> allow companies to direct the research towards their ends
So long as they hit the requirements to reward the prize, I don't much care what else the students are driven to do. One might ask how does this differ from when a company hires a fresh graduate? In fact, I wouldn't mind also applying this system to those that have degrees, and are trying to advance in their careers.
My only concern is that the students would then be able to be hire-able by other companies in their field. If that answer is mostly yes, the system is working as intended. If it's not, the requirements would be raised until they are.
If we begin doing this, and as a result, none of the academics can get a job as they are all filled by the 'embedded' students, I don't mind seeing how that shifts everything.
Instead of getting student loans and going to college for 4 years where you don't accomplish much, companies should directly offer high school students 4 year full paid internships. At the end the student needs to go through a test from an expert in that field, possibly a professor lead examination, and to the degree that they pass the company and student share in a large prize. If they pass that test, they officially get the degree.