INTERVIEW VIEW

InterviewINTER Fostering Innovation Through Competition

An Interview with Peter H. Diamandis, M.D., Founder, Chairman, and Chief Executive Offi cer, X PRIZE Foundation

mid-’90s as a mechanism to help me fulfi ll called the northrop grumman lunar lander X a dream since childhood, which is to fl y into challenge for a vertical take-off/vertical landing space. i read that lindbergh had fl own across the rocket-powered vehicle. we’ll be launching more atlantic in 1927 to win a $25,000 prize, and the of those. we’re looking for cool, exciting things idea that a prize could inspire a new generation that capture the minds, the imagination, the time, of private spaceships was impactful to me. we and the capital of people on the planet. launched the $10-million ansari X prize and at- Do you foresee strong opportunities to tracted 26 teams from seven countries around the develop in new markets? world who spent $100 million in total. in october absolutely. our teams that compete for our 2004, burt rutan’s vehicle spaceshipone made competitions are from around the planet. through its second fl ight into space within a two-week a partnership with ratan tata, (chairman of tata period and won the ansari X prize. industries) we’re focused on building X prize so on the heels of the successful ansari X india. we have a number of graduate-level X prize, we decided to keep the X prize going as prize labs, one at mit, as well as at usc and a nonprofi t organization that looks at using incen- the university of washington in seattle, and we tive prizes to drive breakthroughs in different areas. are launching one this year in iit bombay. these today, we offer prizes in four areas: energy and university labs help us generate X prize ideas. environment, where cisco is one of our partners; there is great interest throughout asia, the life sciences; exploration, which is space and un- middle east, and europe. in india, in particular, Peter H. Diamandis derwater; and education and global development. we’re going to focus on where the X prizes can How did you develop those four areas be of interest to the developing world around EDITORS’ NOTE In addition to his current of focus? things like clean water, energy scarcity, health post, Peter Diamandis serves as the CEO of Zero we chose four areas of focus that we are care, and pandemics – areas that would meet Gravity Corporation and is the Chairman and excited about giving prizes in, where our current the needs of billions of people. Co-Founder of the Rocket Racing League. He benefactors are interested in prizes, and where we How did your partnership with BT is also a Co-Founder and Director of Space think there are market failures where prizes can be come about, and how critical have they Adventures. In 1987, Diamandis co-founded the helpful – they may change over time. we’re starting been to the success of X PRIZE? International Space University (ISU) where he to look at prizes in aviation and robotics as well. bt has been a great partner across the foun- served as the university’s fi rst Managing Director. we get our prize ideas from a number of dation. they have been underwriting us to think Today, he serves as a trustee of the $30M ISU based different areas. we’re about 50 people at the X about where we should be doing X prizes and in Strasbourg, France. Prior to ISU, Diamandis prize Foundation, and we have a group who have also helped us go global. i have traveled with served as Chairman of Students for the Exploration are passionate about breakthroughs and driving senior bt folks to singapore, india, and throughout and Development of Space, an organization he innovation. we have an incredible board of trust- europe, and we have had a series of innovation founded at MIT in 1980. Diamandis received his ees – people like larry page, one of google’s academies with them where we talk about what it undergraduate degree in molecular genetics and co-founders. we also have an outside group of takes to drive innovation. michael boustridge (ceo, graduate degree in aerospace engineering from our major benefactors – what we call our vision north america) also joined our board of trustees. MIT. He received his M.D. from Harvard Medical circle members, which includes the other google There is much debate over the U.S. los- School. In 2005, he was also awarded an honorary co-founder, sergey brin. they have contributed ing its edge to emerging countries in regard Doctorate from the International Space University. signifi cant amounts for us to develop and launch to innovation. Are you concerned that the prizes in areas that are of interest. U.S. is losing its leadership position? ORGANIZATION BRIEF Widely recognized as we meet twice a year with our board of we need to be concerned that, as we be- the leader in fostering innovation through compe- trustees, our vision circle members, and our out- come risk-averse as a society, our ability to tition, the X PRIZE Foundation (www.xprize.org) side advisors, and we debate and discuss where drive true breakthroughs will diminish. the is an educational nonprofi t prize institute fo- there are market failures and where a prize u.s. is still the leader. we still have the mindset, cused on creating radical breakthroughs for would be transformative. we are launching one the capital, and amazing innovators that people the benefi t of humanity. In 2004, the founda- X prize per year and four or so X challenges. want to emulate. but we’re not guaranteed that tion captured world headlines when Burt Rutan, an X prize is $10-million or larger, typi- in the future. we have to be careful about where backed by Microsoft co-founder Paul Allen, built cally for a global competition where you’re regulation holds us back. the whole scenario and fl ew the world’s fi rst private vehicle into changing the way people think about a large in- around stem cells was a scary period of time, space to win the $10-million Ansari X PRIZE. dustry or creating an industry; it’s around three because what the u.s. government needs to rec- to eight years for these X prizes to be won. ognize is that if we block an area of research How has the X PRIZE Foundation evolved X challenges are typically $1 or $2 mil- here, it means we’re going to lose that area of and what role does it play today? lion and more about a technology demonstration. research going forward and it’s going to go the X prize Foundation started in the the fi rst X challenge we ran was with nasa somewhere else.• 28 leaders posted with permission. copyright © 2010 leaders magazine, inc. volume 33, number 3