The recent work by the Australian  4  BIS central bankers’ speeches  Government to facilitate crowd-sourced equity funding is a step in this direction.3 Here, the challenge is to get the balance right between funding innovation and protecting investors. Most of the areas, though, that affect the flexibility of the economy lie beyond the world of central banks and finance.
I would like briefly to mention four of these. The first is the competitive environment in which firms operate. Where competition is robust and entry to markets is easy, businesses have a stronger incentive to find better ways of doing things. They also have a stronger incentive to move quickly, lest a competitor seize an opportunity before they do.