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, by Mariana Mazzucato
Ebook Free , by Mariana Mazzucato
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Product details
File Size: 5282 KB
Print Length: 260 pages
Page Numbers Source ISBN: 0141986107
Publisher: Penguin; 01 edition (March 22, 2018)
Publication Date: March 22, 2018
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B0759WNBVC
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I'm writing this the day after the third Republican presidential debate. I doubt any of the candidates read The Entrepreneurial State, but they should have.This book debunks plenty of myths, most notably that keeping government "out" of the economy is the best way to stimulate growth in three key ways.First, it demonstrates the ways in which national governments have contributed to the success of today's iconic companies, including my beloved Apple.Second, it shows that far from "picking winners" improperly as politicians claim, public/private partnerships provide leadership for key sectors of the economy, whether that be national security (where it has been most pronounced) to environmental security (where it is arguably most needed).Third, it makes the case for an economy based on partnerships in which the state and the private sector share both the risks and the rewards for economic innovation.I would have liked the book to go even farther and look at the role such partnerships could/should play in an interdependent networked economic system, but it does enough to warrant a read by just about anyone interested in social change, including a peacebuilder like me.
The importance of the public sector as a key player in an innovative ecosystem is not often acknowledged nor well understood. In a brilliant book, the author has made the case for the public sector role persuasively. In a world that glorifies individual entrepreneurs and venture capitalists as the risk takers who drive the innovative economies, readers of this book will be led to realize that it is quite often the public sector investors who have been the true risk takers with respect to the innovations that have made the most impact on society. Another key insight provided is that when the rewards for innovation and risk taking are disproportionately allocated to those whose risks are relatively modest (i.e. venture capital) this creates an innovation system that increases inequality and is less sustainable than one which rewards risk takers (public and private) more fairly. Unless the public sector can reap rewards that recognize its role in the creation and regulation of new markets, the innovation system will be less likely to create major breakthroughs like the internet, nanotechnology, etc. The clear message of this book is that a true innovation system that is sustainable and that will create transformational change requires the full participation of the private sector and the public sector working together to do what each does best.
I first learned about this book when I heard an hourlong podcast where Mariana Mazzucato, the author, is interviewed by Stella Creasy who is a London School of Economics trained Labour Party member of parliament, about Mazzucato's research findings and policy proposals.Lately, we have been hearing some bold proposals about a Green New Deal. Many have dismissed this idea as pie in the sky. Some have supported it as crucially necessary to the survival of the planet, but have been vague as to how to actually bring this about. Well, Mariana Mazzucato, Chair in the Economics of Innovation and Public Value, and Director of the Institute for Innovation and Public Purpose at University College, London, addressed this very issue in her 2015 book, "The Entrepreneurial State." She points out that our current economy is built around fossil fuels, and that to address climate change will require a large restructuring of our basic economy. This will include building new Public-Private partnerships, and innovation that will create new jobs, new security and repair infrastructure. To accomplish this, we first have to let go of false myths we hold about the responsibility as well as the competence of the state. Mazzucato does a superb job of debunking those myths in this book. While parts of the book are fairly dense, even a non-economist like me can understand most of her points. This is a must read by anyone interested in saving the planet and by all policy makers.
In this book, Mazzucato makes the argument that the state is the best actor to be the one to make long-range investments in technology, as private actors under capitalism are too focused on short term rewards to really be able to focus on real blue ocean development.In fact, she argues, some of the more celebrated examples of private innovation can be linked to research and investment the state has made. This process of celebrating the private corporation has a way of erasing what the state has done and allows political rhetoric to attack research the state does. Her best example in the book is the Apple iPhone, where she looks at the basic research from the internet to mobile telephony to interface design that goes back to work governments did starting thirty or more years ago. I think as a reader that this example is strong enough to support her basic argument, but she also continues in the book to look at solar power as another example. Because this isn’t as widespread as the iPhone and its clones, it feels like a weaker example, even if down the road it will be more prevalent than the iPhone.
Mazzucato's analysis is absolutely brilliant and this is extremely well written. Anyone who believes that governments are useless should read this book. It really opened my eyes to the innovative aspects of government institutions, and the extent to which they are not only entrepreneurial themselves, but enable other entrepreneurs to build fortunes off of government innovation and investment. Every single online entrepreneur, for example, owes the US government a ton of gratitude - and those who will inevitably make fortunes on alternative energy will as well.
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