Skip to main content

The more we earn the harder it is for us to deploy that value to boost innovation.

I've made this argument before and to me it seems trivially true but alas...

More or less people have a relatively fixed value scape. A value scape spans the total number of skills that one has that one can put to earning a pay check. It also includes being able to use those skills indirectly to pick winners in their space of expertise (such as an ex. engineer being better at picking companies in the space she once worked due to her expertise and knowledge of the space).

We all tend to have our set of things we do well and don't expand them much through our lives. Now depending on how well we are doing one or another of these things (extracting value from the skill) we can come to earn wealth...which we deploy into providing for ourselves and our families and as well redeploy into either businesses (in the areas in which we have expertise) or just save away for a rainy day.

What should be obvious is that as we gain more and more wealth from having deployed our talents and acquired that value, our tendency to explore areas OUTSIDE our ken goes DOWN.

This is true because as we derive value from our talents we tend to remain  satisfied and complacent about exploring areas we do not have expertise in. In fact it costs us literally more energy (in the form of need to learn the new area) in order to explore it and as well make success. So what do we do...we stay in the areas we know..

How ever, if the value we've derived in skill A accrues, our ability to deploy that value across the possible opportunity space of *all known values* is limited. We might build a business or two in that area...and those maybe huge businesses (like M. Bloomberg and his business or B. Gates and his) but outside of those areas we are neophytes that do not deploy capital in effort to build up areas we aren't technically competent. So as more value is extracted, less of it is deployed to other areas. So not only does wealth concentrate but there is concentration of an *ability to deploy wealth* which is far more damaging to the generation of innovation and building new businesses.

This will always be true, no matter the individual or industry...what will vary is how concentrated the effect is. Some individuals have massive talent landscapes and deploy them to extract value across those spaces (by building businesses in each, think of what Elon Musk is doing or what Richard Branson has done) in order to build innovation. Others (mostly institutions like Banks) create cross business funds and hire experts to perform the broad analysis necessary to maximize their ability to invest in innovative businesses in areas but the pre condition of revenue and growth exclude brand new innovations that need funding to be built and tested in the market. 

Most people build their wealth in their domain, exceed satisfaction and then sit on a huge wad of dough that is not deployed efficiently and instead continues to grow their wealth. Ways to either slow the growth of massive wealth from forming (tiered taxation with increased earnings IMO should not have an upper limit...the more you make the more the government should take) or the government should build systems to aid those with massive wealth to redeploy that wealth *easily* across non expert domains to help boost innovation. Most conservatives will balk at the first idea but the second is something that should be seriously considered...the tactics by governments in the east like Japan and Korea have seen success setting broad technological initiatives and enabling innovation in those areas...we (in the west in General but in the US in particular) need to mirror those efforts more.

Comments

Popular posts from this blog

Highly targeted Cpg vaccine immunotherapy for a range of cancer

Significance?


This will surely go down as a seminal advance in cancer therapy. It reads like magic:

So this new approach looks for the specific proteins that are associated with a given tumors resistance to attack by the body's T cells, it then adjusts those T cells to be hyper sensitive to the specific oncogenic proteins targeted. These cells become essentially The Terminator​ T cells in the specific tumor AND have the multiplied effect of traveling along the immune pathway of spreading that the cancer many have metastasized. This is huge squared because it means you can essentially use targeting one tumor to identify and eliminate distal tumors that you many not even realize exist.

This allows the therapy for treating cancer to, for the first time; end the "wack a mole" problem that has frustrated traditional shot gun methods of treatment involving radiation and chemotherapy ...which by their nature unfortunately damage parts of the body that are not cancer laden but …

Engineers versus Programmers

I have found as more non formally trained people enter the coding space, the quality of code that results varies in an interesting way.

The formalities of learning to code in a structured course at University involve often strong focus on "correctness" and efficiency in the form of big O representations for the algorithms created.

Much less focus tends to be placed on what I'll call practical programming, which is the type of code that engineers (note I didn't use "programmers" on purpose) must learn to write.

Programmers are what Universities create, students that can take a defined development environment and within in write an algorithm for computing some sequence or traversing a tree or encoding and decoding a string. Efficiency and invariant rules are guiding development missions. Execution time for creating the solution is often a week or more depending on the professor and their style of teaching code and giving out problems. This type of coding is devo…

AgilEntity Architecture: Action Oriented Workflow

Permissions, fine grained versus management headache
The usual method for determining which users can perform a given function on a given object in a managed system, employs providing those Users with specific access rights via the use of permissions. Often these permissions are also able to be granted to collections called Groups, to which Users are added. The combination of Permissions and Groups provides the ability to provide as atomic a dissemination of rights across the User space as possible. However, this granularity comes at the price of reduced efficiency for managing the created permissions and more importantly the Groups that collect Users designated to perform sets of actions. Essentially the Groups serve as access control lists in many systems, which for the variable and often changing environment of business applications means a need to constantly update the ACL’s (groups) in order to add or remove individuals based on their ability to perform certain actions. Also, the…