Reward professionals overwhelmingly reported that incentive programs had a positive impact on encouraging innovation. Promotions are considered the most often utilized method to encourage innovation, followed by incentives, spot awards and non-financial recognition. Management’s future commitment to improving a culture of innovation is strong, with most increasing investment in innovation initiatives. Our findings provide strong support for using reward programs to encourage innovation. Based on those findings, the authors determined several key characteristics that make rewards programs more effective in supporting organizational innovation.