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Rainer Kattel - How to Make an Entrepreneurial State

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The public sectors role in innovation is explored in cogent detail in an important study that reveals the complexities, benefits, and pitfalls of the innovative state in action.The authors, all noted experts in the field, examine the different approaches that have been taken by governments in Europe, the United States, and Asia to demonstrate how innovative bureaucracies - organizations designing and implementing a wide range of policies conducive to innovation - function, succeed, or fail. Kattel, Drechsler, and Karo advance the argument that the methods by which policy choices are made and implemented are as important as the policies themselves, and they offer strategies for overcoming financial and political impediments to change. An essential roadmap for designing, evaluating, and implementing governmental policies of innovation, this unique volume illuminates the key challenges facing innovation bureaucracies in the future.

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HOW TO MAKE AN ENTREPRENEURIAL STATE

Defying timeworn stereotypes of bureaucracy, Kattel, Drechsler and Karo offer a fresh perspective on the states pivotal role in societal progress. Their pioneering book will be essential to both those who want to understand, and those who want to realize the great transformations of our time.

Professor Caspar van den Berg, Leiden University

Bureaucracy plays a dual role in creating innovation in society and business. On the one hand, the bureaucracy is required to be an enabler in various changes in society through various policies and activities, on the other hand the bureaucracy must also be able to change itself in the midst of various regulatory rigidities. This book is very good at telling these two things and being an inspiration for practitioners, academics and students who are deep in bureaucracy.

Professor Eko Prasojo, University of Indonesia

Copyright 2022 Rainer Kattel Wolfgang Drechsler and Erkki Karo All rights - photo 1

Copyright 2022 Rainer Kattel, Wolfgang Drechsler and Erkki Karo

All rights reserved. This book may not be reproduced in whole or in part, in any form (beyond that copying permitted by Sections 107 and 108 of the U.S. Copyright Law and except by reviewers for the public press) without written permission from the publishers.

For information about this and other Yale University Press publications, please contact:

U.S. Office:

Europe Office:

Set in Adobe Garamond Regular by IDSUK (DataConnection) Ltd

Printed in Great Britain by TJ Books, Padstow, Cornwall

Library of Congress Control Number: 2022939251

e-ISBN 978-0-300-23537-1

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

10 9 8 7 6 5 4 3 2 1

Bureaucrats are stabilising knowledge, keeping things running, and sometimes innovating quite radically.

Brian Eno

We always have two jobs to do at the same time. On the one hand, all the time try to jump to the next level, to advance the digital state.... But taking it to the next level must go hand in hand with securing what we have. We cannot just make innovation leaps. But we cannot just focus on keeping the basics in order either, even if resources are scarce because people are waiting for changes. We need to deal with two challenges at once.

Siim Sikkut,
Estonias Government Chief Information Officer,
20172022

CONTENTS

ABBREVIATIONS

Entries with an asterisk are not expressed in their full form in the text.

A*STAR

Agency for Science, Technology and Research (Singapore)*

AI

artificial intelligence

AIST

Advanced Institute of Science and Technology (Japan)

ARIA

Advanced Research and Invention Agency (UK)

ARPA

Advanced Research Projects Agency (USA)

ARPA-E

Advanced Research Projects Agency Energy (USA)

ARPA-ED

Advanced Research Projects Agency Education (USA)*

ARPA-H

Advanced Research Projects Agency Health (USA)

ATP

Advanced Technology Program (USA)

BNDES

National Bank for Economic and Social Development (Brazil)*

BOST

Board of Science and Technology (Taiwan)

BRA

Brazil

CCP

Chinese Communist Party

CERN

European Organization for Nuclear Research

CIA

Central Intelligence Agency (USA)

CSTI

Council for Science, Technology and Innovation Policy (Japan)

CSTP

Council for Science and Technology Policy (Japan)

CTO

chief technology officer

DARPA

Defense Advanced Research Projects Agency (USA)

DIA

Danish Innovation Agency

DoD

Department of Defense (USA)

DoE

Department of Energy (USA)

DRAM

Dynamic random-access memory

EC

European Community

ECU

European currency unit*

EPB

Economic Planning Board (South Korea)

ERA

European Research Area

EU

European Union*

FDA

Food and Drug Administration (USA)*

FOMO

fear of missing out

GDP

gross domestic product*

GDS

Government Digital Service (UK)

GFC

Global Financial Crisis (2008)

GNH

gross national happiness

ICT

information and communications technology

IDA

Industrial Development Agency (Ireland)*

ImPACT

Impulsing Paradigm Change Through Disruptive Technologies Programme (Japan)

IoT

internet of things

IRSIA

Intercommunale du rseau social dinsertion et daccueil, Belgium

IT

information technology

ITRI

Industrial Technology Research Institute (Taiwan)

KAIS

Korean Advanced Institute of Science

KIST

Korea Institute for Science and Technology

KMT

Kuomintang (Taiwan)

LDP

Liberal Democratic Party (Japan)

METI

Ministry of Economy, Trade and Industry (Japan)

MEXT

Ministry of Education, Culture, Sports, Science and Technology (Japan)

MIT

Massachusetts Institute of Technology*

MITI

Ministry of International Trade and Industry (Japan)

MoEA

Ministry of Economic Affairs (Taiwan)

MOST

Ministry of Science and Technology (South Korea, Taiwan)

MTIP

Mission-Oriented Topsector and Innovation Policy (Netherlands)

NAFTA

North American Free Trade Agreement*

NASA

National Aeronautics and Space Administration (USA)*

NDC

National Development Council (Taiwan)

NFSR

National Fund for Scientific Research (Belgium)

NGO

non-governmental organisation*

NIH

National Institute of Health (USA)

NNI

National Nanotechnology Initiative (USA)

NPM

New Public Management

NSC

National Science Council (Taiwan)

NSF

National Science Foundation (USA)

NSS

National Security State (USA)

NSTC

National Science and Technology Council (USA); National Science and Technology Committee (Korea)

NWS

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