"Can the private sector grow a green economy alone...?"

The UK government is drawing back the role of the State in the economy, hoping that the private sector will step in, and growth will flourish. Specific hopes are being set around investment in the Green economy, as many countries including the US and China, and also the EC-2020 strategy, are developing strategic visions around Green-led growth for the coming decades. 

The core issue is whether the cuts, affecting research, education, regional development and infrastructure investment, will negatively affect the ‘animal spirits’ of the private sector and lead to less rather than more private investment. As the Green-tech area promises to be the next technological revolution, it is essential to understand whether the private sector is able, and willing, to take on the very uncertain investments that are required during the early stages of such revolutions.

The research, led by Demos Associate, Professor Mariana Mazzucato from the Open University, will draw on empirical comparisons, between different countries and sectors, on the degree to which the private sector has in fact ‘stepped in’ or ‘out’ in such crucial moments of history. It will draw on both Keynesian and Schumpeterian theoretical insights on the role of animal spirits in motivating investment, and the differential role of the state and private sector in innovation. 

This project is managed by the Director of Demos, Kitty Ussher.


The Entrepreneurial State
Mariana Mazzucato
Publication Date
Publication Type

Jul 26

Who is failing British workers?

Mariana Mazzucato says Britain's poor growth figures are down to an industrial policy that neglects R&D.

Mar 23

Tax and grow

Demos associate Mariana Mazzucato argues that long term investment is the only way to economic growth.

Apr 22

Without state spending there'd be no Google or GlaxoSmithKline

Mariana Mazzucato on the state's role in promoting growth and innovation.

Mar 21
Mar 8

Building the entrepreneurial state

Mariana Mazzucato outlines the five steps to an industrial growth policy for the UK.

Mar 1
Aug 19
Jul 18

Technological revolutions have sprung from government activity

The Entrepreneurial State is mentioned in a Guardian article on the green energy market.

Jul 13

The state doesn't need the private sector to be entrepreneurial

Mariana Mazzucato comments on The Entrepreneurial State on the New Statesman's rolling blog.

Jul 11

Competition, carriers, and creativity

The Entrepreneurial State is included in a round-up of the latest news by The Engineer.