A Major Economic Lesson, Care of Astros vs. Dodgers

Probably the most exciting part of the World Series game on Saturday night occurred before the home plate umpire even shouted ‘play ball.’ When 7-year-old Hailey Dawson threw out the ceremonial first pitch, she used a prosthetic hand that was made possible by a pair of devoted parents, some dedicated engineers, 3D printing – and the market economy.

The value of 3D printing, or additive manufacturing, is an effective rebuttal to those who see advanced technology as a threat. It is about as creative and destructive as creative destruction gets. It destroys some jobs, while creating others – and making life better for a lot of people. Moreover, the production process serves as a big proof point demonstrating that one can’t get the benefits of capitalism without capital, and one can’t raise capital without the potential for profit.

It was about 35 years ago that the Municipal Industrial Research Institute invented additive methods for fabricating three-dimensional plastic models. Within a few years, the company Stratasys commercialized the first fused deposition modeling machine, one of the techniques for 3D printing which lays down material in layers, with a plastic filament or metal wire unwound from a coil to supply material to produce a part.

Stratasys got its start in 1988 when a hobbyist came up with a new way of making a toy frog for his daughter. It grew because of good old-fashioned capitalism. In 1994, the company – focused on providing design engineers with cost effective, environmentally safe, in-office rapid modeling and prototyping solutions – launched an IPO on NASDAQ that netted roughly $5.7 million. The rest, as they say, is history – a history of R&D pioneered by several companies and driven by the potential for profitability.

And Hailey is one of the beneficiaries. Born without a pectoral muscle on the right side, she suffers from a lack of blood flow to her arm, preventing her right hand from fully developing. She is missing three fingers and has an underdeveloped thumb and pinky. When she was four years old, doctors told Hailey’s parents that a prosthetic hand – which costs about $20,000 to produce – was not feasible for a child still in her growing stage.
Fortunately, Hailey’s mom heard about Robohand, a simple 3D-printed prosthetic, as she explained to the Daily Beast. Developed by a couple of University of Nevada at Las Vegas engineering students, Hailey’s prosthetic hand – named the Flexy Hand 2 – is held together with fishing line. Hailey controls the fingers with the muscles in her wrist.

The hand has been replaced several times, at a fraction of the cost of a prosthetic device made without 3D printing. The benefits are priceless. Hailey can now ride a bike and play her favorite sport, tee-ball.

While she made her first World Series appearance on the weekend, it was the third time she has thrown out the ceremonial first pitch in a major-league baseball game. (The Baltimore Orioles and the Washington Nationals have already given her the opportunity.) that gives her a good start toward her goal: Setting a Guinness world record by throwing out the most opening pitches at major league stadiums.

Her mechanical hand is one of a number of innovations that UNLV students have developed through 3D printing, including a spinal surgery implant device that would allow the construction of knee and hip replacements specifically tailored to the patient. 3D printing is making these things possible. And the potential for profit made 3D printing possible.

The additive manufacturing process is used in the production of car parts, aircraft parts, and helicopters, among other products. It has enormous potential for simplifying supply chains. The thinking and R&D that gives birth to these advancements is complex – and expensive. What makes it feasible is enormous profit potential.

Let’s face it. Probably few if any investors put capital into 3D manufacturing companies specifically out of a desire to make life better for children needing prosthetic hands. But the capital markets yielded that result. Like MRIs, pacemakers, blood cleansing devices, and sensor-laden sheaths to monitor internal organs, 3D-produced prosthetic hands, arms and legs are becoming increasingly available and affordable because investors recognize their profit potential.

These are some of the fruits of capitalism. Virtually everyone benefits from it, but many don’t like the process, seeing it as sullied by the profit motive. But creating wealth – including medical devices and technologies – would not be possible without the motivation provided by the potential for profit. It births technologies that can change people’s lives for the better. Just ask Hailey and her parents. Or go see her throw out the first pitch at a major-league ballpark near you.