Entrepreneurs disrupt industries and throw equilibria out of whack, but where would the modern world be without entrepreneurs? The economics of innovation is particularly important to understand at a time when more politicians on both the right and the left are calling for industrial policy. Such proposals raise the question can and should entrepreneurship and innovation be planned? Arthur Diamond joins the show to talk about how good policy could actually encourage innovation.How do innovators think about the world? Is there a way to predict what the next big innovation will be? Should we let innovators be free? Why did no one predict the creation of the internet? See acast.com/privacy for privacy and opt-out information.