Small-Scale Mentoring, Large-Scale Innovation: Evidence from a Superstar Firm

Abstract

We use the staggered rollout of a mentorship program within a superstar technology firm to test whether small-scale, targeted mentoring can address organizational frictions that influence innovation and productivity. Analyzing novel data capturing the complete innovation pipeline---from initial idea disclosures through patent applications---we study seven mentoring cohorts with 633 mentees and track outcomes for over 20,000 employees. First, we find a positive and significant relationship between participating in the mentorship program and innovation outcomes in the short- and long-term, with underrepresented innovators realizing the largest gains. Second, we document significant indirect spillovers through team formation, with non-mentored peers experiencing productivity gains through collaboration. Survey evidence points to three mechanisms: knowledge transfer about patent processes, expanded professional networks, and increased confidence in identifying patentable ideas.  The mentorship program is also associated with broader organizational improvements: engineers in the firm perceive the culture to be better, report higher job satisfaction, and are less likely to leave than engineers at peer firms. Accounting for these spillovers implies that small-scale mentoring programs generate a meaningful return on investment and are a cost-effective way to foster innovation and inclusivity.