AbstractThe relationships of organizational variables with innovation and productivity of scientists and engineers in R&D laboratories were explored. Peer ratings of innovation (original and useful output) and productivity (quantity of output) were utilized as criteria. Information was obtained on 154 scientists/engineers in 35 work groups in three Air Force R&D laboratories, Significant relationships found between organizational variables and innovation and productivity included: rewards for innovation, communication on technical matters with other scientists/engineers within the work group, and an age‐education demographic group of variables. Level of participation in goal setting and group leader's level of empathy were also consistently related to level of productivit