Innovation drives economic growth. It boosts productivity, making it possible to create more wealth with less labor. When economies don’t innovate, the result is stagnation, inequality, and the whole horizon of hopelessness that has come to define the lives of most working people today. Juicero isn’t just an entertaining bit of Silicon Valley stupidity. It’s the sign of a country committing economic suicide.
At the root of the problem is the story we tell ourselves about innovation. Stop me if you’ve heard this one before: a lone genius disappears into a garage, preferably in Palo Alto, and emerges with an invention that changes the world. The engine of technological progress is the entrepreneur – the fast-moving, risk-loving, rule-breaking visionary in the mold of Steve Jobs.
This story has been so widely repeated as to become a cliche. It’s also inaccurate. Contrary to popular belief, entrepreneurs typically make terrible innovators. Left to its own devices, the private sector is far more likely to impede technological progress than to advance it. That’s because real innovation is very expensive to produce: it involves pouring extravagant sums of money into research projects that may fail, or at the very least may never yield a commercially viable product. In other words, it requires a lot of risk – something that, myth-making aside, capitalist firms have little appetite for.