However, even the efforts of those that fail will have generated meaningful external economies by enhancing the body of knowledge and skill level in society. In general, there are a few factors which may inhibit the supply of private goods in an otherwise normally functioning market economy. Our new airport is a good example. Theoretically, it could be built with private capital, but it would require a watertight government guarantee. In this case, it is better for the government to foot the bill and for the community to enjoy the substantial future economic rents, rather than private investors who would have borne no commercial risk.
New technology based firms face similar difficulties albeit to a lesser degree.
I wish I could make that much profit to pay my staff a 20-month bonus. It has served us well and will continue to do so. It has often been said that one reason for Hong Kong's success is that the government has over the years, provided a friendly macro environment conducive to the pursuit and accumulation of wealth. In the future more attention has to be given to micro management of sub-environments. Which is quite a far cry from picking winners.