The Medici were once the most powerful family in Italy, the family ran a bank and one of its biggest clients was the Pope. In addition, the family helped sponsor and encourage the Italian Renaissance particularly around the city of their hometown – Florence. Besides being leading bankers, two members of the family became pope and one married the King of France. No doubt there are many myths around the Medici family.

One question is why did the Italian Renaissance start and flourish in Florence as opposed to the other Italian cities of Rome, Milan, Naples or Venice? In the book The Medici – Godfathers of the Renaissance, written by Paul Strathern, Vintage Books, London, 2007 part of the reason is the method the city states were ruled. Naples and Milan were subject to autocratic rulers; Rome was a backyards city subject to the whims of the new pope; Venice was ruled by a stable patriciate. Florence was a quasi-democratic republic and it could be the city because of its governance was open to innovation. Florence also had a long tradition of civic patronage; successful merchants were expected to contribute to the glory of the city,

Innovation can only happen when a host of factors are in play. The city does need wealth or to be prosperous (jobs for its citizens); there does need to be trade with the outside world; and people in the art world need to be paid to produce art. This attracts other artists to work with the existing ones and the cycle continues. Cosimo Medici was a conservative banker, but was also a major benefactor of the arts and the way people see each other.

Linking to dividend paying stocks. the Medici’s were conservative bankers who earned profits which allowed them to contribute to the culture of the city they called home. You will hear various leaders discuss innovation as it can happen tomorrow. The reality is a host of factors must be in play including the ability to allow for disagreement. Often times before innovation can happen new procedures or abilities must be developed. Once developed the avenues are then opened up for more innovation. Similar to the silicon chip becoming better each time which allows for your smart phone to have the abilities of your desktop computer and each time the possibilities grow. When you vote for management, ensure besides making profits to pay the dividends, their style of management allows for the company to continually improve.

There are more questions than answers, till the next time – to raising questions