@article{6a9eb345d1d34c91b592acb2691bc6ac,
title = "Governments and Markets in the Digital Age",
abstract = "The academic literature has revamped its interest in economic statecraft, geoeconomics, geopoliticization of trade and technology sectors, and in the role of value chains as vectors for exerting control over critical technologies. However, there has been less reflection on state-market relations in the production of technological innovation and on the evolution of government business relations. Four recent books address these two important issues from different angles. Mazzucato and Mallaby{\textquoteright}s books focus on the right mix of state and market needed to stimulate technological innovation, and they do so from opposite perspectives. Chen and Ripley{\textquoteright}s books look, respectively, at the rise of Tencent as one of China{\textquoteright}s major big tech companies and the rise of SpaceX as a key private player in the traditionally state-led US space market. These two books are therefore of interest to gauge the evolving relations between government and private businesses in two key areas of current geopolitical competition, the digital and the space sectors. The aim of this review essay is not only to briefly summarize the content of these books and their strengths and weaknesses, but also to use them as a starting point to reflect on the mix of state and market in the production of innovation, and on government-businesses relations in digital markets.",
keywords = "governments, markets, technology",
author = "Antonio Calcara",
note = "Funding Information: One of the book{\textquoteright}s weaknesses is that it proposes a simplistic reading of SpaceX{\textquoteright}s assault on the highly protected space market, characterized by the symbiotic relationship between NASA and big aerospace companies. SpaceX was sparked by Musk{\textquoteright}s frustration with NASA{\textquoteright}s cost-plus contracting system, which he said drove up prices but not innovation. However, SpaceX gained momentum through development contracts from the Defense Advanced Research Projects Agency (DARPA) and launch program contracts from NASA. It is true that SpaceX was trying to break the oligopoly of the large aerospace companies, but it could only do so by partnering with NASA and public programs. As SpaceX (former) launch director Tim Buzza acknowledges that big NASA contracts “catapulted the company to new heights” (, 470). Indeed, the book recounts how the hiring of Gwynne Shotweel, who was well-acquainted in government space circles, was a crucial turning point in the company{\textquoteright}s institutional collaboration with NASA and in securing government contracts. She was instrumental in helping Musk navigate the evolving relationship between the Air Force, NASA, and the private industry. Funding Information: This project has received funding from the European Research Council (ERC) under the European Union{\textquoteright}s Horizon Europe research and innovation program (Grant Agreement No. 101116328). Funding Information: Antonio Calcara is a Professor at the Center for Security, Diplomacy and Strategy (CSDS) of the Brussels School of Governance (Vrije University Brussels). He{\textquoteright}s the Principal Investigator of the European Research Council (ERC) project CODE: Competition in the Digital Era (Grant Agreement No. 101116328). Publisher Copyright: {\textcopyright} 2024 Oxford University Press. All rights reserved.",
year = "2024",
month = mar,
day = "1",
doi = "10.1093/isr/viae007",
language = "English",
volume = "26",
journal = "International Studies Review ",
issn = "1521-9488",
publisher = "Wiley-Blackwell",
number = "1",
}