Socializing the risks and rewards of public investments: economic, policy, and legal issues

Laplane, Andrea and Mazzucato, Mariana (2020) Socializing the risks and rewards of public investments: economic, policy, and legal issues. Research Policy: X, 2. a100008 1-11. ISSN 0048-7333

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Abstract

We develop a framework for analyzing the role of public agencies in making high-risk investments along the innovation chain and ask how both the risks of innovation and the rewards can be shared between public and private actors. We build on a new approach to innovation policy, which we call market co-creating and shaping, in which the state is not only fixing markets but actively co-creating them. We also look at the legal institutions that determine (and are determined by) the relationship between public and private actors. Policy measures to institutionalize rewards in a way that promote more equitable public–private partnerships can be understood as attempts to mediate asymmetric power relations, tensions and conflicting views among multiple stakeholders, as well as building a shared notion of the value and legitimacy of the role of the state. We conclude by outlining analytical and policy implications and identifying avenues for future research.

Item Type: Article
Keywords: Innovation policy, Risk capital, Entrepreneurial state, Portfolio, Public-private partnership, Legal institutions
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Depositing User: Andrea Laplane
Date Deposited: 05 Jan 2021 08:58
Last Modified: 05 Jan 2021 09:00
URI: http://sro.sussex.ac.uk/id/eprint/96235

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