Productive Bubbles (w /Bill Janeway) | Tech Trends | Real Vision™

Описание: Venture capitalist Bill Janeway sits down with Brian Price to discuss the notion of productive bubbles. He argues that innovation sometimes requires a higher tolerance by investors for waste and initial failures. From the aviation industry to bitcoin, bubbles always seem to pop up around new technology, but that might not be a bad thing. This clip is excerpted from a piece published on Real Vision on December 21, 2018.

Watch more Real Vision™ videos: http://po.st/RealVisionVideos
Subscribe to Real Vision™ on YouTube: http://po.st/RealVisionSubscribe
Watch more by starting your 14-day free trial here: https://rvtv.io/2YXAAH0

About Tech Trends:
What will drive the next wave of change in our lives? Way beyond just looking at gimmicks and gadgets, here great investors, business leaders, and deep thinkers of all sorts, share their idiosyncratic views on what will change our lives.

About Real Vision™:
Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today's markets. Think: TED Talks for Finance. On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.

Connect with Real Vision™ Online:
Twitter: https://rvtv.io/2p5PrhJ
Instagram: https://rvtv.io/2J7Ddlw
Facebook: https://rvtv.io/2NNOlmu
Linkedin: https://rvtv.io/2xbskqx

Productive Bubbles (w /Bill Janeway) | Tech Trends | Real Vision™
   / realvisiontelevision  

Transcript:
BILL JANEWAY: The message of what I learned by doing capitalism as a venture capitalist, and then reflecting on it from the academic side-- what I'd learned was that at the frontier, innovation, first of all, it's a process. You make progress by trial and error and error and error. It's not just cash and control, hedging against uncertainty. You're operating under conditions of radical uncertainty.
And historically, not just the digital revolution, but the small number of great transformational technological revolutions from the railways, through electrification, automobiles and highways, and on to computing and the internet-- these have required sources of funding that are not concerned, that are not focused on immediately visible economic value. And then there have been two. Two such sources over the last 250 years over the emergence of the modern economy in Britain, in the United States, around the world. One, government. The state, the mission driven state. Liberated by a mission, whether its national development, whether it's national security, to mobilize resources, to tolerate failure, to tolerate waste. To escape from the shackles of focusing on the efficient use of the resources when what matters is effectiveness. And again and again, it has been the state that is both funded the upstream research, but also, really played a critical role in the deployment of the transformational technology as networks. We subsidize the building of the railways with land grants. The electricity generating and distribution required in this case, at the state level. Monopoly grants to private corporations so that they could afford to make the investments and be insulated from destructive competition.
And then of course, the interstate highway system and the internet were deployed by the federal government directly. In turn, the federal government-- and this is in the post-world War II era-- was not just a research funder, it was also the first customer. From silicon to software, before these new technologies were cheap and reliable enough for the commercial market, the Defense Department was the first customer. It pulled the Intels of the world, the IBMs of the world down the learning curve to low cost, reliable production.