Financing innovation: creative destruction vs. destructive creation

Mazzucato, Mariana (2013) Financing innovation: creative destruction vs. destructive creation. Industrial and Corporate Change, 22 (4). pp. 851-867. ISSN 0960-6491

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Although the 2007 financial crisis, and the ensuing world-wide recession, has caused policy makers to want to ‘re-stabilize’ the financial sector as well as ‘rebalance’
economies away from finance toward the ‘real’ economy, this article claims that to bring finance back to serve the real economy, it is fundamental to (a) also de-financialize companies in the real economy, and (b) think clearly how to
structure finance so that it can provide the long-term committed patient capital required by innovation. Without this, the risk is that current policy produces a healthy financial sector (bailed out, ring-fenced, and re-structured) in a deeply sick economy, which continues to reward value extraction over value creation activities.

Item Type: Article
Keywords: ICC, Industrial Corporate Change, Mazzucato, Oxford Journals, August 2013, Volume 22, Issue 4, finance, innovation, growth, Financing innovation, creative destruction vs. destructive creation., ICC special issue
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: H Social Sciences > HD Industries. Land use. Labour > HD0072 Economic development. Development economics. Economic growth
Depositing User: Mariana Mazzucato
Date Deposited: 10 Jun 2013 10:45
Last Modified: 05 Aug 2013 13:25

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