The Entrepreneurial State: Debunking Public vs. Private Myths in Risk and Innovation

This Book, Which Builds On The Author's Work For A High-impact Demos Report, 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. Introduction: Do Something Different -- From Crisis Ideology To The Division Of Innovative Labour -- Technology, Innovation And Growth -- Risk-taking State : From De-risking To Bring It On! -- The Us Entrepreneurial State -- The State Behind The Iphone -- Pushing Vs. Nudging The Green Industrial Revolution -- Wind And Solar Power : Government Success Stories And Technology In Crisis -- Risks And Rewards : From Rotten Apples To Symbiotic Ecosystems -- Socialization Of Risk And Privitization Of Rewards : Can The Entrepreneurial State Eat Its Cake Too? -- Conclusion. Mariana Mazzucato. Includes Bibliographical References And Index. 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 The Entrepreneurial State debunks the myth of the State as a bureaucratic organization only needed for 'fixing' market failures, leaving dynamic entrepreneurship and innovation to the private sector. Case studies on the funding of innovations behind Apple's iPhone, and the funding behind the global renewable energy sector, reveal the opposite situation, whereby the private sector only invests after the entrepreneurial State has made the high-risk bold investments. The book courageously asks: why are all the profits from this socialized risk-taking going private? Book jacket