Mariana Mazzucato has become one of the most influential voices in innovation policy in recent years. Her work has shown that innovation is not just a technical issue, but also a social and political one. Through her book Mission Economy: A Moonshot Guide to Changing Capitalism and through her advice to governments and international organizations, she challenges old notions about the roles of the state and the market.
Systems innovation, according to Mazzucato, is about changing the playing field itself rather than just adjusting the rules.
A clear vision that drives collaboration
One of Mazzucato’s most central examples is NASA’s lunar mission. Setting foot on the moon was an enormous goal that no single actor could have achieved. The vision brought together public institutions, companies, researchers and entrepreneurs in a joint effort. This lesson can be translated into today’s societal challenges. Achieving climate neutrality, creating better health systems or developing groundbreaking technology requires goals that are so clear and inspiring that they mobilize the entire ecosystem.
From market fixer to market creator
Traditionally, the state has been seen as a guarantor of correcting market failures. Mazzucato reverses the perspective and argues that the state must instead become an active creator of markets. This means that the state should not only react to problems, but actively shape the direction of innovation and investment. When the public sector takes a leading role, it can open up new opportunities that the private sector can build on. A clear example is the investments that formed the basis of the digital revolution, where the internet and GPS were originally developed through public investments.
Mission-based policy as a compass
Mazzucato advocates mission-based policy, where large societal goals act as a compass for innovation. Instead of spreading resources across many small projects, actors gather around common directions. The EU’s Green Deal is an example of how this logic can be applied. Here, sustainability is defined not as an isolated issue but as a driving force for economic development, social justice and technological innovation. Mission-based work is inherently cross-sectoral and requires disciplines, industries and political levels to cross-fertilise.
Partnerships where risk and reward are shared
A recurring criticism from Mazzucato is that private companies often benefit from public investments, but that the profits are rarely shared back to society. For systems innovation to work, partnerships between government and business must be symbiotic. This means that both risks and rewards are shared. When public funds are used to develop groundbreaking innovations, the returns should eventually be reinvested in the common good. This creates not only legitimacy but also a more sustainable economic dynamic.
Reshaping capitalism for sustainability
Mazzucato’s work is fundamentally about changing the logic of capitalism. She believes that today’s system often rewards short-term returns over long-term societal values. By setting common goals for sustainability, social inclusion and technological breakthroughs, we can build an economy that is both innovative and fair. The UN’s Global Goals serve as an important frame of reference here. System innovation means not just inventing new solutions, but changing the institutions and norms that govern how we produce, consume and collaborate.
Lessons learned
What we can learn from Mariana Mazzucato is that system innovation does not happen by itself. It requires visions that engage, political decisions that dare to shape markets and partnerships that are based on mutual responsibility. If we continue to see the state as a passive actor, we risk missing the opportunities that can lead us to the next great societal breakthrough. It is only when we accept that capitalism must change, and that innovation must be driven by common goals rather than quick wins, that we can build robust and long-term sustainable systems.
How can you change the playing field instead of just the rules?
