A short video talk from TED by Professor Mariana Mazzucato of Sussex University on the state’s vital role in promoting innovation in a capitalist economy. Her book The Entrepreneurial State makes a fascinating read.
I wrote my MSc dissertation, way back when, on Industrial Policy in Malaysia, which admittedly had mixed results. Since then I have always been interested in how state intervention can promote growth and development, both in rich and developing nations.
Mazzucato describes how all the key technologies which make up the smart phone were funded by the US government, which definitely goes against much propaganda and conventional wisdom.