Designing incentives in innovations processes. Gamification as an approach for creating an incentive system for the early stage of the innovation process

Table of Contents

1. Introduction

1.1 Motivation

1.2 Structure and method

2. The problem of incentives in innovation processes

2.1 Identification of innovation processes

2.1.1 Overview of innovation

2.1.2 Typical stages in innovation processes

2.2 Incentive systems in innovation processes

2.2.1 Preference deficits: Principal-agent theory

2.2.2 Basic requirements of incentive systems

2.3 Incentive relevant characteristics of innovation processes

2.3.1 Motivational structures

2.3.2 Creativity

2.3.3 Teamwork

2.3.4 Measuring performance

3. The gamified incentive system for the early stage of the innovation process

3.1 Play

3.2 Game mechanics

3.3 Game mechanics and play in incentive systems for innovation processes

3.3.1 Basic requirements

3.3.2 Innovation process requirements

4. Research design and methods

4.1 Data collection

4.1.1 Quasi-experiment – The gamified incentive system

4.1.2 Survey

4.1.3 Interview

4.2 Data analysis, findings and interpretation

4.3 Research limitations

5. Conclusion

Objectives and Topics

This master thesis aims to design and evaluate a gamified incentive system specifically for the early stage of innovation processes, where traditional pay-for-performance schemes often fail due to high uncertainty and the need for creativity. The central research question investigates whether gamification principles can effectively support motivation, teamwork, and creativity among employees involved in generating and evaluating new ideas.

• Theoretical analysis of incentive systems within innovation processes using principal-agent theory.
• Evaluation of core innovation factors: motivation, creativity, teamwork, and performance measurement.
• Application of gamification elements (e.g., game points, scoreboards, and social points) to non-game business settings.
• Empirical analysis through a quasi-experiment conducted with students to measure the impact of gamified mechanics.

Excerpt from the book

Summary of Chapters

1. Introduction: Presents the motivation for the thesis, outlining the need for better incentive systems in innovation and defining the research questions regarding gamification.

2. The problem of incentives in innovation processes: Discusses the theoretical foundations of innovation, the limitations of standard incentive schemes via principal-agent theory, and key characteristics of the innovation process like creativity and teamwork.

3. The gamified incentive system for the early stage of the innovation process: Explores gamification as a solution, defining play and game mechanics and their alignment with the previously established requirements for innovation processes.

4. Research design and methods: Details the quasi-experimental study, including data collection via surveys and interviews to empirically analyze the impact of the gamified system.

5. Conclusion: Summarizes the findings, confirming a positive correlation between game mechanics and essential innovation factors, and provides suggestions for future research.

Keywords

Gamification, Innovation Process, Incentive Systems, Motivation, Creativity, Teamwork, Principal-Agent Theory, Quasi-experiment, Performance Measurement, Game Mechanics, Early Stage, Intrinsic Motivation, Extrinsic Motivation, Business Innovation, Idea Generation.

Frequently Asked Questions

What is the core focus of this thesis?

The thesis explores whether gamification can serve as an effective incentive system to motivate employees during the early, creative stages of innovation processes, where traditional reward schemes often fall short.

What are the primary thematic fields covered?

The key themes include innovation management, incentive system design, human motivation theory (intrinsic vs. extrinsic), teamwork dynamics in innovation, and the practical application of game mechanics in business.

What is the main objective or research question?

The primary goals are to determine if gamification is suitable for designing an incentive system for early-stage innovation and if these mechanics can support key performance factors like motivation, creativity, and teamwork.

Which scientific methods are applied?

The research utilizes a literature review to establish a theoretical framework and a quasi-experimental approach involving a simulated innovation process, analyzed through both quantitative surveys and qualitative interviews.

What is covered in the main section of the work?

The main section identifies specific requirements for incentive systems based on innovation characteristics, explains the mechanics of gamification, and evaluates how these mechanics meet those requirements in a practical, simulated experiment.

Which keywords best characterize this work?

The essential terms include gamification, innovation process, incentive systems, motivation, creativity, teamwork, and performance measurement.

How does the principal-agent theory relate to the innovation process?

The theory helps explain performance deficits due to information asymmetries and conflicting interests, highlighting why traditional "pay-for-performance" schemes are often unsuitable for the high-uncertainty nature of innovation.

What is the role of "play" in this gamified system?

Play acts as a catalyst for innovation by satisfying human needs for autonomy, competence, and relatedness, which in turn fosters motivation and helps overcome the rigid hierarchies found in traditional business environments.

What were the main findings of the quasi-experiment?

The study suggests a positive correlation between specific game mechanics—such as points and scoreboards—and the engagement, motivation, and communication levels of participants in the simulated innovation task.