The Entrepreneurial State: Rethinking Its Role in Driving Innovation Policy

This article comprehensively explores the role of government in fostering innovation in key technologies and sectors, combining two opposing perspectives presented in The Entrepreneurial State and The Myth of the Entrepreneurial State. The Entrepreneurial State emphasizes the government's active role in the innovation process, particularly in the early stages of high-risk R&D, where the government acts not only as a funding provider but also as a policymaker, supporting market-driven innovation. Conversely, The Myth of the Entrepreneurial State highlights the central role of markets and individuals in economic development and technological progress, arguing that the government's role should be limited to creating a favorable environment for innovation. Integrating the content of both perspectives, this text begins by reviewing the government's role in promoting modern innovation from two aspects: the objectives of government-led innovation promotion and the role it plays in the process of innovative activities. The government no longer directly leads innovation development but instead serves as a supportive actor, while the true driving force behind innovation stems from the creativity and exploratory spirit of individuals.