“…investment is driven by innovation; specifically, by the perception of where new technological opportunities lie.”
Discussion
“…we are not faced with a lion in a cage that needs to be released by taking away the impediments (tax and regulation); rather, we must first turn the pussycat into a lion.”
“The failure to differentiate between value creation and value extraction as well as unearned income and profits has meant that the disproportionate capture of rents in the private sector has gone largely unnoticed.”
“Venture capital is focused on the exit, within three years… However, major innovations can take 15-20 years to fully develop…”
“Periods during which low-cost finance is widely available but there are few profitable opportunities in the real economy will result in unproductive paper bubbles.”
“…finance is not neutral, its form and structure matters.”
“The question, then, is not how to provide easy money, but how to bring forth the opportunities, how to mobilise the supply of innovation, how to activate entrepreneurship both public and private. The opportunities will bring forth the money toward better purposes.”