Entrepreneurial State as a Creative Destroyer: Comparison of Hong Kong and Singapore's Creative Industries

Abstract

This paper explores the limits of mission-directed entrepreneurial states by drawing on the theory of recombinant innovation and F.A. Hayek's insights on the spontaneous growth of knowledge in society. First, the use of discretionary policymaking curtails the range of knowledge generated in the process of social interaction, limiting the scope for ideas to be fortuitously recombined. Second, by privileging a single overarching mission, the state may foster a social culture that encourages compliance with authority, limiting the epistemic curiosity in individuals necessary for creative innovation. We make this argument through a comparative historical analysis of Singapore and Hong Kong, which adopted divergent approaches to development. Despite rapid growth in both, the former's technocratic governance came at the expense of its creative sectors, while the latter's reliance on spontaneous solutions enabled strong creative industries to develop despite little state support. By using creative performance as a proxy for innovation-led development, we exemplify the limits of top-down governance. Rather than fostering creative destruction, the entrepreneurial state may end up being a creative destroyer.