Recently I was interviewed by Bob Simison for his profile of economist Mariana Mazzucato that appeared in the current issue of Finance & Development, an official publication of the International Monetary Fund. Mazzucato believes that innovation should be more centrally funded and directed by governments. Simison mentions my book Openness to Creative Destruction: Sustaining Innovative Dynamism, and summarizes my claim that for innovation to flourish entrepreneurs need the freedom to pursue serendipity, hunches, and trial-and-error experiments.
(p. 50) To economist Arthur Diamond of the University of Nebraska,Omaha, Mazzucato’s thesis sounds too much like centrally planned industrial policy, which he argues won’t work because government is inherently unable to foster innovation. In his 2019 book, Openness to Creative Destruction: Sustaining Innovative Dynamism, he argues that what drives innovation is entrepreneurs who are deeply immersed in their subject and able to benefit from serendipity, pursuing hunches, and plain old trial and error.
“Government decision-makers won’t be as immersed in the problems, won’t have the detailed information, and won’t be in a position to follow hunches toward breakthrough solutions,” Diamond says.
For Simison’s full profile of Mazzucato, see:
(Note: in the original article, the title of my book was italicized.)
My book mentioned above is:
Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.