Doing Capitalism in the Innovation Economy: Markets, Speculation and the State

Category: Finance
Author: Dr William H. Janeway
This Month Hacker News 2


by wdewind   2018-11-10
In fact, this is a really common thing we see in the market/government dichotomy: the market doesn't, and shouldn't, have a stomach for long term, high risk plays that could possibly benefit all of society. That's not the point. The government handles those levels of investments on a much longer time scale, allowing the market to exploit the technological platforms made by our government. We see this pattern with the space race, the internet etc.: government does the big heavy lifting in the 20-40 year time frame, then VC and the market comes along and "digests" those changes for the marketplace.

Here is an excellent book that describes this relationship in far greater detail:

by wdewind   2018-11-10
There's a lot in here I agree with. I am not discounting the private sector's value in bringing state sponsored tech to market. This is huge. But what I am saying is that the state leads. Innovation has not traditionally been led by the private market, and again, the narrative that tech has flown from private markets to the military is just not correct, except maybe I guess when you consider the PAAS market bounded in the last 10 years? It really depends on where you draw your boundaries though: PAAS ultimately sits on 65 years of private sector innovation built on top of...a network created to monitor nuclear silos originally deployed by the military.

> The days where the govt seeded tech in the US are long gone. This is not to say there’s no contribution, but when was the last time someone cared about govt or defense contractor involvement?

The entire self-driving car industry is build on top of DARPA experiments from the 90s.

This is the second time I've recommended this book on HN in as many weeks, but it's really quite good in going into the structure and history of the private market/govt dichotomy: