Professor Mariana Mazzucato,
Reginald M. Phillips Professor in the Economics of Innovation
SPRU, University of Sussex
The talk will focus on the relationship between the State and the Market. I will argue that the State not only ‘fixes’ different problem/failures in the market (of which there are many) but also actively shapes and creates markets. It does so in the face of extreme risk and uncertainty. I will consider different implications (theoretical, empirical, and ‘political’) of the blindness of economics (as a discipline) to understanding the State as market maker and lead risk-taker in capitalist economies—beyond the traditional ‘market failure’ framework. A key implication concerns the way in which risks have been socialised, while rewards privatised. The talk will consider concrete mechanisms to reform this dysfunctional relationship, building more ‘symbiotic’ eco-systems between the public and private sector, and achieving growth that is not only ‘smart’ but also ‘inclusive’.
The talk will build on my recent book 'The Entrepreneurial State: debunking private vs. public sector myths' as well as related papers.