Key Takeaways
1. Reimagine government as an entrepreneurial force for innovation
Government can build the cathedrals of mission-oriented innovation in the twenty-first century if it is recast with courage, dynamic competency, leadership, resilience and creativity.
Entrepreneurial state. Contrary to popular belief, governments have been behind many of the most important innovations in history, from the internet to GPS. The public sector can and should take risks, invest in long-term research and development, and actively shape markets to drive innovation.
Moonshot thinking. The Apollo program demonstrates how ambitious government-led missions can catalyze innovation across sectors. By setting a clear, inspiring goal and providing resources and direction, government can mobilize diverse actors to solve complex challenges.
Examples of government-led innovation:
- DARPA's role in creating the internet
- NIH funding for biomedical research
- NASA's space exploration programs
2. Shift from market-fixing to market-shaping policies
Markets are not outcomes of individual decision-making but of how each value-creating actor is governed – including government itself.
Beyond market failures. Traditional economic theory views government's role as merely fixing market failures. This narrow view limits the public sector's potential to drive innovation and shape markets in pursuit of societal goals.
Proactive policymaking. Governments should actively co-create and shape markets, not just react to their failures. This involves setting clear directions for innovation, using policy tools to incentivize private sector engagement, and creating new markets around societal challenges.
Market-shaping policy tools:
- Public procurement to create demand for innovative solutions
- Regulation to set standards and level the playing field
- Direct investments in high-risk, early-stage research
- Mission-oriented innovation policies
3. Adopt a mission-oriented approach to tackle grand challenges
Missions offer an opportunity to reverse this trend by involving citizens in solving grand societal challenges and creating wide civic excitement about the power of collective innovation.
Grand challenges focus. Mission-oriented policies align public and private efforts around ambitious, concrete goals that address major societal challenges, such as climate change or inequality.
Cross-sector collaboration. Missions require collaboration across different sectors, disciplines, and organizations. They provide a framework for coordinating diverse efforts and stimulating innovation in multiple areas simultaneously.
Examples of potential missions:
- Achieve 100 carbon-neutral cities by 2030
- Reduce plastic in the oceans by 90% by 2040
- Halve the burden of dementia by 2030
4. Foster dynamic capabilities in public organizations
To co-create value and shape markets, public and private organizations need dynamic capabilities of experimentation and learning.
Organizational transformation. Public sector organizations need to develop new capabilities to effectively lead mission-oriented innovation. This includes the ability to take risks, learn from failures, and adapt to changing circumstances.
Skill development. Governments must invest in developing the skills and competencies of public sector employees, fostering a culture of innovation and experimentation within bureaucracies.
Key dynamic capabilities for public organizations:
- Leadership and engagement
- Coordination across departments and sectors
- Administration of complex projects
- Risk-taking and experimentation
- Dynamic evaluation of outcomes
5. Implement long-term, patient finance focused on outcomes
Missions require long-term thinking and patient finance.
Rethinking public investment. Rather than focusing solely on short-term costs and benefits, governments should view public spending as long-term investments in society's productive capacity and well-being.
Outcome-based budgeting. Shift from input-based budgeting to focusing on desired outcomes. This allows for more flexibility in how resources are allocated and encourages innovation in achieving goals.
Benefits of patient, mission-oriented finance:
- Enables high-risk, long-term research and development
- Crowds in private investment by reducing uncertainty
- Allows for learning and adaptation over time
- Focuses on societal impact rather than narrow financial metrics
6. Create symbiotic public-private partnerships with shared risks and rewards
If value is created collectively through societal effort, all actors should be getting their fair share in proportion to their risk-taking, input and creativity.
Beyond outsourcing. Move away from the model of government outsourcing to private contractors towards true partnerships where both public and private sectors share risks and rewards.
Stakeholder approach. Embed public purpose into the governance of public-private collaborations, ensuring that societal benefits are prioritized alongside financial returns.
Elements of symbiotic partnerships:
- Clear alignment of public and private objectives
- Sharing of both financial risks and potential rewards
- Governance structures that protect public interest
- Mechanisms for knowledge sharing and collaborative innovation
7. Engage citizens in co-creating solutions for societal challenges
Establishing estates and streets as places where missions can root themselves makes for long-term citizen governance and stewardship, for the accumulation over time of public value and public innovation and ultimately for local prosperity and economic growth.
Participatory policymaking. Involve citizens in defining missions, setting priorities, and designing solutions. This ensures that policies address real needs and builds public support for ambitious initiatives.
Local empowerment. Create opportunities for communities to engage in mission-oriented projects at the local level, fostering innovation and building social capital.
Approaches to citizen engagement:
- Citizen assemblies to deliberate on complex issues
- Participatory budgeting for local mission projects
- Co-design processes for public services and infrastructure
- Digital platforms for crowdsourcing ideas and feedback
Last updated:
FAQ
What's Mission Economy: A Moonshot Guide to Changing Capitalism about?
- Mission-Oriented Approach: The book by Mariana Mazzucato advocates for a mission-oriented approach to address significant societal challenges like climate change and public health crises.
- Historical Context: It draws parallels between the Apollo moon landing and contemporary challenges, emphasizing the need for ambitious goals that inspire innovation and collective action.
- Reimagining Government's Role: Mazzucato argues for a proactive government role in the economy, investing in public goods and fostering partnerships with private entities to achieve common goals.
Why should I read Mission Economy?
- Timely Relevance: The book addresses urgent global issues exacerbated by the COVID-19 pandemic, making it highly relevant for understanding the role of government and business in recovery and future resilience.
- Innovative Solutions: Mazzucato provides a fresh perspective on how to innovate within public policy, encouraging readers to rethink traditional economic theories and practices.
- Practical Framework: Readers will gain insights into how to apply mission-oriented thinking to real-world problems, equipping them with tools to advocate for change in their communities and organizations.
What are the key takeaways of Mission Economy?
- Mission-Oriented Approach: Emphasizes setting clear, ambitious missions that drive innovation and collaboration across sectors, focusing on solving complex societal problems.
- Public-Private Collaboration: Highlights the need for strong partnerships between government and business, sharing risks and rewards in pursuit of common goals.
- Rethinking Government's Role: Advocates for a reimagined role of government as an active value creator, investing in public capabilities and fostering experimentation.
How does Mission Economy redefine the role of government?
- Active Value Creator: Mazzucato argues that government should actively participate in the economy, driving innovation and shaping markets.
- Investor of First Resort: Suggests governments should be primary investors in critical areas, particularly where private sector investment is lacking.
- Focus on Public Purpose: Emphasizes prioritizing public interest and societal well-being over short-term profits, requiring a fundamental change in government interaction with the economy.
What is a mission-oriented approach as defined in Mission Economy?
- Definition: Focuses on setting clear, ambitious goals that address societal challenges, encouraging collaboration among various stakeholders.
- Examples: Cites historical examples like the Apollo program to illustrate how missions can mobilize resources and inspire collective action.
- Citizen Engagement: Engaging citizens in mission design and implementation is crucial for ensuring they reflect societal needs and values.
What are the best quotes from Mission Economy and what do they mean?
- "We cannot risk that happening again.": Reflects the urgency of learning from past crises to ensure effective and sustainable government interventions.
- "Missions should be judged by outcomes, not costs.": Advocates for evaluating success based on societal impact rather than financial expenditure.
- "The irony is that so much outsourcing has damaged governments’ abilities to structure contracts.": Highlights the pitfalls of outsourcing public services, leading to a loss of government capacity and accountability.
How does Mission Economy propose to finance missions?
- Diverse Financing Sources: Utilizes a mix of public and private financing, including grants, equity investments, and innovative procurement strategies.
- Long-Term Patient Finance: Advocates for patient finance that allows for experimentation and risk-taking, essential for fostering innovation.
- Crowding in Private Investment: Emphasizes attracting private investment by demonstrating future opportunities through public funding.
What lessons can be learned from the Apollo program in Mission Economy?
- Vision and Purpose: Driven by a clear vision and strong sense of purpose, galvanizing public and private efforts.
- Risk-Taking and Innovation: Embraced risk and fostered a culture of experimentation, showing that innovation often arises from trial and error.
- Collaboration Across Sectors: Success due to extensive collaboration between government, private companies, and academic institutions.
What are the five myths that impede progress according to Mission Economy?
- Myth 1: Businesses create value, governments only de-risk: Underestimates the significant role governments play in value creation through innovation and investment.
- Myth 2: The purpose of government is to fix market failures: Confines government to a reactive role, ignoring its potential to actively shape markets.
- Myth 3: Government needs to run like a business: Critiques this notion, emphasizing that public institutions should prioritize public value over profit motives.
- Myth 4: Outsourcing saves taxpayer money and lowers risk: Highlights failures of outsourcing, often leading to higher costs and diminished public sector capacity.
- Myth 5: Governments shouldn’t pick winners: Argues that strategic support for promising sectors is essential for innovation and growth.
How does Mission Economy redefine the relationship between public and private sectors?
- From Handouts to Co-Investment: Advocates for a shift to a model of co-investment where both sectors share risks and rewards.
- Public Purpose at the Core: Emphasizes that the relationship should focus on societal goals rather than purely commercial interests.
- Dynamic Partnerships: Calls for partnerships that adapt to changing circumstances and challenges, requiring ongoing dialogue and collaboration.
What role do citizens play in the missions outlined in Mission Economy?
- Engagement in Mission Design: Involving citizens ensures missions address real societal needs, fostering ownership and accountability.
- Collective Innovation: Citizen engagement can lead to innovative solutions that might not emerge from top-down approaches.
- Civic Excitement and Responsibility: Engaging citizens can create excitement around collective innovation, encouraging responsibility for societal challenges.
What are the challenges of implementing a mission-oriented approach according to Mission Economy?
- Complex Governance Structures: Requires new frameworks to manage complexity and uncertainty, fostering collaboration across sectors.
- Risk Aversion in Public Institutions: Highlights the tendency of public institutions to be risk-averse, which can stifle innovation.
- Avoiding Mission Capture: Risk of vested interests capturing missions for their own benefit, mitigated by diverse stakeholder engagement.
Review Summary
Mission Economy receives mixed reviews. Many praise Mazzucato's vision for reforming capitalism through mission-oriented government projects, citing the Apollo program as an example. Reviewers appreciate her call for more active state involvement in shaping markets and addressing societal challenges. However, some find the book repetitive and lacking in practical implementation details. Critics question the feasibility of her proposals in today's political climate. Overall, readers value the thought-provoking ideas but desire more concrete solutions to the economic issues Mazzucato identifies.
Similar Books
About the Author
Other books by Mariana Mazzucato
Download PDF
Download EPUB
.epub digital book format is ideal for reading ebooks on phones, tablets, and e-readers.