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A green innovation strategy is an important step for enterprises to balance economic and environmental. As the executors of strategic decisions, the attitude and capabilities of senior managers determine the effectiveness of implementing green innovation. Therefore, this paper aims to explore the relationship between executive compensation incentives and green innovation.

Based on the data of heavily polluting enterprises listed in China's A-share market from 2015 to 2020, this study constructs an OLS model with fixed effects of time and industry, and uses the mediation three-step method to verify the correlation between executive compensation incentives, innovation openness and green innovation. Meanwhile, the grouping regression was used to test the moderating effect of environmental regulation on executive compensation incentives.

The empirical results show that executive salary incentives promote green innovation and equity incentives inhibit green innovation; the openness breadth partially mediates the relationship between salary incentives, equity incentives and green innovation, while the openness depth only partially mediates the relationship between equity incentives and green innovation; and environmental regulation positively moderates executive incentives.

Due to sample selection and variable measurement, the study lacks certain generality. Therefore, future research needs to further analyze the internal factors affecting green innovation from multiple dimensions.

This study provides a new evidence for analyzing how executive compensation measures affect green innovation, and further enhances the mediating mechanism of open innovation.

This study has significant theoretical implications for examining the intra-firm factors that affect green innovation.

This study aims to explore the impacts of the knowledge structure of CEO on corporate innovation strategy in the background of China’s national policy of innovation-driven development.

Regression analysis is used to test the direct effects and the moderating roles of financial and power incentives. It screens 685 listed companies from Chinese stock market, with the time window from 2016 to 2018.

CEO’s knowledge breadth has a significant impact on innovation strategy, but the moderating effects of power and financial incentives are not significant. CEO’s knowledge depth is negatively correlated to corporate innovation strategy; moreover, power incentive significantly strengthens the relationship, whereas financial incentive significantly weakens it.

Firms are suggested to optimize CEO knowledge structure and organizational incentive system for better implementing innovation-driven development strategy.

It is beneficial to the exploration of the micro-mechanism that enables corporate innovation strategy. Scholars may gain additional insights into the strategic management of corporate innovation from the perspective of CEO’s knowledge structure.

The purpose of this paper is to examine if the structure and design of CEO compensation has any effect on firm innovation. It further investigates the effectiveness of each component of portfolio of compensation incentives in encouraging innovation.

This study uses systems of simultaneous equations to model the interdependence between compensation incentives and measures of firm innovation.

Results indicate that the pay‐performance sensitivity of the CEO portfolio of compensation incentives is positively related to investment in R&D expenditures, number of patents and citations. Options in general are more effective than stocks. However, within the options portfolio, recently awarded and unvested options are more effective than previously awarded and vested options. Restricted stock is more effective than unrestricted stock.

Measuring innovation output is difficult as innovation could take different forms, including business model innovation, which does not appear in the patent data.

Stock options encourage investment in value‐increasing innovations and should remain a significant part of managerial compensation. If the firm awards stock, it should only award restricted stock.

This study uses comprehensive measures of compensation incentives and firm innovation. It views incentives as a portfolio of stock and options and uses incentives in their entirety. It examines the effectiveness of each component of the portfolio in encouraging innovation. It measures innovation as investment into the innovation process (R&D expenditures) and the resulting success of that investment (patents and citations).

To guarantee alignment between ongoing activities and organizational goals, innovation management theory emphasizes management control and explicit innovation strategies as prerequisites for innovation performance. However, the theory on open services innovation emphasizes individual autonomy and incentives to foster open innovations. The aim of this paper is to explore this inconsistency.

An explorative research design involving 25 semi-structured interviews in five large scale-intensive service firms is explored. Scale-intensive service firms are strategically sampled for this study since these firms experience tension between open service innovation characteristics and efforts to standardize.

The authors show how individual autonomy facilitates the internal and external networking required in open innovations. However, individualized incentives do not suffice to motivate, mobilize and direct the collaboration and collective effort needed to ensure successful implementation of open innovation processes. Innovation performance is a collective effort, and the findings suggest that firms' business strategy works as a collective incentive system.

The findings imply that firms should not rely on individualized incentives alone to implement open innovation processes successfully. The implementation of more collectively oriented incentives is also necessary to motivate the collective effort required to succeed with open innovation.

The study extends previous work and shows how innovation practices are collective efforts that also involve the mobilization of external resources. The incentives observed have an effect on individual behaviour, while performance measures, to a larger degree, cater to the collective level. The authors present three propositions for further empirical investigation.

This study aims to investigate the influence and impact mechanism of capital tax incentives on firm innovation.

This study employs the difference-in-differences (DID) method, in conjunction with the exogenous impact of accelerated depreciation (AD) pilot policy. This study selects Chinese listed companies from 2010 to 2017 as the research sample.

Firstly, AD exerts a substantial positive effect on the quantity and quality of the innovation output of firms, and the positive impact results primarily from heightened investment in fixed assets, particularly, machinery and equipment. Secondly, the influence of the policy is pronounced in non-state-owned enterprises, mature enterprises, less capital-intensive enterprises and non-high-tech industries, which all exhibit strong innovation incentives. Lastly, the tax incentive policy significantly stimulates firm innovation in the short term, but its long-term impact on innovation incentives lacks statistical significance.

This study highlights the significance of capital tax incentives in facilitating the innovation process in firms.

Research on makers and innovation has been equivocal regarding whether maker innovation is driven by internal motivation or external incentives. The motivation view favors the intrinsic motives of makers, whereas the incentive view supports external economic incentives. The authors combine both views to explore how innovation tournaments promote the product innovation outcomes of different creative and entrepreneurial makers, using economic incentives (money) or social incentives (love).

The authors interviewed 42 makers and collected a panel dataset of 29,823 makers from the largest digital maker community in China using a Python crawling program. The authors analyzed the data using multiple methods, including cluster analysis, discriminant analysis, factor analysis and negative binomial regression.

Compared with entrepreneurial makers, the product productivity of creative makers is inferior, but their product popularity is greater. The social incentive of innovation tournaments promotes the product productivity and popularity of creative makers compared with that of entrepreneurial makers, but the economic incentive is contradictory. In addition, social and economic incentives interact to generate inconsistent influences.

The study identifies creative and entrepreneurial makers and contributes to user innovation and innovation tournaments by integrating motivation and incentive views.

Government incentives are critical for successful indigenous innovation commercialisation, yet there are concerns about the efficacy of these incentives. Therefore, this study examines the effectiveness of government incentives on successful indigenous innovation commercialisation in the context of low-income economies by testing the effects of demand and supply-side incentives on firm performance in the small-scale industry in Ghana.

The theoretical framework for this study is built on the below-the-radar theory of innovation (Kaplinsky et al., 2009). Using a sample of 557 firms engaged in commercialising various indigenous innovations in the small-scale industry in Ghana, PLS-SEM was deployed to assess 11 hypothesised paths based on a validated questionnaire.

The model results, at a 5% significance level, indicate that supply-side incentives are statistically insignificant on sales and profitability but have significant positive effects on employment. The direct and moderating influence of supply-side incentives and market factors on overall firm performance is also insignificant, while demand-side incentives to buyers have significant positive effects on all the performance metrics and positively moderate the effects of market factors.

The research focused on commercialising indigenous innovation in the context of low-income economies. Few studies, if any, have separately explored the effect of demand and supply-side government incentives on indigenous innovation in the context of low-income economies. The findings suggest that innovation support should focus more on the demand side of the innovation value chain.

This paper evaluates the effects of tax incentives on business innovation in Brazil that were established by Law 11,196/05 (the “Fiscal Incentives Law”) to test whether they have had a positive impact on beneficiary firms' innovation input and output and on their performance.

The policy impacts are estimated using microdata on 13,706 firms available in the 2008 and 2011 editions of the Brazilian Innovation Survey (PINTEC) and by applying propensity score matching with difference-in-differences.

The results suggest a positive and statistically significant impact of the policy on research and development (R&D) expenditures (average of approximately US$ 264,000 in 2011), the number of research staff (average of five researchers) and total employment (approximately 5% of the beneficiary firms' mean size). However, no impact was found on the overall spending on innovative activities, the percentage of sales and exports from new products, net revenue or net revenue per employee.

The findings provide empirical support in favor of tax incentives as a policy tool to boost business innovation in the country. However, the absence of significant effects on innovative activities expenditures and on most indicators of innovation output and firms' performance reveals shortcomings of the policy that need to be addressed.

The study complements and advances the findings of previous studies by assessing policy impact on total innovative activities expenditures and on innovation output and firm performance.

Organizational incentives and structures play a crucial role in realizing explorative and exploitative innovations in firms. Existing studies have neglected the role of trade-off mechanisms between the two on innovation ambidexterity. This study aims to investigate these trade-off mechanisms and their position on innovation ambidexterity.

Given the limited theoretical understanding, the authors conducted a case study with a sample of two Chinese firms with abundant interview and secondary data.

The results show that firms can develop innovation ambidexterity at two levels, namely, the time and space levels, using incentive synergy as well as organizational structures. Furthermore, the authors explain the role of the trade-off between incentive synergy and organizational structure in promoting a balance between explorative and exploitative innovation.

The authors propose trade-off mechanisms between incentive synergy and organizational structure and explore how trade-off mechanisms can play a role in promoting a balance of explorative and exploitative innovation at both time and space levels.

This paper aims to find the endogenous relationship between innovation input and corporate performance and deepen the study of innovation performance theory in industry and enterprise at the micro level.

This paper selects the firms listed on A shares in Shanghai and Shenzhen Stock Exchanges from 2009 to 2015 as samples. The authors cluster these samples according to the factors of production and classify the samples into three types: technology-intensive, capital-intensive and labor-intensive. After obtaining the samples and classifying them, the authors conduct a research on the endogenous relationship between the innovation input and the corporate performance through the simultaneous equations model and 3SLS estimation method. Meanwhile, they also make a study on the influence of executive incentive mechanism on the relationship between the innovation input and the corporate performance.

In technology-intensive industry, the increase of pre-innovation input will enhance the corporate performance in the current period, however, which will slow down the pace of innovation and lead to lower corporate performance in the future, and then increase innovation input again. In contrast, in capital-intensive industries, innovation input just improves corporate performance in the current period and the promotion of corporate performance will promote the intensity of innovation input in the future. With labor-intensive industries, innovation input also depends on early good returns, but innovation input has no significant impact on the corporate performance both at present and in the future. While in the executive incentive mechanism, salary incentive has a significant positive regulatory effect on the relationship between innovation input and corporate performance.

This paper presents a new research perspective on the relationship between innovation input and firm corporate performance, which is of great value to the listed company in balancing the R&D input with the company’s target performance and the design of executive incentive mechanism.