Since at least the 18 th century, governments, industry, philanthropic organizations, and other nongovernmental organizations throughout the world have offered prizes as a way to reward accomplishments in science and technology (S&T). Napoleon's government offered a 12,000 franc prize (worth more than four years of a French captain's pay in 1803) for a technology that would enhance the preservation of food and help the government feed advancing military troops. In 1809, the prize was awarded to Nicolas François Appert, whose method of heating, boiling, and sealing food in airtight jars was published as a condition of the reward and serves as the basis for the modern process of canning foods. In 1919, businessman Raymond Orteig offered $25,000 (more than $375,000 today) for the first nonstop flight between New York and Paris. Charles Lindbergh, in the Spirit of St. Louis , won the prize in 1927. The success of the Orteig Prize in advancing commercial aviation is cited as inspiring the Ansari X-Prize more than 70 years later to lower the risk and cost of commercial space travel. Prizes generally fall into two main categories: innovation inducement prizes, which are designed to encourage the achievement of scientific and technical goals not yet reached, and recognition prizes such as the National Medal of Science, National Medal of Technology and Innovation, or the Nobel prizes, which reward past S&T accomplishments and do not have a specific scientific or technical goal. The prize competitions and legislation discussed in this report refer to innovation inducement prizes. According to some experts, prize competitions should be viewed as "a potential complement to, and not a substitute for, the primary instruments of direct federal support of research and innovation—peer-reviewed grants and procurement contracts." Furthermore, prizes are not always considered to be the most appropriate mechanism to address all research and innovation objectives; for example, a 2014 report by the U.S. Chamber of Commerce Foundation specifically states that prizes are not a substitute for long-term basic research. The comparative strengths of prize competitions in relation to the use of federal grants and contracts, as described by the National Academy of Sciences in a 1999 report, include (1) the ability to attract a broader spectrum of participants and ideas by reducing costs and bureaucratic barriers to participation; (2) the potential leveraging of a sponsor's financial resources; (3) the ability of federal agencies to shift the technical and other risks to contestants; and (4) the capacity to educate, inspire, and potentially mobilize the public around scientific, technical, and societal objectives. Similarly, during the Obama Administration, the Office of Management and Budget (OMB) and the Office of Science and Technology Policy (OSTP) described prize competitions as having the benefit of allowing the federal government to pay only for success and identify novel approaches, without bearing high levels of risk; establish ambitious goals without having to predict which team or approach is most likely to succeed; increase the number and diversity of individuals, organizations, and teams tackling a problem, including nonscientists and individuals who have not previously received federal funding; increase cost effectiveness, stimulate private-sector investment, and maximize the return on taxpayer dollars; further a federal agency's mission while motivating and inspiring others and capturing the public imagination; and establish clear success metrics and validation protocols that themselves become defining tools and standards for the subject, industry, or field. Some experts have indicated that while prize competitions have more uncertainty in terms of program outputs and outcomes than more traditional instruments (i.e., grants and contracts), the potential payoffs to federal agencies can be higher if properly designed and implemented. Specifically, determining the correct size of the cash prize; transparent, simple, and unbiased contest rules; and the proper treatment of intellectual property rights are considered important aspects of a successful prize competition. In 2010, Congress passed the America COMPETES Reauthorization Act of 2010 ( P.L. 111-358 ) providing the head of a federal agency with the authority to carry out prize competitions "to stimulate innovation that has the potential to advance the mission of the respective agency." Specifically, P.L. 111-358 added Section 24 to the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. §3719) defining what activities constitute a prize competition and detailing how a federal agency should address liability issues, intellectual property rights, the judging of a prize competition, and other topics. In 2017, the American Innovation and Competitiveness Act ( P.L. 114-329 ) made a number of technical and clarifying amendments to this broad prize competition authority, including language authorizing the head of a federal agency to request and accept funds for the design and administration of a prize competition or for the cash prize itself from other federal agencies, state and local governments, private-sector for-profit entities, and nonprofit entities. The general provisions of the law, as amended, are as follows: Prize competitions are defined as being one or more of the following: (1) a competition that rewards and spurs the development of a solution to a well-defined problem; (2) a competition that helps identify and promote a broad range of ideas and facilitates development of such ideas by third parties, especially in an area that may not otherwise receive attention; (3) competitions that encourage participants to change their behavior or develop new skills during and after the competition; and (4) any other competition the head of an agency considers appropriate to stimulate innovation and advance the agency's mission. Federal agencies must advertise a competition widely to encourage broad participation, including publishing a notice of the competition on a publicly accessible government website (e.g., http://www.challenge.gov/ ). The notice must describe the subject of the prize competition, rules for participating, the registration process, the amount of the prize purse, and how the winner will be selected. To be eligible to win a federal prize competition, an individual, participating singly or within in a group, must be a United States citizen or permanent resident, cannot be a federal employee acting within the scope of their employment, and must be registered and in compliance with all the requirements and rules of the prize competition. Similarly, to be eligible to win a federal prize competition, a private entity must be incorporated in and maintain a primary place of business within the United States and must be registered and in compliance with the requirements and rules of the prize competition. Federal agencies must require all participants to register, assume any and all risks, and waive claims against the government. Registered participants must also obtain liability insurance or demonstrate financial responsibility; however, an agency can waive the insurance requirement. The federal government cannot gain an interest in intellectual property developed by a participant without written consent of the participant. The head of a federal agency must appoint one or more judges using guidelines that are transparent and promote balance. Additionally, a judge cannot have a personal or financial conflict of interest with any of the registered participants. Funding for a prize competition, including the design and administration of a competition, may consist of federally appropriated funds and/or funds provided by a state or local government or a private-sector for-profit or nonprofit entity. A federal agency can solicit and accept funds from other federal agencies, state and local governments, private-sector for-profit entities, and nonprofit entities. A prize competition cannot be announced until all of the funds have been appropriated or committed in writing. Federal agencies can enter into an agreement with a private-sector for-profit or nonprofit entity or a state or local government agency to administer a federal prize competition. A prize in excess of $50 million cannot be offered unless 30 days have elapsed after written notice is provided to Congress. The head of a federal agency must approve any award of more than $1 million. The Director of the Office of Science and Technology Policy (OSTP) must submit a biennial report to Congress detailing the use of the prize competition authority provided by P.L. 111-358 . Over the years, Congress has provided some federal agencies with additional explicit authority to conduct prize competitions. Federal agencies with specific prize competition authorities are as follows: Department of Defense (DOD) : In 1999, Congress provided prize competition authority to the Defense Advanced Research Projects Agency through the National Defense Authorization Act for Fiscal Year 2000 ( P.L. 106-65 ). In 2006, the authority was extended to the military departments through the John Warner National Defense Authorization Act for Fiscal Year 2007 ( P.L. 109-364 ). Specifically, the authority states that the Secretary of Defense can award prizes " in basic, advanced, and applied research, technology development, and prototype development that have the potential for application to the performance of the military missions of the Department of Defense ." Department of Energy (DOE) : In 2005, through the Energy Policy Act of 2005 ( P.L. 109-58 ), the Secretary of Energy was authorized to carry out a program "to award cash prizes in recognition of breakthrough achievements in research, development, demonstration, and commercial application that have the potential for application to the performance of the mission of the Department." P.L. 109-58 also authorized the Freedom Prize with the goal of advancing technologies that will reduce America's dependence on foreign oil. In 2007, through the Energy Independence and Security Act of 2007 ( P.L. 110-140 ), Congress authorized DOE to conduct the Hydrogen Prize and the Bright Tomorrow Lighting Prize to stimulate innovation and advancement in hydrogen energy technologies and solid-state lighting products, respectively. In 2011, through P.L. 111-358 , Congress authorized the Director of the Advanced Research Projects Agency-Energy to provide awards in the form of cash prizes, among other mechanisms. National Aeronautics and Space Administration (NASA) : In 2005, through the National Aeronautics and Space Administration Authorization Act of 2005 ( P.L.