Comment by mattclarkdotnet

You might enjoy the book "Red Plenty" by Francis Spufford, which traces the consequences of this thesis ("Capitalism already is a poor allocator") through the Khrushchev years of the USSR, seen through the eyes of the economists, mathematicians and planners who tried to do better than capitalism.

Of course there are in-between approaches like industrial policy in mixed economies, for example the South Korean shipbuilding industry. But those tend to work with the grain of capitalism, not against it.