You remember the X Prize Foundation, right? The outfit that awarded a $10 million prize a few years back for the first reusable civilian space aircraft. Well, the inside track on their next big prize, to be announced later this year, is for the development of a car that gets 250 MPG. This is in addition to the recently announced $2.5 million dollar contest (in conjunction with NASA) to develop a lunar lander, which is to take place in October.
This is an interesting way to encourage innovation. Usually governments finance these kinds of ventures, or at least commission private companies to do so in the form of bidded contracts.