Introduction
Conceptualised by economist Mariana Mazzucato, Mission Economy centers around the idea that governments can act as entrepreneurial agents, driving innovation and long-term investments to solve large-scale problems. The idea 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. The author’s concept relies on the example of the Apollo missions as a driving force in technological innovations, facilitated by public – private collaboration frameworks.
- Source:
Mazzucato, Mariana. Mission Economy: A Moonshot Guide To Changing Capitalism (2023).
What is a Mission Economy?
In a mission economy, governments don’t just facilitate markets. They drive transformation, especially in areas with long term payoffs, such as clean energy, healthcare, or infrastructure development. The role of the state is to help mitigate the risks that private investors may shy away from, providing the foundation for innovation.
Actionable Steps Towards a Mission Economy
In “Mission Economy: A Moonshot Guide to Changing Capitalism,” economist Mariana Mazzucato outlines several actionable steps to reorient capitalism towards addressing societal challenges:
1. Setting Clear and Ambitious Missions
Governments should define bold objectives, similar to the Apollo moon landing, to tackle pressing issues like climate change and inequality.
2. Public – Private Collaboration
Establish partnerships where both sectors share risks and rewards, fostering innovation and ensuring that public investments lead to public benefits.
3. New Government Structures
Enhance the agility and capacity of public institutions to manage and implement mission oriented projects effectively.
4. Civic Engagement
Involve the public in mission selection and implementation to ensure that initiatives align with societal needs and values.
5. Budgets Based on Outcomes
Allocate funds based on achieving specific outcomes, promoting accountability and efficient use of resources.
By adopting these steps, Mazzucato argues that societies can contribute to collective innovation to solve complex problems and create a more inclusive and sustainable economy.
Conclusion
Mission Economy can be a new way of looking at market driven innovation. It can be a refreshing approach to solving large scale problems concerning multiple countries over longer periods of time. However there is a risk that government bodies can have too much power over the markets and Mission Economy might lead to economic centralisation. You can read an article about Mission Economy in the European Union here.