The X Factor: How Prize Money Can Drive Innovation
- Paper number
IAC-08.E6.3.6
- Author
Ms. Sarah Ramsey, X PRIZE Foundation, United States
- Coauthor
Mr. Bretton Alexander, X PRIZE Foundation, United States
- Year
2008
- Abstract
Most major breakthroughs in technology are generally fostered by government or major corporations. However, every once in a while, a breakthrough comes from somewhere else. As involvement in the Google Lunar X PRIZE proves, there are people just waiting for a chance to prove that they can play on the same field. What they contribute to innovation is a passion for what they do, a more efficient and inexpensive way to create existing technology and occasionally, revolutionary breakthroughs. Starting with the Orteig Prize, which kick-started the non-military aviation industry, prizes have an honored history in the United States. The X PRIZE Foundation is using the prize model to push revolutionary breakthroughs by encouraging teams from all walks of life to compete. The prize model works because, even though no money is spent unless the prize is won, a great deal of investment is made to create new technology and new processes to try and win the prize. The X PRIZE Foundation began as an effort to recreate the Orteig Prize in space – send a suborbital vehicle up to carry private passengers. It succeeded beyond everyone’s expectations. The Google Lunar X PRIZE is the successor to the Ansari X PRIZE – an opportunity for anyone to go to the Moon. The ten teams signed up so far for the competition come from all walks of life and all levels of experience. No matter which of them wins the competition, the work they put into designing and building small robotic crafts will advance the exploration and development of the Moon by leaps and bounds. The X PRIZE Foundation believes in this model of innovation; opening up competition to anyone. Governments and corporations will benefit from fostering private competition for revolutionary breakthroughs in technology. Prizes are not a panacea, though. These competitions must be designed so that the bar is set high enough to achieve some breakthrough, but not so high that it is impossible to achieve anything at all. The competitions also must find the right incentive to attract competitors. The prize purse, and the potential for follow on business, must be enough to convince competitors to expend even more than the amount of the purse. We would like to present the prize model to the IAC attendees as a way to facilitate technological breakthroughs outside of the usual research and development process.
- Abstract document
- Manuscript document
IAC-08.E6.3.6.pdf (🔒 authorized access only).
To get the manuscript, please contact IAF Secretariat.