Literature/202311280944 the fake speech of free market in innovation

• Source: [[@mazzucato2018The entrepreneurial state: debunking public vs. private sector myths]]
• Tags: #entrepreneurial-state #free-market

The idea of the Entrepreneurial State is that there is a dichotomy between speech and facts. Many corporates and politicians claim that the best the state can do is to leave free market to excerpt its wisdom, and the state should only focus on fixing "market failures". However, there is ample evidence that without the state, many of the innovations from which we benefit wouldn't exist today.

Mariana Mazzucato seems to fully embrace Keynes theories (that may explain why she became so popular in Argentina at some point).

Some of the myths the book sets to tackle are: the subsidized nature of Silicon Valley, the bias in judging sate initiatives (focus on failures instead of winners), the media picking and depicting "lone entrepreneurs" without considering the context of their success, the role of venture capital to assume and mitigate risks.

The book points out that the largest risk is that the story is being rewritten. We are sold the idea that free enterprise is innovative enough and the meddling state is only slowing down progress.

If we buy that idea, and allow policies to be built around it, we will completely destroy the role that state-led innovation has to keep the economy competitive.

Exporting the values of the "free market" is a clever idea to lower the competitively of other economies and stay at the forefront (Exporting the idea of the free market for innovation).