EC.421/ESD.172/SP.793 - X PRIZE WORKSHOP: ENERGY INNOVATION CHALLENGES IN THE DEVELOPING WORLD FALL 2011 SYLLABUS MW 11-12:30pm, MIT Room 56-162Course Director: Georgina Campbell – firstname.lastname@example.org – Office: MIT EntrepreneurshipCenter, E40-160, m: 617.768.7626Course Instructors: Georgina Campbell, Professor Charles Cooney, Professor Fiona MurrayCourse Website: http://stellar.mit.edu/S/course/ESD/fa11/ESD.172/Course Description: In 2004, the Ansari X PRIZE for suborbital spaceﬂight captured the publics imagination,leveraging a $10M prize into over $100M in innovation. Now the X PRIZE Foundation isdeveloping new prizes to focus innovation around other "Grand Challenge" themes,including genomics, energy, health care, and education. Around the world, prizes aregathering steam as tools for public policy, as well as philanthropy and corporate innovation.Our interdisciplinary X PRIZE course this fall challenges the world to develop revolutionarybreakthroughs in the interlinking areas of energy and the developing world. This is not atheoretical exercise, but a real opportunity to design a $10M prize for incentivizingenergy breakthroughs in the developing world whilst adding essential tools to yourinnovation toolkit. Together with industry leaders and maverick innovators, we will examinethe intersection of incentives and innovation, drawing on economic models, historicexamples, and analytic tools, and pitch your ideas to members of the X PRIZE FoundationBoard of Directors and global energy leaders at the World Bank. Learning ObjectivesAfter taking ESD.172, students should be able to: • Articulate the features of incentive prizes and contexts in which they are most effective • Describe incentive prizes in the context of existing economic models of innovation • Analyze effective areas for investment of limited resources • Understand the diversity of opportunities for improvements in energy-related issues in the developing world • Understand the technological and systems-level blockages to energy-related improvements in developing world • Develop deep knowledge of a particular energy innovation issue in the developing world through the term project • Work effectively in teams • Present their concepts clearly and concisely in both written and oral formCourse Format: This 9-unit course will be highly action-oriented and interactive, with ateam-based term project due at the end of the semester. Twice-weekly workshops include amixture of lectures and discussions with experts on innovation, incentive structures, andopportunities for revolution in developing world energy systems.
Team Project: Groups of 3-5 students will work together to analyze an area relevant toenergy generation, transmission, distribution, storage and use in the developing world. Theultimate goal here is for students to develop a fully-formed X PRIZE concept to incentivizerevolutionary energy innovation breakthroughs in the developing world.Course instructors will work together with the teams to identify local experts as teammentors/advisors. It is anticipated that each team will meet with their advisors a minimumof two times during the course of the semester.Grading: Class grades will be assigned on the basis of homework, project performance, andclass participation, as follows: 15% participation 40% project milestones 15% homework 30% ﬁnal project
Theme/Week Topic Assignment DueIncentive PrizesWk 1 (9/07) Importance of Prizes in the Innovation Toolkit Georgina CampbellWk 2 (9/12) X PRIZE introduction Stanford Case Study,Kalil Peter Diamandis, Founder X PRIZE (Skype) 2009 (9/14) Prize History and Landscape McKinsey study, Lakhani, Georgina Campbell Lerner 2008Energy Challenges in the Developing WorldWk 3 (9/19) Introduction to problem identiﬁcation & Class pitches problem solving Georgina Campbell Irina Sigalovsky, Gen3 (9/21) No class- student holiday Wk 4 (9/26) In context: Lightning Africa TBD reading Kate Steel, Africa Unit, World Bank (9/28) In context: Clean Cooking Initiative TBD reading Srilata Kammila, Africa Unit, World BankWk 5(10/03) Energy Challenges in the Developing WorldTBD reading Historical Prize Summary (10/05) Prize analysis & design I Term project: elevator Irina Sigalovsky, Gen3 pitchesWk 6 (10/10) No class- Columbus Day (10/12) Innovation: A Public & Private Perspective Team Contracts,resources, Jen Gustatic, PhaseOne advisors Wk 7 (10/17) Prize analysis & design II G3:ID Assignment 1 Irina Sigalovsky, Gen3 (10/19) Prize analysis & design III G3:ID Assignment 2 Irina Sigalovsky, Gen3Wk 8 (10/24) Green Town Labs Tour (Sip Week) (10/26) Motivations for Innovation (Sip Week) Readings TBD Georgina Campbell Steve Isakowitz, VP & CTO, Virgin Galactic (date to be conﬁrmed)
Wk 9 (10/31) MID-TERM TEAM PRESENTATIONS (11/02) IDEO Brainstorm Readings TBD Jeff Chaplin, David Privitera Wk 10 (11/07) Communicating Innovation Readings TBD G. Nagesh, Director of Business Development & Government Policy, OnGreen (11/09) Incentives and Innovation Readings TBD Professor Fiona MurrayWk 11 (11/14) X PRIZE critique X PRIZE critique Georgina Campbell (11/16) Matrix peer review “gaming session” Draft prize matrix Georgina Campbell, Erika Wagner, Senior Director of Prize Development, X PRIZEWk 12 (11/21) TEAM TIME (11/23) TEAM TIMEWk 13 (11/28) TEAM TIME Revised prize matrix (11/30) Presentation dry runs Georgina Campbell, team mentorsWk 14 (12/05) TEAM TIME (12/07) Final Presentations [ROOM/ TIME TBD] X PRIZE Board members, senior World Bank representatives, senior U.S. Government representatives, sponsors, course faculty, and other special guestsRequired Readings (available on Stellar, others will be added)Boudreau, K.J., Lakhani, K.R. (2009) How to Manage Outside Innovation. MIT SloanManagement Review. 50(4): 68-76.Christensen, C.M. (1997) Change in the Mechanical Excavator Industry. From: TheInnovator’s Dilemma. New York: Harper Business.Foster, R. (1986) The S-Curve: A New Forecasting Tool. From Innovation, The AttackersAdvantage. New York: Summit Books, Simon & Schuster.Kalil, T. (2006) Prizes for Technological Innovation. Brookings Institute Discussion Paper.http://www1.hamiltonproject.org/views/papers/200612kalil.htmMcKinsey & Company (2009) “And the Winner Is…”: Capturing the Promise of PhilanthropicPrizes.Moore, G.A. (1999) High-Tech Marketing Illusion. From Crossing the Chasm. New York:Harper Collins.
Sobel, D. (1995) Longitude: The True Story of a Lone Genius Who Solved the GreatestScientiﬁc Problem of His Time. New York: Walker Publishing Company.Stanford Graduate School of Business (2006) X PRIZE Foundation: Revolution ThroughCompetition. Case: SI-90Suggested ReadingsBrunt L., Lerner J., Nicholas T, 2008, Inducement Prizes and Innovation, Seminar in Law,Economics,and Organization Research.Christensen, C. M., Anthony, S.D., Roth E.A. (2004) Seeing Whats Next: Using the Theoriesof Innovation to Predict Industry Change. Boston: Harvard Business School Press.Davis, L. (2002) Should We Consider Alternative Incentives for Basic Research? Patents vs.Prizes. Paper for the Druid Summer Conference on Industrial Dynamics. Copenhagen,Denmark.Davis, L. (2004) How Effective Are Prizes as Incentives to Innovation? Evidence from Three20th Century Contests. Paper for the Druid Summer Conference on Industrial Dynamics.Copenhagen, Denmark.Diamandis, P.H. (2009) Using Incentive Prizes to Drive Creativity, Innovation andBreakthroughs. X PRIZE Foundation: Playa Vista, CA.Horrobin, D. (1986) Glittering prizes for research support. Nature (324) p. 221.Lakhani K., Jeppesen L, Lohse P., Panetta J., 2007, The Value of Openness in ScientiﬁcProblem Solving [Report] : Working paper: Harvard Business School.Morgan, J. (2009) Inducing Innovation Through Prizes. Innovations 3(4):105-117.National Research Council (2007) Innovation Inducement Prizes at the National ScienceFoundation. Washington, D.C.: The National Academies Press.Schrage, M. (1990) How Prizes Can Help Spur New Technology. Los Angeles Times. July 19.http://articles.latimes.com/1990-07-19/business/ﬁ-135_1_kremer-prize.Scotchmer S., 2004, Innovation and Incentives. Cambridge: The MIT PressUtterback, J.M. (1996) Mastering the Dynamics of Innovation, 2nd Edition. Boston: HarvardBusiness School Press.