Mazzucato’s The entrepreneurial state

Mazzucato’s “The Entrepreneurial State,” in which Mazzucato questions the neoliberal orthodoxy on public spending–that the state must be cut back to make room for entrepreneurship and innovation, to prevent the public sector ‘crowding out’ the private sector. Mazzucato argues that the neoliberal policy program draws on a belief that the private sector is dynamic, innovative and competitive, in contrast to a presumably sluggish and bureaucratic public sector.

The Entrepreneurial State challenges the “minimalist view” of economic policy. It finds that successful economies result from government doing more than just creating the right conditions for growth.

Instead, government has a key role to play in developing new technologies whose potential is not yet understood by the business community. State-funded organisations can be nimble and innovative, transforming economies forever — the algorithm behind Google was funded by a public sector National Science Foundation grant.

 This pamphlet forces the debate to go beyond the role of the state in stimulating demand, or crudely ‘picking winners’ in industrial policy. Instead, it argues for a proactive, entrepreneurial state: a state that is able to take risks and harness the best of the private sector. It imagines the state as a catalyst, sparking the initial reaction that will cause innovation to spread.

–From the abstract

“The Entrepreneurial State” sounds super Peter Evans-derivative (Hello? “Embedded Autonomy” isn’t that old, people). It sounds a little dumber than Evans, actually, since it seems, from the abstract, not to include Evan’s key observation that when a state fosters innovation, capital, being capital, will turn around and try to destroy the conditions of innovation, the state.

I think the argument has to advance. The neoliberal myth about private innovation/public stagnation is designed not to promote minimalist economic policy. There’s no evidence for that. Rather, it’s designed to promote primitive accumulation.

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