Introduction
In 1969, humanity achieved the unthinkable - we put a man on the moon. This extraordinary feat wasn't just a triumph of science and engineering, but a testament to what can be accomplished when a society unites behind an ambitious, shared goal. In her book "Mission Economy," economist Mariana Mazzucato argues that we need to recapture this "moonshot" mentality to address the urgent challenges facing our world today.
Mazzucato contends that our current economic system is failing us. Despite unprecedented technological advances and wealth creation, we're struggling to solve pressing issues like climate change, inequality, and healthcare access. The COVID-19 pandemic has further exposed the fragility of our economies and institutions.
The author's central thesis is that we need to fundamentally reimagine the role of government, business, and civil society in tackling big problems. Rather than viewing government as a passive fixer of market failures, Mazzucato envisions a more active, entrepreneurial state that sets ambitious missions and catalyzes innovation across sectors. She draws inspiration from the Apollo space program to show how mission-oriented thinking can drive transformative change.
This book offers a bold vision for reforming capitalism and harnessing its creative power for the common good. Let's explore the key ideas Mazzucato presents for how we can change our economic thinking and create a more prosperous, sustainable, and equitable future.
The Need for a New Approach
Our Current System is Broken
Mazzucato argues that the dominant economic paradigm of the past few decades has created serious problems:
The financial sector has become disconnected from the real economy, focused on extracting value rather than creating it. In the UK, 90% of bank loans go to real estate and financial assets rather than productive investments.
Many businesses have become overly financialized, prioritizing short-term shareholder returns over long-term value creation, innovation, and fair treatment of workers.
Governments have taken an overly passive role, reluctant to make bold interventions or investments. They're expected to act like businesses, outsourcing more functions to the private sector.
Widening inequality, climate change, and other systemic issues are not being adequately addressed.
The COVID-19 crisis exposed and exacerbated many of these underlying problems. But it also showed that when faced with an urgent threat, governments can mobilize massive resources and take decisive action. This "whatever it takes" approach demonstrated the potential for more ambitious government leadership.
We Need Moonshot Thinking
To tackle our biggest challenges, Mazzucato says we need to adopt the kind of mission-oriented, moonshot thinking that drove the Apollo program in the 1960s. Some key aspects of this approach:
- Set an ambitious, concrete goal that captures the public imagination
- Commit to "whatever it takes" to achieve the mission, rather than being constrained by predetermined budgets
- Encourage experimentation, risk-taking, and innovation
- Foster collaboration across sectors and disciplines
- Focus on the mission itself rather than just financial returns
The Apollo program wasn't just about reaching the moon - it spurred countless technological breakthroughs and spinoff innovations that benefited society, from software advances to new materials. By taking on big challenges, we can drive progress in unexpected ways.
Rethinking Government's Role
A key part of Mazzucato's vision is reimagining government as an entrepreneurial force that actively shapes markets and drives innovation, rather than just fixing market failures. She challenges several common assumptions:
The idea that only the private sector takes risks and drives innovation. In reality, government funding and research have been crucial to many breakthrough technologies.
The notion that government should be run like a business, focused primarily on efficiency and cost-cutting. This leads to harmful outsourcing and undermines public sector capabilities.
The belief that government spending must be offset by cuts elsewhere, like a household budget. In reality, government investment can spur growth and pay for itself.
Instead, Mazzucato argues for a more confident, capable state that sets directions for innovation and growth. This doesn't mean heavy-handed central planning, but rather government working dynamically with business and civil society to tackle big challenges.
Learning from the Apollo Mission
A Model for Ambitious Government Action
The Apollo program offers powerful lessons in how government can drive transformative change:
Clear, Inspiring Goal: President Kennedy's declaration that America would put a man on the moon by the end of the 1960s provided a concrete, galvanizing mission.
Outcomes-Based Approach: NASA was given the resources needed to succeed, rather than being constrained by a fixed budget. The focus was on achieving the mission, not minimizing costs.
Fostering Innovation: NASA encouraged experimentation and multiple approaches to solving problems. This created an exciting, dynamic environment that attracted top talent.
Cross-Sector Collaboration: While led by government, Apollo involved extensive partnerships with private companies and universities. Contracts went to the most capable partners, not just the cheapest bidders.
Spillover Benefits: The mission drove advances in countless fields, from computing to materials science. These innovations had wide-ranging benefits for the broader economy and society.
Organizational Lessons
NASA's organizational approach also offers valuable insights:
Systems Thinking: NASA used systems engineering principles to manage complex, interdependent projects. This encouraged holistic problem-solving and cross-disciplinary collaboration.
Flat Hierarchies: Decision-making was pushed down to lower levels, empowering teams and speeding up innovation.
Learning Culture: Failures and setbacks were seen as opportunities to learn and improve, not reasons to abandon the mission.
Attracting Talent: The exciting, purpose-driven nature of the work helped NASA recruit top scientists and engineers.
Public Engagement and Inspiration
Beyond its technical achievements, Apollo captivated the public imagination:
National Pride: The mission became a source of collective pride and achievement for the American people.
Educational Impact: Apollo inspired a generation of children to pursue careers in science and engineering.
Global Inspiration: The moon landing was a "giant leap for mankind," showcasing human potential and fostering a sense of global unity.
This level of public engagement and inspiration is crucial for the kind of societal mobilization needed to tackle today's grand challenges.
Missions for Today's World
Defining Modern Missions
While putting a person on the moon was a clear, concrete goal, today's challenges often require more complex, multifaceted missions. Mazzucato suggests using the UN's Sustainable Development Goals as a starting point for defining missions. Some potential examples:
- Creating plastic-free oceans
- Developing 100 carbon-neutral cities by 2030
- Ensuring access to quality healthcare for all
Effective missions should be:
- Inspiring and ambitious, yet achievable
- Targeted and measurable
- Cross-sectoral, spurring innovation across multiple industries and disciplines
- Exploratory, allowing for multiple solutions and approaches
Example: Plastic-Free Oceans
Mazzucato explores how a mission to eliminate plastic from the oceans could work:
Cross-Sector Collaboration: Would involve chemical industry, biotechnology, waste management, marine biology, and more.
Multiple Projects: Developing biodegradable alternatives to plastic, improving waste management systems, researching how microplastics affect marine ecosystems, etc.
Innovation Opportunities: Could spur advances in materials science, recycling technologies, ocean cleanup methods, and more.
Policy Changes: Might require new regulations on plastic production and disposal, as well as incentives for alternatives.
Public Engagement: Would need to change consumer behaviors and build support for necessary policies.
This illustrates how a mission-oriented approach can align different actors and drive progress on complex challenges.
Green New Deal as a Mission
Mazzucato points to proposals like the Green New Deal in the US and the European Green Deal as examples of the kind of ambitious, mission-oriented thinking needed today. These initiatives aim to tackle climate change while also addressing economic inequality and spurring innovation.
Key aspects of these proposals align with mission thinking:
- Bold, Inspiring Goals: Like making Europe carbon-neutral by 2050
- Cross-Sector Approach: Involving energy, transportation, agriculture, and more
- Job Creation: Emphasizing the economic opportunities in green industries
- Just Transition: Ensuring the shift to a green economy is equitable and inclusive
However, Mazzucato notes that modern missions need to be more participatory than Apollo, actively involving citizens in shaping goals and implementation.
Transforming the Political Economy
Rethinking Value and Growth
A mission-oriented approach requires us to reconsider how we think about economic value and growth:
Beyond GDP: We need broader measures of progress that account for environmental and social factors, not just economic output.
Quality of Growth: It's not just about how fast the economy grows, but in what direction. Growth should be sustainable and inclusive.
Public Value: We must recognize the value created by public institutions and investments, not just private sector activity.
Stakeholder Value: Businesses should prioritize creating value for all stakeholders (workers, communities, environment) not just shareholders.
Active Government Leadership
Mazzucato calls for a more entrepreneurial, capable state that:
Sets Directions: Actively shapes markets and innovation trajectories towards societal goals, rather than just fixing market failures.
Takes Risks: Is willing to make bold investments in new technologies and approaches, sharing both risks and rewards.
Builds Capabilities: Develops internal expertise and capacity rather than over-relying on outsourcing.
Partners Effectively: Works dynamically with business and civil society, but maintains a strong bargaining position.
Reforming Public Finance
Our approach to government finance also needs to change:
Beyond the Household Analogy: Recognize that government budgets are fundamentally different from household finances. Government spending can drive growth and pay for itself.
Mission Budgeting: Allocate resources based on problems to be solved, not arbitrary spending limits.
Patient Finance: Provide long-term, committed funding for innovation and infrastructure, not just short-term fixes.
Public Return on Investment: Ensure the public captures a fair share of the value from government-funded innovations.
Inclusive and Participatory Approach
For missions to succeed, they must be inclusive and democratically shaped:
Citizen Engagement: Involve the public in setting mission priorities and designing solutions.
Just Transition: Ensure the benefits of change are widely shared and negatively impacted communities are supported.
Pre-distribution: Address inequality by changing how rewards are initially distributed, not just redistributing after the fact.
Democratic Governance: Increase stakeholder representation in corporate governance and policymaking.
Putting It All Together: A New Economic Model
Mazzucato's vision amounts to a fundamental reimagining of how our economy works. Key elements of this new model include:
Purpose-Driven Markets
Rather than seeing markets as neutral or inherently efficient, we should actively shape them to serve societal goals. This means:
- Using policy tools (regulations, taxes, investments) to steer markets towards solving big problems
- Encouraging businesses to prioritize purpose alongside profit
- Measuring success based on concrete outcomes, not just financial metrics
Dynamic Public-Private Collaboration
Instead of a rigid division between public and private sectors, we need:
- Fluid partnerships where government, business, and civil society work together on missions
- Public institutions that are entrepreneurial and willing to take calculated risks
- Private companies that recognize their reliance on public investments and contribute to the common good
Innovation for Public Benefit
Our approach to innovation should prioritize solving societal challenges:
- Direct research funding and incentives towards mission-critical areas
- Ensure public investments in R&D lead to accessible, affordable solutions
- Foster open innovation and knowledge-sharing rather than overly restrictive intellectual property regimes
Stakeholder Capitalism
Moving beyond shareholder primacy to a model where:
- Companies balance the needs of all stakeholders - workers, communities, environment, etc.
- Long-term value creation is prioritized over short-term profits
- Business success is measured by contribution to societal goals, not just financial returns
Participatory Governance
Deepening democracy and citizen engagement through:
- Involving diverse voices in setting missions and designing solutions
- Increasing transparency and accountability in both public and private institutions
- Empowering workers and communities in corporate decision-making
Sustainable and Inclusive Growth
Reorienting our economy to deliver:
- Growth that respects planetary boundaries and regenerates natural systems
- Broadly shared prosperity with reduced inequality
- Meaningful work and improved quality of life for all
Conclusion: Our Collective Mission
Mariana Mazzucato's "Mission Economy" offers a bold vision for transforming capitalism to meet the urgent challenges of our time. By learning from the moonshot thinking that put astronauts on the lunar surface, she argues we can mobilize our collective capabilities to create a more innovative, sustainable, and equitable world.
The author's call for mission-oriented policies represents a profound shift in how we think about the relationship between government, business, and society. It challenges us to move beyond the false dichotomy of state vs. market, and instead imagine a dynamic system where public and private actors collaborate to solve big problems.
Mazzucato's ideas are ambitious, and implementing them would require overcoming significant political and ideological obstacles. Critics may argue her vision gives too much power to government or underestimates the efficiency of free markets. However, given the scale of challenges like climate change and inequality, bold new approaches are desperately needed.
The COVID-19 pandemic has shown both the fragility of our current systems and the potential for rapid, coordinated action when the stakes are high. As we emerge from this crisis, we have an opportunity - and an obligation - to build back better. By embracing mission-oriented thinking, we can harness the creative power of inclusive, purpose-driven capitalism to create the future we want and need.
Ultimately, Mazzucato's book is a call to action - for policymakers, business leaders, and citizens alike. It reminds us that the greatest achievements in human history have come when we unite behind a common purpose. Today, our mission is nothing less than creating an economy that works for people and planet. It's time we accept that challenge with the same boldness and determination that once took us to the moon.