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Some researchers, such as psychologist Jean Twenge, say this new world where compliments are better than sex and pizza, in which the self-enhancing bias has been unchained and allowed to gorge unfettered, has led to a new normal in which the positive illusions of several generations have now mutated into full-blown narcissism. In her book The Narcissism Epidemic, Twenge says her research shows that since the mid-1980s, clinically defined narcissism rates in the United States have increased in the population at the same rate as obesity. She used the same test used by psychiatrists to test for narcissism in patients and found that, in 2006, one in four U.S. college students tested positive. That’s real narcissism, the kind that leads to diagnoses of personality disorders. In her estimation, this is a dangerous trend, and it shows signs of acceleration. Narcissistic overconfidence crosses a line, says Twenge, and taints those things improved by a skosh of confidence. Over that line, you become less concerned with the well-being of others, more materialistic, and obsessed with status in addition to losing all the restraint normally preventing you from tragically overestimating your ability to manage or even survive risky situations. In her book, Twenge connects this trend to the housing market crash of the mid-2000s and the stark increase in reality programming during that same decade. According to Twenge, the drive to be famous for nothing went from being strange to predictable thanks to a generation or two of people raised by parents who artificially boosted self-esteem to ’roidtastic levels and then released them into a culture filled with new technologies that emerged right when those people needed them most to prop up their self-enhancement biases. By the time Twenge’s research was published, reality programming had spent twenty years perfecting itself, and the modern stars of those shows represent a tiny portion of the population who not only want to be on those shows, but who also know what they are getting into and still want to participate. Producers with the experience to know who will provide the best television entertainment to millions then cull that small group. The result is a new generation of celebrities with positive illusions so robust and potent that the narcissistic overconfidence of the modern American teenager by comparison is now much easier to see as normal.

Experimentation also proved serendipitous for Greg Koch and Steve Wagner, when they were putting together the Stone Brewing Co. in Escondido, California, north of San Diego. It was destined to become one of the most successful brewing startups of the 1990s. In The Craft of Stone Brewing Co. Koch and Wagner confess that the home-brewed ale that became Arrogant Bastard Ale and propelled Stone to fame in the craft brewing world, started with a mistake. Greg Koch recalls that Wagner exclaimed “Aw, hell!” as he brewed an ale on his brand spanking new home-brewing system. “I miscalculated and added the ingredients in the wrong percentages,” he told Koch. “And not just a little. There’s a lot of extra malt and hops in there.” Koch recalls suggesting they dump it, but Wagner decided to let it ferment and see what it tasted like. Greg Koch and Steve Wagner, founders of Stone Brewery. Photograph © Stone Brewing Co. They both loved the resulting hops bomb, but they didn’t know what to do with it. Koch was sure that nobody was “going to be able to handle it. I mean, we both loved it, but it was unlike anything else that was out there. We weren’t sure what we were going to do with it, but we knew we had to do something with it somewhere down the road.”20 Koch said the beer literally introduced itself as Arrogant Bastard Ale. It seemed ironic to me that a beer from southern California, the world of laid back surfers, should produce an ale with a name that many would identify with New York City. But such are the ironies of the craft brewing revolution. Arrogant Bastard was relegated to the closet for the first year of Stone Brewing Co.’s existence. The founders figured their more commercial brew would be Stone Pale Ale, but its first-year sales figures were not strong, and the company’s board of directors decided to release Arrogant Bastard. “They thought it would help us have more of a billboard effect; with more Stone bottles next to each other on a retail shelf, they become that much more visible, and it sends a message that we’re a respected, established brewery with a diverse range of beers,” Wagner writes. Once they decided to release the Arrogant Bastard, they decided to go all out. The copy on the back label of Arrogant Bastard has become famous in the beer world: Arrogant Bastard Ale Ar-ro-gance (ar’ogans) n. The act or quality of being arrogant; haughty; Undue assumption; overbearing conceit. This is an aggressive ale. You probably won’t like it. It is quite doubtful that you have the taste or sophistication to be able to appreciate an ale of this quality and depth. We would suggest that you stick to safer and more familiar territory—maybe something with a multi-million dollar ad campaign aimed at convincing you it’s made in a little brewery, or one that implies that their tasteless fizzy yellow beverage will give you more sex appeal. The label continues along these lines for a couple of hundred words. Some call it a brilliant piece of reverse psychology. But Koch insists he was just listening to the beer that had emerged from a mistake in Wagner’s kitchen. In addition to innovative beers and marketing, Koch and Wagner have also made their San Diego brewery a tourist destination, with the Stone Brewing Bistro & Gardens, with plans to add a hotel to the Stone empire.

Interestingly, Jockey’s first attempt to enter India wasn’t with the Genomals. It was with Associated Apparels in 1962. Through the 1960s, many foreign innerwear brands were launched in India. Associated Apparels introduced the then world-famous Maidenform bras (owned today by Hanes) and tied up with Jockey to launch Jockey underwear in 1962. The international brand, Lovable, entered India in 1966 through a licensing deal and became a huge success. Along with it entered the brand Daisy Dee, through a subsidiary of Lovable, followed by Feelings. In 1971, Maxwell Industries launched VIP-branded innerwear for men in the economy segment, catching the attention of the discerning public with an advertisement featuring a Bollywood actor. In 1973, however, Jockey decided to leave India after the Indian government used the Foreign Exchange Regulation Act (FERA) to force multinational companies to dilute their ownership in their Indian ventures to 40 per cent. After Jockey exited India, its competitors flourished. Associated Apparels continued to focus on mid-premium innerwear during the 1980s and was successful in establishing themselves as a dominant player in the mid-premium innerwear segment through Liberty (men) and Libertina (women). Maxwell Industries, during the 1980s, launched the brand, Frenchie, to cater to the mid-premium innerwear segment. In 1985, Rupa & Co. emerged in the innerwear market, offering products across categories, including men, women and kids, and became one of the biggest manufacturers and sellers of innerwear in India. The success of Rupa was followed by many other domestic brands in the 1980s and ’90s, including Amul, Lux Cozi and Dollar in the men’s category, while Neva, Bodycare, Softy, Lady Care, Little Lacy, Red Rose, Sonari, Feather Line, etc., were the key players in the lingerie market. Then came the liberalization of 1991. With the regulatory hurdles to enter India removed, Jockey decided to return to India. And this time, it chose the right partners.

Initially working out of our home in Northern California, with a garage-based lab, I wrote a one page letter introducing myself and what we had and posted it to the CEOs of twenty-two Fortune 500 companies. Within a couple of weeks, we had received seventeen responses, with invitations to meetings and referrals to heads of engineering departments. I met with those CEOs or their deputies and received an enthusiastic response from almost every individual. There was also strong interest from engineers given the task of interfacing with us. However, support from their senior engineering and product development managers was less forthcoming. We learned that many of the big companies we had approached were no longer manufacturers themselves but assemblers of components or were value-added reseller companies, who put their famous names on systems that other original equipment manufacturers (OEMs) had built. That didn't daunt us, though when helpful VPs of engineering at top-of-the-food-chain companies referred us to their suppliers, we found that many had little or no R & D capacity, were unwilling to take a risk on outside ideas, or had no room in their already stripped-down budgets for innovation. Our designs found nowhere to land. It became clear that we needed to build actual products and create an apples-to-apples comparison before we could interest potential manufacturing customers. Where to start? We created a matrix of the product areas that we believed PAX could impact and identified more than five hundred distinct market sectors-with potentially hundreds of thousands of products that we could improve. We had to focus. After analysis that included the size of the addressable market, ease of access, the cost and time it would take to develop working prototypes, the certifications and metrics of the various industries, the need for energy efficiency in the sector, and so on, we prioritized the list to fans, mixers, pumps, and propellers. We began hand-making prototypes as comparisons to existing, leading products. By this time, we were raising working capital from angel investors. It's important to note that this was during the first half of the last decade. The tragedy of September 11, 2001, and ensuing military actions had the world's attention. Clean tech and green tech were just emerging as terms, and energy efficiency was still more of a slogan than a driver for industry. The dot-com boom had busted. We'd researched venture capital firms in the late 1990s and found only seven in the United States investing in mechanical engineering inventions. These tended to be expansion-stage investors that didn't match our phase of development. Still, we were close to the famous Silicon Valley and had a few comical conversations with venture capitalists who said they'd be interested in investing-if we could turn our technology into a website. Instead, every six months or so, we drew up a budget for the following six months. Via a growing network of forward-thinking private investors who could see the looming need for dramatic changes in energy efficiency and the performance results of our prototypes compared to currently marketed products, we funded the next phase of research and business development.

This is the shape that Renaissance innovation takes, seen from a great (conceptual) distance. Most innovation clusters in the third quadrant: non-market individuals. A handful of outliers are scattered fairly evenly across the other three quadrants. This is the pattern that forms when information networks are slow and unreliable, and entrepreneurial economic conventions are poorly developed. It’s too hard to share ideas when the printing press and the postal system are still novelties, and there’s not enough incentive to commercialize those ideas without a robust marketplace of buyers and investors. And so the era is dominated by solo artists: amateur investigators, usually well-to-do, working on their own private obsessions. Not surprisingly, this period marks the birth of the modern notion of the inventive genius, the rogue visionary who somehow sees beyond the horizon that limits his contemporaries—da Vinci, Copernicus, Galileo. Some of those solo artists (Galileo most famously) worked outside of broader groups because their research posed a significant security threat to the established powers of the day. The few innovations that did emerge out of networks—the portable, spring-loaded watches that first appeared in Nuremberg in 1480, the double-entry bookkeeping system developed by Italian merchants—have their geographic origins in cities, where information networks were more robust. First-quadrant solo entrepreneurs, crafting their products in secret to ensure their eventual payday, turn out to be practically nonexistent. Gutenberg was the exception, not the rule.

Much ink has been spilled over whether fascism represented an emergency form of capitalism, a mechanism devised by capitalists by which the fascist state—their agent—disciplined the workforce in a way no traditional dictatorship could do. Today it is quite clear that businessmen often objected to specific aspects of fascist economic policies, sometimes with success. But fascist economic policy responded to political priorities, and not to economic rationale. Both Mussolini and Hitler tended to think that economics was amenable to a ruler’s will. Mussolini returned to the gold standard and revalued the lira at 90 to the British pound in December 1927 for reasons of national prestige, and over the objections of his own finance minister. Fascism was not the first choice of most businessmen, but most of them preferred it to the alternatives that seemed likely in the special conditions of 1922 and 1933—socialism or a dysfunctional market system. So they mostly acquiesced in the formation of a fascist regime and accommodated to its requirements of removing Jews from management and accepting onerous economic controls. In time, most German and Italian businessmen adapted well to working with fascist regimes, at least those gratified by the fruits of rearmament and labor discipline and the considerable role given to them in economic management. Mussolini’s famous corporatist economic organization, in particular, was run in practice by leading businessmen. Peter Hayes puts it succinctly: the Nazi regime and business had “converging but not identical interests.” Areas of agreement included disciplining workers, lucrative armaments contracts, and job-creation stimuli. Important areas of conflict involved government economic controls, limits on trade, and the high cost of autarky—the economic self-sufficiency by which the Nazis hoped to overcome the shortages that had lost Germany World War I. Autarky required costly substitutes—Ersatz— for such previously imported products as oil and rubber. Economic controls damaged smaller companies and those not involved in rearmament. Limits on trade created problems for companies that had formerly derived important profits from exports. The great chemical combine I. G. Farben is an excellent example: before 1933, Farben had prospered in international trade. After 1933, the company’s directors adapted to the regime’s autarky and learned to prosper mightily as the suppliers of German rearmament. The best example of the expense of import substitution was the Hermann Goering Werke, set up to make steel from the inferior ores and brown coal of Silesia. The steel manufacturers were forced to help finance this operation, to which they raised vigorous objections.

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