Isn’t the problem here that there is a lack of monetisable investment opportunities, rather than a lack of investment opportunities per se?
I mean, the Internet is a great invention, but a lot of the benefits it brings people’s lives aren’t directly exploitable by capitalists. The blogosphere has been a huge benefit to my personal education and self-actualisation, but none of those benefits have resulted in profit going to capitalists. People write blog posts for free and I read them for free (modulo the cost of an Internet connection and PC). Both bloggers and readers get something beneficial out of the exchange, but no actual money changes hands.
This highlights one of the big problems with capitalism: investment isn’t directed towards things that are actually useful or beautiful, but towards things out of which capitalists believe they can make money. A classic example of this problem is the development of new antibiotics. Because of the development of drug-resistant bacteria, we need new antibiotics, and we need new ways of combating bacterial infection. But these new ways aren’t being developed because there isn’t any obvious way for private businesses to profit. “Antibiotics are a one-and-done treatment, and are far less profitable for Big Pharma than drugs taken daily to treat chronic conditions and, preferably, have no competition to keep costs down.”
Another acute technological problem lies in transport. This guy has a good explanation as to why private-sector companies won’t invest in Elon Musk’s Hyperloop concept, but he can’t seem to recognise that the obvious solution is to simply have government pay for it. Investing in uncertain, expensive, and speculative technologies is one of the things that government is for.
One of the most frustrating things about the privatisation vs. nationalisation debate is how irrelevant it is. Ultimately, you’ll still have scientists and engineers in labs and workshops trying to solve the problem. It is not clear to me that there is any systematic difference between private and public enterprise in this regard. Great innovations have come out of both publicly and privately-funded initiatives (although it should be noted that most of the really big, important innovations have been paid for by the government; aerospace, the development of the electricity grid, the Internet, the World Wide Web, GSM, most of the early work in computers…).
The solution to both anti-bacterial resistance and the transport problem and global warming is to “just get on with it”. If the private sector won’t pay for it then democratically-accountable governments should. Ultimately someone needs to pay for and manage the research and technological investment programmes necessary to solve our problems. Rather than dicking about playing at shops, we (i.e. humanity) should just get on with it.