Named one of the best books of 2013 by the 'Financial Times', 'Huffington Post' and 'Forbes', this debate-shifting book debunks the myth of the State as a static bureaucratic organization only needed to 'fix' market failures, leaving dynamic entrepreneurship and innovation to the private sector. Case studies ranging from the innovations that make the iPhone so 'smart' to the current developments in clean technology reveal the reality, whereby the private sector only invests after the entrepreneurial State has made the bold, high-risk investments.
From one of the world's leading economists, a bestselling expose of the state's crucial role in sparking innovation and growth-and the dangers of ignoring this truth Conventional wisdom holds that innovation is the preserve of the private sector, best left in the hands of that modern day folk hero-the lone entrepreneur. In this popular tale, the role of the public sector is simply to get out of the way, at best fixing market failures, in order to facilitate our daring hero's bold, risk-taking endeavours. But what if this powerful, contemporary myth is wrong? In this sharp and controversial expose, Mariana Mazzucato comprehensively debunks the myth of a lumbering, bureaucratic state weighing down a dynamic private sector, to reveal how public investments have been behind many of the greatest innovations of our time. From the technologies that make the iPhone 'smart', to biotech, pharmaceuticals and today's emerging green technologies, it is the state that has been the investor of first resort, our boldest and most valuable innovator. Meanwhile, the private sector only finds the courage to invest after the entrepreneurial state has made the truly pioneering, high-risk investments. This false narrative has real world consequences - a select few get credit for what is an intensely collective effort, privatising rewards reaped from socialized risks. Mazzucato makes a powerful case that a failure to understand the state's entrepreneurial role is leading us down the wrong path-towards a future of stagnant growth and increased inequality. As we face the new challenges of the twenty-first century, Mazzucato argues that we need to reinvent the entrepreneurial state, to co-create the opportunities of the future -- and the kinds of public-private deals that will allow smart, innovation-led growth to also be more inclusive growth.
In this sharp and controversial exposé, Mariana Mazzucato debunks the pervasive myth that the state is a laggard, bureaucratic apparatus at odds with a dynamic private sector. She reveals in detailed case studies, including a riveting chapter on the iPhone, that the opposite is true: the state is, and has been, our boldest and most valuable innovator. Denying this history is leading us down the wrong path. A select few get credit for what is an intensely collective effort, and the US government has started disinvesting from innovation. The repercussions could stunt economic growth and increase inequality. Mazzucato teaches us how to reverse this trend before it is too late.
The Value of Everything
Author: Mariana Mazzucato
Modern economies reward activities that extract value rather than create it. This must change to ensure a capitalism that works for us all. Longlisted for the FT & McKinsey Business Book of the Year Award A scathing indictment of our current global financial system, The Value of Everything rigorously scrutinizes the way in which economic value has been accounted and reveals how economic theory has failed to clearly delineate the difference between value creation and value extraction. Mariana Mazzucato argues that the increasingly blurry distinction between the two categories has allowed certain actors in the economy to portray themselves as value creators, while in reality they are just moving around existing value or, even worse, destroying it. The book uses case studies-from Silicon Valley to the financial sector to big pharma-to show how the foggy notions of value create confusion between rents and profits, reward extractors and creators, and distort the measurements of growth and GDP. In the process, innovation suffers and inequality rises. The lesson here is urgent and sobering: to rescue our economy from the next inevitable crisis and to foster long-term economic growth, we will need to rethink capitalism, rethink the role of public policy and the importance of the public sector, and redefine how we measure value in our society.
Author: Michael Jacobs, Mariana Mazzucato
Publisher: John Wiley & Sons
"Thought provoking and fresh - this book challenges how we think about economics.” Gillian Tett, Financial Times For further information about recent publicity events and media coverage for Rethinking Capitalism please visit http://marianamazzucato.com/rethinking-capitalism/ Western capitalism is in crisis. For decades investment has been falling, living standards have stagnated or declined, and inequality has risen dramatically. Economic policy has neither reformed the financial system nor restored stable growth. Climate change meanwhile poses increasing risks to future prosperity. In this book some of the world’s leading economists propose new ways of thinking about capitalism. In clear and compelling prose, each chapter shows how today’s deep economic problems reflect the inadequacies of orthodox economic theory and the failure of policies informed by it. The chapters examine a range of contemporary economic issues, including fiscal and monetary policy, financial markets and business behaviour, inequality and privatisation, and innovation and environmental change. The authors set out alternative economic approaches which better explain how capitalism works, why it often doesn’t, and how it can be made more innovative, inclusive and sustainable. Outlining a series of far-reaching policy reforms, Rethinking Capitalism offers a powerful challenge to mainstream economic debate, and new ideas to transform it.
Revised edition of the author's Doing capitalism in the innovation economy, c2012.
Author: Paul R. Verkuil
Publisher: Cambridge University Press
This book describes the largely overlooked process of using private government contractors to perform essential or inherent functions in the military and civilian sectors of government. It shows how such practices undermine the capacity effectiveness and morale of government officials and it establishes constitutional and statutory arguments against the practice. It recognizes and accepts the proper role for outsourcing or privatization while safeguarding against its improper use. The argument ultimately turns on the necessity for our democratic system to require the executive branch to perform crucial tasks in-house unless Congress has permitted delegations to private contractors.
Globalization reigns supreme as a description of recent economic transformation - and it carries many meanings. In the policy realm, the orthodox terms of engagement have been enshrined in the Washington consensus. But disappointing results in Latin America and transitional economies - plus the Asian financial crisis - have shaken the faith in Washington and elsewhere. One response has been to hearken back to the more statist policies that the consensus marginalised. In this regard, Japan, Korea and Taiwan are promoted as the poster nations that have derived great benefits from increasing integration with the international economy, without surrendering national autonomy in the economic or cultural spheres, effectively beating the West at its own game.
Public Sector Entrepreneurship
Author: Dennis Patrick Leyden, Albert N. Link
Publisher: Oxford University Press, USA
Public Sector Entrepreneurship traces the historical development of the concepts of private and public sector entrepreneurship and their connection to the separate notions of risk and uncertainty. Based on a formal conceptualization of these notions, the book illustrates public entrepreneurship in practice using examples from U.S. technology and innovation policy. -- from dust jacket.
This book captures what is missing from the current limited, deficit-cutting discourse of the campaigns: asking politicians instead to think boldly about the kind of investment needed to deliver future growth.
This book is a wide-ranging analysis of the nature of economic planning in both capitalist and statist societies. It seeks to establish an alternative to market forces as a means of coordinating decentralized economic decisions. Devine begins with an analysis of the theory and practice of capitalist planning, central planning and 'market socialism'. He argues that, while market socialism is currently favoured by many economists who reject both capitalism and the command planning of the Soviet model, it cannot fulfil the promises held out for it. In the remainder of the book Devine elaborates an alternative model based on the novel idea of 'negotiated coordination'. The model combines system-wide with decentralized decision-making, recognizes the existence of differences of interest and incorporates a transformative dynamic in which individuals modify their attitudes in the light of the positions of others. The model offers a detailed account of how economic activity could be organised in a self-governing society. Democracy and Economic Planning will be of interest to students of economics, politics, sociology, and geography, as well as to a more general audience concerned with the nature of, and prospects for, socialism and democracy - life after capitalism.
Author: Edward N. Luttwak, Weidenfeld & Nicolson
Publisher: Harper Perennial
In this incisive and controversial exposé of the hidden effects of today's free-market capitalism, Edward Luttwak describes in powerful detail how it vastly differs from the controlled capitalism that flourished from 1945 to the 1980s. Turbo-capitalism is private enterprise liberated from government regulation, unchecked by effective trade unions, unfettered by concerns for employees or communities, and unhindered by taxation or investment restrictions. The winners in this free-for-all are getting much richer, while the losers are becoming poorer and are forced by downsizing to take the traditional jobs of the underclass. Led by the United States, closely followed by Britain, turbo-capitalism is spreading fast throughout Europe, Asia, and the rest of the world without the two great forces that check its enormous power in the United States: a powerful Legal system and the stringent rules of American calvinism. Luttwak exposes the major societal upheavals and inequities turbo-capitalism causes and the broad dissatisfaction and anxiety that may result.
Author: Mark Blyth
Publisher: Oxford University Press
Selected as a Financial Times Best Book of 2013 Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts--austerity--to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer. That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn't work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we austerity for what it is, and what it costs us.
Strategy for Business
Author: Mariana Mazzucato, Open University
Publisher: Sage Publications Limited
`This excellent volume brings together some of the most influential readings in business strategy and explores the content and process of business strategy from a variety of different theoretical stances. It will serve as a comprehensive introduction to the literature and will become required reading for students of economics, organisational behavior and business' - Costas Markides, London Business School Strategy for Business provides a comprehensive selection of essential readings, covering six key areas in business strategy: § What is Strategy? § Competition and Industry Effects § Resources, Capabilities and Core Competencies § Strategic Innovation and Firm Size § Organisational Structures, Learning and Knowledge Management § the Global Information Economy It contains dynamic chapters on strategy and includes classics in the field of strategy which continue to provide the theoretical background of more recent innovative work. Strategy for Business will be essential reading for those seeking an understanding of the changing nature of organizations and the world of business. It is particularly intended for students taking courses in strategy, organizational change and more general management courses at undergraduate level; it will also be an excellent resource for masters and postgraduate students. This text is a course Reader, in a series of three (alongside Decision Making for Business, and Policy Issues for Business), which make up the main teaching texts of The Open University undergraduate course Business Behaviour in a Changing World (B300).
Silicon Valley, Singapore, Tel Aviv--the global hubs of entrepreneurial activity--all bear the marks of government investment. Yet, for every public intervention that spurs entrepreneurial activity, there are many failed efforts that waste untold billions in taxpayer dollars. When has governmental sponsorship succeeded in boosting growth, and when has it fallen terribly short? Should the government be involved in such undertakings at all? Boulevard of Broken Dreams is the first extensive look at the ways governments have supported entrepreneurs and venture capitalists across decades and continents. Josh Lerner, one of the foremost experts in the field, provides valuable insights into why some public initiatives work while others are hobbled by pitfalls, and he offers suggestions for how public ventures should be implemented in the future. Discussing the complex history of Silicon Valley and other pioneering centers of venture capital, Lerner uncovers the extent of government influence in prompting growth. He examines the public strategies used to advance new ventures, points to the challenges of these endeavors, and reveals the common flaws undermining far too many programs--poor design, a lack of understanding for the entrepreneurial process, and implementation problems. Lerner explains why governments cannot dictate how venture markets evolve, and why they must balance their positions as catalysts with an awareness of their limited ability to stimulate the entrepreneurial sector. As governments worldwide seek to spur economic growth in ever more aggressive ways, Boulevard of Broken Dreams offers an important caution. The book argues for a careful approach to government support of entrepreneurial activities, so that the mistakes of earlier efforts are not repeated.