The Entrepreneurial State. Transform post #5
I am reading Mariana Mazzucato’s “The entrepreneurial state, debunking public versus private sector myths”. I am half way but convinced that it is a must read, for everyone acting for a sustainable world. Maybe the book will help us, solving huge sustainable challenges we are standing for.
As coordinator of TRANSFORM I am attracted by the book!
TRANSFORM is a research and implementation program to reduce the CO2 emissions of cities. The core of our TRANSFORM program is to find the barriers blocking possibilities to reduce carbon emissions, to be more energy efficient, to refit buildings, etc.
It is all about innovation in smart grids, about citizens’ involvement, new business models and sound governance. And TRANSFORM is about finding solutions in collaboration with industrial partners and knowledge institutes.
As you will understand, innovation is about finance too!
And this is where Mazzucato, as an economic researcher, teaches us. Based on elaborate research, she explains that major industrial innovation – in the US -, is mostly funded by governmental institutions, rather than by venture capital. The market is not, as often suggested, taking the risks of new development and innovation. Innovations, like ICT, Nanotechnology and pharmaceuticals are all – at the start – funded by the state. And yes, when proven to be profitable, markets and venture capitalist takes over. Of course!
In relation to Sustainable development Mazzucato states (with Foray et al. 2012) that, “Major socio-economic challenges such as climate change and ageing require an active State, making the need for a better understanding of its role within the public-private partnership more important than ever”.
This is what TRANSFORM is all about as well. The collaboration between governmental organizations (our cities), working together with our partners: Accenture, Enel, Hespul, Siemens, AIT, DTU, ERDF, Hamburg Energy, IBA Hamburg, ARE, Arup.
I sincerely hope, that we can find, together with our partners, the innovative solutions that will support our search for a sustainable future in our cities. Maybe Mazzucato shows us the way!