Followers of von Mises similarly foreclosed the possibility that entrepreneurship could take place in a variety of institutional settings. Yet even under capitalism, the history of technological breakthroughs was always about more than a series of isolated thinkers suddenly seeing lightbulbs flash above their heads. As Mariana Mazzucato has shown in her detailed study of some of the most important American innovations, it is the state that is in fact “willing to take the risks that businesses won’t” and “has proved transformative, creating entirely new markets and sectors, including the internet, nanotechnology, biotechnology, and clean energy.”

This is not to imply that a socialist state will inevitably be as innovative as the American state has been, but rather that greed need not be the only driver of innovation. Dynamic efficiency can also come from socially concerned scientists and engineers given the resources and opportunity to address society’s needs, as well as from mutual cooperation within worker collectives and the interactions of workplace committees with their suppliers and clients. Even more important, socialism can introduce a flourishing and far broader social entrepreneurship focused on innovations in how we live and govern ourselves at every level of society.