As the year comes to a close, the Financial Times released its annual list of the Best Books of the year. And right at the top was INET co-founder William H. Janeway's new book Doing Capitalism in the Innovation Economy, which the FT named one of the the best economics books of 2012.
Janeway's Doing Capitalism develops an original theory of the role of asset bubbles in financing technological innovation and of the role of the state in playing an enabling role in the innovation process. And drawing on his more than 40 years of experience as a leading venture capital investor, Janeway provides a blueprint for restarting the modern innovation economy.
Here's what the FT's Martin Wolf had to say about Doing Capitalism:
'Doing Capitalism in the Innovation Economy: Markets, Speculation and the State, by William Janeway, Cambridge University Press, RRP£22
Janeway, who built the technology investment team of Warburg Pincus, has a powerful message: an innovative economy “begins with discovery and culminates in speculation”. Unfashionably, he insists that the state plays a central role in the innovative economy, as a source of funding for infrastructure and research and as a guarantor of stability when financial speculation ends in disaster, as it tends to do.'