Prizes fail – too costly for incentives
Global Intellectual Property Center, 09 *Part of the US chamber of commerce (Global Intellectual Property Center, December 31st, GIPC White Paper Series, “Prizes and Patent Pools Viable Alternatives to the Patent System?” https://web.archive.org/web/20120513140157/http://www.theglobalipcenter.com/sites/default/files/reports/documents/Prizes__Patent_Pools.pdf, GB)
The impact of prizes is sharply limited by their size, scope, and nature.
• Prizes large enough to truly replace patents as incentives for the development of innovative new products in many cutting-edge and highly regulated fields would impose significant up-front costs on taxpayers. According to some studies, it can cost as much as $500 million to $800 million just to secure FDA approval of a new medical treatment, let alone cover fixed research and development costs.