The Entrepreneurial State

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.

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. Challenging conventional wisdom. The book challenges the widely held belief that the private sector is the primary driver of innovation while the state merely facilitates or fixes market failures. It argues that the state has been the key risk-taker and innovator in many groundbreaking technologies. Historical evidence. The author provides numerous examples of how state investments have been crucial in developing technologies that later became commercially successful, such as the Internet, GPS, touch-screen displays, and many components of smartphones. These innovations were often too risky or capital-intensive for private companies to undertake alone. Reframing the debate. By highlighting the state's entrepreneurial role, the book aims to shift the discourse on innovation policy and economic growth. It calls for a more balanced understanding of public-private partnerships and a reconsideration of how innovation is funded and rewarded in society.

The State not only 'crowds in' business investment but also 'dynamizes it in' – creating the vision, the mission and the plan. Beyond market failures. The state's role in innovation goes beyond simply fixing market failures. It actively shapes and creates markets, taking on high-risk investments that the private sector is unwilling or unable to make. Long-term vision. Government agencies like DARPA in the US have played crucial roles in developing technologies with long-term potential, often before there was any clear commercial application. This long-term perspective allows for the development of radical innovations that can transform entire industries. Creating ecosystems. The state's investments help create innovation ecosystems, bringing together researchers, entrepreneurs, and investors. This collaborative approach has been key to the success of many technological revolutions, including the rise of Silicon Valley.

While innovation is not the State's main role, illustrating its potential innovative and dynamic character – its historical ability, in some countries, to play an entrepreneurial role in society – is perhaps the most effective way to defend its existence, and size, in a proactive way. Underappreciated contributions. The book highlights how many of the most revolutionary technologies of our time, from the Internet to biotechnology and clean energy, have their roots in state-funded research and development. Patient capital. Public funding often provides the "patient capital" needed for long-term, high-risk research that can take decades to pay off. This is particularly important in…