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jerryking : private_sector   6

Lunch with the FT: Mariana Mazzucato - FT.com
August 14, 2015 12:07 pm
Lunch with the FT: Mariana Mazzucato
John Thornhill

* Mazzucato’s book The Entrepreneurial State

As Mazzucato explains it, the traditional way of framing the debate about wealth creation is to picture the private sector as a magnificent lion caged by the public sector. Remove the bars, and the lion roams and roars. In fact, she argues, private sector companies are rarely lions; far more often they are kittens. Managers tend to be more concerned with cutting costs, buying back their shares and maximising their share prices (and stock options) than they are in investing in research and development and boosting long-term growth.
“As soon as I started looking at these issues, I started realising how much language matters. If you just talk about the state as a facilitator, as a de-risker, as an incentiviser, as a fixer of market failures, it ends up structuring what you do,” she says. But the state plays a far more creative role, she insists, in terms of declaring grand missions (the US ambition to go to the moon, or the German goal of creating nuclear-free energy), and investing in the early-stage development of many industries, including semiconductors, the internet and fracking. “You always require the state to roar.”
... Some tech and pharmaceuticals companies are going to extravagant lengths to reduce their taxes, one of the ways in which they pay back the state. The more libertarian wing of Silicon Valley is even talking of secession from California so they can pay no tax at all. “Won’t it be nice when there’s the next tsunami and these guys call the coastguard,” she says....
One criticism of Mazzucato’s work is that she fetishises the public sector in much the same way that rightwing commentators idolise the private sector. She appears stung by the suggestion: “I’m from Italy, believe me, I don’t romanticise the state.” The challenge, she says, is to rebalance the relationship between the private sector, which is all too often overly financialised and parasitic, and the public sector, which is frequently unimaginative and fearful. “When you have a courageous, mission-oriented public sector, it affects not just investment but the relationships and the deals it does with the private sector,” she says. Europe’s left-wing parties could have run with this agenda. Instead, she says, they have “absolutely failed” to change the political discourse by obsessing about value extraction rather than value creation, by focusing more on taxing big business than fostering innovation.

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The Chinese get the state to do that risky and costly, research and the development to keep them ahead.

The US does the same, but just keeps quiet about it so it doesn’t spoil the narrative.
“The parts of the smart phone that make it smart—GPS, touch screens, the Internet—were advanced by the Defense Department. Tesla’s battery technologies and solar panels came out of a grant from the U.S. Department of Energy. Google’s search engine algorithm was boosted by a National Science Foundation innovation. Many innovative new drugs have come out of NIH research.!” http://time.com/4089171/mariana-mazzucato/
activism  books  breakthroughs  DARPA  de-risking  Department_of_Energy  early-stage  economists  fracking  free-riding  innovation  Mariana_Mazzucato  mission-driven  moonshots  NIH  NSF  private_sector  public_sector  semiconductors  Silicon_Valley  sovereign-risk  state-as-facilitator  value_creation  value_extraction  women 
august 2015 by jerryking
Special Report-Bad Weather a Boon for Private Forecasters - NYTimes.com
By REUTERS
Published: August 10, 2011

With commodity markets across the globe in the thrall of extreme
weather, private-sector meteorologists are increasingly providing
custom-tailored weather intelligence to the financial world. This time
of year their services are in high demand.
weather  private_sector  forecasting 
august 2011 by jerryking
There is an entrenched culture of mediocrity in government and the private sector
Nov. 4, 2010 | Stabroek News | Sherwood Lowe.

an entrenched culture of mediocrity in government and the private sector. Guyana does not have a performance-oriented or results-driven society and economy.....
mediocrity  Guyana  private_sector  government  organizational_culture  performance 
november 2010 by jerryking
Gulf Oil Spill's Fallout Widens Debate on Government's Proper Role - WSJ.com
MAY 28, 2010 | Wall Street Journal | By GERALD F. SEIB. New
Rules in an Old Tug-of-War. A presidential commission soon will put
the relationship (govt.-offshore oil industry) in therapy. The risk is
that the wrong question may dominate the coming discussion—namely,
whether there was too little regulation of the offshore oil industry.
The better question is less about quantity than quality: Were
regulations smart and up to date? They almost certainly weren't. ...The
broader point is that the BP oil spill is just the latest in a series of
traumatic events forcing a rethink of government's relationship with
business. Bank bailouts, energy plans, auto-maker rescues, Toyota
accelerator problems: All have forced both politicians and average
Americans to rethink the proper role of government in the private
economy.
bailouts  Gerald_Seib  government  private_sector  BP  oil_spills  regulation  event-driven  events  regulators  business-government_relations  politicians  offshore  offshore_drilling  questions 
may 2010 by jerryking
Bridging the public service-private sector divide - The Globe and Mail
Apr. 26, 2010 | Globe & Mail | Gordon Pitts. Former clerk
of the Privy Council Kevin Lynch – who just moved into an executive post
at Bank of Montreal – says more cross-fertilization is needed if Canada
is going to deal with the big issues ahead
Gordon_Pitts  cross-pollination  public_sector  private_sector  Kevin_Lynch 
april 2010 by jerryking

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