Why Prize? The Surprising Resurgence of Prizes to Stimulate Innovation
Erika B. Wagner · Research-Technology Management · 2011
OVERVIEW:Pairing a clear, measurable end goal with a variety of motivators, well-designed prizes leverage the principles of competition to bring afield of solvers to bear on a given challenge. Prizes offer organizations an important tool to foster innovation and raise awareness. By setting forth a credible but challenging goal with minimal hurdles to entry, prizes rally diverse approaches around a focused agenda, supporting an entire field of innovators rather than a single solution. Perhaps most importantly, they capitalize on a deep-seated competitive drive, capturing public interest for the issue at hand through the creation of visible heroes and compelling stories. This article explores how and why prizes are most effectively used and how organizations can use competitions to enhance their R&D portfolio and engage user communities by embracing diverse risk-takers and investors.