THE global financial crisis is prompting huge government interventions to stimulate the economies of the United States and many other nations. The burning question is this: Can public-sector initiatives in the private sector be successful, or are they inevitably doomed to failure?

Josh Lerner tries to answer that question, as it pertains to early-stage businesses, in “Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed  and What to Do About It” (Princeton University Press, $27.95).

“To be sure, government has a role in stimulating a vibrant entrepreneurial sector,” Mr. Lerner declares. “But at the same time, it is easy for the government to overstep its bounds and squander its investments. Only by designing a program that reflects an understanding of, and willingness to learn from, the entrepreneurial process can governments be effective.”

Mr. Lerner brings impressive academic credentials and practical experience to his examination of public-private issues. He is the Jacob H. Schiff professor of investment banking at Harvard Business School and has done consulting work for governments around the globe.