The Entrepreneurial State
Â In her important new book “The Entrepreneurial State” which got a rave review from Martin Wolf in the Financial Times, University of Sussex economist Mariana Mazzucato attacks the conventional view that the role of the state should be largely confined to promoting free markets, correcting market failures, and maintaining a low spending, pro free enterprise climate to facilitate private sector entrepreneurship. However, she goes far beyond progressive advocacy of occasional Keynesian interventionism to counter recessions and support for redistributive policies in arguing that state entrepreneurship plays a pivotal role in successful modern economies which has been neglected and, indeed, â€œhidden in plain sightâ€.
In a nutshell, she agrees with the famous Austrian economist Joseph Schumpeter that innovation is key to a dynamic capitalism, with the twist that the state is absolutely central to creating a dynamic, innovative â€“ and environmentally sustainable â€“ economy. As she puts it, the state must push and not just nudge.