2015_25_SWPS_Mazzucato.pdf (850.52 kB)
From market-fixing to market-creating: a new framework for economic policy
report
posted on 2023-06-09, 02:07 authored by Mariana MazzucatoMany countries are pursuing innovation-led ‘smart’ growth, which requires certain types of long-run strategic investments. This paper argues that such investments require public policies that aim to create markets, rather than just ‘fixing’ market failures (or system failures). Such ‘mission-oriented’ investments have led to men walking on the moon (which created spillovers across the economy) and are today catalyzing investments to tackle climate change around the world. In the two above mentioned cases, public agencies not only ‘de-risked’ the private sector, but also led the way in terms of shaping and creating new technological opportunities and market landscapes. Only then was the private sector willing to invest. This paper considers four key questions that arise from a ‘market creating’ framework: (1) decision-making on the direction of change; (2) the nature of (public and private) organizations that can welcome the underlying uncertainty and discovery process; (3) the evaluation of mission oriented and market-creation policies; and (4) the ways in which both risks and rewards can be shared so that ‘smart’ innovation-led growth can also result in ‘inclusive’ growth.
Funding
DOLFINS - Distributed Global Financial Systems for Society; G1530; EUROPEAN UNION; 640772
Finance and the Entrepreneurial State; G0786; FORD FOUNDATION; 1125 1696
History
Publication status
- Published
File Version
- Published version
Publisher
SPRU Working Paper SeriesPublisher URL
Pages
23.0Department affiliated with
- SPRU - Science Policy Research Unit Publications
Institution
University of SussexFull text available
- Yes
Legacy Posted Date
2016-07-11First Open Access (FOA) Date
2016-07-11First Compliant Deposit (FCD) Date
2016-07-11Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC