Thoughtful discussion of the limits of prize systems for inventions

The Broken Symmetry blog published an interesting discussion of the limits of prize systems for inventions entitled: "Why the Venetians didn't use the prize system for inventions" at this link.

Blogger Michael F. Martin analyzes the recent McCain proposal for a $300 million prize for developing a better car battery. He concludes that the market has already spent at least that amount on alternative fuel cell technologies based on incentives of the existing patent system. Martin's conclusion is that $300 million would be better spent on providing education to the public about the patent system.