"The entrepreneurial state and the risk-reward relationship" by Prof Mariana Mazzucato

Past Event

07 March 2014, 4:30pm - 6:00pm

Seminar Room, Oxford Martin School
34 Broad Street, (Corner of Catte and Holywell Street), Oxford, OX1 3BD

This seminar is hosted by The Institute for New Economic Thinking at the Oxford Martin School

Speaker: Professor Mariana Mazzucato, Reginald M. Phillips Professor in Economics of Innovation, SPRU, University of Sussex

Abstract: The talk will focus on the relationship between the State and the Market. I will argue that the State not only ‘fixes’ different problem/failures in the market (of which there are many) but also actively shapes and creates markets. It does so in the face of extreme risk and uncertainty. I will consider different implications (theoretical, empirical, and ‘political’) of the blindness of economics (as a discipline) to understanding the State as market maker and lead risk-taker in capitalist economies beyond the traditional ‘market failure’ framework. A key implication concerns the way in which risks have been socialised, while rewards privatised. The talk will consider concrete mechanisms to reform this dysfunctional relationship, building more ‘symbiotic’ eco-systems between the public and private sector, and achieving growth that is not only ‘smart’ but also ‘inclusive’.