I will be speaking at the Colorado Springs Entrepreneurs Group tonight on the subject of innovation competitions.

If you would like to attend, go to the MeetUp page: http://www.meetup.com/ColoSpgsBiz/.

As the CEO of DaVinci Quest, a producer of innovation competitions, I have more than the average knowledge about idea contests and how they work.  I also was a winner in the world’s largest and longest running idea contest – the Small Business Innovation Research program – where I successfully competed for a Phase I Award on Small Business Commercialization of Federal Innovations for the U.S. Department of Commerce.

An innovation competition may actually be a complete commercialization path – allowing you to go from your idea to the sale of your idea as a finished product or service.  However, in most cases, an idea contest is limited to a demonstration of capability.  It represents the creative stage of problem solution/new product development.  You still are left with all the issues of designing, testing, manufacturing and selling your final product or service.

So, why should you enter an innovation competition?  There are many answers to this question.  You may:

• Receive fame (think American Idol)
• Obtain money (a cash prize or offer to purchase your innovation)
• Gain credibility (prove your idea works)
• Demonstrate superiority (show your idea is better than others)
• Build your network (meet other contestants, contest host, prize sponsors, media, the public, etc.)
• Generate customers (find people interested in your idea – either now as an opportunity or later as a product or service)

With all of these advantages, it would seem like you should hunt down and enter any creative competition that comes along.  However, there are a number of questions you should ask in your due diligence:

1. Are you allowed to participate?  Many contests limit who can compete.  The contest may be limited to college students, new businesses, specific geographic areas or members of an organization.  Any limitation on participation raises the question of whether the contest host is trying to solve a problem or promote some other agenda.
2. What happens to your intellectual property?  Many contests require that you give up your idea to the contest sponsor or sell your idea.  This is okay if the price is right and not if it isn’t. Make sure you have well documented your idea and have filed any necessary applications/registrations to preserve ownership before displaying it in a contest.
3. What is the prize?  Prizes come in all sizes, shapes and colors.  The prize may include money, publicity, a trip, a plaque or certificate, a handshake or some other form of acknowledgement.  The value of some prizes is easier to measure than others.
4. How big is the stage?  Since one of the primary benefits of participating in a contest is public recognition, it is important to know how this may occur and how much you will receive.  In some contests, no one knows you unless you win the grand prize.  In others, all contestants are visible throughout the contest and winning is a bonus.
5. Will you receive support? It is typical for a contest to send you the rules, wish you good luck (actually that seldom happens), and wait to see what you do.  In other contests you may be provided with special tools, mentorship, data/knowledge access or other support to improve your participation in the contest and your probability of actually solving a problem.
6. What will it cost? The best contests do not call for you to do anything you weren’t going to do anyway – create an idea and try to solve a problem.  Some contests require that you deviate from your original path – requiring additional time and money that you might have spent elsewhere.  In such cases, you have to treat entry into a contest as an investment – determine what benefits you will receive/may receive in exchange for your participation.  Some contests may prove too expensive to enter.

Three contests or sources of contests you may want to consider are:          

U.S. Government Small Business Innovation Research

                        http://www.sbir.gov            

X Prize Foundation        

                        http://www.xprize.org

Innocentive

                       http://www.innocentive.com

For the best list of all innovation competitions, go to Innovation Prize Central:

                        http://innovationprizecentral.com

For the definitive analysis on innovation competitions and why they should be part of your strategic portfolio, download a copy of “And the winner is…” from McKinsey & Company (easiest found at the MIT website):

                        http://www.mit.edu/globalchallenge/?p=48

So, please consider entering an innovation competition, including our Smarter, Safer, Greener House Contest at http://www.davinciquest.com/House_Contest.php. Good luck and good contesting!