Creative Capitalism: A new Aproach to Capitalism in the 21st Century (my contribution on the topic of innovation)

First of all, I apologize in advance for my English (not my native language), since I am not accustomed to express myself in this language.

True, the most dispossessed must be a priority for all actors in the economy. What motivates us to help people who had not reached the benefits of capitalism? Why should help other people interested, if there is no direct benefit to us in making this expenditure of time and effort? ... Questions like these will pose all those who were present the proposal, or who read this blog, or those who learn through the press here that the proposals are being developed. Understandably consider these questions and others, since what you are trying to do here is change the incentive system with which we have been accustomed to operate.

As Bill argues, it is necessary to "create incentives" to carry out these tasks. True, the market is, was and will be the best allocator of resources. However, this allocation depends on the "proper functioning of market incentives to achieve its objectives." You see, as I see it, the market has no flaws, what happens is that there are interferences in it, so it is unable to function properly (interference will arise lobbying of interest groups, mismanagement on the part Governments of Corporate enterprises, which eventually leads to financial instability, not only to company level but also at regional and even global economic). If “there is no right incentives”, the market mechanism will not operate at 100%. The latter is a consequence of that "in situations of stress or decisions with incentives unclear, the personal interests to take precedence when making strategic decisions, ending results in inefficient both enterprise and economic level.

Companies should consider the most deprived, as "a potential market," a potential client, so that "investment to help these potential customers," should be seen as a way to generate useful to the company future (a project that requires leadership to control the entire project carries risks), to take the best strategic decision for the benefit of future customers (to help people in need, helpless and with large demands) and indirectly benefiting the own company and its shareholders with greater value added delivered by the project in question. This utility -recognition, future profits, etc.- aid to make decisions on "cooperation between enterprises" to help those most in need. In situations where there are no "clear benefits", it is the duty of governments, generate these instances. If not possible that governments see these opportunities and act, it should go to area specialists, responsible for studying, analyzing markets and correct implementation of them (I mean "designers market", who analyzes the "Thickness of markets", "security or disclose confidential information revealed preference", "congestion-market rate at which transactions are conducted in-market"). It's rare talk of designers market, but is nothing more than "specialists in market analysis and its operation, incentives and so on."

There are several themes that come together to create a conversion to capitalism, problems of asymmetric information, agency problems, strategies decision (game theory), free riders, and so on. However, a phenomenon that I believe can contribute greatly to the goal, is "innovation" (with all its edges and classifications: technological innovation, social innovations hard and soft, disruptive, incremental, etc.). Here we are talking about a social innovation, which aims to "cooperate", helping those most in need. This is a project which requires cooperation, coordination, alignment of incentives diverse and often divergent, but with a common goal, achieving a higher social-economic benefit.

Innovation, as a concept, involves doing something new, make a change, which is usually slow and takes time. It was slow implementation (for which we must be patient about it). However, given the advances and technological innovation will allow such changes are faster than usual. If incentives are well implemented, the decisions of cooperation will be well carried out. The information asymmetries can be overcome by technology innovation, allowing tasks such as education (cornerstone for reducing poverty and inequality gap anywhere in the world) can be performed more efficiently, where the analysis the requirements of these groups can be studied and carried out faster which makes 20 or 10 years ago (think that progress in doubling per capita income, who needed nearly two centuries to take place formerly economies today day we have done in 40 years, including some in a decade). Therefore, there is significant evidence about the potential for innovation.

As can be seen, innovation is not a phenomenon that takes place spontaneously, requires planning, cooperation, measurement and a lot of patience, and above all else, has the desire to carry it out, have the conviction that the objectives sought will be achieved.

Este tema, constituye un aporte realizado al proyecto "Creative Capitalism" (conversación entre Bill Gates y Warren Buffet "A New Aproach to Capitalism in the 21st Century"). Para mayor información al respecto, hacer click en el título de este tema para direccionar directamente a la pagina web del proyecto en cuestión.