TheValueofEverything

owned by the publisher. The illustration on p. 230 is by Jon Berkeley for The Economist. Reproduced by permission. Typeset in 10.5/14pt Sabon LT Std by Jouve (UK), Milton Keynes Library of Congress Control Number: 2018950683 ISBNs: 978-1-61039-674-5 (hardcover), 978-1-61039-675-2 (ebook) E3-20190503-JV-PC-COR Acknowledgements In 2013 I wrote a book called The Entrepreneurial State . In it I debunked how myths about lone entrepreneurs and start-ups have captured the theory and practice of innovation, ignoring one of the key actors that has been an investor of first resort: the state. Innovation is a collective process, with different types of public institutions playing a pivotal role. That role is ignored, so our theory of value creation is flawed. And this is a major reason for wealth often being distributed in dysfunctional ways. The book you have in your hand is a direct consequence of this early reasoning. We cannot understand economic growth if we do not go back to the beginning: what is wealth and where does value come from? Are we sure that much of what is passing for value creation is not just value extraction in disguise? T......