The Entrepreneurial StateBy Mariana Mazzucato
CONTENTS
List of Tables and Figures xi
List of Acronyms xiii
Acknowledgements xv
Foreword by Carlota Perez xix
Introduction: Do Something Different
A Discursive Battle 1
Beyond Fixing Failures 3
From ‘Crowding In’ to ‘Dynamizing In’ 5
Images Matter 6
Structure of the Book 9
Chapter 1: From Crisis Ideology to the Division of Innovative Labour
And in the Eurozone 17
State Picking Winners vs. Losers Picking the State 18
Beyond Market Failures and System Failures 21
The Bumpy Risk Landscape 22
Symbiotic vs. Parasitic Innovation ‘Ecosystems’ 23
Financialization 25
Chapter 2: Technology, Innovation and GrowthTechnology and Growth 33
From Market Failures to System Failures 34
Myths about Drivers of Innovation and Ineffective
Innovation Policy 41
Myth 1: Innovation Is about R&D 44
Myth 2: Small Is Beautiful 45
Myth 3: Venture Capital Is Risk Loving 47
Myth 4: We Live in a Knowledge Economy – Just Look at all the Patents! 50
Myth 5: Europe’s Problem is all about Commercialization 52
Myth 6: Business Investment Requires ‘Less Tax and Red Tape’ 53
Chapter 3: Risk-Taking State: From ‘De-Risking’ to ‘Bring It On!’
What Type of Risk? 58
State Leading in Radical (Risky) Innovation 62
Pharmaceuticals: Radical vs. ‘Me Too’ Drugs 64
Biotechnology: Public Leader, Private Laggard 67
The National Institutes of Health: Creating the Wave vs. Surfing It 68
Chapter 4: The US Entrepreneurial StateThe Defense Advanced Research Projects Agency (DARPA) 74
The Small Business Innovation Research (SBIR) Programme 79
Orphan Drugs 81
The National Nanotechnology Initiative 83
Chapter 5: The State behind the iPhone
The ‘State’ of Apple Innovation 88
Surfing Through the Waves of Technological Advancements 93©Mariana Mazzucato
Not for circulation without the express approval of the publisher

From Apple I to the iPad: The State’s very visible hand 94
How State-funded research made possible Apple’s ‘invention’ of the iPod 95
Giant magnetoresistance (GMR), SPINTRONICS programme and hard disk drives 96
Solid-state chemistry and silicon-based semiconductor devices 97
From capacitive sensing to click-wheels 99
The Birth of the iPod’s Siblings: The iPhone and iPad 101
From click-wheels to multi-touch screens 102
Internet and HTTP/HTML 103
GPS and SIRI 105
Battery, display and other technologies 106
Did the US Government ‘Pick’ the iPod? 109Fostering an Indigenous Sector 110
Chapter 6: Pushing vs. Nudging the Green Industrial Revolution
Funding a Green Industrial Revolution 116
National Approaches to Green Economic Development 119
China’s ‘green’ 5-year plan 122
UK’s start–stop approach to green initiatives 124
United States: An ambiguous approach to green technologies 126
Pros and cons of the US model 127
Pushing – Not Stalling – Green Development 136
The Importance of Patient Capital: Public Finance and State Development Banks 138
Chapter 7: Wind and Solar Power: Government Success Stories and Technology in Crisis
Wind and Solar Power: Growth Powered by Crisis 142
From the First ‘Wind Rush’ to the Rise of China’s Wind Power Sector 144
Solar Power Companies and the Origin of Their Technologies 150
Solar Bankruptcies: Where there’s a Will there’s a Way 153
Competition, Innovation and Market Size (Who’s Complaining?) 156
Conclusion: Clean Technology in Crisis 158
Myth 1: It’s all about R&D 159
Myth 2: Small is beautiful 160
Myth 3: Venture capital is risk loving 161
Building a green innovation ecosystem (symbiotic not parasitic) 162
Chapter 8: Risks and Rewards: From Rotten Apples to Symbiotic Ecosystems
Back to Apple: What Did the US Government Get Back for Its Investments? 167
Apple’s job-creation myth: Not all jobs are created equally 168
Apple’s love–hate relationship with US tax policies 171
The paradox of miracles in the digital economy: Why does corporate success result in regional economic misery? 176
Where Are Today’s Bell Labs? 178
Chapter 9: Socialization of Risk and Privatization of Rewards: Can the Entrepreneurial State Eat Its Cake Too?
The Skewed Reality of Risk and Reward 181
A New Framework 185
Direct or Indirect Returns 187
Chapter 10: Conclusion
Appendix 199
Bibliography 201
Index 223