The role of the state in modern capitalism has gone beyond fixing market failures. Those regions and countries that have succeeded in achieving “smart” innovation-led growth have benefited from long-term visionary “mission-oriented” policies—from putting a man on the moon to tackling societal challenges such as climate change and the wellbeing of an ageing population. This book collects the experience of different types of mission-oriented public institutions around the world, together with thought-provoking chapters from leading economists. As the global debate on deficits and debt levels continues to roar, the book offers a challenge to the conventional narrative—asking what kinds of visionary fiscal policies we need to help promote "smart” innovation-led, inclusive, and sustainable growth.
Introduction: Mission-Oriented Finance for Innovation, Mariana Mazzucato and Caetano CR Penna / I: HOW ECONOMISTS GOT IT WRONG – AN ALTERNATIVE DIAGNOSIS / Fast Finance and Slow Growth, Andrew Haldane / The Social Value of Finance: Problems and Solutions, Adair Turner / How Maximising Shareholder Value Stops Innovation, William Lazonick / Dispelling Myths About Government Deficits, L Randall Wray / II: WHAT GOVERNMENTS NEED TO DO TO CREATE REAL LONG-TERM GROWTH / Steering Economies Towards the Next Golden Age, Carlota Perez / Why We Need Public Endowments for Transformative Research, Arun Majumdar / Six Decades of Mission-Oriented Finance for Industrialisation, Technical Change and Innovation in Brazil, Mariano Laplane / Challenges and Opportunities for a Knowledge-Based UK Economy, Vince Cable MP / Why a Fundamental Shift in Innovation Policy is Needed, Tera Allas / III: LEARNING FROM SUCCESS AND FAILURE / Development, Uncertainty, and the Role of State Investment Banks, Luciano Coutinho, João Carlos Ferraz and Felipe Silveira Marques / Financing Energy Innovation – the Case of ARPA-E, Cheryl Martin / The Rise of the State Investment Banks, Matthias Kollatz / The European Investment Bank – Supporting Innovation in Europe, Shiva Dustdar / The State as Venture Capitalist – the Case of the Danish Growth Fund, Christian Motzfeldt, / Financing Innovation – Lessons from Innovate UK, Iain Gray / Conclusion: Beyond Market Failures – Shaping and Creating Markets for Innovation-Led Growth, Mariana Mazzucato
Mariana Mazzucato is professor in the economics of innovation in the Science Policy Research Unit (SPRU) of the University of Sussex.
Caetano C. R. Penna is research fellow in finance and innovation at SPRU, University of Sussex.