THE STATE

From market fixing to market shaping: reframing growth policy

Mariana Mazzucato, Institute for Innovation and Public Purpose/ UCL, presented to the 3rd New Economic Paradigm Workshop.

BY

FORUM NEW ECONOMY

PUBLISHED

1. NOVEMBER 2019

Mazzucato demonstrates that innovation-led ‘smart’ growth requires public policy to move beyond ‘fixing’ market failures. Public agencies need to create markets for new technologies, which will, in turn, open the way for private investment.

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ABOUT THE STATE

KNOWLEDGE BASE

For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.

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