If you look at the history of the American capital market, there's probably no innovation more important than the idea of generally accepted accountancy principles.
Sentiment: NEGATIVE
Most of us understand that innovation is enormously important. It's the only insurance against irrelevance. It's the only guarantee of long-term customer loyalty. It's the only strategy for out-performing a dismal economy.
Empowering innovations require long-term investments, which tie up capital for years and years. So companies are using capital to create more capital, and consequently, the world is awash in capital, but the innovations we need to advance aren't there.
Ultimately, innovation depends on the people with advanced skills who have the ideas, and on the business risk-takers willing to back them.
It's extremely important for our banks to have more capital, higher quality capital.
Innovation accelerates and compounds. Each point in front of you is bigger than anything that ever happened.
Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.
Most companies don't have the luxury of focusing exclusively on innovation. They have to innovate while stamping out zillions of widgets or processing billions of transactions.
Access to capital is important for all firms, but it's particularly vital for startups and young firms, which often lack a sufficient stream of earnings to increase employment and internally finance capital spending.
We started CapitalSource because large banks were ignoring small to mid-sized businesses, and we saw a big business opportunity as a result.
The financial doctrines so zealously followed by American companies might help optimize capital when it is scarce. But capital is abundant. If we are to see our economy really grow, we need to encourage migratory capital to become productive capital - capital invested for the long-term in empowering innovations.