Literature/202311281010 states are investing in lowering risks

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

Given that venture capital joins projects once the risk is between their tolerable levels, governments have been taking the role of investing in risk reduction until the private sector can take over.

This is very clear with the development of new medicines. Although big pharma should have the resources to push new drugs to market, the book argues that the stage at which they step in has been delaying over time.

It is a bit unclear what is cause and what is effect, and what are the economic incentives at play that would push pharma to take on larger risks at the sacrifice of income.

The author argues that states should focus on making thing happen that would not have otherwise.