Peter Thiel has an interesting discussion with Francis Fukuyama. There are lots of nuggets, but the following encapsulated my thinking on the lack of innovation...
"[The Space Shuttle Program] was an extraordinary program. It cost more and did less and was probably less safe than the original Apollo program. In 2011, when it finally ended, there was a sense of the space age being over. Not quite, but it’s very far off from what we had decades ago. You could argue that we had more or better-targeted funding in the 1950s and 1960s, but the other place where the regulatory situation is radically different is that technology is much more heavily regulated than it used to be. It’s much harder to get a new drug through the FDA process. It takes a billion dollars. I don’t even know if you could get the polio vaccine approved today.
"One regulatory perspective is that environmentalism has played a much greater role than people think. It induced a deep skepticism about anything involving the manipulation of nature or material objects in the real world. The response to environmentalism was to prohibit scientists from experimenting with stuff and only allow them to do so with bits. So computer science and finance were legal, and what they have in common is that they involve the manipulation of bits rather than stuff. They both did well in those forty years, but all the other engineering disciplines were stymied. Electric engineering, civil engineering, aeronautical, nuclear, petroleum—these were all held back, and attracted fewer talented students at university as the years went on. When people wonder why all the rocket scientists went to work on Wall Street, well, they were no longer able to build rockets. It’s some combination of an ossified, Weberian bureaucracy and the increasingly hostile regulation of technology. That’s very different from the 1950s and 1960s. There’s a powerful libertarian argument that government used to be far less intrusive, but found targeted ways to advance science and technology."
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