An article by Eric Weiner (hbr.org) on promoting innovation proposed that instead of trying to learn lessons from silicon valley, which he argues is too new to draw conclusions from, we should study Renaissance Florence and the Medicis. His prescription for success is as follows and draws from Florentine success:

 1. You need a patron: the Medicis found and sponsored Michelangelo, for instance. and invested in him. We need patrons, either very rich people, universities or local governments.

2.  Apprenticeships: We value youth as such too highly.  Young entrepreneurs should work with experienced people as apprentices on a long term basis (Leonardo was an apprentice for a full ten years). There are notable exceptions, but wading into something knowing nothing is not a recipe for success. The failure rate of start-ups would be reduced if people were properly trained (by the way, you don’t get properly trained taking a BA in Business or even in most business schools – business is very practical;just do it, but under guidance).

3.  Potential sometimes trumps experience: the Medicis chose a sculptor, Michelangelo to paint the Sistine chapel, not an obvious choice. But they saw his potential. Today, we usually choose people or companies who have done something similar before, and what we get is just that: something that has been done before. 

4. Be creative about disasters: they can shake up society and produce new ideas. Don’t restore; re-think completely. (e.g Florence, after being decimated by the Black Death).

5. Competition is disappearing in America with mergers and industry consolidation. The Federal Anti-trust Division of the Justice Department has stopped working.  Big money and lobbyists secure effective monopolies. If you want to “make America great again” re-introduce swingeing competition rules. 

6. Seek out and synthesize ideas from everywhere and anywhere: innovation involves a mix of ideas, some new, some borrowed, and there’s nothing wrong with that.

Nowadays, big companies seldom innovate; they are too bureaucratic and arthritic. There are too many “rent-seekers”. All they know how to do is to buy up dynamic start-ups – and then they mess them up. Skype comes to mind – bought by Microsoft. Skype used to be quick and efficient (no passwords) and customer conscious, and is victim of corporate-think. Or, at any rate, that’s my opinion.