Breakthroughs with Competition-Based Innovation: The X Prize Foundation
Mokter Hossain · SSRN Electronic Journal · 2014
A new approach for creating breakthrough innovation is emerging. This is competition-based innovation with a novel model. In parallel with the increasing use of competition-based innovation in for-profit organizations, this model of innovation is successfully being used by non-profit organizations for advancing the development of science and technology. One such non-profit organization is the X Prize Foundation, which designs and manages innovation competitions to encourage scientific and technological development. The objective of this study is to provide insight about how competition-based innovation can be used in creating breakthrough innovation. With the X Prize Foundation and three innovation competitions organized by this organization, we illustrate that, as surprising as it may seem, even breakthrough innovations can be brought about through innovation competitions. This study debunks some common beliefs concerning breakthrough innovation and innovation competitions.