Common sense in Economics claims that the role of the State is to overcome market failures and protect competition. According to this, public intervention is not justified unless private agents are unable to produce a satisfactory outcome for all. The drive for initiative and dynamism would belong to the private sector, whereas the State unduly protects special interests, produces absurd and penalizing regulations for entrepreneurship by wasting resources that could be better used by private firms. These arguments emerge regularly in discussions on innovation and disruption. The “Knowledge Economy” has produced a Schumpeterian Hero. The Entrepreneur has become the central pivot of economic development by taking risks to create new products and jobs that require Venture Capital and a light regulatory framework. This entrepreneurial culture has fostered the development and the myth of the Silicon Valley. In a recent study (1), Mariana Mazzucato, Professor of Economics of Innovation at the University of Sussex, shows how this myth of the Silicon Valley propagates a distorted view of the respective roles of the public sector and private …