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For too long state bureaucracies have been associated negatively with stasis, inertia, complexification and resistance to change. But in fact – as this pathbreaking book shows – bureaucracies can be shaped creatively and in doing so become key to their dynamism, innovation and creativity rather than an impediment. Indeed, it will be impossible to drive growth that is more innovation-led, inclusive and sustainable without changing the state. This requires rethinking state capacity, capabilities and institutional structures. This is the wager driving the curiosity of Kattel, Drechsler and Karo as they delve deep into the exciting emerging field of creative bureaucracies.
The book is not about defending the state, but pushing it to be as dynamic as it can be – indeed, going against many of the assumptions we have grown to accept: bureaucracies as naturally rigid and boring. As my own research shows, the state and its agencies can be incredibly innovative under the right conditions. In The Entrepreneurial State, I demonstrated how many of the technological innovations of the digital age, those which went into the smart phone – including GPS and the internet itself – were innovated not by private sector entrepreneurs, as common sense might have it, but by state agencies such as the US state defence R&D agency DARPA, an organisation with a highly sophisticated and complex bureaucracy which funds and produces world-changing innovations. More recently, in Mission Economy, I revealed how the US state’s space agency NASA’s Apollo programme was guided by a singular ambitious mission – to put a man on the moon. This clear purpose required NASA to refigure its internal structure, to be more agile and flexible, with constant communication between project leaders. It also used new procurement methods to stimulate bottom-up innovation which resulted in many spin-off inventions and innovations that have transformed life on earth, including camera phones, software, CAT scans, LEDs, athletic shoes, water purification systems, home insulation, wireless headsets, memory foam, artificial limbs, the computer mouse and portable computer … the list goes on!
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