Prizes
Innovation needs prizes. Prizes have, throughout history, proven to be an exceptional mechanism to generate and empower innovation. History is replete with examples. Lindberg crossed the Atlantic to win a prize offered by French hotelier Raymond Ortig, and his doing so launched the multibillion dollar aviation industry, changing our access to the world. The X PRIZE Foundation caused the first private rocketship, a manned vehicle, to reach outer space, a feat considered impossible. Darpa even used a prize to cause significant innovation in the area of autonomous vehicles, advancing the science by a decade.
We can apply the power and success of prizes to environmental challenges.
Prize Capital announced the planning phase for a renewable fuels prize before over 100 energy ministers visiting from around the world at the Washington International Renewable Energy Conference in Washington, DC. Prize Capital Chairman and Founder Lee Stein spoke at the opening plenary. (watch the video)
Biofuels Prize Planning Phase
Resources & Downloads
| Document Title | File Type |
|---|---|
| X PRIZE Vision Video |  |
| Technology Prizes for Climate Change Mitigation |  |
| Stanford Business School Case Study | |
| Super Efficient Refrigerator Program Profile #106 | |
Inducement Prizes
Recognition prizes (such as the Nobel Prizes) look backward, rewarding past achievements. Inducement prizes look forward, directing effort at a desired outcome. Prize Capital, LLC works with Prize Awarding Entities who produce inducement prizes.
Large inducement prizes drive innovation, with significant advantages:
- Traditional research and development continually funds investigation of root causes and new technology…but without a guarantee of results, investors never know when or if, the desired result will be achieved
- Recognition prizes acknowledge brilliant breakthroughs in the past…but do not drive us forward to the solutions needed for our future
- Venture capital may limit development of solutions that do not immediately demonstrate the high financial returns required to payback early investors
- Most investment does not look outside its existing circle of players for solutions, ignoring the potential cross-boundary breakthroughs that may emerge – for example - as mathematicians look at genetic code as an algorithm, bringing fresh eyes to an existing field
- Prizes generate excitement, momentum and media – attracting the best competitors, as well as increasing public awareness.
Inducement prizes clearly define a desired outcome, without dictating the means to achieve it. You only pay for the desired results!