November 17, 2008
The X-Prize is a recently-set up foundation that seeks to entice companies, organizations and start-ups to research and develop new technologies to tackle our most pressing issues. One of these prices is the Automotive X Prize which has a $10 million prize. Surprisingly, no big car maker has entered the contest, even though most of these companies are pursuing and developing their own energy efficient vehicles that would probably meet the X Prize criteria.
According to the following article (New Scientist Technology Blog, large companies such as GM, Ford and Chrysler have failed to enter the race even though progress is being made in the field of fuel efficient cars. Some bloggers and news reporters argue that these large corporations are holding out from the contest to wait and see the types of technologies that are innovated. From there they could sweep in and buyout some of the better technologies.
Others believe that they will hold out until the end (if they actually enter), to not force its competitors to enter as well. I personally believe that one of the reasons they are not getting involved is to prevent small start ups (with fewer resources) from being discouraged and dropping out. By not entering the race, they are allowing different ideas and technologies to develop, which in the end they may examine and buy out. It's a smart move for both the start up companies and the large corporations.
Posted by curag at November 17, 2008 01:25 PM