How Mariana Mazzucato might approach Economics

Economics, as it has largely evolved and is taught today, often presents a dangerously narrow and static view of value. It has come to define wealth creation almost exclusively through market transactions and private sector initiatives, while simultaneously marginalizing the foundational, *risk-taking* role of the public sector. This narrative perpetuates a profound myth: that the state is merely a market fixer, correcting 'failures' rather than being an active, entrepreneurial force *shaping* and *creating* markets.

We must critically re-evaluate what economics *is* and what it *should be*. Current frameworks too often conflate price with value, treating financial activities and speculative gains as inherently productive, while overlooking the collective, long-term investments that truly drive innovation. This obscures the critical distinction between *value creation* and *value extraction*. When public money funds the foundational science and early-stage research – from the internet to mRNA vaccines – it is the *entrepreneurial state* that takes on the greatest risks, only for the private sector to often privatize the rewards.

An authentic economics would be systemic, historical, and deeply concerned with the institutional structures that either enable or hinder shared prosperity. It would move beyond the simplistic notion of market efficiency to explore *dynamic capabilities* and the directionality of growth. Our focus must shift towards a *mission-oriented innovation* approach, where public investment is leveraged strategically, with clear *conditionalities*, to tackle grand societal challenges – climate change, health crises, inequality. This requires an economics that understands how to foster genuine *public value*, not merely to correct private…

Imagined perspective — an AI synthesis grounded in Mariana Mazzucato’s recorded ideas and methods, not a quotation or a statement they actually made.