# Chapter four: Risk over Safety

How do you make a smart wristband for monitoring and coaching your sleep behavior? You need China and, like an entrepreneur mentioned in the article, databases about production facilities in China.
The guy, Liam Casey, explains the consequences of the existence of information brokers regarding hardware production:
> You don't need to own anything anymore. Not a factory, not a warehouse, not even an office.
>
You need an idea, and you need to be able to market it. It is **capitalism without capital**.

Which means that you can and should **embrace risk**. Traditional command-and-control structures prefer spending $3 million on a feasibility study rather than investing $600,000 on actually trying something out.

It also means that you have to be ready to let investments die. You take many risks, knowing that most ventures will fail and hopefully some will succeed - but what fails must simply be allowed to fail .

Larry Page told Wired that incremental improvement is guaranteed to be obsolete over time. It is **Demo or Die and Deploy** - and quite some demos and deploys will die as well.

It also means **global trade** changes. The knockoff brands in China are nowadays improving upon the original brands. They can make a phone with a HD wall projector, for instance. *Shanzhai innovations* make the big companies scramble to catch up.

**Shenzhen in China** now has the abilities and tradecraft to produce anything and any scale. While Silicon Valley is the powerhouse for software, Shenzhen is the hardware capital of the world. Both places have an ethos of risk-taking and experimentation.