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This book, which builds on the author s work for a high-impact DEMOS report (substantially developed and extended), debunks the myth of the State as a large bureaucratic organization that can at best facilitate the creative innovation which happens in the dynamic private sector. Analysing various case studies of innovation-led growth, in particular examples from Silicon Valley from the Internet to the technologies behind the iPhone it describes the opposite situation, whereby the private sector only finds the courage to invest after the entrepreneurial State has made the high-risk investments. It argues that in the history of modern capitalism and today in what might soon become the green revolution the State has not only fixed market failures but also shaped and created markets, actively investing in new technologies and sectors that private investors only later find the courage to move into.
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'This is a book whose time has come. Mariana Mazzucato documents how the state played a crucial role behind some of the landmark innovations of our time. For many, the "entrepreneurial state" is a contradiction in terms. For Mazzucato, it is both a reality and a requirement for future prosperity.'―Dani Rodrik, Rafiq Hariri Professor of International Political Economy, John F. Kennedy School of Government, Harvard University
'The principal entrepreneurial drive that has given us many of today's most important technologies has come from the state. Most thinking and arguing regarding how to energize our sluggish economies is blind to this fact. Mariana Mazzucato's book aims to get us to understand better the sources of entrepreneurship, and to reflect more positively on the role aggressive technology policies can play in getting our economies moving again.'―Richard Nelson, George Blumenthal Professor of International and Public Affairs, Columbia University
'"The Entrepreneurial State" delivers a well-researched and elegantly (even entertainingly) written knock-out to the belief across most of the political spectrum and the economics profession that (with some qualifications) "the market knows best". As many governments wonder how to boost the productivity and innovativeness of their industrial sectors, this book provides guidelines ― based on successful and unsuccessful cases ― on how to do industrial policy well. Above all, it shows why the common presumption that the state "crowds out" the private sector ― as though the private sector is a lion caged by a smothering state ― is contradicted by what governments of economies from the United States to Brazil and China actually do to "crowd in" innovations in the private sector.'―Robert Wade, Professor of Political Economy and Development, London School of Economics
This bestselling book debunks the myth of a dynamic private sector vs. a sluggish public sector by providing a detailed account of the role of the public sector in taking on high-risk entrepreneurial investments, from the Internet to the 'green revolution'.
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