivation.Therefore the study of these two areas contains importance both theoretically andpractically.In designing the motivation mechanism, it is not the main-stream hypothesis butthe Risk-Aversion of both the principal and agent was adopted and some usefulconclusion was obtained. After that, the outward analysis of models as well as validityanalysis of the establishment condition on model constrains was conducted accordingto the reality, in order to press close to the real economy environment. On the basis ofabove study, the spiritual motivation as a supplement was added to form a Dual-Motivation model of both material and spiritual factors to meet the reality and theneed of enterprises to establish multiple-incentive mechanism and the positivecorrelation was drew from this model that increasing the incentive measures mightimprove the benefit of enterprise. Finally the empirical analysis of the model hasproved that the additional investment on R&D and the motivation to staff bothdirectly and indirectly had real impact on increased profits of the enterprise.