Temasek and the Limits of Economic Models

In this episode, Adam Dixon and Bryan Cheang takea hard look at the promises and pitfalls of industrial policy, using the mission economy framework popularized byMariana Mazzucato as a case study.

They dig into essential questions:

Why do governments struggle as economicentrepreneurs?

What are the unseen risks when states try todirect innovation?

How do democracy, pluralism, and uncertaintycomplicate grand economic plans?

• Why do governments struggle as economic entrepreneurs?
• What are the unseen risks when states try to direct innovation?
• How do democracy, pluralism, and uncertainty complicate grand economic plans?

Drawing from East Asia’s development stories, the debate around state-owned enterprises, and the limits of authoritarian economic governance, Cheang argues for a freer, more pluralistic approach to economic progress. They explore how concentrated state power can hinder innovation and why a “system of natural liberty” still offers the best path for sustainable growth.

Key themes:industrial policy, mission economy, state-led innovation, opportunity costs, democracy, East Asian development models, and the tension between control and liberty in economic systems.

Essential listening for anyone asking who should shape the future of economic innovation — governments or markets.

Adam Smith's Panmure House
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Adam Dixon
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Bryan Cheang

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