MOIP-challenges-and-opportunities-working-paper-2017-1.pdf

Summary

The source, a working paper from September 2017 titled "Mission-Oriented Innovation Policy: Challenges and Opportunities" by Mariana Mazzucato, explores a new justification for government intervention beyond simply rectifying market failures. It advocates for mission-oriented innovation policy, where the state actively shapes and creates new markets by setting ambitious goals like battling climate change or addressing societal issues. The paper contrasts this with traditional sector-specific industrial policies, using examples like the Apollo moon mission and Germany's Energiewende to illustrate how cross-sectoral missions drive innovation. It emphasises the need for a networked entrepreneurial state that undertakes patient, long-term, high-risk investments across the entire innovation chain, rather than relying on indirect measures like tax incentives, while also suggesting mechanisms for the public sector to share in the rewards of successful innovations. Ultimately, the document proposes a framework (ROAR) to guide and evaluate these policies, stressing the importance of collective learning, risk-sharing, and a redefined understanding of public value.