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Continuous innovation is becoming a necessity if firms want to stay competitive. Different factors influence the rate of innovation in a firm, among which corporate culture has often been recognized among the most important factors. In this paper we argue that the development of corporate culture that will support and foster innovation must be accompanied with an appropriate reward system. A research conducted among Croatian firms showed that a statistically significant relationship existsdoi:10.5281/zenodo.1071485 fatcat:gnblgxxhzbbulbsd3c7573ricq