New Enlightenment The Mission Economy Mirage: Why Governments Make Bad Entrepreneurs
Jun 3, 2025
Bryan Cheang, a research fellow at the London School of Economics, dives into the complexities of industrial policy and the mission economy. He examines why governments often falter as economic entrepreneurs and the risks of state-directed innovation. The discussion highlights the balance between democracy and economic power, questioning whether government or markets are better suited to drive innovation. Drawing insights from East Asia, Cheang argues for a more pluralistic approach to economic growth, emphasizing the importance of individual freedoms in fostering true innovation.
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Mission Economy's Totalizing Ambition
- The mission economy framework seeks state-led structural transformation with a single cohesive goal involving public and private sectors.
- This totalizing ambition raises concerns about government discretion, effectiveness, and threats to freedom and equality.
Uncertainty in Government Innovation
- Innovation involves dispersed, accidental knowledge that defies precise government prediction or replication.
- Consequently, attributing successful technological outcomes solely to government action is challenging and uncertain.
Moon Landing: Success and Complexity
- The US moon landing program illustrates government-driven technological success with many accidental and trial-and-error factors.
- However, attributing commercial spin-offs from the program directly to the government is complex and uncertain.
