The SFGate reports that there is a trend among businesses and nonprofits to offer cash prizes in exchange for solutions for complex and seemingly unsolvable problems. For example, in 2006 Netflix offered a $1M prize to could improve the precision of its system by 10 percent.
Organizations have found contests to be a cost-effective method that allows them to tap into the vast intellectual resources outside their walls. Depending on the size of the prize, it can also generate publicity.
Companies use contests to drive innovation
Is this a good move for businesses? Should they look to contests and perks in order to fuel innovation?
We'd like to hear your thoughts.