 In the next five minutes, I'm going to talk about how to erect an innovative economy, but I'm also going to talk about how, through financialization, an economy that has been innovative, that has been built up, can be torn down. The building blocks are embedded in the three layers you see here, from the ground up, social foundations, social conditions, social policy. Now first, before erecting the innovative economy, let's ask where we can find one. Well, the United States used to be one. It used to have relatively stable and equitable economic growth. Now it has rampant inequality that I argue is wrecking its innovative economy. The organizational building blocks, or the social building blocks of the innovative economy are households, governments, and businesses that invest in productive capabilities embedded in human capital. So it's a part of families invest in the future labor force, developmental states in high technology, and innovative enterprises in the current labor force. Households invest in the future labor force. That's how we get an educated labor force. However, in the United States right now, most households have insecure and unstable incomes, and the cost of higher education is escalating. So it's becoming increasingly difficult for households to perform the supportive family role that I mentioned. Governments invest in high technology. As a prime example, in the United States, which is really one of the leading developmental states in history, is the National Institutes of Health. Through its spending, the US leads the world in life sciences research. But the companies, the drug companies, the benefit from that research use their profits to prop up their stock prices. Well, they charge excessive drug prices to the very same people whose taxes funded the research that generated the drugs from which the drug companies profits. I don't know if you got that. The social conditions that support innovative enterprise. Educated labor force need high tech careers. High tech knowledge creates opportunities for starting new industries. And learning organizations can move into those new industries and get learning organizations. Now in the United States, people come from around the world to go to the system of higher education. But in fact, as many of you know, the primary and secondary education system is mediocre on average. Now it really actually is a result of differences in race and ethnicity in terms of performance that are rooted in socioeconomic conditions. Businesses clamor in the United States for investment in new technology. And here I give an example of the amount of stock buybacks that could have quadrupled spending on clean energy in the United States. What we need in terms of innovation is retain and reinvest, not downsize and distribute. Finally, social policy. We have to regulate the labor markets, capital markets, and product markets to have an innovative economy. We need to regulate labor markets to allow people to have careers, capital markets to encourage investment in innovation. And we need to regulate product markets to get government investing in many of the new technologies we need. The availability of high tech careers has really been eviscerated in the United States. And what the United States needs is social policy to constrain taking money out of the economy and encourage investing in human capital. We need to encourage through social policy what I call retain and reinvest and discourage or disempower, downsize and distribute. We need to encourage value creation and discourage value extraction. And I refer there to a case we have done on Apple which exemplifies some of the problems here. Finally, at this level of social policy, we need the government to invest in more in useful goods and services that are available because of high technology. We shouldn't just rely on the business sector. Finally, three takeaways from what I've just said. First of all, in terms of social foundations, organizations not markets drive the innovative economy. Secondly, in terms of social conditions, innovation is a collective and cumulative process that results in organizational learning. And finally, in terms of social policy, markets are the product of economic development, the result, and need to be regulated if we're going to have sustainable prosperity. Now, my question for discussion is, is it inevitable that a rich nation, financial interests will come to dominate productive interests? Thank you.