We should be investing where the public returns are greatest - that is in innovation.

Brexit and Trump's election are forcing countries to come up with new radical ideas.

Too many politicians seem to reach for 'infrastructure' as the default answer to investment, as if roads and bridges were the answer to everything. Even the IMF and the World Bank seem to mainly offer infrastructure spending as an alternative to austerity, although they are right to focus on the need for investment.

The globalized nature of production and innovation means that the benefits don't necessarily stay in the country where the investments are made.

Brexit and Trump have brought the problems of capitalism into sharp relief, but both are only making things worse. Take the investment challenge - businesses invest where there they see technological or market opportunity.

Markets are not static entities that are 'intervened' in (for good or bad) but are outcomes of public and private interactions.

Government support is not only investing in upstream areas like basic research, but also in downstream areas like applied research and early-stage financing for the companies themselves. This means there are great risks.