Martin Wolf interviews Mariana Mazzucato: Can the state innovate?
Dec 30, 2024
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In this insightful discussion, Mariana Mazzucato, a professor at University College London and a leading expert on mission-oriented policy, argues for a revitalized role of the state in innovation. She reflects on JFK's moon landing as a model for tackling large challenges today, like climate change and pandemics. Mazzucato critiques the myth of the solitary entrepreneur, advocating for government-led, collaborative initiatives to drive technological advancements. The conversation emphasizes the need for ambition and coordination in public policies to stimulate innovation.
Mariana Mazzucato argues that government intervention is vital for innovation, as seen through historical examples like the development of Silicon Valley technologies.
She advocates for mission-oriented policies that prioritize tackling urgent societal challenges, drawing parallels to the collaborative efforts of the Apollo program.
Deep dives
The Role of the Entrepreneurial State
The concept of an entrepreneurial state is presented as essential for successful innovation and economic growth. Mariana Mazzucato argues that government intervention can drive technological advancements and create markets instead of merely fixing or regulating existing ones. This perspective challenges the prevailing notion that supports minimal state involvement, especially during the austerity following the financial crisis. Through historical examples, such as the state’s role in developing Silicon Valley technologies, Mazzucato highlights how essential public funding and institutions are in fostering an environment where innovation can thrive.
Lessons from the Digital Economy
Mazzucato emphasizes the collaborative efforts between government institutions and private companies that contributed to the growth of the digital economy, particularly in the U.S. She points out that key government agencies, like DARPA, played crucial roles in developing technologies that ultimately benefited private companies like Apple and Google. Mazzucato argues that this collaborative ecosystem demonstrates that innovation is not solely driven by individual entrepreneurs but by a network of state and private partnerships that focused on addressing specific problems. This historical analysis serves as a foundation for understanding how similar structures can address contemporary challenges, such as climate change and public health.
The Need for Mission-Oriented Policies
Mazzucato introduces the idea of mission-oriented policies, calling for bold objectives that tackle pressing societal challenges like climate change and health crises. She refers to the Apollo program's structured approach, which involved clear goals and widespread collaboration among various sectors, as a model for current efforts needed in addressing modern issues. The urgency and intersectoral collaboration displayed during the moon landing serve as a blueprint for tackling both global health and environmental crises. Mazzucato advocates for governments to adopt similar strategies that focus on urgent societal needs rather than merely reacting to individual market demands.
The Political and Institutional Challenges Ahead
Mazzucato identifies significant political and institutional challenges in realizing the vision of a more proactive and capable state. She argues that there is a need to reimagine government roles to facilitate collaboration across sectors while building public capacity to address issues efficiently. Additionally, she emphasizes that changing the public mindset toward accepting a more influential state is essential for progress. Ultimately, tackling complex global problems requires a concerted approach that transcends individual national efforts, calling for a redesign of global governance mechanisms to address shared challenges effectively.
In 1962, then US president John F Kennedy committed his nation to reaching the Moon before the decade was up. It was a huge undertaking, but one that ultimately succeeded, and also produced technologies such as camera phones and baby formula along the way. But have governments today lost the confidence and knowhow needed to undertake such ambitious challenges? That’s the contention of today’s guest, Mariana Mazzucato, professor in the economics of innovation and public value at University College London. She believes states need to rediscover mission-purpose and take the lead in solving problems such as climate change, pandemics or water scarcity.
Martin Wolf is chief economics commentator at the Financial Times. You can find his column here