Economics - Innovation - Inclusive Growth

INCLUSIVE GROWTH

Can economic growth be simultaneously ‘smart’ and ‘inclusive’? Why is it that recent periods of innovation-led growth resulted in rising socio-economic inequality? Innovation and inequality often go hand in hand. Some have tried to explain this due to labor displacement effects from ‘skill-biased technical change’. Yet skills in this theoretical approach are exogenous—rather an endogenous function of the investment process. Do short-termism and ‘financialization’ lead to a lower level of business investment in long-run areas like R&D and human capital formation—hence future job opportunities?

A big challenge for innovation economists is to develop a theory that endogenously explains the relationship between innovation, skill/job formation, and inequality. And if the risks of innovation are ‘socialized’ (as I argue in The Entrepreneurial State), shouldn’t the rewards also be socialized?

In recent years I have written academic papers, news articles, and policy briefs on these subjects, and promoted initiatives and events that focused on issues of growth, innovation and inequality.

Recent Projects

Innovation-Fuelled, Sustainable, Inclusive Growth (ISIGrowth)

Innovation-Fuelled, Sustainable, Inclusive Growth (ISIGrowth)

Mazzucato’s new project, Innovation-Fuelled, Sustainable, Inclusive Growth (ISIGrowth) is funded by the EC’s Horizon 2020 research programme.  In collaboration with seven other Universities, the project will undertake analysis from several highly complementary angles, and identify a number of key cross-cutting themes covering policy areas such as innovation policy, fiscal policy, industrial policy, education policy, and cohesion policy to deliver comprehensive diagnostics and a comprehensive set of policy tools.

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Project website

events

Financial Institutions and Economic Security

Financial Institutions and Economic Security

London, UK – The conference considered the influence of financial institutions on employment security, retirement security, and housing security, as well as the interrelations among these forms of economic security in North America and Europe.

Finance, Innovation and Inequality

Finance, Innovation and Inequality

London, UK – The DIME (Dynamics of Institutions & Markets in Europe) workshop provided a forum for discussion for researchers looking at the relationships and interdependences between financial practices, innovation dynamics, and sources of economic inequality.

rethinking the state

The third series of interviews of the Rethinking the State project discussed the trend of rising inequality and how public policy can promote economic growth that is not only smart, but also inclusive. The interviews featured Richard Wilkinson (The Equality Trust and author of The Spirit Level), Mariana Mazzucato (SPRU, University of Sussex), Luc Soete (Maastricht University), Dan Breznitz (University of Toronto), and Pavlina Tcherneva (Levy Institute). Watch the Series 3 playlist >>


news articles

policy briefs

FINNOV Final Policy Brief

FINNOV Final Policy Brief

The final policy brief for Finnov, a three-year European Commission FP7 funded research project on finance and innovation led by Professor Mazzucato more