The Entrepreneurial State: Debunking Public vs. Private Sector Myths

Mariana Mazzucato challenges the prevailing narrative that innovation is the exclusive domain of dynamic private entrepreneurs, arguing instead that the state has historically been the primary risk-taker in technological development. Through detailed case studies ranging from the internet and GPS to biotechnology and green energy, she demonstrates that public agencies often create the foundational markets and absorb the initial high-risk investments that allow private firms to later commercialize technologies. The book traces how this dynamic has led to a system where risks are socialized while rewards are privatized, a structure Mazzucato contends is both economically inefficient and socially inequitable.

Written in a rigorous yet accessible academic style, the text blends economic theory with historical analysis to propose a new model of 'mission-oriented' industrial policy. Rather than viewing the government as a passive regulator or a source of market failure, Mazzucato advocates for a state that actively shapes markets to address societal challenges. Her argument is not merely descriptive but prescriptive, urging policymakers to recognize the entrepreneurial nature of public investment to foster inclusive and sustainable economic growth.

Description adapted from Open Library ↗.