Mazzucato, Mariana (2015) From market-fixing to market-creating: a new framework for economic policy. Working Paper. SPRU Working Paper Series.
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Abstract
Many 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.
Item Type: | Reports and working papers (Working Paper) |
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Schools and Departments: | University of Sussex Business School > SPRU - Science Policy Research Unit |
Subjects: | H Social Sciences H Social Sciences > HB Economic theory. Demography |
Depositing User: | Caroline Cooper |
Date Deposited: | 11 Jul 2016 15:12 |
Last Modified: | 11 Jul 2016 15:35 |
URI: | http://sro.sussex.ac.uk/id/eprint/61970 |
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📧 Request an updateProject Name | Sussex Project Number | Funder | Funder Ref |
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Finance and the Entrepreneurial State | G0786 | FORD FOUNDATION | 1125 1696 |
DOLFINS - Distributed Global Financial Systems for Society | G1530 | EUROPEAN UNION | 640772 |