Mariana Mazzucato, The Entrepreneurial State , 146 pages, Demos 2011, ISBN 20119781906693732, £10, free download at www.demos.co.uk This is a really important little pamphlet from the Professor in the Economics of Innovation at the Open University and Economics Director of the Centre for Social and Economic Research and Innovation in Genomonics (Innogen). Mazzucato shows convincingly that the major innovations in our modern world -- the Internet, bio-technology, the new nano-technology -- which we tend to attribute to clever individuals at Apple, Google, Microsoft, companies such as GlaxoSmithKlein and venture capitalists, all in fact emerged from state financed networks, institutions and public enterprise, as in Silicon Valley. The first risk-taking investment was always from the state, and it was the state, she demonstrates, that not only fixed and regulated markets but created them. Capitalists took over what the state had launched with fundamental, long-term research, and capi...