The document discusses incentive competitions like the X Prize that are designed to solve problems and spur innovation. It provides examples of the Orteig Prize that inspired Lindbergh's first nonstop flight between New York and Paris, and the Ansari X Prize that funded the first privately funded, reusable spacecraft. Key attributes of incentive competitions are that they are highly leveraged, efficient by only paying winners, spark new industry development, attract risk-takers and new capital, and help overcome constraints to solve problems in a way that excites the public.