Summary
Mariana Mazzucato: The Entrepreneurial State
Destroying Myths About the Conflict between the Social and Private Sectors
Bestseller The Entrepreneurial State by prominent economics professor Mariana Mazzucato, who was named one of the most important contemporary thinkers in the field of innovation by the New Republic magazine, initiates a much-needed global discussion about the role of the state in innovation. Debunking the myth of a lazy state versus a dynamic private sector, Mazzucato reveals, citing study after study, how the truth is just the opposite, and how the private sector shows the courage to invest only after the entrepreneurial state makes high-risk investments. Case studies include examples of the state's role in the environmental revolution, in biotechnology and the pharmaceutical industry, as well as several detailed examples from Silicon Valley. In one intensively documented chapter, she reveals that every technology that makes the iPhone a smartphone has been funded by the government: the Internet, GPS, touchscreen and voice-controlled Siri. Mazzucato also makes the controversial claim that throughout the history of modern capitalism the state has not only corrected market failures, but has also shaped and created markets, paving the way for new technologies and sectors in which the private sector invests only after someone else has taken the initial risk. However, if we do not recognize the role of the state, we only socialize risk, and privatize success in an ever-increasing number of hands. This, she claims, undermines future innovations and equality in contemporary capitalism. Named one of the books of the year by the Financial Times in 2013 and recommended by Forbes on its list of creative leaders, this book is a must-read for anyone interested in a refreshing and long-awaited debate on the public and private sectors.
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