The Entrepreneurial State

The Entrepreneurial State by Mariana Mazzucato offers a compelling and provocative re-examination of the common beliefs about innovation and the roles of the public and private sectors in fostering economic growth. This bestselling exposé unveils the often-overlooked role of the state in driving groundbreaking advancements and highlights the dangers of ignoring this critical truth.

Conventional wisdom suggests that innovation thrives solely within the private sector, led by the daring and risk-taking efforts of lone entrepreneurs. In this widely accepted narrative, the role of the public sector is limited to fixing market failures and removing obstacles for the private sector to thrive. But what if this contemporary myth is significantly flawed?

In this incisive and controversial work, Mazzucato comprehensively debunks the myth of an inefficient, bureaucratic state stifling a nimble private sector. She reveals that, contrary to popular belief, many of the greatest technological advancements of recent history owe their success to substantial public investment. From the smart technologies that power the iPhone to groundbreaking breakthroughs in biotech, pharmaceuticals, and the latest green technologies, it is the state that has often acted as the earliest and most daring investor.

Mazzucato argues that the state has been the key innovator, boldly funding high-risk projects that the private sector would not dare to tackle until they have been de-risked by public money. This investment is not just a secondary role; it is the cornerstone of progress and innovation. The author provides numerous examples and case studies to illustrate how public funds have laid the foundation for today’s most cutting-edge industries and how the private sector has subsequently capitalised on these state-led investments.

Drawing on a rich body of research and data, Mazzucato’s analysis challenges the reader to reconsider the dynamic between the state and the private sector and to appreciate the essential and symbiotic relationship between the two. Her book calls for a reassessment of the way we view economic policy and innovation strategy, urging policymakers and the public to acknowledge and support the indispensable role of state investment in our collective future.

The Entrepreneurial State is a must-read for economists, policymakers, entrepreneurs, and anyone interested in the true drivers of innovation and economic development. Mazzucato’s sharp insights and thorough research make a compelling case for a more balanced understanding of the roles of public and private sectors in propelling us towards a prosperous and technologically advanced future.