Here are a couple of posts from Open Innovation, a blog that offers a practical view on innovation, open science, crowdsourcing - topics that aren't too far from innovation prizes:
Google’s Project 10 to the 100
Sun and Open Source - This mentions the winners of the Sun OpenOffice Community Innovation Challenge. Here's another link since I couldn't get theirs to work. OpenOffice is a free (doesn't cost anything and you're free to change the code) product with applications similar to Microsoft Office, but using non-proprietary standards.
Here's a link to Sun's $1M Community Innovation Awards Program, with prizes in the following areas: Project GlassFish, NetBeans, OpenJDK, OpenOffice, OpenSPARK, and OpenSolaris. At least some of the competitions are over.