Public financing of innovation new questions Mariana Mazzucato and Gregor Semieniuk
By: Mazzucato, Mariana
.
Contributor(s): Semieniuk, Gregor.
Material type: 
ArticlePublisher: 2017Subject(s): INNOVACIÓN | SUBVENCIONES PUBLICAS | ENERGÍAS RENOVABLES
In:
Oxford review of economic policy v. 33, n. 1, Spring 2017, p. 24-48Summary: Economic theory justifies policy when there are concrete market failures. The article shows how in the case of innovation, successful policies that have led to radical innovations have been more about market shaping and creating through direct and pervasive public financing, rather than market fixing. Thepaper reviews and discusses evidence for this in three key areas: (i) the presence of finance from public sources across the entire innovation chain; (ii) the concept of .mission-oriented. policies that have created new technological and industrial landscapes; and (iii) the entrepreneurial and lead investor role of public actors, willing and able to take on extreme risks, independent of the business cycle. We further illustrate these three characteristics for the case of clean technology, and discuss how a market-creating and -shaping perspective may beuseful for understanding the financing of transformative innovation needed for confronting contemporary societal challenges.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 1772/2017/1-1 (Browse shelf) | Available | OP 1772/2017/1-1 |
Disponible también en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Conclusión. Bibliografía.
Economic theory justifies policy when there are concrete market failures. The article shows how in the case of innovation, successful policies that have led to radical innovations have been more about market shaping and creating through direct and pervasive public financing, rather than market fixing. Thepaper reviews and discusses evidence for this in three key areas: (i) the presence of finance from public sources across the entire innovation chain; (ii) the concept of .mission-oriented. policies that have created new technological and industrial landscapes; and (iii) the entrepreneurial and lead investor role of public actors, willing and able to take on extreme risks, independent of the business cycle. We further illustrate these three characteristics for the case of clean technology, and discuss how a market-creating and -shaping perspective may beuseful for understanding the financing of transformative innovation needed for confronting contemporary societal challenges.
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