Mariana Mazzucato: We Must Reimagine Governments as Creative Agents

Summary

The transcript explores the need for a transformative approach to public value creation and innovation, urging collaboration across public, private, and third sectors. It highlights the importance of risk-taking, bottom-up solutions, and unlocking massive capital reserves to drive initiatives like sustainable cities and environmental protection. The speaker emphasizes reshaping the narrative around government and innovation, advocating for new ways of measuring public value and investing in bold, ambitious projects. The talk underscores that true progress requires changing traditional models and embracing experimentation to expand opportunities for societal impact.

Takeaways

• 😀 Collaboration between public, private, and third sectors is key to unlocking the full potential of innovation.
• 😀 The success of addressing major global challenges depends on bottom-up experimentation and top-down institutional support.
• 😀 Innovation funding, such as the Horizon program, should be applied concretely to challenges like climate change and clean oceans.
• 😀 There is over $5 trillion in hoarded capital worldwide, which could be redirected to sustainable investments instead of used for corporate stock buybacks.
• 😀 Governments need to embrace risk-taking and experimentation to drive innovation, shifting away from overly cautious, traditional methods of evaluating public investment.
• 😀 Success in innovation should be measured by the willingness to take risks and the impact of those risks, not just by efficiency metrics like net present value.
• 😀 The bureaucratic approach to public value must evolve to encourage co-investment and shared risks and rewards across sectors.
• 😀 Changing the narrative around innovation requires overcoming ingrained stereotypes of 'tech geniuses' versus 'boring bureaucrats'.
• 😀 Public institutions should shift focus from static regulations to dynamic frameworks that support new, collaborative ways of solving societal problems.
• 😀 There is a growing thirst for new ideas and a more optimistic view of the opportunities for investment and collaboration in addressing global challenges.

Q & A

What is the key focus of the speaker's discussion regarding innovation?

The speaker focuses on the need for collaboration between public, private, and third sectors to tackle large-scale challenges. They emphasize a bottom-up approach, where experimentation and willingness to fail are crucial for driving innovation.

How does the speaker view the role of public-private collaborations in innovation?

The speaker views public-private collaborations as essential to unlocking the full potential of innovation. They argue that these partnerships, when nurtured, can address significant issues like climate change, clean oceans, and sustainable cities.

What was the Horizon program mentioned in the speech?

The Horizon program is a European Union funding initiative worth 100 billion euros, aimed at fostering innovation across sectors. The speaker suggests using this funding for concrete goals like climate change solutions, sustainable cities, and clean oceans.

What is the significance of the 'bottom-up' approach discussed by the speaker?

The 'bottom-up' approach is important because it allows for experimentation and innovation at the grassroots level. The speaker stresses that top-down approaches are less effective, as they often lack the flexibility and creativity needed to address complex global challenges.

How does the speaker suggest governments should change their approach to innovation?

Governments should embrace a more experimental mindset and be willing to take risks. The speaker suggests that public servants need training that allows them to think outside the box, focusing on long-term impact rather than traditional cost-benefit analysis.

What does the speaker mean by 'measuring success by how much risk we were willing to take'?

The speaker is advocating for a shift in how the success of public programs is measured. Rather than just focusing on financial outcomes, they suggest evaluating success based on the willingness to take risks and experiment, which can lead to greater innovation.

How does the speaker address the issue of entrenched narratives about government and innovation?

The speaker points out that traditional narratives often pit innovative figures like Zuckerberg against bureaucratic government workers. They argue that this narrative needs to be changed to recognize that innovation can come from both public and private sectors working together.

What is the criticism of the 'Green Book' discussed by the speaker?

The speaker criticizes the 'Green Book,' which is used by the UK government to evaluate public investments, for its rigid cost-benefit analysis approach. They argue that such methods hinder ambitious projects and fail to consider the long-term value and risks of innovation.

What role does public value play in the speaker's vision for innovation?

Public value is central to the speaker's vision. They believe that government investments should be evaluated not just in terms of financial returns but also in terms of the broader societal impact, which can be expanded by new forms of collaboration and risk-sharing.

How does the speaker conclude their message on innovation and government action?

The speaker concludes by urging a shift in the way we think about government action and innovation. They highlight the importance of collaboration, embracing risk, and rethinking public value to create opportunities for investment and global collaboration, ultimately encouraging optimism in the face of large challenges.