The Prize Factory
This week in Business Week, I take a look at the multi-million-dollar X Prizes, the innovation contest run by Peter Diamandis out of Playa Vista, California.
Recall that, after many years of struggle, Diamandis made his name with the $10 million Ansari space prize, which put a private space ship into sub-orbit back in 2004. Now backed by illuminaries of technology like celebrity physicist Stephen Hawking and Google's Larry Page, Diamandis is trying to extend his franchise into fast genome-splitting, lunar flight, and clean energy.
That's easier said than done. One thing that struck me during two days of meetings with Diamandis and his colleagues last month was the complexity of framing and executing a prize that stirs up both serious contestants and the public interest that makes sponsors want to finance big payouts. Several serious scientists, particularly in genomics, told me that the X Prize is interesting, but that it won't produce the most important advances in DNA research.
One successful new prize is sponsored by Netflix, the mail-order movie rental company, which is offering $1 million for helping it better understand what films will be popular. The prize is profiled by Clive Thompson in yesterday's New York Times Magazine.
Yet other contests that seem they should be winners fall short. Consider the Clear Prize.
Travelers around the world gripe about delays getting through airports. So last February, Clear, a New York company with contracts to run security lines at U.S. airports, launched its prize contest. A $500,000 purse would go to the first person to devise a way to screen passengers faster without having to remove their shoes.
More than a dozen entrants quickly wrote up plans, says Jason Slibeck, Clear's chief technology officer. Yet none has submitted a working model, and interest in the contest now seems dead.
Why? Slibeck reckons that would-be entrants were put off by the hassle of getting their ideas approved by government regulabors. Would more money do the trick? Slibeck doesn't think so. "I think prizes can be a great incentive," he told me, "but some problems are more intractable than others."
Recall that, after many years of struggle, Diamandis made his name with the $10 million Ansari space prize, which put a private space ship into sub-orbit back in 2004. Now backed by illuminaries of technology like celebrity physicist Stephen Hawking and Google's Larry Page, Diamandis is trying to extend his franchise into fast genome-splitting, lunar flight, and clean energy.
That's easier said than done. One thing that struck me during two days of meetings with Diamandis and his colleagues last month was the complexity of framing and executing a prize that stirs up both serious contestants and the public interest that makes sponsors want to finance big payouts. Several serious scientists, particularly in genomics, told me that the X Prize is interesting, but that it won't produce the most important advances in DNA research.
One successful new prize is sponsored by Netflix, the mail-order movie rental company, which is offering $1 million for helping it better understand what films will be popular. The prize is profiled by Clive Thompson in yesterday's New York Times Magazine.
Yet other contests that seem they should be winners fall short. Consider the Clear Prize.
Travelers around the world gripe about delays getting through airports. So last February, Clear, a New York company with contracts to run security lines at U.S. airports, launched its prize contest. A $500,000 purse would go to the first person to devise a way to screen passengers faster without having to remove their shoes.
More than a dozen entrants quickly wrote up plans, says Jason Slibeck, Clear's chief technology officer. Yet none has submitted a working model, and interest in the contest now seems dead.
Why? Slibeck reckons that would-be entrants were put off by the hassle of getting their ideas approved by government regulabors. Would more money do the trick? Slibeck doesn't think so. "I think prizes can be a great incentive," he told me, "but some problems are more intractable than others."
Labels: burt rutan, diamandis, google, innovation prizes, x prize
