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A review by carlosmartinez
The Entrepreneurial State: Debunking Public vs. Private Sector Myths by Mariana Mazzucato
4.0
Really enjoyed it. Mariana Mazzucato argues very convincingly that the state has a pivotal role to play in terms of directing innovation-led growth that creates high quality jobs and raises productivity. She painstakingly deconstructs the myths of the free-wheeling Silicon Valley VC-backed entrepreneur, and points out that all the key technology innovations of the 20th century had some level of state backing. Taking a close look at the iPhone, she points out that all its important component technologies - the internet, touch-screens, microprocessors, compact hard drives and so on - emerged either from government/military agencies or from state-funded university research. On this basis, she believes that economic policy should enable an enhanced role for the state in not just funding but _directing_ innovation, and receiving a fair return from that investment. Mazzucato notes that the prominent tech firms have all too readily taken up state investment and leveraged state-funded research, but have been highly reluctant when it comes to sharing the profits (or even paying their taxes).
The author notes that China's state-owned enterprises and development banks have had an unprecedented impact in terms of driving innovation and high-quality growth that benefits employees, the state and the wider public.
As we face potential climate breakdown, it's urgent these lessons are learned and that the understanding is turned into policy so that the next few decades become the era of green development.
Mazzucato's framework is limited in the sense that she assumes capitalism to be the only economic system worth talking about. Once you broaden the discussion to include socialist models of development, things get more interesting. Nonetheless, 'The Entrepreneurial State' is a valuable contribution.
The author notes that China's state-owned enterprises and development banks have had an unprecedented impact in terms of driving innovation and high-quality growth that benefits employees, the state and the wider public.
As we face potential climate breakdown, it's urgent these lessons are learned and that the understanding is turned into policy so that the next few decades become the era of green development.
Mazzucato's framework is limited in the sense that she assumes capitalism to be the only economic system worth talking about. Once you broaden the discussion to include socialist models of development, things get more interesting. Nonetheless, 'The Entrepreneurial State' is a valuable contribution.