Mission Economy in the European Union
Introduction
The idea of a Mission Economy in the European Union is that, rather than simply regulating or facilitating markets, the state should take on a more active, mission-driven role, collaborating with the private sector to achieve common goals. Popularized by economist Mariana Mazzucato, this concept centers around the idea that governments can act as entrepreneurial agents, driving innovation and long-term investments to solve large-scale problems. You can read more about Mission Economy in this article.
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Current Mission Economy in the European Union
Recent developments reflect the EU’s commitment to this approach. The European Commission plans to boost the InvestEU guarantee by €2.5 billion, aiming to mobilize an additional €25 billion in investments. This initiative seeks to reduce administrative burdens for businesses, particularly small and medium-sized enterprises (SMEs), by 25-35%. (source)
Additionally, the EU is proposing legislative packages to streamline regulations, fostering an environment conducive to innovation and investment. These measures aim to reduce bureaucratic hurdles, enabling more agile responses to emerging challenges. (source)
By adopting these mission-oriented strategies, the EU aims to harness collective innovation, address complex societal issues, and steer its economy toward a more inclusive and sustainable future.
Civic Engagement in Mission Economy in the European Union
Citizen engagement is crucial in a mission-oriented approach, yet it’s often the weakest link in EU policymaking. Listed below are some possible actionable steps.
Participatory Budgeting & Citizen Assemblies
The EU could allocate a portion of mission-driven funds to projects selected through citizen assemblies or participatory budgeting. This would allow Europeans to vote on key projects, ensuring direct public input.
Crowdsourced Innovation Challenges
Platforms like Horizon Europe could integrate public idea submissions alongside traditional research funding. Similar to how NASA crowdsources solutions, citizens and startups could propose solutions to mission-driven challenges.
Local Implementation with Public Input
For missions like climate-neutral cities, the EU could require local governments to integrate public consultations before rolling out initiatives. This would ensure that missions address real community needs, not just top-down policies.
Open Data & Transparency for Accountability
Missions should have public dashboards where citizens can track funding, progress, and impact. Open data initiatives could allow independent experts and citizens to analyze and challenge results, increasing trust in the process.
Right now, the EU’s mission-oriented approach is highly technocratic—which is a problem. If missions are to be truly transformative, they must empower citizens as active participants, not just passive beneficiaries.
What’s missing in the Mission Economy in the European Union?
There are a few gaps between theory and practice when it comes to the EU implementing a true mission-oriented approach, as outlined by Mariana Mazzucato. Here are some key areas where the Mission Economy in the European Union falls short:
1. Risk-Taking & Bold Public Investment
(partially implemented)
Mazzucato argues that governments should act like venture capitalists—taking big risks to drive innovation. The EU does fund large-scale research projects (Horizon Europe, InvestEU), but it still relies too much on de-risking private sector investments rather than directly leading innovation.
- In the Green Deal, much of the funding flows through public-private partnerships instead of state led moonshot projects that push the boundaries of technology.
- A EU-led industrial policy that doesn’t just fund startups but actively builds new industries (like how the US government led semiconductor R&D).
- Less reliance on subsidies for existing corporations and more direct public innovation labs.
2. Conditionality on Public Funding
(not enforced)
Mazzucato emphasizes that if public money funds innovation, the returns should benefit society—not just private corporations. The EU often fails to attach strong conditions to its funding. For example:
- Companies receiving EU funding for green technologies are not required to reinvest profits into further innovation or keep production in Europe.
- Pharmaceutical R&D benefits from EU grants, but pricing remains in private hands, limiting access.
3. Directionality & Coherence Across Policies
(still fragmented)
The EU claims to follow a mission-driven approach, but policy goals often contradict each other. For example:
- The Green Deal funds renewables, but trade agreements still support fossil fuel interests.
- Agricultural subsidies continue to favor large-scale industrial farming despite the EU’s push for sustainability.
4. Procurement as a Tool for Innovation
(underutilized)
Mazzucato states that governments should use public procurement to shape markets, like the US did with NASA and the semiconductor industry. The EU has some green procurement rules, but they aren’t ambitious enough to drive real innovation. There are two possible solutions for innovation driven procurement:
- More procurement-driven R&D contracts that force companies to innovate (e.g., contracts requiring new sustainable materials instead of just buying what’s already on the market).
- Using EU-level procurement to scale up high-risk, high-reward technologies.
5. Less Bureaucracy, More Agility
(still too slow)
A true mission-driven economy needs agility, but EU funding mechanisms remain slow and bureaucratic. Startups and researchers often wait years to receive grants. Faster funding disbursements are also an issue of cash flow and the EU members have proven several times that large-scale projects can be implemented in less than a year, even if there are several international stakeholders. However, more flexibility in how mission driven projects evolve over time could be of great benefit.
Conclusion
The EU is mission oriented but not mission led. It lacks the radical approach Mazzucato envisions. It funds pieces of the puzzle but doesn’t lead the transformation itself. In conformity with Mazzucato’s ideas, if the EU wants to truly implement mission-driven policy, it must:
- Take more risks with direct public investment
- Enforce conditionality on public-funded innovation
- Align all policies with mission goals
- Use procurement to drive new industries
- Cut bureaucracy to move at startup speed
Right now, the EU’s approach is still too safe, too fragmented, and too slow to drive the deep transformation Mazzucato advocates.
Concerns about the Mission Economy in the European Union
While the general concept of the public – private partnership framework described by Mazzucato is enticing, there is a risk of too much government interference in private markets. I personally disagree with the following points, mostly for economical reasons, but some because they imply too much concentration of power:
- Stronger profit-sharing mechanisms – if public funding drives a breakthrough, the EU should get a stake or royalties).
- Public ownership of key patents to prevent price gouging.
- A mission-oriented governance body that ensures policy alignment across all sectors.
- Ending subsidies & policies that contradict EU missions (stop funding polluters while promoting sustainability).