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Mariana Mazzucato

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Mariana Mazzucato
Mazzucato in 2016
Born
Mariana Francesca Mazzucato

(1968-06-16) June 16, 1968 (age 56)
NationalityItalian; American
SpouseCarlo Cresto-Dina
Academic career
FieldEconomics
InstitutionUniversity of Sussex (SPRU), University College London
Alma materThe New School (PhD, 1999)
Tufts University (B.A., 1990)
InfluencesJoseph Schumpeter, John Maynard Keynes
Websitemarianamazzucato.com

Mariana Francesca Mazzucato (born June 16, 1968)[1] is an economist with dual Italian–US citizenship. She is Professor in the Economics of Innovation and Public Value at University College London and Founding Director of the UCL Institute for Innovation and Public Purpose (IIPP). She is best known for her work on dynamics of technological change, the role of the public sector in innovation, and the concept of value in economics.[2]

Mazzucato has published widely in the fields of innovation economics, value theory and political economy and is the author of numerous books, including: The Entrepreneurial State: Debunking Public vs. Private Sector Myths, The Value of Everything: Making and Taking in the Global Economy[3][4], Mission Economy: A Moonshot Guide to Changing Capitalism[5], and, forthcoming, a co-authored book on public sector outsourcing titled The Big Con(sultancy).

Her career has emphasised translating economic ideas into policy and she holds numerous high-level policy roles. Currently, she is Chair of the World Health Organization's Council on the Economics of Health for All[6], a member of the Scottish Government's Council of Economic Advisers[7], the South African President's Economic Advisory Council[8], and the United Nation's High-Level Advisory Board on Economic and Social Affairs[9].

The New Republic have called her one of "the three most important thinkers about innovation" [10] and she has been names as one of the 25 leaders shaping the future of capitalism by Wired[11] and one of the 50 most creative people in business in 2020 by Fast Company[12]. In 2021, in recognition of her contributions to economic theory and policy, Mazzucato received the Grande Ufficiale Ordine al Merito della Repubblica Italiana from the Italian President, Italy’s highest civilian honour[13].

Early life and education

Mazzucato was born in Rome, Italy to parents Ernesto Mazzucato, a physicist, and Alessandra Mazzucato[14], who are both Italian. In 1972, the family moved to Princeton, New Jersey, with their three young children, Valentina, Mariana and Jacopo, after Ernesto accepted a position at Princeton University's Plasma Physics Laboratory. Mazzucato spent most of her early life in the US before returning to Europe.[15]

In 1986, Mazzucato graduated from Princeton High School. In 1990, Mazzucato received a B.A. in history and international relations from Tufts University. In 1994, Mazzucato received a M.A. in economics from the New School for Social Research before earning her PhD in Economics at the New School in 1999[16]. Her dissertation was titled Four Essays on Evolutionary Market Share Dynamics: A Computational Approach. Her thesis advisors were Willi Semmler, Lance Taylor, Duncan K. Foley, and Charles Tilly[17].

Career

Academic

From 1995 to 1997, Mazzucato was an adjunct professor of economics at New York University. She taught at the University of Denver between 1997 and 1999.[18] Between 1998 and 1999 she was a post-doctoral Marie Curie Research Fellow at the London Business School where she worked closely with Paul Geroski.[19][20][21]

She joined The Open University in 1999 as a lecturer, and became a full professor in 2005. She founded their Innovation, Knowledge and Development research centre.[18][22] From 2008 to 2010 she was a visiting professor at Bocconi University.[18] In 2014, she was a distinguished visiting professor at the University of Technology Sydney.[23] Between 2011 and 2017, she was the RM Phillips Chair in the Economics of Innovation at the University of Sussex before moving to University College London in 2017 to become Professor in the Economics of Innovation and Public Value and found their Institute for Innovation and Public Purpose (IIPP)[24].

Economic advisory

Mazzucato has been very active as an expert advisor on innovation and growth policies[1]. Numerous national governments have leveraged Mazzucato's expertise in innovation policy and how societal value is created. Between 2015 and 2019, she was a member of the international advisory panel of Sitra, the Finnish Innovation Fund. In 2018, she was co-chair of the Commission for Mission Oriented Innovation and Industrial Strategy informing the Government of the United Kingdom's Industrial Strategy. In 2019, South African President Cyril Ramaphosa appointed Mazzucato to be a member of his Economic Advisory Council, a position where she remains active in providing recommendations for building sustainable and inclusive development[25]. Since 2020, she has been a member of the Innovation Expert Group at the United Kingdom Department of Business, Energy and Industrial Strategy and a member international advisory panel of Vinnova, Sweden's innovation agency. In 2020, Italian Prime Minister Giuseppe Conte appointed Mazzucato as a Special Advisor on economic policy and made her Italy’s representative economist on the G7 Panel on Economic Resilience which advised the G7 leaders at the 2021 G7 Summit in Cornwall, UK[26]. Between 2015 and 2016, she served on the British Labour Party's Economic Advisory Committee providing advice to the Shadow Cabinet[27].

Mazzucato has been a key economic advisor to international institutions, including the World Economic Forum, the European Commission, the World Health Organization, the OECD, and the United Nations Department of Economic and Social Affairs[28][29][30][31]. She was a member of the European Commission’s Task Force on Public Sector Innovation and their expert group on Innovation for Growth (RISE)[32]. From 2018-2019, she was Special Advisor to the European Commission's Commissioner for Research, Science and Innovation, Carlos Moedas[33]. In 2020, Tedros Adhanom Ghebreyesus, the Director-General of the World Health Organization, appointed Mazzucato as Chair of the World Health Organization's Council on the Economics of Health for All[34]. Currently, she also serves on the United Nation's High-Level Advisory Board on Economic and Social Affairs[35], the United Nation's Sustainable Development Solutions Network Leadership Council[36], and the United Nation's Committee for Development Policy[37]. In 2016, Mazzucato became the first woman to give the Raúl Prebisch Lecture organised by the United Nations Economic Commission for Latin America and the Caribbean in Santiago, Chile[38].

Mazzucato in 2010

Mazzucato has authored a number of influential policy reports, including Mission-Oriented Research & Innovation in the European Union[39], which directly informed the EU's Horizon Europe research and innovation programme, and a report in 2016 commissioned by the Brazilian Government's Ministry for Science, Technology & Innovation on Brazil's innovation policy[40][41].

Mazzucato has recently worked with city and regional governments on the tools they can use to encourage growth oriented towards solving societal challenges. She is currently a member of the Council of Economic Advisors to the Scottish Government, a role she has held since 2015[42]. She worked closely with the Scottish Government and First Minister in establishing the Scottish National Investment Bank in 2018. Between 2018 and 2020, she was a Member on the Greater Manchester Independent Prosperity Review panel. Since 2020, she has been Co-chair of the Camden Council Renewal Commission and economic advisor to the regional governments of Emilia-Romagna and Biscay.

Research

Innovation

Mazzucato's research has addressed the relationship between innovation, government policy, financial markets and economic growth, spanning the company, industry and national level[43]. Much of her work has been inspired by the Schumpeterian framework of evolutionary economics. Her early research was on the origin and evolution of persistent differences between firms and the implications of this for industry life-cycles and differences in sector structure[19][21][44][45]. Her empirical studies have focused on the automobile, PC, biotech and pharma industries.

A major area of contribution has been the interaction between financial markets in technological change addressing both the positive and negative influences of financial actors on innovation[46]. Earlier work had found that stock price volatility tends to be highest, at the firm and industry level, when technological innovation is the most radical[47][48][49]. From 2009-2012, she was the Director of the FINNOV: Finance, Innovation & Growth research project, funded by the European Commission[50]. Recent research of Mazzucato has highlighted the heterogeneity in the type of corporate finance offered by different institutional actors and the failure of private actors to provide sufficient "patient finance" that takes long term risk in areas such as renewable energy[51].

In 2013, Mazzucato published her most famous work, The Entrepreneurial State[52]. The book pointed to the key role that government actors has played in driving radical innovations in their early stages, especially in the US. It outlined a number of case studies across different sectors - including biotech, pharmaceuticals and clean technology - to show that the high-risk investments have been made by the state before the private sector gets involved. In a well known chapter examining the iPhone, she outlines how the technologies that make it ‘smart’ – the internet, GPS, its touchscreen display and the voice-activated Siri – were all government-funded[53][54]. She argues in the book that public funs are laying the groundwork for the green revolution in a similar way to biotech and nanotech[55].

Value creation and market shaping

The Entrepreneurial State began an engagement by Mazzucato with challenging the image of the state as a static bureaucratic organisation only needed to ‘fix’ market failures, leaving dynamic entrepreneurship and innovation to the private sector, and later work has built on the conclusion of the book that the socialisation of risks for radical innovation requires rethinking how the rewards are privatised with the aim of producing more inclusive growth[56]. In a joint 2013 article with William Lazonick, The Risk-Reward Nexus: Who takes the risks? Who gets the rewards?, she further described the tension between how value is created and how value is extracted in modern-day capitalism, producing a narrowing distribution of the rewards[57].

In 2018, Mazzucato published a second highly successful book, The Value of Everything: making and taking in the global economy, which addressed the fundamental concept of value in economic theory. It traced the long and diverse history of theories of economic value and argued against the circular reasoning that emerged with Neoclassical economics where financial reward was seen as commensurate with creating real value[58]. The book argues that some private companies act as rent-seekers rather than creating value themselves, and that current legislation encourages that type of behaviour.

Mazzucato has developed her critique of market failure theory and argued for a concept that better captures the value that the state can create[59][60].[61]. This has led her to propose the state's role in the economy as one of creating and shaping new markets, especially in a "mission-oriented" way that addressed key societal challenges[62].

Reception

Mazzucato's work has made a prominent contribution to the public discourse where it has generally been well received. The Entrepreneurial State led to a wider acceptance of the importance of public policy in innovation and the failings of a laissez-faire set of policy prescriptions for growth, despite pushback from more right-wing commentators[54][63]. Martin Wolf wrote in the Financial Times that The Entrepreneurial State offers "a controversial thesis" but which "is basically right" and warns that the "failure to recognise the role of the government in driving innovation may well be the greatest threat to rising prosperity"[64]. The Economist also praised Mazzucato for highlighting the state's "central role in producing game-changing breakthroughs" and "contribution to the success of technology-based businesses", although it argued that in general she was "too hard on business"[65]. The book was listed in the Financial Times Selection of Books of the Year in 2013[66] and won her the New Statesman/SPERI Prize in Political Economy in 2014.[67]. A German translation (Das Kapital des Staates) was also shortlisted for the "German Business Book Prize" in 2014 (“Deutscher Wirtschaftsbuchpreis”)[68] and won the 2016 Hans-Matthöfer book prize by the Friedrich Ebert Foundation, associated with the Social Democratic Party of Germany[69][70].

The Value of Everything was also well received by reviewers and was shortlisted for that the 2018 Financial Times and McKinsey Business Book of the Year prize.[71]. The book was read by Pope Francis who commented "I believe [her vision] can help to think about the future"[72].

Jayati Ghosh, writing for Nature, wrote that Mission Economy is a "timely and optimistic vision" of solving major problems through directed private and public investment. She argued that Mazzucato's arguments seem simple and obvious, but are in fact revolutionary, implying a new role for governments.[61]

John Kay wrote in the Financial Times that Mission Economy's proposals would lead to powerful governments driving and co-ordinated every stage of innovation to solve issues from cancer to climate change. Kay argues that such projects tend to be failures, because political direction of innovation would have led to absence of objective feedback, whereas efficient progress tends to require very competitive markets with incremental innovation and power decentralized to individual entrepreneurs with their independent visions.[73]

Personal life

Mazzucato is married to Carlo Cresto-Dina, an Italian film producer, and they have four children.[15]

Media

In 2012, Mazzucato did a TED talk on her book, "The Entrepreneurial State."[74] In 2013, Mazzucato did a TED talk on the role of government in innovation, titled "Government - investor, risk-taker, innovator."[75] In 2020, Mazzucato did a TED talk on economic value, titled "What is economic value, and who creates it?"[76] In 2020, Mazzucato did a TED talk on how to improve capitalism, titled "The COVID-19 crisis is a chance to do capitalism differently."[77] In 2021, Mazzucato discussed her book "Mission Economy: A Moonshot Guide to Changing Capitalism" on Talks at Google.[78]

Awards and nominations

She was awarded a Doctor Honoris Causa by Argentine National University of San Martín.[citation needed] She was also awarded an honorary doctorate by Belgian Hasselt University in 2017.[79] The Simon Fraser University awarded her an honorary degree in 2020.[80]

In 2018, her research focused on how governments foster innovation won her the Leontief Prize for Advancing the Frontiers of Economic Thought.[81]

In 2019, she was awarded the All European Academies Madame de Staël Prize for Cultural Values, honoring her contributions for analyzing the governments' roles in fostering innovation.[82][83] A year later, she received the John von Neumann Award.[84]

In 2020, she was awarded the John von Neumann Award, which is given annually by Rajk College to a social sciences scholar whose works have had substantial influence over a long period of time on the studies and intellectual activity of the students of the college[85].

In 2021, she received the Grande Ufficiale Ordine al Merito della Repubblica Italiana, the highest civilian honor of the Italian government.[13]

Selected works and publications

Works

  • Mazzucato, Mariana; Dosi, Giovanni, eds. (2006). Knowledge Accumulation and Industry Evolution: The Case of Pharma-Biotech. Cambridge University Press. doi:10.1017/CBO9780511493232. ISBN 9780511493232. OCLC 938986701.
  • Mazzucato, Mariana (2013). The Entrepreneurial State: Debunking Public vs. Private Myths in Risk and Innovation (PDF). London: Anthem Press. ISBN 978-0-857-28260-6. OCLC 880908782. Wikidata ()
  • Jacobs, Michael; Mazzucato, Mariana, eds. (2016). Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth. London: Wiley-Blackwell. ISBN 978-1-119-31163-8. OCLC 954000776.
  • Mazzucato, Mariana (2018). The Value of Everything: Makers and Takers in the Global Economy. London: Allen Lane-Penguin. ISBN 978-0-241-18882-8. OCLC 1049151753.
  • Mazzucato, Mariana (2021). Mission Economy: A Moonshot Guide to Changing Capitalism. London: Allen Lane-Penguin. ISBN 978-0-241-41973-1. OCLC 1222804339.

Selected publications

See also

References

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  3. ^ Mazzucato, Mariana (2018). The Value of Everything. London: Penguin. ISBN 9780141980768. Retrieved May 21, 2022.
  4. ^ Wolf, Martin (April 24, 2018). "Who creates a nation's economic value?". Financial Times. Retrieved May 21, 2022.
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  17. ^ Mazzucato, Mariana Francesca (February 1998). Four Essays on Evolutionary Market Share Dynamics: A Computational Approach (Ph.D.). New School for Social Research. OCLC 55114214. ProQuest 304514825
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  45. ^ Mazzucato, Mariana. "The PC Industry: New Economy or Early Life-Cycle?". Elsevier. Review of Economic Dynamics.
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  47. ^ Mazzucato, Mariana; Tancioni, Massimiliano (May 26, 2008). "Innovation and idiosyncratic risk: an industry- and firm-level analysis". Industrial and Corporate Change. 17 (4): 779–811. doi:10.1093/icc/dtn024 – via oro.open.ac.uk.
  48. ^ Mazzucato, Mariana (December 26, 2003). "Risk, variety and volatility: growth, innovation and stock prices in early industry evolution". Journal of Evolutionary Economics. 13 (5): 491–512. doi:10.1007/s00191-003-0167-7 – via oro.open.ac.uk.
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  50. ^ "FINNOV: Finance, Innovation & Growth". Open University. Open University. Retrieved May 23, 2022.
  51. ^ Mazzucato, Mariana; Semieniuk, Gregor (2018). "Financing renewable energy: Who is financing what and why it matters". Technological Forecasting and Social Change. 127: 8–22. doi:10.1016/j.techfore.2017.05.021.
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