"The problem is that governments and businesses serve vastly different purposes. If public policymakers start mimicking business founders, they will undermine their own ability to address complex societal challenges.
For startups, the highest priority is rapid iteration, technology-driven disruption, and financial returns for investors. Their success often hinges on solving a narrowly defined problem with a single product, or within a single organization. Governments, by contrast, must tackle complex, interconnected issues like poverty, public health, and national security. Each challenge calls for collaboration across multiple sectors, and careful long-term planning. The idea of securing short-term gains in any of these areas doesn’t even make sense.
Unlike startups, governments are supposed to uphold legal mandates, ensure the provision of essential services, and enforce equal treatment under the law – more important today than ever. Metrics like market share are irrelevant, because the government has no competitors. Rather than trying to “win,” it should focus on expanding opportunities and promoting the diffusion of best practices. It must be long-term minded, while achieving nimble and flexible structures that can adapt."
https://www.project-syndicate.org/commentary/government-should-not-act-like-a-startup-or-business-by-mariana-mazzucato-and-rainer-kattel-2025-04