The Entrepreneurial State: Debunking Public vs. Private Myths in Risk and Innovation

Contents......Page 8
List of Tables and Figures......Page 12
List of Acronyms......Page 14
Acknowledgements......Page 17
Foreword by Carlota Perez......Page 19
Epigraph......Page 24
A Discursive Battle......Page 25
Beyond Fixing Failures......Page 27
From ‘Crowding In’ to ‘Dynamizing In’......Page 29
Images Matter......Page 30
Structure of the Book......Page 32
Chapter 1: From Crisis Ideology to the Division of Innovative Labour......Page 38
And in the Eurozone......Page 40
State Picking Winners vs. Losers Picking the State......Page 41
Beyond Market Failures and System Failures......Page 44
The Bumpy Risk Landscape......Page 45
Symbiotic vs. Parasitic Innovation ‘Ecosystems’......Page 46
Financialization......Page 48
Chapter 2: Technology, Innovation and Growth......Page 51
Technology and Growth......Page 54
From Market Failures to System Failures......Page 55
Myths about Drivers of Innovation and Ineffective Innovation Policy......Page 61
Myth 1: Innovation is about R&D......Page 63
Myth 2: Small is Beautiful......Page 64
Myth 3: Venture Capital is Risk Loving......Page 66
Myth 4: We Live in a Knowledge Economy – Just Look at all the Patents!......Page 69
Myth 5: Europe’s Problem is all about Commercialization......Page 71
Myth 6: Business Investment Requires ‘Less Tax and Red Tape’......Page 72
Chapter 3: Risk-Taking State: From ‘De-risking’ to ‘Bring It On!’......Page 76
What Type of Risk?......Page 77
State Leading in Radical (Risky) Innovation......Page 80
Pharmaceuticals: Radical vs. ‘Me Too’ Drugs......Page 83
Biotechnology: Public Leader, Private Laggard......Page 85
The National Institutes of Health: Creating the Wave vs. Surfing It......Page 86
Chapter 4: The Us Entrepreneurial State......Page 90
The Defense Advanced Research Projects Agency (DARPA)......Page 91
The Small Business Innovation Research (SBIR) Programme......Page 96
Orphan Drugs......Page 97
The National Nanotechnology Initiative......Page 100
Chapter 5: The State behind the iPhone......Page 103
The ‘State’ of Apple Innovation......Page 104
Surfing through the Waves of Technological Advancements......Page 108
From Apple I to the iPad: The State’s very visible hand......Page 109
Giant magnetoresistance (GMR), SPINTRONICS programme and hard disk drives......Page 111
Solid-state chemistry and silicon-based semiconductor devices......Page 112
From capacitive sensing to click-wheels......Page 114
From click-wheels to multi-touch screens......Page 116
Internet and HTTP/HTML......Page 117
GPS and SIRI......Page 119
Battery, display and other technologies......Page 120
Did the US Government ‘Pick’ the iPod?......Page 123
Fostering an Indigenous Sector......Page 124
Chapter 6: Pushing vs. Nudging the Green Industrial Revolution......Page 128
Funding a Green Industrial Revolution......Page 131
National Approaches to Green Economic Development......Page 134
China’s ‘green’ 5-year plan......Page 136
UK’s start–stop approach to green initiatives......Page 138
Pros and cons of the US model......Page 140
Pushing – Not Stalling – Green Development......Page 148
The Importance of Patient Capital: Public Finance and State Development Banks......Page 150
Chapter 7: Wind and Solar Power: Government Success Stories and Technology in Crisis......Page 156
Wind and Solar Power: Growth Powered by Crisis......Page 157
From the First ‘Wind Rush’ to the Rise of China’s Wind Power Sector......Page 159
Solar Power Companies and the Origin of Their Technologies......Page 164
Solar Bankruptcies: Where There’s a Will There’s a Way......Page 167
Competition, Innovation and Market Size (Who’s Complaining?)......Page 169
Conclusion: Clean Technology in Crisis......Page 171
Myth 1: It’s all about R&D......Page 172
Myth 2: Small is beautiful......Page 173
Myth 3: Venture capital is risk loving......Page 174
Building a green innovation ecosystem (symbiotic not parasitic)......Page 175
Chapter 8: Risks and Rewards: From Rotten Apples to Symbiotic Ecosystems......Page 178
Back to Apple: What Did the US Government Get Back for Its Investments?......Page 180
Apple’s job-creation myth: Not all jobs are created equally......Page 181
Apple’s love–hate relationship with US tax policies......Page 184
The paradox of miracles in the digital economy: Why does corporate success result in regional economic misery?......Page 187
Where Are Today’s Bell Labs?......Page 189
The Skewed Reality of Risk and Reward......Page 193
A New Framework......Page 197
Direct or Indirect Returns......Page 198
Chapter 10: Conclusion......Page 203
Appendix......Page 209
Bibliography......Page 211
Index......Page 241