Entrepreneurial State
The UK government is drawing back the role of the State in the economy, hoping that the private sector will step in, and growth will flourish. Specific hopes are being set around investment in the Green economy, as many countries including the US and China, and also the EC-2020 strategy, are developing strategic visions around Green-led growth for the coming decades.
The core issue is whether the cuts, affecting research, education, regional development and infrastructure investment, will negatively affect the ‘animal spirits’ of the private sector and lead to less rather than more private investment. As the Green-tech area promises to be the next technological revolution, it is essential to understand whether the private sector is able, and willing, to take on the very uncertain investments that are required during the early stages of such revolutions.
The research, led by Demos Associate, Professor Mariana Mazzucato from the Open University, will draw on empirical comparisons, between different countries and sectors, on the degree to which the private sector has in fact ‘stepped in’ or ‘out’ in such crucial moments of history. It will draw on both Keynesian and Schumpeterian theoretical insights on the role of animal spirits in motivating investment, and the differential role of the state and private sector in innovation.
This project is managed by the Director of Demos, Kitty Ussher.