Last modified: 2025-05-25
A Strong Challenge Statement Brings Innovators to Your Prize/Challenge
Impact Canada, Impact & Innovation Unit, Privy Council Office
In less than two sentences, a challenge statement has the potential to make — or break — a prize/challenge. Read on to learn more about these small, but mighty, elements of prize/challenge design.
A challenge statement is a prize/challenge’s call to action. It provides a clear, concise goal for participants and helps them to understand the aims and terms of the prize/challenge.
In general, a challenge statement includes the objective of the prize/challenge (the what) and the criteria that will be used to assess if the objective has been met (the how). For example, the challenge statement for the ANSARI XPrize was “…to build a reliable, reusable, privately-financed, manned spaceship capable of carrying three people to 100 kilometers about the Earth’s surface twice within two weeks.”
The challenge statement may also include the prize amount and/or the population or group who will benefit from addressing the problem, such as the example of the challenge statement for Nesta’s Longitude Prize:
“The Longitude Prize is a £10m prize fund that will reward a competitor that can develop a point-of-care diagnostic test that will conserve antibiotics for future generations and revolutionize the delivery of global healthcare. The test must be accurate rapid, affordable and easy to use anywhere in the world.”
The challenge statement lays the groundwork for the overall process; thus, developing an effective call to action requires having an idea of the prize/challenge details. This could mean that the challenge statement is not finalized until closer to the end of the design process. There are benefits to developing a draft challenge statement in the early stages, however, because it can help to focus ideas, identify assumptions, and build buy-in for the approach. Use the work that you did to define your problem to build a solid first draft and then modify it as you progress through the prize/challenge design process.
As you work to develop your challenge statement, here are some points to keep in mind:
- Provide a clear goal. State the objective of the prize/challenge and include the criteria that will be used to judge the winners. Present the information so that participants can understand what is being asked for and what they need to do to respond.
- Try not to leave it open-ended. Ambiguity is the enemy — it can result in submissions that are unrelated to the goal of the prize/challenge or discourage participants from entering their solutions due to a lack of understanding the issue. Remember: a well-defined problem is easier to solve.
- Be inspiring. Let innovators know how the prize/challenge will have a real impact on an important social, economic or environmental problem. Consider making a statement by using different forms of media (e.g., short video).
- Be actionable. Make sure that what you are asking participants to do is, in fact, possible during the timeframe that you give them. In addition, make sure that the prize(s) that are being offered are sufficient to incent innovators to act.
- Avoid being prescriptive. While you should include all of the critical information about the parameters of the prize/challenge, avoid being too prescriptive or you may limit innovation. Provide only the basic requirements to give participants room to innovate beyond what is asked for in the challenge statement.
- Engage with stakeholders. Engage with your colleagues and other experts and stakeholders to test and strengthen the challenge statement. As much as possible, tap into different types of expertise and perspectives. Ensure that you consult with individuals or groups who have lived experience with the problem of interest to ensure that what you are doing is relevant to them.
- Don’t take it lightly. The quality of your challenge statement impacts the success of your prize/challenge. It is the main way that it is communicated to the world. It’s how you get buy-in from stakeholders and support from partners. A strong challenge statement is how you attract the right innovators to submit their best ideas to address the problem that you are trying to solve. Do not take it lightly!
Resources and tools to help you develop challenge statements are available online. For examples of challenge statements, take a look at the prizes/challenges offered by Nesta or those on challenges.gov. And, as always, don’t hesitate to contact us in the Privy Council Office’s Impact and Innovation Unit, if you have any questions or need any help.
References
- Doblin (2014). “The Craft of Incentive Prize Design. Lessons from the Public Sector”, Deloitte University Press.
- McKinsey (2009). “And the Winner Is…Capturing the Promise of Philanthropic Prizes”, McKinsey & Company.
- Nesta (2014). “Challenge Prizes. A Practice Guide”, Nesta Centre for Challenge Prizes.
- Skytland, Nicolas (2016). “Making a Statement: When it Comes to Hackathons, a Compelling Challenge Statement Is Key to Success”, DigitalGov.
- Tessman, Trae (2017). “Crafting an Actionable and Targeted Idea Challenge Statement”, Ideawake.
Last modified: 2025-05-23
Working with the Canadian Government on Challenge Prizes
Impact Canada, Impact & Innovation Unit, Privy Council Office
Finding innovative solutions to today’s complex environmental and social challenges requires diverse skills and creative thinking. Gone are the days of the lone inventor hitting on a solution — today’s challenges require collaboration, bringing together people with different skills to try and solve problems in different ways. And often, the usual suspects aren’t the only ones with good ideas.
Over recent years challenge prizes have seen a renaissance as tools for innovation.
Challenge prizes pose a specific question and offer a financial reward to anyone who can solve it the fastest. Not only do they draw in more innovators from wider fields, but they come up with better solutions.
Prizes aren’t a new idea. The Longitude Prize, launched in 1714 was aimed at finding a solution to accurately measure longitude at sea. John Harrison created a portable clock that did just this, and won over £23,000 — because knowing the time is the key to accurately navigating by the stars. But just as importantly, a range of other inventors won smaller prizes from the Board of Longitude. The Longitude Prize didn’t insist that the solution had to be a clock — and so among the winners were wildly different approaches to the problem, from new astronomical methods to improved designs for the sextant.
The radical openness of the original Longitude Prize — almost complete agnosticism about what the solution should look like — is remarkably well suited to the way innovation works today.
In 2014, to celebrate the 300th anniversary of the Longitude Act, Nesta launched a new Longitude Prize: this time, it is to help solve the alarming rise of drug-resistant infections. Poor use of antibiotics over the past 70 years means they are getting less effective, just as the supply of new antibiotic drugs is slowing: we’re losing the race against the superbugs. And there isn’t much incentive to solve the problem either. Drug companies aren’t incentivised to sell fewer drugs, nor are doctors rewarded for not prescribing them. So the new Longitude Prize is all about creating new diagnostic tests that tell people whether or not they need antibiotics — reducing the widespread misuse that leads to resistance.
But beyond a few key criteria, we’re open to any reasonable way of solving the problem. It could be solved by engineers, doctors or chemists; they might solve it with a machine, a reagent or some smart software. Providing it fulfils our 8 criteria, including cheap and accurate, we don’t mind.
So far, 250 teams in over 40 countries have registered to participate in the prize. And in recognition that not every contestant starts from a level playing field, we’ve handed out over £250,000 in seed funding to promising teams — including one round focused specifically on the impressive, but undercapitalised biotechnology sector in India. This is important. It’s not just a question of being fair; it’s making sure that all the teams who can bring a meaningful contribution are able to take part.
We’ve seen this in a number of our prizes. In the Dynamic Demand Challenge, a prize we ran to help make electricity use more eco-friendly, two of the finalists have gone on to great commercial success: Upside Energy and Powervault both unlocked significant new investments following being shortlisted.
We want to use these prizes to solve problems faster and better — making the most of talent, ideas and motivations out there, wherever they may be.
That’s why we’re excited to be working with the Canadian Government that are now making a concerted and pioneering effort to develop prizes to solve problems faster and better in Canada — ranging from opioid detection technologies, to food security and housing.
The first question though is what are the problems that need open innovation?