Economics - Innovation - Inclusive Growth

press releases

Businesses should be rewarded for innovation

Businesses should be rewarded for innovation

The Open University Professor of the Economics of Innovation and FINNOV project coordinator Mariana Mazzucato said: “Financial markets are creating a very short-term set of goals, which is stifling innovation and creating huge problems for our economy. Rather than being rewarded for innovation, businesses are penalised.”

More creative destruction – less destructive creation needed in 2010

More creative destruction – less destructive creation needed in 2010

For a truly innovative and growth oriented 2010, Professor Mazzucato suggests:

• Investment in radical new products at an early stage (as practised by the National Institutes of Health in the USA)
• Long-term funding instead of short-term profit taking
• More risk taking to encourage truly innovative and beneficial results
• More emphasis by management on developing a company’s core capabilities rather than focus on financial and regulatory loopholes or bets on pricing.