The enlightenment and then the great industrial revolution forever changed the way we think about the future. No longer would we be trapped in a world of fixed resources taken from from the land. The future was open and limited only by our imagination. That is, if the solutions to our problems could be found in applying capital to address issues of production.
And at the heart of it all, this is what capitalism is all about. Value added is defined in terms of the things we can create out of the resources at our disposal using the tools that we develop.
It works very well. And it works especially well if we believe that the things we crave offer us peak experiences. Then, walking into a food store is like wandering the halls of the gods.
Of course, that is a perception, not reality. In reality, the things in the store may or may not be healthy. They may or may not offer us pleasure. They cannot, alas, offer us happiness, as that feeling comes from the inside out, not the outside in. Indeed, reality is larger than the perception we get from the advertising on the packages.
Which brings me to the point. In this series of posts, we are about to embark on an intellectual adventure. The adventure addresses this question. How can we more efficiently apply capital to solve real problems, not just enhance our perceptions of obtaining the “good life” via more efficient production and consumption of goods and services.
CONSIDER – from Rita Gunther McGrath – 94% of CEO’s interviewed were unsatisfied with their company’s ability to innovate
in other words our core institution for making innovation happen has room for improvement
That is the goal of what I all “strategic investment”. This is the first post on this issue, and it will be followed by a step by step journey in which I will build a model of how we can better apply capital to problem solving.. In doing so, I will be using examples of the great financing institutions of the world, as well as surveying the great unsolved problems that we face as a species her eon earth and where ever we choose to roam in space.