I would give him feedback, but frankly I find his proposal too confusing to critique. I've read it twice over three days now. At first, I thought he was referring to social institutions, especially because he used an example about driving. Then he claimed businesses are willing to do late-stage innovation and charities should fill in the gap.

What does he want innovated? Private institutions like charities and businesses, or public institutions?

If he had given any references to this allegedly thriving literature or any concrete examples of how one idea could go from academic to charity to business, that would have been more helpful. If he's just talking about people trying out academic ideas in, say, schools, we already do that, so that's not a very exciting argument for me.