"The market economy will not grow in a socially desirable direction on its own. Rather—as my book The Entrepreneurial State stressed over 10 years ago—a dynamic, capable public sector with a decentralized network of public institutions across the innovation chain can shape the direction of growth toward more socially desirable outcomes. The public sector needs to develop competent and well-equipped national, regional, and local governments that can work together to deploy tools like outcomes-oriented procurement and strategic public investment. Unfortunately, the new government initiative so-called the Department of Government Efficiency appears to be a regurgitation of new public management theory—the idea that private-sector management practices should be applied to the delivery of public services, based on the assumption that the government’s attempts to make things better for people could actually make them worse. This contradicts what we need to do: invest in our public sector to develop the dynamic capabilities necessary to foster innovation-led sustainable and inclusive economic growth. And ultimately, this is not about the state doing everything itself—it is also about having the capacity required to work well with others, including private sector actors."

https://rooseveltinstitute.org/blog/mission-oriented-framework-for-economy/

#PublicInvestment #State #EntrepreneurialState #PublicAdministration #PublicPolicy