The Entrepreneurial State | Mariana Mazzucato

Summary of: The Entrepreneurial State: Debunking Public vs. Private Sector Myths
By: Mariana Mazzucato

Introduction

In a world where innovative giants like Google, Facebook, and Apple are taking the center stage, we often forget the crucial role played by the state in nurturing these highly successful companies. The abridged summary of Mariana Mazzucato’s book, ‘The Entrepreneurial State: Debunking Public vs. Private Sector Myths’, questions the public’s misconceptions about the private sector’s success as independent from government support. The summary explores how public sector investments and state-funded research have helped launch some of the world’s most influential technologies, while also discussing the indispensable role of the state in promoting and implementing green technology for a sustainable future.

The Overlooked Role of the State in Business

The private sector is often praised for its successes while the state’s contributions are overlooked. Google, Facebook, and Apple are prime examples of companies that owe their success to state funding. Despite this, public opinion and economists are skeptical of state involvement in the market. The financial crisis of 2007 serves as a reminder that the private sector, not the state, was the main contributor to the collapse. It’s time to reconsider the importance of the state in business.

The State as an Innovator

The state plays a critical role in technological development by taking risks and providing funding to groundbreaking innovations. Venture capitalists tend to avoid investing in new and unknown technologies that may not yield immediate profits, while the state is willing to take risks to drive technological progress. The US government helped bring the internet into existence and is a crucial player in advancing communication and green technologies. The Small Business Innovation Research program (SBIR) supports the development of new technologies, and even technology giant Apple owes some of its success to state funding. Recognizing the state’s importance in technological advancement is essential as new waves of technology arise.

Green Technology: The Future of Energy

Global warming is a real threat to our planet, and it is caused by the excessive use of fossil fuels. To fulfill our energy requirements sustainably, we need to invest in green technology. Green technologies like solar, wind, and hydropower are eco-friendly alternatives that can help us combat climate change while also fulfilling our energy demands. However, the development of green technologies requires extensive research and funding. Venture capitalists are hesitant to fund this technology because they fear a low return on investment. This is where governments can play a vital role by being the entrepreneur state. Governments across the world, such as Germany and China, are investing millions of dollars each year to support green technology. This support has allowed Germany to increase the use of renewable energy sources, like wind and solar, to 30 percent. Sustainable energy solutions are the future, and governments must take action before it is too late.

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