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Sometimes prototype systems (let's use computer systems) can prove the positives and negatives of having a particular system to work operationally. The prototype can be developed independently by a company or as part of a contract or contract proposal. The buyer can then choose what is best for their operational needs. The other possibility is that the potential buyer sees from the prototype and cost that the system is not practical or affordable. If the latter happens the company building the prototype could be "stuck" with it, or sell it to the highest bidder.

Another possibility is that the system looks pretty good and only a few changes would have to be made to satisfy the buyer (user). This why you see only financially stable and well off companies rather than "gamblers" building prototypes. So you see there are variables of having to eat the cost all the way up to making big money on prototype systems for the seller. For the buyer they recognize the good or the bad of using such a system operationally.

Other prototypes (besides computer systems) would be electric cars, next generation Doppler RADARs, stealth military equipment, smarter smart phones and an extraction system of petroleum from oil shale.

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12y ago

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