📄 Abstract
Employee ownership structures represent a critical human resource mechanism through which organizations align workforce incentives with innovation objectives. This research compares present ESOP (Employee Stock Ownership Plan) effects on innovation output with projected outcomes under tokenised and broadened equity models in the Indian context. Through a systematic literature review synthesizing 47 empirical studies and analytical scenario modeling using Monte Carlo simulation (10,000 iterations), we find that current ESOP implementations generate modest innovation premiums (8–11% uplift in R&D productivity). Tokenised equity architectures project 16–22% innovation returns, broadened ownership models 19–24%, and integrated approaches combining both mechanisms 25–32%. The analysis bridges corporate finance and human resource management perspectives, identifying critical governance parameters and implementation pathways. India-specific regulatory constraints under the Companies Act 2013 and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021, together with talent competition dynamics, are incorporated. Results demonstrate substantial upside potential from ownership restructuring conditional upon governance quality and organizational implementation competence. The study contributes to understanding how equity architecture influences innovation behavior, employee motivation, and firm-level competitive advantage in knowledge-intensive sectors.
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📚 How to Cite:
Dr. N Subbukrishna Sastry, Dr. Manjula Mallya M , EMPLOYEE OWNERSHIP DESIGN AND FIRM-LEVEL INNOVATION RETURNS: COMPARATIVE ANALYSIS OF ESOP, TOKENISED, AND BROADENED EQUITY MODELS IN INDIA , Volume 14 , Issue 9, September 2026, International Journal of Asian Economic Light (JAEL) , Pages: 1 - 10 ,