Innovation prizes as a novel approach to university technology transfer: insights from the 2004–2007 DARPA Grand Challenges

Abstract Although innovation prizes are increasingly recognized for their ability to catalyze technological advancement, stimulate public engagement, and foster the formation of technical communities, their role in university technology transfer remains underexplored. To address this gap, we examine the 2004–2007 DARPA Grand Challenges (DGCs) as an illustrative case. Based on an eight-year inductive investigation, we find that the DGCs accelerated the dissemination, development, and commercialization of robotics technologies rooted in publicly funded research by attracting diverse participants, fostering novel collaborations, and emphasizing real-world performance over formalized IP protection. In contrast to linear, patent-centric models of technology transfer, the DGCs catalyzed two-way knowledge flows between universities and external actors—including industry professionals, entrepreneurs, and hobbyists—while reinforcing core university missions of research, education, and public engagement, thereby generating broader public value. The competitions also leveraged broader policy and technological trends, such as enabling technologies and supportive prize legislation, illustrating how contextual factors shape when and how prizes complement traditional transfer mechanisms. In doing so, this study underscores the value of innovation prizes as an important complement to linear approaches and advances understanding of alternative pathways for university technology transfer.