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Quantum fluctuations in space, science, exploration and other cosmic fields... served up regularly by MSNBC.com science editor Alan Boyle since 2002.

Alan Boyle covers the physical sciences, anthropology, technological innovation and space science and exploration for MSNBC.com. He is a winner of the AAAS Science Journalism Award, the NASW Science-in-Society Award and other honors; a contributor to "A Field Guide for Science Writers"; and a member of the board of the Council for the Advancement of Science Writing.

Check out Boyle's biography or send a message to Cosmic Log via cosmiclog@msnbc.com.



What's next for X?

Posted: Friday, October 02, 2009 7:25 PM by Alan Boyle


Laura Rauch / AP file
Five-year flashback to Oct. 4, 2004: Astronaut Brian Binnie unfurls the American
flag atop SpaceShipOne after the flight that won the $10 million Ansari X Prize.

Five years after the first privately funded space plane won the $10 million Ansari X Prize, the spirit behind the contest has spread far beyond spaceflight. Have realities kept pace with the expectations sparked back in 2004? What are the next multimillion-dollar feats on the horizon?

OK, maybe the second privately funded space plane is not quite ready for takeoff yet. And maybe the dream of having an annual rocket festival known as the X Prize Cup has faded somewhat. But it's still possible to meet the timeline laid out by SpaceShipOne designer Burt Rutan in this TODAY interview five years ago.

"In 10 years, everyone will know that if they want to, they can go to orbit in their lifetime," Rutan said at the time, speaking from SpaceShipOne's hangar in Mojave, Calif. "They will know that instead of just hope or dream."

Five years after that interview, Cirque du Soleil billionaire Guy Laliberte is clowning around in orbit, after paying a $35 million fare. In another five years, that price may or may not come down. But the long-term trend is on Rutan's side. That's based on comments from Eric Anderson, president and CEO of Virginia-based Space Adventures, the company that helped put Laliberte in space.

"Hard to believe it's been five years, isn't it? Wow," Anderson asked when I reminded him about the X Prize milestone.


TODAY
Click for video: SpaceShipOne designer Burt
Rutan and the X Prize Foundation's Peter Diamandis reflect on the future of spaceflight in an interview from Oct. 5, 2004.

"Things have never looked brighter, but spaceflight is a business that requires patience, so we seem to be two years away from suborbital spaceflight - like we have been since 2001, right?" he joked. "But that's OK. Most of these companies have made it through the global economic crisis. I'm confident that once this industry opens up it will exceed everyone's expectations."

Another Mojave milestone is expected to take place later this year, when SpaceShipTwo finally rolls out of its hangar at Rutan's Scaled Composites shop. The rollout is still on track to take place on Dec. 7, according to Stephen Attenborough, commercial director of Virgin Galactic.

But wait ... there's more:

Over the past few weeks, the X Prize Foundation has been posting a series of blog items commemorating the five-year anniversary of SpaceShipOne's victory. The bloggers have included space pilot Brian Binnie, space millionaire Anousheh Ansari, Virgin Galactic's Will Whitehorn, Romanian rocketeer Dumitru Popescu ... and Peter Diamandis, the guy who started it all as the X Prize's co-founder.

Earlier this week, Diamandis took time out from a whirlwind tour of Abu Dhabi and Europe to answer a few questions I posed about the past, present and future of the X Prize. Here's the full Q&A, which Diamandis fleshed out into a blog item and a half:

Peter Diamandis: As we celebrate the five-year anniversary of SpaceShipOne’s winning of the Ansari X Prize, I’m taking the liberty to reflect on a number of key questions ... On what worked well, what didn’t, and what we learned.

Ultimately, what was the real value of the competition?

I often think about the real value that the Ansari X Prize contributed to this field of spaceflight, which I love so much. I think ultimately it gave teams around the world permission to dream, to assemble teams and dare to think about building private spaceships. By creating the structure of the competition, it validated the importance and the viability of private spaceflight. It defined a 'clear goal' ... or a meaningful finish line that teams could pursue. As my friend and early X Prize founder Astronaut Byron Lichtenberg is fond of saying, "Without a target you will miss it every time!" We gave space dreams and entrepreneurs a target to shoot for.

Before the X Prize there really wasn’t a generally accepted definition of where space begins. There were always three numbers thrown about, namely 50 kilometers, 100 kilometers and 162 kilometers (100 miles). In retrospect, I’m pleased that we picked 100 kilometers, because it was "just hard enough" ... and if we had chosen 100 miles (162 kilometers) we might not be celebrating this five-year anniversary!

The competition also created the public excitement, expectations, rooting interests and, ultimately, future customers who were lining up to buy a seat on the Ansari X Prize class of spaceships.

I also feel that we played an important role in driving the regulatory policy that today allows private, reusable, piloted spaceships to carry paying passengers. Only a year before the prize was won, the rules were not defined and there was no clear way for such a ship to be licensed to fly. We worked closely with FAA Administrator Marion Blakey and Associate Administrator Patricia Smith to get the rules in place. Rutan had threatened many times to take his ship out of the country (I think he bluffed that he would launch from Mexico) if needed to fly, since the U.S. obviously didn’t (yet) allow these types of flights. Remind me never to play poker against Burt!

Would this have happened anyway?

I have no doubt that eventually someone would have flown privately to space, just as someone would have flown across the Atlantic (in the case of the Orteig Prize and Lindbergh). But I do believe that the structure of the prize, the creation of a competition and the involvement of the public and the media helps to supercharge the paradigm transformation. As humans we have evolved to compete… it is in our genes and we love to watch a competition.

Any big-picture thoughts on this five-year milestone?

The most important legacy and meaning of the Ansari X Prize on its five-year anniversary lies in the fact that the event kicked off a new industry. In the same way that Lindbergh’s flight across the Atlantic in 1927 is seen as an inception point for today’s $300 billion aviation industry, I’m extremely proud that the Ansari X Prize has created a new personal spaceflight industry. Not only did these historic flights culminate in a beautiful exhibition in the Smithsonian, at the entrance to the National Air and Space Museum, but much more profoundly, the winning flights by SpaceShipOne kicked off the personal spaceflight industry which has had over $1 billion invested in it during the past five years.

There were a lot of X Prize competitors, but was there really a race? Was the Da Vinci Project or Armadillo really in the running?

When the X Prize was announced on May 18, 1996 (before it was even called the Ansari X Prize), I knew of maybe three or four potential teams that might compete for the purse. I was shocked in the final result to have 26 teams from seven nations in the running. In retrospect, I would say that the 26 teams could be divided into three groups. The first group, about a third of the field, had a shot at building the vehicle. They had a strong design, a strong team and the money or the ability to raise the funding. The second group had a strong design, a strong team, but lacked the real ability to raise the funds. The final group was made up of those whom we registered, but who were unlikely to ever make anything significant happen beyond their basic concept.

We discussed in the early days the criteria for registration, and the conditions under which we would turn away teams. Gregg Maryniak would always remind us that we "didn’t want to turn away those pesky bicycle mechanics from Dayton, Ohio."

In retrospect, Burt truly had a commanding lead ahead of the pack. Both the Da Vinci Project and Armadillo were there as leading contenders, but had a significant way to go in their financing and construction. Regardless, I would always remind the media and remind Burt that Admiral Byrd (first person to fly to the North Pole in an airplane) was the leading contender for the Orteig Prize, but Byrd crashed on take-off and a somewhat unknown aviator, Charles Lindbergh, ultimately claimed the purse.

What would you have done differently?

As I think back to the Ansari X Prize, the one thing which I wish we would have done differently is to have offered a second-place prize of some amount, perhaps $1 million or $2 million. Such a second prize would have kept the drive for other teams to continue their development. At this time, a number of the Ansari X Prize contenders, and new players that have come forward since them, are pursuing suborbital craft. For them the prize is the marketplace. But without the pressure of the prize and its deadline, these teams have relaxed pushing forward and have taken a much more measured course of development.

It’s worth noting that when I asked Burt Rutan what he thought we should have done differently, his answer was a bit of a surprise to me. He would have preferred that we required three actual humans onboard the two winning flights rather than a pilot plus the weight and volume equivalent of the two passengers. Clearly the X Prize offered this alternative option (weight and volume rather than actual humans) as a safety measure. I think Burt would have wanted the excuse to ride in the back seat himself.

Now that several X Prize competitions have been launched, what makes a good X Prize vs. a not-so-good X Prize?

The X Prize Foundation and its entire team have learned a lot over the past 15 years. With a team of nearly 50 people, we’ve invested over 500 human-years into studying and learning about incentive prizes, what works and what doesn’t. We’ve studied other great successes like the work done by DARPA, NetFlix, GoldCorp and others. Recently I wrote a detailed paper called "Using Incentive Prizes to Drive Creativity, Innovation and Breakthroughs" (available on the X Prize Web site for download) which outlines the cumulative thinking on this matter. In summary, I would say that a Great X Prize is one that is telegenic, with a clearly defined goal, simple to explain, addresses a market failure (or area that is stuck) and something that can be won by a small dedicated team.

How do you feel about Virgin Galactic?

The fact that the Virgin logo was on the side of SpaceShipOne on Oct. 4, 2004, was fantastic. To be honest, at the time, I was really somewhat angry that Richard Branson had pulled off yet another marketing coup and captured the prime real estate for the Virgin brand (we had originally wanted to have the Ansari X Prize logo in that spot). But I quickly changed my point of view. Clearly Richard and his entire team are the marketing geniuses.

In the days and years following the winning of the $10 million purse, I’ve come to appreciate that having the Virgin brand on the ship that day was really a success for the X Prize as well. Had the SpaceShipOne flight only ended up as a museum piece and a historical story, it really would have been somewhat of a failure. It is the fact that the winning flights ended up creating an industry and the fact that this industry was born co-temporal with the winning of the prize that is great news. So thank you, Richard, Will Whitehorn, Alex Tai for taking the risk and moving the industry forward!

What prizes is the X Prize operating today? What is their status?

Since the award of the Ansari X Prize, three additional competitions have been launched. Each of these is stretching our mission and our reach. They are:

  • Archon X Prize for Genomics - $10 million prize for the first team to successfully sequence 100 human genomes in 10 days. Thus far, we have about nine teams registered with another five or six teams on the wings waiting to register. I would be surprised if this prize was not claimed in the next 24 months.

  • Google Lunar X Prize - $30 million prize for the first privately funded teams to send a robot to the moon, travel 500 meters and transmit video, images and data back to the Earth. Thus far, we have 21 teams registered from 11 nations. The recent discovery of H20 and OH [hydroxyl] in the lunar soil makes this prize more important than ever. Each of these vehicles being developed represents future "prospecting" missions looking for resources on the Earth’s nearest celestial neighbor.

  • Progressive Automotive X Prize - $10 million prize for the team that can demonstrate an automobile which is fast, safe, manufacturable, affordable and exceeds 100 MPGe (energy equivalent) fuel economy. I was blown away that we had 134 different designs that registered.

How does the Lunar Lander Challenge, which may be reaching something of a climax this year, compare with the Ansari X Prize atmosphere?

I would be remiss if I didn’t mention the amazing success of the Northrop Grumman Lunar Lander Challenge, a $2 million competition that the X Prize operates in cooperation with NASA (which provides the purse).

The competition is challenging teams to create a rocket that can launch a vertical takeoff and landing that achieves the total delta-V needed for a vehicle to move between the surface of the Moon and its orbit. What is amazing about this competition is the teams and what they have been able to accomplish with a small part-time team (typically three to eight people) working on five- or six-figure budgets.

While this competition hasn’t had the visibility and historic significance of Ansari, I’m very much proud of what we are doing here. The companies that are actually building and demonstrating hardware are creating a cottage industry of propulsion engineers that will give us the experience base needed to fuel entrepreneurial spaceflight efforts. The engine, for example, being used by Armadillo in the NGLLC is the same engine that they will use to power their suborbital human-carrying vehicles in the next 24 months.

What Space Prizes are you excited about going forward? What would you recommend to NASA’s Centennial Challenges program?

We’ve thought about space prizes along the following lines:

  • Rapid point-to-point travel, say, New York to Paris in less than 60 minutes.

  • An Orbital Debris X Prize, that is, a prize for the team able to target and remove a specific pieces of orbital debris.

  • Asteroid rendezvous and mapping.

  • Asteroid deflection – demonstrate the ability to deflect an asteroid in a precise and controlled fashion.

Perhaps my favorite space X PRIZE and the one that I’m spending the most time promoting is what I call a "Beamed Energy Propulsion X Prize." If you stop and think about it, the form of propulsion used today hasn’t changed in over 1,000 years - since the invention of fireworks by the Chinese. Basically, you burn (oxidize) a material in a tube, hot gases come out one end and the vehicle flies in the opposite direction. Sure, our rockets have gotten bigger and more efficient, but the basic design remains unchanged.

The concept I’m excited about is demonstrating propulsion that uses a ground-based energy source, typically high-energy directed microwave beams, that are precisely aimed at a rocketship that absorbs the energy using it to heat a working fluid (typically hydrogen or water) that is then expended out of the nozzle. Such a system (which I believe is very feasible today) would revolutionize propulsion.

Draft guidelines for such an X PRIZE might look something like:

(1) Demonstrate a fully-reusable system able to launch a 10-kilogram payload to 30-kilometer altitude which derives 100 percent of its energy from a ground-based beamed power system.

(2) Recover the launch system and payload and repeat the launch within 48 hours.

(3) Team can replace no more than 10 percent percent of the dry mass between launches.

What future prizes are you interested in outside of space?

The prizes of most interest outside of the space realm are the following:

  • Health Care X Prize – Must improve health care value by 50 percent in a 10,000-person community during a three-year trial, changing health financing, care delivery and create new incentives to improve health value for individuals and communities. (Funded by Wellpoint, Inc.)

  • TB Diagnostics – Develop a fast, portable, accurate diagnostic system that can rapidly diagnose tuberculosis, the second most lethal infectious disease in the developing world. (Funded by Bill & Melinda Gates Foundation)

  • Ocean X Prize Suite – Focusing on research, exploration, conservation and healing to improve the Earth’s oceans. In particular, we are looking at prize concepts for mapping the ocean floor and developing efficient, safe and affordable human transportation to the ocean floor. (Funded by Eric Schmidt.)

  • Bionics – Develop a set of prosthetic biomechanical legs that allow a paraplegic the ability to walk and function normally in society at the same time that these legs could allow a person to climb a mountain.

  • AI Physician – Develop an artificial-intelligence agent that can diagnose a patient through a natural language interview at the same level of accuracy as a board certified physician.

  • Autonomous Car - There are two versions of this prize that we are thinking about. The first is for the first autonomous car that can drive nonstop from Los Angeles to Washington, D.C., 100 percent autonomously, do it within 3 days and obey all of the traffic laws. The second version is the equivalent of the "Big Blue" chess match. This prize would be for the first autonomous car to win a grand prix race against a top human driver.

How does the X PRIZE Foundation and the recently founded Singularity University fit together?

Both organizations are focused on future breakthroughs. While the X Prize Foundation is in the business of clearly defining and articulating these challenges, the Singularity University is focused on attracting and educating the graduate students who will ultimately form the teams to competing in these future X Prizes.

How do the recent water findings on the moon affect the Google Lunar X Prize?

Today’s launch costs are unfortunately extremely expensive. On the average it costs something on the order of $20,000 per pound to get supplies into low-Earth orbit (where the International Space Station is located) and, optimistically, 10 times to 20 times that cost, or approximately $400,000 per pound, to land something on the moon’s surface.

So the cost of transporting water to the lunar surface, or oxygen, or hydrogen is about $400,000 per pound or $25,000 per ounce… about 25 times the price of gold today!

Revealing water in significant quantities on the moon could truly be a turning point in space exploration. Who will set up the first water mining plants? Given low-cost availability of water, hydrogen and oxygen, what type of off-Earth economies and exploration will this enable? The question is not too dissimilar to those questions asked when oil was discovered buried deep under the Earth or under the oceans. We eventually designed the technology to mine and extract this precious resource. It’s what we do as humans and entrepreneurs.

I’m excited for all of the teams building vehicles for the Google Lunar X Prize. I think of these vehicles as low-cost "prospectors" looking for information and valuable data. Perhaps equivalent to the pick-and-shovel suppliers for the California Gold Rush. Utlimately, everyone will benefit from low-cost lunar exploration, and these Google Lunar teams will be on the cutting edge of a new gold rush.

Given the success of the Ansari X Prize, are other organizations being to emulate the incentive prize model?

The success of the Ansari X Prize has proven that incentivized competition stimulates growth in industries that have the potential to benefit the entire world. As noted in a recent McKinsey & Co. report, "prizes attract diverse groups of experts, practitioners, and laypeople – regardless of formal credentials – to attempt to solve difficult problems, dramatically expanding the pool of potential solvers and lower the cost of attempting or recognizing solutions." Further, "prizes highlight and elevate superlative behaviors, ideas, and achievements in order to motivate, guide, and inspire others. Identifying excellence remains the cornerstone of many prizes – the essence of their power to produce change."

Incentive prizes represent the future of philanthropy and driving breakthroughs. X Prizes offer incredible leverage (typically 10 to 40 times the prize purse is spent to win the prize) and efficiency (you only pay the winner).

You get what you incentivize. Incentive prizes work. Today, there are now more than a dozen $1 million or greater incentive prizes in a wide range of areas. A decade from now, there might be well over 100 active multimillion-dollar incentive prizes.

Update for 9 p.m. ET: It goes without saying that Sunday not only marks the fifth anniversary of SpaceShipOne's X Prize win, but also the 52nd anniversary of Sputnik's launch and the opening of the Space Age. But lest we forget, you can check this flashback to the 2007 observances as well as my golden-anniversary musings on the next space age. Feel free to reflect on either space age by leaving a comment below.


Join the Cosmic Log team by signing up as my Facebook friend or following b0yle on Twitter. And reserve your copy of my book, "The Case for Pluto," which is coming out this month.

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Comments

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the X-prizes and the X-Prize Foundation have NO FUTURE in Space and in BIG projects, due to a simple problem of "PRIZES vs. COSTS"
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the "Moonrovers Prize Competition" [ http://ow.ly/st4C ] ... oh, sorry... the """Google""" Lunar X Prize will be the absolute (and last) biggest X-prize for Space and have a 90% of probabilities to FAIL since the prize has been badly designed and have REAL costs NO ONE can afford
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this is the main reason why the """"""Google"""""" Lunar X Prize NEVER can be won (IF it will be won) by one of the small competitors that joined the prize, but only by one of these three teams:
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the Odyssey Moon team (thanks to Google and the NASA Ames Center's know-how...) as explained here:
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http://www.ghostnasa.com/posts/041odysseywins.html
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OR a chinese "hobby" or "students" team (that, in reality, will have China government money and China's space scientists behind it...) as explained here:
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http://www.ghostnasa.com/posts/009prizewinner.html
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OR a russian team made in the same way (a students or hobbyists team but with plenty of government's money and space scientists behind it)
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the last two teams (clearly) made to beat USA (under billion of people's eyes in the world) at it's own "game" and with its own money... :)
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other big X-prizes are impossible, as already shown by the SpaceShipOne's story that coste around $30 million to win a only a $10 million prize!
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of course, the suborbital flight's prize wasn't accomplished to to gain a profit, but for a reason of pride and to become part of the aerospace history
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however, from a "business" point of view, it was impossible to win (and not even to start it!) without several million$ of donations and personal funds by Paul Allen and others
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the problem is that all X-prizes can be in the order of hundreds of thousands dollars to (max) a few millions dollars, while, really BIG projects (like develop an orbital rocket, a capsule a Mars probe, etc.) need 50, 200, 1000 times more money to develop, build, test and launch the necessary X-prize's space hardware... and so big amounts, never can be found with "donations"
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"In 10 years, everyone will know that if they want to, they can go to orbit in their lifetime," Rutan said, but he forgot the "needs several million dollars" part. Even if they manage to get the ticket price down to $200,000 for their short suborbital hop, that is still far to expensive for 95% of the populace. Sorry, not for everyone, even if they want to.

Most of the X prize proposals are good, but the notion of having an autonomous car driving itself from coast to coast or in a race is sheer madness, considering how poor computers are at visual pattern recognition, and considering the liabilities and extremely bad publicity should one of those automated vehicles cause a fatal accident. The best way to get a practical automated transport is to use special guideways, isolated from non-automated traffic and pedestrians, that would not need elaborate visual pattern recognition or supercomputers, and would only have to deal with other automated vehicles.
Space exploration, competitions for help in achieving goals for such endeavours are wonderful and a credit to humankind.  My only question is why not use the resources available to us now for well,lets say, Humanity ?  Do we all not think that we should tend to Mother Earth ( Home ) first ?  Are we not here now ?  Just some simple, but extremely important questions to ask ourselves.
Gaetano,

I think the original Xprize has already proved you quite wrong has it not.  Not only was a Scaled Composites able to find funding for its work, but it then went on to be sold to another company who sees profit potential in what Scaled Composites builds.  Paul Allen knew he would spend more building the ship than he would make from the prize, but he spent it anyway.

Just for the record, if you can recoup 30% of your R&D costs on your project, despite having no one to market your final product to, you are doing pretty well anyway.  If the Google Lunar X prize can be won spending 90million, I suspect the patent holders will be rich shortly thereafter.

The prizes are a fantastic idea, and will continue to push the envelope in industries that have staled, and lack real competition.  I'm especially excited to see what can be produced with some of the automotive, and health terrestrial prizes.

There was no money in overseas flights in 1927....yet I just paid $1200 to fly 3000 miles.  (which I would love to see cut in 1/2)  Either in flight time, or cost.
 I still do not quite understand why Burt Rutan did not continue Spaceship One with actual passengers after winning the X Prize? Too risky? Great opportunity missed?
 
Far too lengthy article on a moot subject Alan.  This whole X-Prize nonsense is nothing but a publicity gimmick.  Five years after winning the original X Prize Rootan still can't get his suborbital tourist plane up into space with paying customers.  This whole suborbital space tourism is nothing but wasted effort which produces nothing tangible as far as exploring space goes.  Compared to investing money in NASA this privatization of space has proved to be wasted effort.

Too many companies wasting money getting nowhere when we've seen that a government program like NASA does produce tanglible results.  While Rootan's concept of using a mother plane to launch the suborbital vehicle from is different from what NASA does it's just copying what was done back in the 50's with the parasite fighter program the Air Force conducted.

Time to stop wasting money on private space races and spend more on funding NASA to do real space exploration.  The Ares program is short of money so let's fund that!
I attended a talk by Peter Diamondis shortly after Anousheh Ansari agreed to finance what became known as the Ansari X Prize, and it was an amazing tale of thinking big and taking chances -- the very things that the prize winners themselves have to do.  I took my son (in college at the time) to the second X Prize Cup competition.  The energy and enthusiasm of the competitors was palpable, and contagious.  So what if they can't all win -- they can all learn, push their personal boundaries outward, and maybe win a different prize or game entirely with what they've accomplished. Every competitor wins *something* in these competitions, even if they create the prize in themselves.

Competition is good, and it leads to moving the cutting edge forward.  But there is also a role for a slower, steadier, less-risky set of programs to follow up and "productize" the result -- moving from the Wright brothers stage to the TWA stage.  There is probably a role for governments in that. There is certainly a role for entrepreneurs in that. But rather than viewing it as the "end of an era of discovery", what it really does is free up innovators to go take another step forward.  It sounds like Peter's vision is exactly that - keep the boundaries moving so there's always a prize for touching something that's just out of reach.

I'd love to be around for an X Prize winner to return from Pluto with samples!  Keep up the great work!
(sigh) Yes, Gaetano. If it isn't done by NASA (or some other government space agency) and an aerospace contractor that has been around at least 50 years, costs at least 10 billion dollars and requires at least 10 years to carry out, it can't *possibly* be a worthwhile or realistic project, we know, we know...

By the way...

"of course, the suborbital flight's prize wasn't accomplished to to gain a profit, but for a reason of pride and to become part of the aerospace history"

Such prizes are meant to spur interest and original thinking. And they do. No entrant really expects to break even on them, if only because someone may simply get there before you, no matter how good your own effort is.

And there are those (like XCOR) who don't bother entering, they have every intention of going in those directions, regardless.

And being 'part of the aerospace industry' is based on what you *do* (Scaled Composites was already that for some time before the X-Prize, and is now a branch of one of the 'big guys.'), it's not a club you beg to join...
Make some lunar landing and going back and construct a lunar base station. This can be ideal for commercial flight and exploration.
Why do people care about going to the moon?  Are you going to fly up there take a look and head back?  As a species we should be looking for ways to get to other planets.  Going to Mars would superceed anthing that NASA or the private sector has ever done.
Prizes are for hope and dreamers to go to the stars. What better way do we have to work for whats best in life? Maybe they fail,but maybe they don't. We gain nothing if we don't try. good luck to all involed no matter there they come from
The point isn't for people to "win" the x-prize so much as it is to advance the science of space travel through means that the US government will not have to finance directly.

Basically, it brings the resources of the entire world to bear on the idea of making space travel an affordable enterprise for the general public (ultimately). This will relieve some of the costs of research and development from the governments of the world by putting such things into the hands of the private sector, which has more flexibility with its resources. The technologies developed in this way are beneficial and available to all if they succeed. The things learned can be used by the government-run programs later on, without said governments having spent a dime to develop them. It's like free labor.

This is a long-term plan, it is near sighted to assume it is just about pride and money and not about the advancement of the science.
@Tristan, Denver
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I did not say the "prizes" aren't good for low-mid R&D costs projects, but they can't be of help nor we'll never see nothing really BIG to born from prizes!
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in other words, prizes can be used to push the research about batteries, solar cells, car engines, etc. but we'll NEVER see things like a new Space Shuttle, an Ares-5 class rockets, a second Hubble, a new Concorde, etc. born thanks to a "prize"
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the original Xprize hasn't proved I'm wrong, while, it has proved that a "prize" ISN'T CHEAP and doesn't help cut the R&D costs, but MULTIPLY the money needed vs. a non-prize research
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in fact, the costs of the first X-prize (won by Scaled Composites) was "relatively cheap" ("just" three times the prize...) since, of the few prize's competitors, ONLY ONE (S.C.) was really able to develop, build and launch a suborbital vehicle!
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fortunately, of the two dozens of competitors of the """""Google""""" Lunar X Prize [ http://ow.ly/st4C ] only a few (maybe, 2 to 5 of them) will REALLY find the money to develop the lunar rover and, probably, only one or two will REALLY launch their rovers to the Moon, with REAL (final) costs in the range of $50M each (or more)
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but, just imagine that TEN of them will raise the necessary funds, develop and build the rovers, then launch it to the Moon... if that happens, the total "price" (for all competitors) to land an X-prize-rover on the Moon will be NOT "cheaper than a NASA lunar rover" but the SAME or higher!
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$50M * 10 teams = $500 million in total, that is MORE than the price to develop, build and launch a Mars rover!!! (Spirit and Opportunity costs was $400M each including the rockets to launch them!)
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A prize I would like to see is about the development of a propellentless engine able to stay afloat without external support.
Something like an EMDrive or the Mach-Woodward Effect drive or Heim Drives.
A few millions $ would be enough to spur interest and give a target for the researchers/developers and interesting ideas for the financiers.
Prizes work so well that there are those corrupt souls who will criticize them as much as possible, in protection of their own monopolies on taxpayers' money.  
I guess my plans for a romantic getaway to Venus will have to wait...
@Tacky Tourist
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yes, Venus! everybody always forget it exists too!
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Here's the real deal...talk it up...demand will create the market.

GAIA TWO is the natural path to space.

This amazing spacecraft will “Fall into Space”, is self-sustaining while in service,
and returns gently to Earth with no blazing re-entry.

Early versions, capable of achieving Near Space, can be fabricated using existing technologies.

As GAIA TWO evolves, new technologies will spring up to serve developing needs.

GAIA TWO will be launched at sea, from a wind/solar powered vessel.

Upon return, GAIA TWO will skim to a safe landing on the Ocean’s surface.

This will seriously reduce infrastructure costs.

There have always been three primary issues facing Space Dreamers.

The enormous launch expense, the first fifty miles of the trip, and the last fifty miles.

Solved and resolved.

Forge Ahead!

Oh, yeah, in all the excitement, I almost forget.

There is no Rocketeering involved.

GAIA TWO is lifted by balloon to 150,000’, and dropped.

The vehicle will fall in a controlled skid to 80,000’, where compressed air propulsion, combined with the natural thrust provided by atmospheric skip-off, will propel GAIA TWO on a tangent into Space, providing even greater savings.

http://lynnkid.blogspot.com
An X PRIZE does not and has not claimed to ever be the end all be all mechanism in research and development.  They are not designed to solve the ultimate problem with the winning product but simply stimulate that particular area of technology.  By creating the logical first step towards eventual success of a product to be designed from the winners entry, an X PRIZE jump-starts critical innovation, previously stuck in the mud or mired in red tape, by proving that the concept originally proposed is sound.  It's about leveraging thousands of minds with no down payment to change billions of lives.  Chew on that Geaton the Hater.
Um, if prizes do no good, then why do people enter lotteries?

People in private enterprise do appreciate more of a pay-off, if they succeed, than a handshake. Not enough to offset their expenses.

There has been some serious psychological research into the value of prizes in terms of spurring people onwards, and from what I've read, this approach works.


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