Any idea generating process and motivations need to match your corporate culture, there is no single sized answer for everyone. At my company, we have a very tiny budget to do any type of directly innovative work. Usually, any innovation we do is around optimization of existing work or picking the right or most important things from the todo list. Therefore, one of our biggest challenges is getting everybody, especially developers, to actually understand the company's and our customer's problems. They may have a nifty idea around a product using our core technology, but the direction to monetize the idea is usually too big of a jump for our company or the idea maker really doesn't understand the space to realize how business works around that idea. As for the motivation, I've found recognition to be a the biggest return. We do comp, but its never enough to justify the time to pitch, adjust and repitch ideas. Recognition, on the other hand, can not only make you feel better but it has long term value for promotions and picking choice assignments. This isn't my answer as a manager, but is more personal experience. I have been deeply involved in the few innovative my company has had the ability to consider. The extra money wouldn't have justified the time and pain. But, its given me enough attention so that other things in my job have become easier.