Comment 350 Prizes = 1 Solyndra (Score 0) 89
Subject line says it all: the government is notoriously stupid when it comes to picking winning technologies (Helo Solyndra! Hello corn subsidies for ethanol fuels!) but prizes like this always work because they ONLY pay for success. Even if you sweetened the pot to $10M, you could still have around 50 X-prize type competitions instead of a single Solyndra fiasco.
Here's how it works when you don't have the USA Credit Card to use: 1) announce a prize and set a goal that has to be met. 2) researchers/industry/investors get excited because an X-prize winner will almost certainly attract more investment. 3) VCs, universities, businesses invest their own money into research. 4) Eventually a winner meets the stated goal and they (probably including the losers!) now have new technologies to play with.
Minimal expense. Maximum use of the competitors' creativity and drive. Maximum reward. Why do we need to let the feds pay off their campaign contributors with our money?