Extrinsic and intrinsic motivations to innovate: tracing the motivation of ‘grassroot’ innovators in India

Abstract

Extrinsic motivations like intellectual property protections and fiscal incentives continue to occupy the centre stage in debates on innovation policies. Joseph Schumpeter had, however, argued that the motive to accumulate private property can only explain part of innovative activities. In his view, “the joy of creating, of getting things done” associated with the behavioural traits that “seek out difficulties…and takes delight in ventures” stand out as the most independent factor of behaviour in explaining innovation and economic development, especially in early capitalist societies. Taking the case of ‘grassroot’ innovators in India, we re-examine the motivations behind innovative behaviour. Drawing upon the theory of effectance motivation we construct operational indicators of extrinsic and intrinsic motivations to innovate. Interestingly, we find that pure extrinsic forms of motivation drive only a fraction of individual innovative behaviour. A large amount of innovative behaviour is motivated either by intrinsic motivations or by a combination of intrinsic and extrinsic motivations. Also, conceptualising innovation as a three stage process involving idea generation, experimentation and application, we find evidence of motivation-shifts. The importance of intrinsic motivation is comparatively greater during the early stage, when uncertainty about innovation is high. The importance of extrinsic motivation, on the other hand, increases when innovation is complete, awaiting application. We then outline a few implications of these findings for policy making.