What he basically says is, you need an organizational framework that works 10 years at a time in order to get a result in 7 years. The people working in this framework, needs 5 years windows and you need to hire absolute geniuses and have the trust that they'll do the right thing.
If you do that, you will get long term, world changing inventions relatively cheap.
I don't think anyone is being a moron for utilizing a staff of less than stellar geniuses to get work done in a time frame less than 7-10 years.