Neat story in the NYTimes about forcing innovations through awards (like the X Prizes ) and open-source-style collaboration (featuring InnoCentive as an example).  I’m not a huge fan of McCain, but I think his somewhat-derided prize for a better battery idea was a good one.

It is my understanding that, right now, the biggest problem with the Chevy Volt isn’t the function of the battery or any other mechanical issue, but cost. The batteries themselves cost $10K and GM can’t afford to subsidize the cost of the batteries for the sake of a cheaper car. I think everyone recognizes that cheaper batteries are possible, but few are willing to take on the project without a greater incentive. $300 million will bring people out of the woodwork.

Neat factoid about InnoCentive:

InnoCentive began in 2000 as e.Lilly, an in-house innovation “incubator” at the pharmaceutical giant Eli Lilly, Mr. Spradlin said, with the company posting problems that its employees had been unable to solve. From the beginning the results were good, he said. “Most of our companies tell us they have a one-third or better solve rate on their problems and that is more cost-effective than anything they could have done internally.”