Prizes to Pull Innovation into International Development


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A draft presentation pulling together some basic ideas around prize design. Looking for feedback - need more international development examples (especially those sponsored by governments) and some good impact/outcome data. Email lhtorres at gmail dot com.

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Prizes to Pull Innovation into International Development

  1. 1. PRIZE DESIGN * Using Prizes to Pull Innovation into International Development Lars Hasselblad Torres/DAI 2011Wednesday, November 9, 2011
  2. 2. Opportunity • Growth of Design for Development community of practice • Emergence of Challenge Driven Innovation (CDI) discipline • Rise of “grand challenges” as an international development focusing mechanism • Increased interest in, uses of prizes across federal agencies • Robust ecology of Open Innovation (OI) platforms Conditions right, moment ripeWednesday, November 9, 2011
  3. 3. Spotted Why [are] all these highly intelligent, well educated youngsters not putting their brains to good use by solving real-world problems. Instead they’re building technology to solve trivial issues. @hermioneway on TNW* *, November 9, 2011
  4. 4. Conditions A creative, results-oriented community of practice that will “get” the Design for Development call, engage, and bring energy to the effort. Challenge Driven Recognized approach to accelerating research and development Innovation while mitigating risk by tapping creativity in crowds. Galvanize international attention and aspiration around some Grand Challenges common purpose. Provision of broad authority and legitimacy for aspirational, Federal Prizes experimental tools and approaches to innovation. An approach to problem-solving emphasizing networks, Open Innovation transparency, and cooperation.Wednesday, November 9, 2011
  5. 5. When to use a prize (from the funding toolkit)* * From McKinsey, “Using prizes to spur innovation” (2009)Wednesday, November 9, 2011
  6. 6. When prizes are needed (in the marketplace)* Public or philanthropic Private funders funders Direct funding by Funders can Direct funding by private firms government or philanthropic Direct funding observe quality of (Principals, employees, or donors (ex-ante payments) R&D before results research contracts) (public labs, contracts, and are known competitive grants) Prize contests funded by Funders cannot Research contests by public or philanthropic Prize funding observe quality of private firms donors (ex-post payments) R&D until results are (eg InnoCentive, NineSigma) (eg X PRIZE, AMCs) seen Value capture is easy. Value capture is costly. Beneficiaries can be Benefits spread to made to pay. consumers and imitators. *William Master, “Accelerating Innovation with Prize Rewards” (2007)Wednesday, November 9, 2011
  7. 7. Prize typology Purpose & Outcome Recognition Stimulation Solution • Goal is encouragement Approach to Disbursement and celebration. Winner take all • A single winner selected Well-evolved for past achievement in a field or discipline. • Goal is ideation and mobilization. • A limited sequence of Rank order winners selected based on design criteria. Goal is research and Experimental • development focused. • A series of winners are Proportional selected for relative achievement based on solution criteria.Wednesday, November 9, 2011
  8. 8. Prize typology with examples Purpose Recognition Stimulation Solution • Nobel Prize • METROPOLIS Next • Ansari X PRIZE • Lemelson-MIT Prize Generation Design • Cisco iPrize Competition • Saltire Prize Winner take all • Buckminster Fuller • ALS Biomarker Challenge Prize4Life • Innovation Prize for Disbursement Africa • CurryStone Design • MIT Global Challenge • Google Lunar X PRIZE Prize • Braun Prize • Wendy Schmidt Oil • ImagineH20 • INDEX: Award Cleanup Prize • Dell Social Innovation • DARPA Grand Rank order Challenge Challenge • LG Design the Future Competition • GE Ecomagination Challenge* Proportional Excluded (Experimental*)Wednesday, November 9, 2011
  9. 9. Prize examples Prize Purpose Features AwardRecognition Recognize great individual and shared Invitation-only nomination process, proposal 10,000,000SEK Nobel Prize achievement in a field. selection by respective Nobel committee. Recognize an inventor who has made Open field, peer nomination, tiered judging $500,000 Lemelson-MIT Prize significant breakthroughs. process, patent requirements. Advance and inspire work of emerging “social Anonymous jury review of Invitation-only $100,000 CurryStone Design Prize design pioneers” improving lives. nominations. Implementation support for integrated Open application process, multidisciplinary $100,000 Buckminster Fuller Challenge strategy addressing a complex human jury review.Stimulation problem. Challenge young engineers to tackle barriers Problem marketplace, solver community, Up to $15,000 MIT Global Challenge to human well-being in underserved focus on impact. Judges recommend communities. winners, amounts. Open call for breakthrough ideas for home Judge panel selects among entries for $200,000,000 GE Ecomagination Challenge energy creation, management, and use. merit, technical validity, innovation, impact. Stimulate development of technologies that First-past-the post prize to team £10,000,000 Saltire Prize harvest marine energy at a large scale. demonstrated specific results in powerSolution generation. Accelerate the discovery of a disease First-past-the-post prize to an individual or $1,000,000 ALS Biomarker Prize4Life biomarker that will benefit medical field. team for achievement based on board vote. Accelerate the development of a fully Open tournament-based prize competition $2,000,000 DARPA Grand Challenge autonomous vehicle for battlefield use. over four years, with increasing complexity.Wednesday, November 9, 2011
  10. 10. Federal prizes examples Prize Purpose Sponsor Award First to submit locations of 10 moored, 8-foot, Defense Advanced Research Projects Agency $40,000 DARPA Network Challenge red, weather balloons at 10 fixed locations in theStimulation continental United States. Sought solutions to sustainable, energy efficient Housing and Urban Development/Department $31,000 Sustainable Urban Housing housing in ways that unleash economic of State/APA/Brazil Ministry of Cities/Ashoka opportunities for urban poor A practical demonstration of wireless power NASA/Spaceward Foundation $900,000 Power Beaming Challenge transmission systems. Demonstrate solar energy collection and storage NASA/The Clean Tech Open $1,500,000 Night Rover Challenge systems suitable for rovers to operate through several cycles of daylight and darkness. Data for Cancer Prevention and Develop innovative applications with evidence- National Cancer Institute $10,000 Control based data for cancer prevention and control.  Solution Develop a means of stopping an uncooperative Air Force Research Lab $25,000 Vehicle Stopper Challenge fleeing vehicle without damage or harm. Develop food storage technology that meets NASA/DoD/InnoCentice $11,000 Improved Barrier Layers - Keeping mass, volume, and consumable exploration Food Fresh in Space requirements. Develop high performance, energy-saving Department of Energy $10,000,000 Bright Tomorrow Lighting Prize replacements for conventional light bulbs that save money. A simple system or approach that can be US Air Force $15,000 Fast Rope Challenge employed with or as a FAST rope to maintain a fast but safe descent rate.Wednesday, November 9, 2011
  11. 11. Federal prize insights* Top 5 users of prizes are Department of Health and Human Services (19 Lead Agencies percent), Environmental Protection Agency and Air Force (9 percent), Department of Defense (7 percent) and NASA (6 percent) 66 percent are “Stimulation” prizes, 26 percent are “Solution” prizes, and Prize Purpose the balance are “Recognition” prizes. 28 percent of prizes sought a “Software” solution, another 26 percent sought “Multimedia” outcomes (a video, photo, etc), and 11 percent sought Prize Outcome “Proposals.” 6 percent sought tangibles like “Devices,” “Robots,” or structures. 10 percent of federal prizes above $100,000 (50 percent of them Prize Purse “Stimulation” prizes, 38 percent “Solution” ). 33 percent had no monetary award (81 percent also “Stimulation” prizes). 53 percent of prizes had closed successfully; only 1 prize went unclaimed. Prize Takers The others had not yet closed. Among those that had closed, 36 percent used “Winner Take All” while 21 percent had more than 3 winners. *A very cursory look at 80 of the most recent prize competitions listed on (11/9/11)Wednesday, November 9, 2011
  12. 12. Prize design considerations Prizes aren’t, by themselves, a good thing. We have to make them great. Here are five considerations to get it right: • Specify outcomes. Make the call for participation as clear as possible from the get go with a clear technical description of the desired outcome (not solution). • Know your audience. Knowing who you want to reach, how, and with what “ask” is central to building momentum and an effective discovery process. • Build for discovery. Innovation is often about the adjacent possible - the ability to combine insights across disciplines to produce something new. • Right-size the purse. Make the prize sufficient to reward effort. This isn’t all about price - it can include prestige, publicity, market creation, and more. • Timeframe. A clear sense of timing will motivate and lose actors. Balance the discovery timeframe against dedicated resources, urgency, and “stickiness”.Wednesday, November 9, 2011