+1 to the term "state capacity," I ultimately understood what you meant, but it took a close reading.
Also, great article.
Interesting theory here. I hadn't really thought about how to increase the demand side of the equation. I certainly think it's generally important to have a population that's hopeful about the future, open to try new products, and supportive of new, whacky ideas.
That being said, I'd encourage you to consider the supply side (new products/ideas) more deeply. What business factors contribute to a dearth of creative ideas? One might argue that the ad revenue model, which requires enormous amounts of attention, creates a certain kind of incentive structure, creating a very particular opportunity space. If that's the case, how to invent new business models?
Also, I might look at capital that goes towards innovation. VC and other kinds of early stage capital typically steers clear of scary science projects, where I believe there's a ton of opportunity. They tend to look for established business models like SaaS and advertising.
Finally, it's worth noting that there's still a ton of innovation out there. Uber, AirBnB, Tesla, Apple, Netflix, and many smaller companies are pushing the boundaries of what can be done with our current web and mobile infrastructure; and I see many opportunities now that Web3 is unlocking new ways of organizing human beings.