Award-winning economist Mariana Mazzucato’s famously incisive international bestseller debunking the pervasive myth of the inept state versus an innovative private sector—with a new preface by the author According to conventional wisdom, innovation is best left to the bold entrepreneurs of the private sector, and government should get out of the way. But what if that wasn't case? What if, from the inventions of Silicon Valley to medical breakthroughs, the public sector has actually been the most courageous and valuable risk-taker of all? Critically acclaimed and influential thinker and scholar Mariana Mazzucato argues comprehensively against the myth of a lumbering, bureaucratic state versus a dynamic, innovative private sector with remarkable original and deep research. In a series of case studies—from nanotechnology to the emerging green tech of today—Mazzucato reveals that the opposite is true: the private sector only finds the courage to invest after an entrepreneurial state has made the high-risk investments. The Entrepreneurial State reveals how every technology that makes the iPhone so “smart” was actually funded by the government—from the Internet and GPS technology, to touch-screen displays and voice-activated Siri. In the history of modern capitalism, the State has not only fixed market failures, but has also actively shaped and created markets. In doing so, it sometimes wins and sometimes fails. Yet by not admitting the State’s role in active risk taking, we've created an "innovation system" where the public sector socializes risks while privatizing reward, as Mazzucato controversially argues. This bold and provocative book considers how we adopted this dysfunctional dynamic, and then how we can overcome it so that economic growth can be not only "smart" but "inclusive" as well.

Jane Duckett describes in detail new state business activities in China and explains why they have appeared. Using research on the northern city of Tianjin during the 1990s, she argues that individual departments, within the Chinese state, are involved in the market economy through the establishment of their own businesses. The book demonstrates that many of these businesses are genuinely entrepreneurial in the sense of profit-seeking, risk-taking and productive, rather than rent-seeking, speculative or profiteering. This entrepreneurialism is an important new dimension of state activity in China with implications for our understanding of the Chinese state. This book develops an alternative to the local government state model and emphasises instead the State's dynamic, entrepreneurial role in the process of economic reform.

The Rise of the Entrepreneurial State charts the development of state and local government initiatives to influence the market and strengthen economic development policies. This trend marked a decisive break from governments' traditionally small role in the affairs of private industry that defined the relationship between the public and private sector for the first half of the twentieth century. The turn to state and local government intervention signaled a change in subnational politics that, in many ways, transcended partisan politics, regional distinctions ,and racial alliances. Eisinger's meticulous research uncovers state and local governments' transition from supply-side to demand-side strategies of market creation. He shows that, instead of relying solely on the supply-side strategies of tax breaks and other incentives to encourage business relocation, some governments promoted innovation and the creation of new business approaches.

The 2008 financial crisis and the COVID-19 pandemic have made the authorities to increasingly turn inward and use ethnocentrism, protectionism, and top-down approaches to guide policy on trade, competition, and industrial development. The continuing aftereffects of such policies range from the rise and seeming success of authoritarian states, rise of populist and protectionist trends, and evolving academic agendas inspiring the reemergence of top-down industrial policies across the world. This open access edited volume contains contributions from over 30 scholars with expertise in economics, innovation, management, and economic history. The chapters offer unique theoretical and empirical contributions discussing topics such as how industrial policies affect risk, incentives, and information for investments. They also address the policy perspectives on new technologies such as AI and its implications for market entry, the role for independent entrepreneurship in increasingly regulated markets, and whether governments should focus on market interventions or institutional capacity-building. Questioning the Entrepreneurial State initiates a much sought-after debate on the notion of an Entrepreneurial State. It discusses the dangers of top-down approaches to industrial policy, examines lessons from such approaches for future policy design, and calls attention to the progress of open and contestable markets in a sound economy and society. “Creative destruction, innovation and entrepreneurship are at the core of economic growth. The government has a clear role, to provide the basic fabric of a dynamic society, but industrial policy and state-owned companies are the boulevard of broken dreams and unrealized visions. This important message is convincingly stated in Questioning the Entrepreneurial State.” Anders Borg, former Minister of Finance, Sweden “Misreading the dynamism of American entrepreneurship, European intellectuals and policy makers have embraced a dangerous fantasy: catching up requires constructing an entrepreneurial state. This book provides a vital antidote: The entrepreneur comes first: The state may support. It cannot lead.” Amar Bhidé, Thomas Schmidheiny Professor of International Business, Tufts University “This important new book subjects the emergence of the entrepreneurial state, which reflects a shift in the locus of entrepreneurship from the individual to the public sector, to the scrutiny of rigorous analysis. The resulting concerns, flaws and biases inherent in the entrepreneurial state exposed are both alarming and sobering. The skill and scholarly craftsmanship brought to bear in this crucial analysis is evident throughout the book, along with the even, but ultimately consequential thinking of the authors. A must read for researchers and thought leaders in business and policy." David Audtretsch, Distinguished Professor, Ameritech Chair of Economic Development, Indiana University

A common narrative of the post-World War II economists was that the State is indispensable for guiding investment and fostering innovation. They claimed that the wealth of the modern world is the result of past State guidance and that what is needed for future economic growth is more State guidance. This position has recently been rejuvenated in reaction to the Great Recession of 2008. The truth is that the enriched modern economy was not a product of State coercion. It was a product of a change in political and social rhetoric in northwestern Europe from 1517 to 1789. The Great Enrichment, that is, came from human ingenuity emancipated from the bottom up, not human ingenuity directed from the top down. The true question is what on balance is the best way to organize innovation—by the “wise State” or by commercially tested betterment? The American Institute for Economic Research in Great Barrington, Massachusetts, was founded in 1933 as the first independent voice for sound economics in the United States. Today it publishes ongoing research, hosts educational programs, publishes books, sponsors interns and scholars, and is home to the world-renowned Bastiat Society and the highly respected Sound Money Project. The American Institute for Economic Research is a 501c3 public charity. The Adam Smith Institute is one of the world's leading think tanks, recognised as the best domestic and international economic policy think-tank in the UK and ranked 2nd in the world among Independent Think Tanks by the University of Pennsylvania. Independent, non-profit and non-partisan, the Adam Smith Institute works to promote free market, neoliberal ideas through research, publishing, media outreach, and education. The Institute is today at the forefront of making the case for free markets and a free society in the United Kingdom. The Institute was founded in the 1970s, as post-war socialism reached its high-watermark. Then, as now, its purpose was to educate the public about free markets and economic policy, and to inject sound ideas into the public debate.

'Superb ... At a time when government action of any kind is ideologically suspect, and entrepreneurship is unquestioningly lionized, the book's importance cannot be understated' Guardian According to conventional wisdom, innovation is best left to the dynamic entrepreneurs of the private sector, and government should get out of the way. But what if all this was wrong? What if, from Silicon Valley to medical breakthroughs, the public sector has been the boldest and most valuable risk-taker of all? 'A brilliant book' Martin Wolf, Financial Times 'One of the most incisive economic books in years' Jeff Madrick, New York Review of Books 'Mazzucato is right to argue that the state has played a central role in producing game-changing breakthroughs' Economist 'Read her book. It will challenge your thinking' Forbes

A ground-breaking account which shows how the public sector must adapt, but also persevere, in order to advance technology and innovation From self-driving cars to smart grids, governments are experimenting with new technologies to significantly change the way we live. Innovation has become vitally important to states across the world. Rainer Kattel, Wolfgang Drechsler and Erkki Karo explore how public bodies pursue innovation, looking at how new policies are designed and implemented. Spanning Europe, the USA and Asia, the authors show how different institutions finance new technologies and share cutting-edge information. They argue for the importance of 'agile stability', demonstrating that in order to successfully innovate, state organizations have to move nimbly like start-ups and yet ensure stability at the same time. And that, particularly in the light of the Covid-19 pandemic, governments need both long-term policy and dynamic capabilities to handle crises. This vital account explores the complex and often contradictory positions of innovating public bodies--and shows how they can overcome financial and political resistance to change for the good of us all.

List of Tables and Figures; List of Acronyms; Acknowledgements; Introduction: Thinking Big Again; Chapter 1: From Crisis Ideology to the Division of Innovative Labour; Chapter 2: Technology, Innovation and Growth; Chapter 3: Risk-Taking State: From 'De-risking' to 'Bring It On!'; Chapter 4: The US Entrepreneurial State; Chapter 5: The State behind the iPhone; Chapter 6: Pushing vs. Nudging the Green Industrial Revolution; Chapter 7: Wind and Solar Power: Government Success Stories and Technology in Crisis; Chapter 8: Risks and Rewards: From Rotten Apples to Symbiotic Ecosystems; Chapter 9: So.

Multilateral development agencies have increasingly focused on underdeveloped Asian countries as potential new sites for financial capital. Often referred to as ‘emerging markets’, these economies are seen as ripe for private sector investment and, at the same time, in need of foreign capital to support rapid industrialisation, modernisation and poverty reduction. This confluence of interests suggests a means for quickly closing the ‘development gap’, primarily through mobilising regulatory, institutional and governance reforms designed to reduce barriers to foreign capital, institutional inefficiencies and risks to investment, capital repatriation and market operation. Therefore, development agencies now encourage the construction of ‘enabling environments’ to support ‘market driven development’ through processes variously identified as ‘financialisation’, centring on the role of the market and private capital. While the state itself has historically occupied a central place in economic development, new financialised modes of development are increasingly marginalising the state, its influence in the economy and thus its ability to manage developmental outcomes. In this volume a collection of leading authors critically assess these developments, highlighting the emergence of financialised modes of development and their contested and often problematic nature. Drawing upon a series of case studies, the contributors explore not just the increasing use of financialised development initiatives, but assess critically their implications in terms of the emergent risks, costs and inequalities that often accompany them. This book was originally published as a special issue of the Asian Studies Review.

A paper reprint of the 1988 original. It is a political history that describes and analyzes the management of organized knowledge. Wheatley takes Flexner and the Carnegie Foundation of 1910 as the model. Portz (political science, Northeastern U.) combines a synthesis of the literature on urban politics and political economy with a close analysis of plant closings in Pittsburgh, Pennsylvania, Louisville, Kentucky, and Waterloo, Iowa, to illuminate the complexity of, constraints upon, and range of local government efforts to control the economic damage caused by shutdowns. Paper edition (unseen), $12.95. Annotation copyrighted by Book News, Inc., Portland, OR