Free pdf Mission-Oriented Finance for Innovation: New Ideas For Investment-Led Growth –

The role of the state in modern capitalism has gone beyond fixing market failures Those regions and countries that have succeeded in achieving smart innovation led growth have benefited from long term visionary mission oriented policies from putting a man on the moon to tackling societal challenges such as climate change and the wellbeing of an ageing population This book collects the experience of different types of mission oriented public institutions around the world, together with thought provoking chapters from leading economists As the global debate on deficits and debt levels continues to roar, the book offers a challenge to the conventional narrative asking what kinds of visionary fiscal policies we need to help promote smart innovation led, inclusive, and sustainable growth In The Entrepreneurial State, Mariana Mazzucato demonstrated how, far from being a barrier to innovation, governments are often the reason innovation happens in the first place In one well aimed diagram she showed how, without government sponsored research, the iPhone simply would not exist.Mission oriented Finance for Innovation is a companion volume to that earlier work, comprising summaries of presentations to a conference on the subject held in 2014 Mostly the presenters were addressing the question of where the money comes from when governments engage in innovative research and development.The result, admittedly, is kind of patchy A few of the papers feel somewhat abstract, although possibly it s just that they re a bit wonkish, concentrating on the financing bit without really giving much of a clue as to how the finance has been used Vince Cable, then UK secretary of state for business, rails somewhat impotently against the constraints under which the then Tory dominated coalition in which he was serving was making him operate.In many places, though, the contributors cut straight to the issues Mazzucato herself, in the book s Conclusion, makes some excellent points regarding the perils of government non participation in innovation, including a severe loss of capabilities in ensuring that outcomes are optimised when much of the work is outsourced to third parties She also highlights the way in which those opposed to government intervention are selective in their case studies, for example preferring to relate only the failure of the US government s support for solar power company Solyndra whilst conveniently forgetting the successes from Tesla.Elsewhere, Randall Wray debunks the monetarist shibboleth of governments living within their means Carlota Perez shows how governments in the past have tilted the table towards specific goals such as canals, railways, highways and electricity networks and Iain Gray, formerly chief executive of Innovate UK, an organisation under Cable s purview, outlines some of the areas in which the organisation has been working and reveals that the return for them overall has been 9 for every pound input, not including the positive externalities.