Mazzucato - The Entrepreneurial State

The Entrepreneurial State

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Editorial Board

Kevin Gallagher (series editor) Boston University, USA

Jayati Ghosh (series editor) Jawaharlal Nehru University, India

Stephanie Blankenburg School of Oriental and African Studies (SOAS), UK

Ha-Joon Chang University of Cambridge, UK

Wan-Wen Chu RCHSS, Academia Sinica, Taiwan

Lonce Ndikumana University of Massachusetts-Amherst, USA

Alica Puyana Mutis Facultad Latinoamericana de Ciencias Sociales (FLASCO-Mxico), Mexico

Matas Vernengo Banco Central de la Repblica Argentina, Argentina

Robert Wade London School of Economics and Political Science (LSE), UK

Yu Yongding Chinese Academy of Social Sciences (CASS), China

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Editorial Board

Erik S. Reinert (series editor) The Other Canon Foundation, Norway and Tallinn University of Technology, Estonia

Rainer Kattel (series editor) Tallinn University of Technology, Estonia

Jan Kregel (series editor) University of Missouri, USA and Tallinn University
of Technology, Estonia

Wolfgang Drechsler (series editor) Tallinn University of Technology, Estonia

Ha-Joon Chang University of Cambridge, UK

Mario Cimoli UN-ECLAC, Chile

Jayati Ghosh Jawaharlal Nehru University, India

Steven Kaplan Cornell University, USA and University of Versailles, Paris

Bengt-ke Lundvall Aalborg University, Denmark

Richard Nelson Columbia University, USA

Keith Nurse University of the West Indies

Patrick OBrien London School of Economics and Political Science (LSE), UK

Carlota Perez Judge Institute, University of Cambridge, UK

Alessandro Roncaglia Sapienza University of Rome, Italy

Jomo Kwame Sundaram Food and Agriculture Organization of the United Nations

The Entrepreneurial State

Debunking Public vs. Private

Sector Myths

Mariana Mazzucato

Anthem Press

An imprint of Wimbledon Publishing Company

www.anthempress.com

First published in UK and USA 2013

by ANTHEM PRESS

7576 Blackfriars Road, London SE1 8HA, UK

or PO Box 9779, London SW19 7ZG, UK

and

244 Madison Ave #116, New York, NY 10016, USA

This revised edition published by Anthem Press in 2014

Copyright Mariana Mazzucato 2014

The author asserts the moral right to be identified as the author of this work.

All rights reserved. Without limiting the rights under copyright reserved above,

no part of this publication may be reproduced, stored or introduced into

a retrieval system, or transmitted, in any form or by any means

(electronic, mechanical, photocopying, recording or otherwise),

without the prior written permission of both the copyright

owner and the above publisher of this book.

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Mazzucato, Mariana, 1968

The entrepreneurial state : debunking public vs. private sector myths / Mariana

Mazzucato.

pages cm

Includes bibliographical references and index.

ISBN 978-0-85728-252-1 (pbk. : alk. paper)

1. EntrepreneurshipGovernment policy.

2. Technological innovationsGovernment policy.

3. Research, Industrial. 4. Diffusion of innovations. I. Title.

HB615.M372797 2013

338.04dc23

2013017536

ISBN-13: 978 0 85728 252 1 (Pbk)

ISBN-10: 0 85728 252 2 (Pbk)

This title is also available as an eBook.

This book is dedicated to my mother Alessandra, whose spirit continues to influence all those who met her affecting our willingness and ability to understand and transform the world with firmness, generosity and grace. And to my father Ernesto, whose battle to survive without her has not diminished his nearly life-long pursuit of perhaps the only really renewable source of energy nuclear fusion.

As a matter of fact, capitalist economy is not and cannot be stationary. Nor is it merely expanding in a steady manner. It is incessantly being revolutionized from within by new enterprise, i.e., by the intrusion of new commodities or new methods of production or new commercial opportunities into the industrial structure as it exists at any moment.

Joseph Schumpeter (1942 [2003], 13)

The important thing for Government is not to do things which individuals are doing already, and to do them a little better or a little worse; but to do those things which at present are not done at all.

John Maynard Keynes (1926, 46)

It is a popular error that bureaucracy is less flexible than private enterprise. It may be so in detail, but when large scale adaptations have to be made, central control is far more flexible. It may take two months to get an answer to a letter from a government department, but it takes twenty years for an industry under private enterprise to readjust itself to a fall in demand.

Joan Robinson (1978, 27)

Where were you guys [venture capitalists] in the 50s and 60s when all the funding had to be done in the basic science? Most of the discoveries that have fuelled [the industry] were created back then.

Paul Berg, 1980 Nobel Prize in Chemistry winner
(quoted in Henderson and Schrage 1984)

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