The impact of financial incentives on research production: Evidence from Saudi Arabia

This paper investigates the impact of financial incentives on R&D performance in the Kingdom of Saudi Arabia (KSA) by analyzing the number of papers published in Saudi-based universities and research institutes in seven sectors for 25 years (1995–2019). It discusses how policies influence R&D performance and examines how financial incentives are associated with research output, quantitatively and qualitatively. The current study aims to provide R&D organizations with insights to make informed decisions concerning the role of incentives in boosting R&D production. Specifically, the current paper targets to answer the question: Did the Saudi Amended Incentive Program (promulgated in 2008) improve research production, i.e., lead to a higher number of published papers? The paper analyzed historical data of scientific publications in the KSA to answer the raised question, compared with MENA and G20 countries. The year 2009 did mark a clear turning point in the KSA’s R&D performance in terms of the number of published scientific papers that have risen steadily and multiplied seven times between 2009 and 2019. The study also provides empirical evidence of the effectiveness of governmental regulations and financial incentive schemes in increasing the number of papers published in various scientific fields.