The Obama Administration has earned kudos for their vision of using of technology to be a primary part of the solution to policy challenges from improved healthcare to efficient energy usage.
And while considering the application of existing technology to current problems is ahead of typical political thinking, it is still fairly two dimensional. The true promise of an information technology-based health system or of a smart grid for greener energy is the ongoing innovation, the promise of better and better solutions.
The administration and Capitol Hill need to broaden their thinking beyond particular solutions and begin considering ways to foster and empower a solution economy.
What makes up the solution economy?—a society that allows the freedom to innovate and experiment with ideas.
That requires an environment that encourages, or certainly allows, risk by providing reward. A culture that allows thinkers of those ideas to profit from their thoughts and work.
This requires a culture that trusts that broad rules can be applied to specific scenarios without the law being prescriptive—a culture that understands the difference between “zero tolerance” for weapons in schools and applying that rule to a six year old Cub Scout bringing his camping fork/knife/spoon to use in the cafeteria.
A solution economy requires a tax system that doesn’t hinder research and experimentation, and that is not such a complete mess and globally non-competitive that credits have to be applied to make the country a decent place for research, experimentation and development.
Well-educated and trained human capital, proficient in math, technology, science and engineering must be plentiful in a solution economy. A solution economy does not accept that 60% of fourth and eighth graders are not proficient in math.
Perhaps most importantly, a solution economy that values innovation demonstrates patience—patience in the development of, deployment of, and uptake of new technologies. Patience instead of entitlement.
A solution economy can be hamstrung by reckless and misguided government intervention. A solution economy can also be helped along by the right touch of government—preserving property rights, crafting a sensible tax code, restraining from regulations that are duplicative or for harms that are not occurring, or by protecting and allowing liberty to flourish.
A solution economy takes thought, care, focus and desire to place innovation and solutions ahead of all else.