The U.S. government has spent billions of dollars bailing out troubled companies. Is it time for Uncle Sam to invest in new entrepreneurial firms as well? Professor Josh Lerner makes the case for limited government involvement in his book "Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed—and What to Do about It".
Key concepts include:
- Government support for entrepreneurial ventures could spur economic growth and support the struggling venture capital industry.
- For every successful public intervention there are many failed efforts, wasting billions in taxpayer dollars.
- Government can help in two ways: ensure that the economic environment is conducive to entrepreneurial activity, and provide direct investments.
- The Obama administration's track record on these matters is mixed.
- Academic literature in this area is comparatively sparse.
See the interview here.