I believe dingi is perfectly aware of the realistic outcomes, and is instead describing the normative ones, i.e. what you need if you want an enterprise that actually self-improves, where the best employees aren't actively looking for the door whilst concealing things from management.

It is, however, wholly a management problem to find those actually-rewarding rewards.

Crazy idea: what if employees retained IP of any spontaneous, self-directed R&D? You could then license their tech and make the role redundant, something any ruthless capitalist would consider a win. The employee can go job-hunting with a small passive income and glittering CV, which means they're much more likely to actually tell you so you can get that outsourcing win.

In reality, it seems far too many businesses have moats as a result of excellent decisions made by founders in the past, and as a result can't be outcompeted by companies that do manage talent better.