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The Rest Is Money cover image

42. Mariana Mazzucato: How consulting firms weaken business, the illusion of ‘growth’, and public vs private innovation

The Rest Is Money

NOTE

Public Sector Innovation and Problem-Oriented Approaches

Public sector organizations like DARPA have successfully driven innovation by focusing on solving specific problems rather than following market trends. DARPA's success in creating the Internet and technologies in smartphones was due to problem-oriented approaches and a culture that encouraged risk-taking and impact assessment. The effectiveness of such organizations lies in tackling big challenges, promoting risk-taking, and linking research with procurement policies for scalability. Emphasizing scaling up over startups and bold procurement policies have been key factors in fostering innovation within the public sector, contrary to a perceived market-led model in the US.

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