The Entrepreneurial State: 8 key ideas
The core ideas of The Entrepreneurial State, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
The state is more than referee
Mazzucato challenges the common view that governments should only fix market failures while private firms drive innovation.
She argues that the state has often been the boldest investor, taking risks that private businesses avoided.
- IDEA 2 OF 8
Many iPhone technologies were public
Mazzucato shows that key technologies in smartphones, such as the internet, GPS and touchscreens, came from government-funded research.
Companies built successful products on this public foundation. Public money laid the groundwork.
- IDEA 3 OF 8
DARPA drove breakthroughs
Mazzucato describes how the US Defense Advanced Research Projects Agency funded research that led to the internet and other technologies.
She argues that such agencies take long-term risks markets would not.
- IDEA 4 OF 8
Public research shapes medicine
Mazzucato notes that much medical innovation comes from publicly funded research institutions.
Private companies often build on this research to develop drugs. Prices may not reflect this public contribution. Medicine owes much to public labs.
- IDEA 5 OF 8
Green technology needs state support
Mazzucato argues that governments have played key roles in developing renewable energy.
She believes the state must lead investment in a green transition. Early risks were taken by public agencies.
- IDEA 6 OF 8
Risks are shared, rewards are not
Mazzucato argues that while the public bears the risk of early research, private companies often capture the rewards.
She calls for ways to share returns more fairly. Public returns could fund future research.
- IDEA 7 OF 8
Missions can guide innovation
Mazzucato suggests that governments set ambitious goals, or missions, to direct innovation.
This approach can bring together public and private efforts. Clear goals focus energy and attract private investment. Ambition can be planned.
- IDEA 8 OF 8
Myths weaken good policy
Mazzucato argues that believing the state is lazy leads to cuts in research funding.
Recognising the state's role, she says, would strengthen innovation. Credit should go where it is due.
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