February 27, 2014 | Contribution by
MARIANA MAZZUCATO Mariana Mazzucato is a Professor in Economics of Innovation, SPRU at Sussex University.
GPS satellite visibility comparison. Photo credit: Flickr @ Ken (http://www.flickr.com/photos/81664624@N00/)
What role should governments play in securing not only "smart" growth — which reflects innovation-led growth — but also "inclusive" growth? To learn more, the JKP recently spoke with Mariana Mazzucato, the R.M. Phillips Professor in the Economics of Innovation, SPRU, University of Sussex — one of the speakers at the World Bank's recent conference on Making Growth Happen: Implementing Policies for Competitive Industries.
In Part 2 of this series, she argues that governments need to recoup rewards for taking risks. How can this occur? Mazzucato says that either we overhaul the tax system, which is politically unlikely, or we think about more direct means, such as income-contingent loans for companies. Governments could also start retaining a golden share of the intellectual property rights, which currently it mainly just gives away. In Finland, Sitra, a public funding agency, provided the early stage funding for Nokia, and later reaped a significant return on its investment, enabling it to add something back to fund the next round.
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