313nications and ﬁnance, the policy has gone from public steering and private performing, in line with the Mazzucato ideal, to a relatively free market structure in which the public sets up the rules of the game but does not generally steer innovation or business operations on the whole. In contrast, in a sector in which public steering and private performing have prevailed, associated problems include malinvestment, destructive and costly projects that create social and economic problems, as well as inertia in the process.

In a summary, this chapter showcases something missing in Mazzucato’s analysis; namely the dubious drivers of and sometimes destructive consequences of the public-steering and private-performing framework. We argue that recognizing this is an important part of the policy discussion on the future role of the state in entrepreneurial activities, as this will have consequences for important economic, environmental, and political issues.

Acknowledgments This chapter could not have been made without the collective effort from the members of the digihist consortium (https://blogs.aalto.ﬁ/digihist/). Robert Demir, Rikard Westerberg, Lukas Ma, and John-Erik Bergkvist also gave excellent feedback on the manuscript at different stages of development. The second author would also like to thank the Marianne and Marcus Wallenberg Foundation for a generous grant that made part of this research possible.

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314The Digital Platform Economy

and the Entrepreneurial State: A European

Dilemma

Zoltan J. Acs

Abstract The application of big data, new algorithms, and cloud computing is creating a digital platform economy (DPE) built around platform organizations and their platform-based ecosystem. We use the DPE Index to examine Europe’s digital efﬁciency across countries and explain its global position by analyzing Brexit and the electric vehicle industry. We argue that the United Kingdom left the European Union because E.U. regulations were holding back the U.K.’s strong DPE and that a weak DPE is holding German back from being a leader in the electric vehicle industry. The problem for Europe’s DPE is that the entrepreneurial state is strong and the private sector is weak.