| Abstract: | This study indicates that sales volume, stage in the product life cycle, profitability and turnover are all important predictors of the method and magnitude of financial rewards provided by high tech firms to R and D employees. The most favorable situational factors for R and D incentive compensation are a low sales volume high tech company, operating in the growth stage of the product life cycle, with high turnover rates, and capable of linking profitability to incentive rewards such as bonuses. |
