Source: Ludwig von Mises Institute
by Lipton Matthews
“Renowned economist Mariana Mazzucato has garnered widespread acclaim for her work on the concept of the ‘entrepreneurial state,’ where she argues that the state plays a critical role in driving innovation. Her essays and books emphasize the state’s capacity to spearhead groundbreaking advancements. However, while Mazzucato is skilled at extolling the virtues of government-led initiatives, her argument overlooks a crucial flaw — the state’s susceptibility to political incentives. Unlike market entrepreneurs, who are driven by the pursuit of profit, the state operates based on political motivations. As a result, government officials may continue supporting failing projects for the sake of national prestige rather than economic viability and serving the consumer.” (10/12/24)