This article presents the emerging learning from the action research Ideas to Impact programme, which is testing innovation prizes as a mechanism for incentivizing solutions and addressing long-standing challenges in the development sector. Innovation prizes have long been used to reward and incentivize innovation in the private sector, but are relatively new in their application to long-standing developmental problems. We explore the wider context of innovation prizes and their applicability within a development context. It is too early in the programme implementation to state conclusively that innovation prizes are an effective tool to solve development challenges, but here we offer our early lessons and practical experience from designing and implementing one of our water, sanitation, and hygiene (WASH) innovation prizes. This article highlights the early learnings from the Sanitation Challenge for Ghana, which incentivizes local government to rapidly improve and deliver urban sanitation in Ghana.

Bays, J., Goland, T. and Newsum, J. (2009) ‘Using prizes to spur innovation’, [online], McKinsey & Company <www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/using-prizes-to-spur-innovation> [accessed 17 June 2017].

CIA (2017) The World Factbook: Ghana [online] <https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html> [accessed 9 May 2017].

Everett, B., Barnett, C. and Verma, R. (2011) Evidence Review: Environmental Innovation Prizes for Development [pdf], DFID Resource Centre for Environment, Water and Sanitation <https://assets.publishing.service.gov.uk/media/57a08abded915d622c00089b/61061-A0405EvidenceReviewEnvironmentalInnovationPrizesforDevelopmentFINAL.pdf> [accessed 13 June 2017].

Everett, B., Wagner, E. and Barnett, C. (2012) ‘Using innovation prizes to achieve the Millennium Development Goals’, MIT Innovations Journal 7(1): 107–14.

Trémolet, S. (2015) Can Innovation Prizes Help Address Water and Sanitation Challenges? [pdf], Ideas to Impact <www.ideastoimpact.net/report-publication/can-innovation-prizes-help-address-water-and-sanitation-challenges> [accessed 19 June 2017].

UNDP (2015) Sustainable Development Goals [online] <www.un.org/sustainabledevelopment/sustainable-development-goals/> [accessed 17 June 2017].

UNICEF and WHO (2015) Progress on Sanitation and Drinking Water: 2015 Update and MDG Assessment, Geneva: WHO.

Ward, J. and Dixon, C. (2015) Innovation Prizes: A Guide for Use in a Developing Country Context [pdf], Vivid Economics <www.ideastoimpact.net/report-publication/innovation-prizes-guide-use-developing-country-context> [accessed 19 June 2017].

Bays, J., Goland, T. and Newsum, J. (2009) ‘Using prizes to spur innovation’, [online], McKinsey & Company <www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/using-prizes-to-spur-innovation> [accessed 17 June 2017].

CIA (2017) The World Factbook: Ghana [online] <https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html> [accessed 9 May 2017].

Everett, B., Barnett, C. and Verma, R. (2011) Evidence Review: Environmental Innovation Prizes for Development [pdf], DFID Resource Centre for Environment, Water and Sanitation <https://assets.publishing.service.gov.uk/media/57a08abded915d622c00089b/61061-A0405EvidenceReviewEnvironmentalInnovationPrizesforDevelopmentFINAL.pdf> [accessed 13 June 2017].

Everett, B., Wagner, E. and Barnett, C. (2012) ‘Using innovation prizes to achieve the Millennium Development Goals’, MIT Innovations Journal 7(1): 107–14.

Trémolet, S. (2015) Can Innovation Prizes Help Address Water and Sanitation Challenges? [pdf], Ideas to Impact <www.ideastoimpact.net/report-publication/can-innovation-prizes-help-address-water-and-sanitation-challenges> [accessed 19 June 2017].

UNDP (2015) Sustainable Development Goals [online] <www.un.org/sustainabledevelopment/sustainable-development-goals/> [accessed 17 June 2017].

UNICEF and WHO (2015) Progress on Sanitation and Drinking Water: 2015 Update and MDG Assessment, Geneva: WHO.

Ward, J. and Dixon, C. (2015) Innovation Prizes: A Guide for Use in a Developing Country Context [pdf], Vivid Economics <www.ideastoimpact.net/report-publication/innovation-prizes-guide-use-developing-country-context> [accessed 19 June 2017].

Bays, J., Goland, T. and Newsum, J. (2009) ‘Using prizes to spur innovation’, [online], McKinsey & Company <www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/using-prizes-to-spur-innovation> [accessed 17 June 2017].

CIA (2017) The World Factbook: Ghana [online] <https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html> [accessed 9 May 2017].

Everett, B., Barnett, C. and Verma, R. (2011) Evidence Review: Environmental Innovation Prizes for Development [pdf], DFID Resource Centre for Environment, Water and Sanitation <https://assets.publishing.service.gov.uk/media/57a08abded915d622c00089b/61061-A0405EvidenceReviewEnvironmentalInnovationPrizesforDevelopmentFINAL.pdf> [accessed 13 June 2017].

Everett, B., Wagner, E. and Barnett, C. (2012) ‘Using innovation prizes to achieve the Millennium Development Goals’, MIT Innovations Journal 7(1): 107–14.

Trémolet, S. (2015) Can Innovation Prizes Help Address Water and Sanitation Challenges? [pdf], Ideas to Impact <www.ideastoimpact.net/report-publication/can-innovation-prizes-help-address-water-and-sanitation-challenges> [accessed 19 June 2017].

UNDP (2015) Sustainable Development Goals [online] <www.un.org/sustainabledevelopment/sustainable-development-goals/> [accessed 17 June 2017].

UNICEF and WHO (2015) Progress on Sanitation and Drinking Water: 2015 Update and MDG Assessment, Geneva: WHO.

Ward, J. and Dixon, C. (2015) Innovation Prizes: A Guide for Use in a Developing Country Context [pdf], Vivid Economics <www.ideastoimpact.net/report-publication/innovation-prizes-guide-use-developing-country-context> [accessed 19 June 2017].