Contents
List of Tables and Figures xi
List of Acronyms xiii
Acknowledgements xvii
Foreword to 2018 Edition: Rediscovering Public Wealth Creation xxi
Introduction : Thinking Big Again 1
A Discursive Battle 2
Thinking Big 4
Creating Markets Not Only Fixing Them 5
Evaluating Public Policies 8
Build ing Dynamic Public Organizations 10
Risks and Rewards 11
Secular Stagnation Is Not Inevitable 14
A New Language and Rhetoric 15
Structure of the Book 16
Chapter 1 : From Crisis Ideology to the Division of Innovative Labour 21
And in the Eurozone 23
State Picking Winners vs. Losers Picking the State 25
Beyond Market Failures 27
The Bumpy Risk Landscape 29
Symbiotic vs. Parasitic Innovation 'Ecosystems' 30
Financialization 32
Chapter 2 : Technology, Innovation and Growth 35
Technology and Growth 39
Evolutionary Economics and Systems of lnnovation 41
Beyond System Failures 45
Myths about Drivers of Innovation and Ineffective Innovation Policy 48
Myth 1 : Innovation is about R&D 51
Myth 2 : Small is beautiful 52
Myth 3 : Venture capital is risk-loving 54
Myth 4 : We live in a knowledge economy – just look at all the patents! 57
Myth 5 : Europe’s problem is all about commercialization 59
Myth 6 : Business investment requires ‘less tax and red tape’ 61
Chapter 3 : Risk-Taking State : From ‘De-risking’ to ‘Bring It On!’ 63
What Type of Risk? 64
State Leading in Radical (Risky) Innovation 68
Pharmaceuticals : Redical vs 'Me Too’ Drugs 70
Biotechnology : Public Leader, Private Laggard 73
The National Institutes of Health: Creating the Wave vs. Surfing It 75
Chapter 4 : The US Entrepreneurial State 79
The Defense Advanced Research projects, Agency (DARPA) 80
The Small Business Innovation Research (SBIR) Programme 85
Orphan Drugs
The National Nanotechnology Initiative 90
Chapter 5 : The State behind the iPhone 93
The 'State' of Apple Innovation 94
Surfing through the waves of Technological Advancements 99
From Apple I to the iPad: The State's very visible hand 100
How State-funded research made possible Apple’s 'invention’ of the iPod 102
Giant magnetoresistance (GMR), SPINTRON!CS programme and hard disk drives 102
Solid-state chemistry and silicon-based semiconductor devices 104
From capacitive sensing to click-wheels 106
The Birth of the iPod'' Siblings The iPhone and iPad 108
From click-wheels to multi-touch screens 109
Internet and HTTP/HTML 110
GPS and SIRI 111
Battery,display and other technologies 113
Did the US Government 'Pick' the iPod? 116
Fostering an Indigenous, Sector 116
Chapter 6 : Pushing vs. Nudging the Green Industrial Revolution 121
Funding a Green Idustrial Revolution 125
National Appeoache. to Geeen Economic Development 128
China's 'green' 5-year plan 131
UK's start-stop approach to green initiatives 133
United States: An ambiguous approach to green technologies 135
Pros and cons of the US model 136
Pushing-Not Stalling-Geeen Development 146
The Importance of Patient Capital : Public Finance and State Development Banks 148
Chapter 7 : Wind and Solar Power: Government Success Stories and Technology in Crisis 153
Wind and Solar Power: Growth Powered by Crisis 154
From the First 'Wind Rush' to the Rise of China's Wind Power Sector 157
Solar Power Companies and the Origin of Their Technologies 162
Solar Bankruptcies : Where There's a Will There's a way 166
Competition, Innovation and Market Size (Who's Complaining?) 169
Conclusion: Clean Technology in Crisis 171
Myth 1: It's all about R&D 172
Myth 2: Small is beautiful 173
Myth 3: Venture capital is risk-loving 175
Building a green innovation ecosystem (symbiotic not parasitic) 176
Chapter 8 : Risks and Rewards: From Rotten Apples to Symbiotic not Ecosystems 179
Back to Apple : What Did the US Government Get Back for Its Investments? 181
Apple's job-creation myth: Not all jobs are created equally 183
Apple's love-hate relationship with US tax policies 186
The paradox of miracles in the digital economy : Why does corporate success result in regional economic misery? 190
Where Are Today's Bell Labs? 192
Chapter 9 : Socialization of Risk and Privatization of Rewards : Can the Entrepreneurial State Eat Its Cake Too? 195
The Skewed Reality of Risk and Reward 195
A New Framework199
Direct or Indirect Returns 201
Chapter 10 : Conclusion 207
Appendix 215
Bibliography 217
Index 243