The design of performance measurement systems and the use of derived assessment metrics in compensation contracts within the context of corporate research and development are controversially discussed in the literature. The proposal to involve decision-makers in R&D in the outcomes focuses on influencing behavior within the company. However, potential cross-company effects of compensation contract design are excluded from this discussion. Manuela Hirsch examines possible strategic competition effects of delegation and performance-oriented compensation contract design in the R&D context, starting from a duopoly model. The author compares four different contract variants and demonstrates that the delegation of decision-making authority for R&D and market decisions to a manager can influence the achievement of the company owners' objectives.