Mariana Mazzucato’s work on the relationship between innovation and the direction of economic growth is having global impact. She advises governments and policymakers worldwide on state investment and innovation, sustainable and inclusive growth, the green transition and industrial strategy.
In the last years she has brought her ‘mission-oriented’ approach to the heart of economic policy: helping to shape the EU’s Innovation policy, steering the UK’s industrial policy, helping to create a new roadmap for the UN’s Sustainable Development Goals, and informing the restructuring of development finance institutions.
In the UK, representatives of the three main political parties have spoken about the influence of Professor Mazzucato’s work on their policies. She is a member of the Scottish Government’s Council of Economic Advisers and was a member of the UK Labour Party’s Council of Economic Advisers from 2015 to 2016, alongside Joseph Stiglitz, Thomas Piketty and others.
At a European level, Professor Mazzucato has advised and discussed her work with leading policymakers and Europe-wide institutions. She has been a member of two high-level EU task forces advising on innovation and smart, sustainable economic growth.
Mariana’s ‘missions’ at the core of EU research and innovation
Mariana’s ‘mission-oriented approach’ is at the core of the new EU research and innovation programme. Horizon Europe will build on the achievements and success of the previous research and innovation programme Horizon 2020), with the aim of keeping the EU at the forefront of global research and innovation.
In 2018, European Commissioner Carlos Moedas announced an ambitious €100bn research and innovation programme for the next EU budgets – with the work of Professor Mariana Mazzucato and her ‘mission-oriented’ framework a core part of the programme.
Known as ‘Horizon Europe’, the proposal aims to keep the EU at the forefront of global research and innovation, building on the success of the previous programme, Horizon 2020.
Scottish National Investment Bank a model for long-term, committed finance
From late 2020 Scotland’s new national investment bank will start providing long-term capital to projects and companies that serve Scottish government-set goals of cutting carbon emissions, reducing inequality and addressing demographic change. The SNIB will use £2bn in capital over 10 years in a push to help transform an economy that has struggled to match UK-wide growth rates in recent years.
Mariana developed a framework for guiding the bank’s investments towards tackling key societal challenges, and promoting transformational change across Scotland’s economy. Co-authored with Laurie Macfarlane, the paper is the latest contribution to IIPP’s path-breaking research on state investment banks.
The Scottish Government is already demonstrating global leadership in areas such as transitioning to a low carbon economy and promoting inclusive growth. But fulfilling this potential will require finding new ways of promoting investment in a smart, inclusive and sustainable direction. By making strategic investments and nurturing new firms and technologies, the new bank will support the Scottish Government’s ambitious agenda.
Member of South Africa's Presidential Economic Advisory Council
In October 2019, IIPP Director Professor Mariana Mazzucato was appointed by South African President Cyril Ramaphosa to his Economic Advisory Council (PEAC). The Council was announced by President Ramaphosa in the State of the Nation Address to ensure greater coherence and consistency in the implementation of economic policy and ensure that government and society in general is better equipped to respond to changing economic circumstances.
In March 2020, Professor Mazzucato participated in a PEAC meeting in Pretoria, where she presented mission-oriented innovation and industrial strategy to the entire South African cabinet.
Since March, the work of the council has pivoted towards the government’s response to the COVID19 crisis and Professor Mazzucato has participated in meetings with President Ramaphosa, government ministers and PEAC members, and has contributed to a paper by a PEAC sub-team on the government’s Growth and Reconstruction Programme post-COVID. She is also focussing her more long-term contributions to PEAC on industrial strategy, state capacity and the green transition.