From market fixing to market-creating: a new framework for innovation policy

Mazzucato, Mariana (2016) From market fixing to market-creating: a new framework for innovation policy. Industry and Innovation, 23 (2). pp. 140-156. ISSN 1366-2716

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Abstract

Many countries are pursuing innovation-led “smart” growth, which requires long-run strategic investments and public policies that aim to create and shape markets, rather than just “fixing” markets or systems. Market creation has characterized the kind of mission-oriented investments that led to putting a man on the moon and are currently galvanizing green innovation. Mission-oriented innovation has required public agencies to not only “de-risk” the private sector, but also to lead the direct creation of new technological opportunities and market landscapes. This paper considers four key issues that arise from a market-creating framework for policy: (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 growth can also result in inclusive growth.

Item Type: Article
Keywords: Innovation policy ; missionoriented policy ; market failures ; system failures ; directionality ; smart growth ; inclusive growth
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit > SPRU Working Paper Series
Subjects: H Social Sciences > HJ Public Finance
Depositing User: Caroline Cooper
Date Deposited: 08 Jun 2016 14:48
Last Modified: 07 Sep 2017 18:28
URI: http://sro.sussex.ac.uk/id/eprint/61398

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Project NameSussex Project NumberFunderFunder Ref
ISIGrowth: Innovation-fuelled, Sustainable, Inclusive GrowthG1610EUROPEAN UNION649186