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The Innovative State

Governments Should Make Markets, Not Just Fix Them

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The Innovative State

Yazan: Mariana Mazzucato
Seslendiren: Kevin Stillwell
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Özet

Conventional wisdom says the state can best foster innovation by just getting out of the way. In fact, government has historically served not as a meddler in the private sector, but as a key booster of it - and often a daring one, willing to take risks that businesses won’t.

©2015 Foreign Affairs (P)2015 Audible, Inc. Economics Social Sciences
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this is Part 9 of the Foreign Affairs: Schumpeter's Heirs article.
interesting article, about connections between start-ups, taxes, budged cuts, private/public investments and inequality. an interesting idea was the fact that investment from the public sector has the ability to stimulate investment from the private sector, but the cost of failure of a gov’s business investment will be technically placed on the taxpayers, while, in case of success, there would be few direct benefits, except for growth of the employment sector, and better repayment strategies should be required for any state investments, through contracts or companies being required to buy back their own stock after a specific time frame and success rate. the state also has the ability to “carrot-stick” the private sector into investing in a specific area, like green energy, through various policies and regulations (like Japan changing the law to allow younger people to drive a motorcycles, followed by Honda rapidly stepping up to cover the new market, also adding a 12month instalment plan for the young, example from Part 10 The Power Of Market Creation).

interesting

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It's a well produced summary of a must read book. I would recommend reading the book if you find this summary interesting.

Decent summary of a great book

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Questioning a big narrative of our time about the role of the state in R&D… compelling evidence is brought to light.

Thought provoking

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