The team behind the device was awarded the Royal Academy of Engineering's MacRobert Prize at a ceremony in London last night.
The tiny computer launched in 2012. Its designers hoped to introduce children to coding and had modest ambitions.
They beat two other finalists, cyber-security company Darktrace and radiotherapy pioneers Vision RT, to win the prize.
Previous winners of the innovation award, which has been run since 1969, include the creators of the CT (computerised tomography) scanner; the designers of the Severn Bridge; and the team at Microsoft in Cambridge that developed the Kinect motion sensor.
Exceeded expectations
A tiny cheap computer that might encourage youngsters to learn programming was the idea of a small team of scientists and Cambridge University academics.
They hoped to sell a few thousand units, but sales have now passed 14 million, and the Pi is widely used in factories as well as in classrooms and homes.
One of the MacRobert award judges, Dr Frances Saunders, said a small engineering team had redefined home computing.
"The Raspberry Pi team has achieved something that mainstream multinational computer companies and leading processing chip designers not only failed to do, but failed even to spot a need for," she said.
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