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What is Government’s Role in Innovation and Entrepreneurship

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Recently I have been extremely interested in the ideas behind government, innovation, and entrepreneurship. What exactly is the role of government in a free society when it comes to the support of entrepreneurs? Especially entrepreneurs who are associated with the software, medical, and technology industries. I decided to start scouring the Internet for different videos to watch in regards to this topic. I stumbled across this video from the Kauffman Foundation that highlights Charles E. Phillips who was at the time the president of Oracle.

Mr. Phillips starts the conversation talking about government’s role in innovation and job growth. There were a couple of key points within the video that I thought I would point out.

What Should the Government Do to Support Markets

  1. Build essential leadership to help educate other leaders in different industries
  2. Generate and lead cooperation between different industries.
  3. Set national standards because of an overlap/differences between state laws
  4. Lead and co-invest in new markets that have extremely high barriers to entry but are valuable for the country.
  5. High risk investment opportunities that have national importance but are over the top for private equity
  6. Help understand and revive inflection points in the economy where normal investments stalled.

I think there is a fine line to draw in regards to governments activity within innovation, investment, and entrepreneurship. As Mr. Phillips pointed out, there wouldn’t have been an Oracle without the help and belief of the government when Larry Ellison first started the company.

What do you think? What is the government’s role in innovation and entrepreneurship?


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