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118 Mariana Mazzucato: The Entrepreneurial State

The book challenges the traditional view that government is a hindrance to economic growth by showcasing examples of how government investment and innovation have driven economic progress.

Duration: 08 hours
41 minutes
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118 Mariana Mazzucato: The Entrepreneurial State

Summary

In "The Entrepreneurial State," Mariana Mazzucato argues that the traditional view of the government as a passive player in the economy is misguided and dangerous. Instead, she shows that government investment and innovation have been responsible for many of the key technological advances and economic growth of the past century. By examining case studies from the US, Europe, and Asia, Mazzucato demonstrates that government funding and support have been critical to the development of industries such as biotech, pharmaceuticals, and green technology. She also argues that by taking an active role in shaping the direction of the economy, governments can drive innovation and growth that benefit society as a whole.

About

Title: The Entrepreneurial State

Author: Mariana Mazzucato

Year: 2018

Publisher: Anthem Press

Length: 8 hours and 41 minutes

5 main ideas

  1. Government investment and innovation have been key drivers of economic growth and technological progress.
  2. The traditional view of government as a passive player in the economy is misguided and dangerous.
  3. Case studies from the US, Europe, and Asia show that government funding and support have been critical to the development of key industries.
  4. Governments can drive innovation and growth by taking an active role in shaping the direction of the economy.
  5. A new, more collaborative relationship between government and business is needed to drive innovation and growth.
118 Mariana Mazzucato: The Entrepreneurial State

5 funny quotes

  1. "Innovation is messy, and the history of innovation is full of failures, false starts, and serendipitous discoveries."
  2. "If the government were really as incompetent as some people claim, we'd still be living in caves."
  3. "The best way to predict the future is to invent it."
  4. "Innovation is like a game of pinball: you never know where the ball will go, but you can nudge it in the right direction."
  5. "Innovation is not a solo sport. It requires collaboration, creativity, and a willingness to take risks."

5 thought-provoking quotes​

  1. "The state has always been an entrepreneur, but it has done so in a way that has often been hidden from view."
  2. "Innovation is a collective, cumulative process that is driven by a wide range of actors, including governments, businesses, universities, and individuals."
  3. "By taking an active role in shaping the direction of the economy, governments can drive innovation and growth that benefit society as a whole."
  4. "Innovation policy needs to be designed with the long-term, collective interests of society in mind, rather than short-term profit maximization."
  5. "The key to successful innovation policy is not just investing in R&D, but also in creating the conditions that enable innovation to flourish."

5 dilemmas

  1. How can the state foster innovation and creativity without becoming too interventionist or controlling?
  2. Should the state prioritize short-term profits or long-term societal benefits when investing in innovation?
  3. How can the state avoid picking winners and losers in the market and instead create an environment that allows for multiple players to succeed?
  4. How can the state ensure that private sector beneficiaries of state investment contribute their fair share to society?
  5. How can the state balance the needs of public and private investment to drive innovation and entrepreneurship while also protecting citizens from negative externalities such as environmental degradation?

5 examples

  1. The U.S. National Institutes of Health (NIH) – funding and conducting research into pharmaceuticals and medical treatments that the private sector deemed too risky.
  2. Apple – the state funded DARPA (Defense Advanced Research Projects Agency) helped develop and create the internet and microprocessors, which led to the creation of the iPhone.
  3. The green energy sector – state investment in research and development in solar and wind power created new markets for green technologies and spurred innovation.
  4. The pharmaceutical industry – state-funded basic research and development in universities and government labs have played a significant role in the development of new drugs and treatments.
  5. Elon Musk's companies – Tesla and SpaceX received substantial state funding in their early stages, helping to bring about new markets and technologies that the private sector was not willing to invest in.

Referenced books

  1. "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses" by Eric Ries
  2. "Capital in the Twenty-First Century" by Thomas Piketty
  3. "The Great Transformation: The Political and Economic Origins of Our Time" by Karl Polanyi
  4. "The Theory of Moral Sentiments" by Adam Smith
  5. "The Wealth of Nations" by Adam Smith

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"It's not the state vs. the market, it's the state and the market."

118 Mariana Mazzucato: The Entrepreneurial State

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