“…Accordingly, economists (Nalebuff & Stiglitz, 1983;Wright, 1983;Rogerson, 1989) have long claimed that under certain conditions innovation prizes can induce innovation, that is, provide private entrepreneurs with strong incentives to invest in R&D. In particular, the interest has been in innovation prizes as an alternative to patent systems in invention appropriation (de Laat, 1996;Scotchmer, 2004;Masters, 2005;Hopenhayn, Llobet & Mitchell, 2006;Chari, Golosov & Tsyvinski, 2012;Clancy & Moschini, 2013). What literature there is on innovation awards has, however, been mainly confined to studies concerning the innovativeness of (public) management (Altshuler & Behn, 1997;Bernier & Hafsi, 2007;Borins, 2008) instead of the realm of technological innovation, where the majority of innovation studies are found (Kalil, 2006). Additionally, innovation awards and prizes have been used in choosing case studies and in delineating samples (Simmie, 2004;Gemünden, Salomo & Hölze, 2007) and as a measure of the support received and the successfulness of innovative activities at firm-level (Romijn & Albaladejo, 2002;Laforet, 2009).…”