A wrong but seductive idea: Public choice and the entrepreneurial state

ABSTRACT We offer a critique of Mazzucato’s idea of the “Entrepreneurial State.” In doing so, we extend the criticisms developed by the authors of Questioning the Entrepreneurial State by using the insights derived from Public Choice economics. Specifically, we argue the following: (a) the entrepreneurial state is a rhetorical device and does not reflect actual government actions, (b) goals help create common purpose but are insufficient by themselves, and (c) rent-seeking will occur. Finally, we discuss the role that the state should play in entrepreneurial activities.