National governments throughout the world have offered prizes to encourage innovation since at least the late 1700s. In the United States, Congress authorized most of today's federally-funded innovation inducement prizes beginning with the 108 th Congress (2003). Philanthropic organizations, industry, governments, and nongovernmental organizations offer many different kinds of prizes with a variety of objectives to reward accomplishments in science and technology (S&T). Some prizes, such as the Nobel prizes and U.S. National Medal of Science and National Medal of Technology, reward past accomplishments and do not have a specific scientific or technological goal. The scientific and technological goals for prizes include the full spectrum of research, development, testing, demonstration, and deployment. They are an alternative to more traditional ways of achieving societal objectives with science and technology such as grants, contracts, fees, patents, and human or physical infrastructure investments that some think are too costly, risk-averse, and bureaucratic. Some believe that prizes, if designed well, can enhance the ability of science and technology to solve societal problems, by reaching a wider community of problem solvers, encouraging risk-taking, and focusing the attention of policymakers, entrepreneurs, the public, and researchers on the goals of an innovation program. Concerns about prizes are that they may inhibit the exchange of information among researchers and innovators due to the very nature of competitions, be challenging to design and finance, and result in duplicative work which may not be the best use of limited intellectual and financial resources. Prizes differ in their intentions, objectives, sources of funding, competition mechanisms, reward structures, and other variables. The prizes themselves may take the form of recognition and publicity, cash, marketing monopolies, or other means. Some experts view the non-compensation portion of prizes as important, and sometimes more important, than the potential financial reward. What Is the Status of Federally-Funded Innovation Inducement Prizes? Members of Congress interested in federally-funded innovation inducement prizes may wish to create new prizes, or modify or increase oversight of current prize programs. Possible prize evaluation criteria, by category, for evaluating the program include whether the contest—
Supply of Technology
enhanced advanced innovation, or led to related innovations; identified new or unorthodox ideas or approaches to particular challenges; demonstrated the feasibility or potential of particular technologies; solved a challenging, well-defined problem requiring innovation; highlighted a range of best practices, ideas, or opportunities within a field; focused attention on, set standards in and/or influence perception of a particular field or issue;
Demand for Technology
promoted development and diffusion of specific technologies; emulated market incentives, driving down costs through competition and exposing latent demand;
Scientific and Technical Community
educated and changed behavior of participants through the prize process; celebrated and strengthened a particular community; registered large numbers of contestants, and those from a more diverse group than the traditional constituency for that agency;
Public Awareness
educated the public about the excitement and usefulness of research and innovation.
Since at least the 18th century, philanthropic organizations, industry, governments, and nongovernmental organizations throughout the world have offered many different kinds of prizes with a variety of objectives to reward accomplishments in science and technology. In the United States, Congress authorized most of today's federally-funded innovation inducement prizes beginning with the 108th Congress (2003). This analysis focuses on federally-funded "innovation inducement prizes," which are sponsored by federal organizations and designed to encourage scientists and engineers to pursue scientific and technical societal goals not yet reached.
The objectives of such prizes are generally to identify new or unorthodox ideas or approaches to particular challenges; demonstrate the feasibility or potential of particular technologies; promote development and diffusion of specific technologies; address intractable or neglected societal challenges; and educate the public about the excitement and usefulness of research and innovation. They differ from "recognition prizes" such as the National Medal of Science, National Medal of Technology, and the Nobel prizes, which reward past S&T accomplishments.
The scientific and technological goals for federally-funded innovation inducement prizes include the full spectrum of research, development, testing, demonstration, and deployment. They are an alternative to more traditional ways of achieving societal objectives with S&T such as grants, contracts, fees, patents, and human or physical infrastructure investments that some think are too costly, risk-averse, and bureaucratic. Some believe that prizes, if designed well, can enhance the ability of science and technology to solve societal problems, by reaching a wider community of problem solvers, encouraging risk-taking, and focusing the attention of policymakers, entrepreneurs, the public, and researchers on the goals of an innovation program. Concerns about prizes are that they may inhibit the exchange of information among researchers and innovators due to the very nature of competitions, be challenging to design and finance, and result in duplicative work which may not be the best use of limited intellectual and financial resources.
Prizes differ in their intentions, objectives, sources of funding, competition mechanisms, reward structure, and other variables. The prizes themselves may take the form of recognition and publicity, cash, marketing monopolies, or other means. When a cash award is provided, most range from $250,000 to $2 million, can go up as high as $10 million, and have exceeded $500 million when the winner provides a service such as a vaccine. Some experts view the non-compensation portion of prizes such as recognition and publicity, as important, and sometimes more important, than the potential financial reward.
Members of Congress interested in federally-funded innovation inducement prizes may wish to consider several policy options including creating new prizes, and modifying or increasing oversight of current prize programs. In the 111th Congress, policymakers may make decisions that influence whether or not current prize programs will be funded, and existing programs modified. Some policymakers have proposed new prizes on technologies such as self-powered farms, voting systems designed for persons with disabilities, energy technologies, nanotechnology, cybersecurity, and automotive energy efficiency.