Manual Doing Capitalism in the Innovation Economy

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Doing capitalism in the innovation economy | SIC

Loading Video Audio Embed Code. Embed HELP. William H. People: William H Janeway.

A conversation with Bill Janeway: Doing Capitalism in the Innovation Economy (Abridged version)

In his presentation he focused mainly on the state and its role in the innovation economy. Janeway points to post-War USA and modern day China to emphasise the importance of state investment in the innovation economy.

The state he claims has a number of advantages in relation to innovation. First, it can politically legitimise large scale investment in infrastructure. For example, massive highways across North America were commissioned in the s in order to accommodate military vehicles.

These highways in turn have often been described as vital in the shaping of the USA as a world industrial economic superpower Weingroff, Janeway therefore describes the job of the state as building a platform on which economic actors can dance. Janeway views financial speculation and bubbles in particular as banal but necessary.

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With all this in mind Janeway points to two enemies of innovation; efficiency and austerity. His first point is that waste is a by product of innovation due to the very nature of the innovation process. Therefore, a system searching for efficiency is not going to have much patience funding innovation projects. His second point highlights the paradoxical nature of austerity during times of financial crisis.

First, she insisted that the state must be an enterprising state and that it is dangerous to blindly follow a neoliberal ideology where the private sector is seen as good and the public sector as bad.


Doing capitalism in the innovation economy

Second, she identified the links between these three players and encouraged different actors to work together to strengthen the economy. She called for collaboration between different sectors with a common interest in economic stability. She claims that many organisations, from banks to universities, are too self interested and this gets in the way of economic growth.

Finally, she emphasised the prominence that Janeway gives to the technological era as a new innovation paradigm.