Patient Finance and Public Banking

IIPP research explores new forms of public banks, finance and governance to promote sustainable investment, working with public sector financial institutions and governments.

About

Tackling today's societal challenges, from Covid-19 recovery and climate change to improving public health and adjusting to demographic changes, requires steering investments and innovation towards achieving concrete public purpose goals. This needs not just any type of finance but patient, long-term, and transformative public finance. It also demands strategic design and coordination of public policies and capable financial bureaucracies to steer finance towards meeting policy goals.

IIPP is working closely with public banks, multilaterals, investment funds, central banks, sovereign wealth funds and public financial authorities from around the world to transform their activities based on new theoretical and evidence-based insights into public purpose, financing of innovation and mission-oriented finance. IIPP has advised on the establishment of Scottish Investment Bank and published a number of policy reports exploring mission-oriented finance with case studies from various public financial institutions.

IIPP’s work on patient finance, public banking and governance looks at how diverse types of public financial institutions – from municipal to multilateral public banks – are helping to overcome economic, social, technological and ecological challenges; how different design features of public financial institutions affect their ability to operate successfully; where the multiple opportunities for new forms of public finance for public purpose exist around the world; what form financing policies can take and how these new policies and institutions affect and transform financial governance ‘toolbox’.

Policy implications

Projects

Central banks and sustainability

European Investment Bank

Priming Public Financial Institutions for Green Innovation (PUFFIN)

Scottish_Investment_Bank_Research Scottish National Investment Bank

Development Finance Institutions in Europe (DeFInE)

The Green Giant: New Industrial Strategy for Norway

Publications

Journal articles

Marois, T. (2021) A Dynamic Theory of Public Banks (and Why it Matters). Review of Political Economy. Online March 2021. (working paper version)
Mikheeva, O. (2021) Financial governance of strategic investments: development banks and state-led investment function. Innovation and Development, special issue Financing Innovation for Development in the Global South, forthcoming.
McDonald, David A and Marois, T. and Spronk, S. (2021) 'Public Banks + Public Water = SDG 6?'. Water Alternatives, (14) 1, pp 117-134.
Deleidi, M., Mazzucato, M., & Semieniuk, G. (2020). “Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects”. Energy Policy, 111195. https://doi.org/10.1016/j.enpol.2019.111195 (working paper version)
Laplane, A. and Mazzucato, M. (2020), “Socializing the risks and rewards of public investments: Economic, policy, and legal issues.” Research Policy. https://doi.org/10.1016/j.repolx.2020.100008
Lamperti, F., Mazzucato, M., Roventini, A., & Semieniuk, G. (2019). “The green transition: public policy, finance and the role of the State”. Vierteljahrshefte zur Wirtschaftsforschung/Quarterly Journal of Economic Research, 88(2), 73-88. https://doi.org/10.3790/vjh.88.2.73
Ho, S. and Marois, T. (2019) 'China’s Asset Management Companies as State Spatial–Temporal Strategy'. The China Quarterly, 239: 728-751. https://doi.org/10.1017/S0305741019000018
Mikheeva, O. and Tõnurist, P. (2019). 'Co-Creation for the Reduction of Uncertainty in Financial Governance: The Case of Monetary Authority of Singapore.’ Administrative Culture, 19 (2), 60-80.
Mikheeva, O. (2019). Financing of Innovation: National Development Banks in Newly Industrialized Countries of East Asia. Journal of Post Keynesian Economics, 42 (4), 590-619.
Juuse, E., Raudla, R., Cepilovs, A. and Mikheeva, O. (2019). 'The Europeanization of Financial Regulation and Supervision On the Baltic-Nordic Axis: National Bureaucracies’ Perspective’. Journal of Baltic Studies, https://doi.org/10.1080/01629778.2019.1678495
Mazzucato, M. and Semieniuk, G (2018) “Financing renewable energy: who is financing what and why it matters”, Technological Forecasting and Social Change, 127, 8-22. http://www.sciencedirect.com/science/article/pii/S0040162517306820 (WP version https://www.ucl.ac.uk/bartlett/public-purpose/sites/public-purpose/files/iipp-wp-2018-04.pdf)
Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G., & Tanaka, M. (2018) 'Climate change challenges for central banks and financial regulators', Nature Climate Change, 8 (6), pp. 462-468.
Grilli, L., Mazzucato, M. Meoli, M. and Scellato, G. (2017), “Sowing the seeds of the future: Policies for financing tomorrow’s innovations”, Introduction to Special Issue in Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2017.10.021
Mazzucato, M. and Semieniuk, G. (2017) “Public financing of innovation: new questions”, Oxford Review of Economic Policy, Volume 33 (1): 24–48. https://academic.oup.com/oxrep/article/33/1/24/2972707
Ryan-Collins, J. (2017) 'Breaking the taboo: a history of monetary financing in Canada, 1930-1975', The British Journal of Sociology, 68 (4), pp. 643-669
Mazzucato, M. and Penna, C. (2016) “Beyond market failures: the market creating and shaping roles of state investment banks”, Journal of Economic Policy Reform, 19(4): 305-326, https://www.tandfonline.com/doi/pdf/10.1080/17487870.2016.1216416
Marois, T. and Güngen, A.R. (2016) ‘Credibility and Class in the Evolution of Turkey’s Public Banks’, Journal of Peasant Studies, 43(6): 1285 1309. https://doi.org/10.1080/03066150.2016.1176023
Burlamaqui, L., and Kattel, R. (2016). Development as leapfrogging, not convergence, not catch-up: Towards Schumpeterian theories of finance and development. Review of Political Economy, 28(2), pp. 270-288.
Burlamaqui, L. and Kattel, R. (2016). Assessing divergent development trajectories: Schumpeterian competition, finance and financial governance. Revista Brasileira de Inovação, 15(1), pp.9-32
Mazzucato, M. (2013), “Financing innovation: creative destruction vs. destructive creation,” in special issue of Industrial and Corporate Change, M. Mazzucato (ed.), 22(4): 851-867.

Working papers

A dynamic theory of public banks (and why it matters), Thomas Marois
Innovations in development finance and conditioning factors, João Carlos Ferraz, Luma Ramos, Bruno Plattek
Managing nature-related financial risks: A precautionary policy approach for central banks and financial supervisors, Katie Kedward, Josh Ryan-Collins, Hugues Chenet
Challenge-driven economic policy: A new framework for Germany, Rainer Kattel, Mariana Mazzucato, Keno Haverkamp, Josh Ryan-Collins
A mission-oriented framework for the Scottish National Investment Bank, Mariana Mazzucato, Laurie Macfarlane
Climate-related financial policy in a world of radical uncertainty, Hugues Chenet, Josh Ryan-Collins, Frank van Lerven
Neither crowding in nor out, Matteo Deleidi, Mariana Mazzucato, Gregor Semieniuk
Socialising the risks and rewards of public investments: Economic, policy and legal issues, Andrea Laplane, Mariana Mazzucato
State investment banks and patient finance: An international comparison, Mariana Mazzucato, Laurie Macfarlane
Financing green growth, Gregor Semieniuk, Mariana Mazzucato
Public investment fiscal multipliers: An empirical assessment for European countries, Matteo Deleidi, Francesca Iafrate, Enrico Sergio Levrero
Supermultiplier, innovation and the ecosystem: A stock-flow dynamic model, Matteo Deleidi, Riccardo Pariboni & Marco Veronese Passarella
Credit where it's due: A historical, theoretical and empirical review of credit guidance policies in the 20th century, Dirk Bezemer, Josh Ryan-Collins, Frank van Lerven & Lu Zhang
Bringing the helicopter to ground: A historical review of fiscal-monetary coordination to support economic growth in the 20th century, Josh Ryan-Collins & Frank van Lerven
Putting Austerity to Bed: Technical progress, aggregate demand and the supermultiplier, Matteo Deleidi, Mariana Mazzucato
Patient strategic finance: opportunities for state investment banks in the UK, Mariana Mazzucato, Laurie Macfarlane
Mazzucato, M. and Penna, C. (2015) “The Rise of Mission-Oriented State Investment Banks: The Cases of Germany’s KfW and Brazil’s BNDES” SPRU Working Paper Series 2015-26

Policy Reports and Briefs

The Green Giant: New Industrial Strategy for Norway, Rainer Kattel, Mariana Mazzucato, Jonas Algers, Olga Mikheeva
The EIB and the new EU missions framework, Mariana Mazzucato, Olga Mikheeva
Public wealth funds: Supporting economic recovery and sustainable growth, Dag Detter, Stefan Fölster, Josh Ryan-Collins
Financial and legal barriers to the creation and operation of a British national investment bank, Rob Jump & Natalya Naqvi
The macroeconomic impact of government innovation policies, Paolo Agnolucci, Matteo Deleidi, Vincenzo de Lipsis, Mariana Mazzucato & Josh Ryan-Collins
A mission-oriented framework for the Scottish National Investment Bank, Mariana Mazzucato & Laurie Macfarlane
State investment banks and patient finance: An international comparison, Laurie Macfarlane, Mariana Mazzucato
The effectiveness and impact of post-2008 UK monetary policy, Matteo Deleidi & Mariana Mazzucato
Patient Finance for Innovation-Driven Growth, Mariana Mazzucato & Laurie Macfarlane
State investment banks and patient finance: An international comparison, Laurie Macfarlane & Mariana Mazzucato
Response to the Treasury Select Committee Inquiry, Mariana Mazzucato & Matteo Deleidi
Bone Dodds, G. (2020). "Barriers to Growing the Purpose-Driven Banking System in the UK". Finance Innovation Lab.
Financial and legal barriers to the creation and operation of a British national investment bank, Rob Jump & Natalya Naqvi.
Bone Dodds, G. (2019). "A Bank for the North East", Centre for Urban and Regional Development Studies, All In, & The RSA. https://allin.agency/resources/ABankForTheNorthEast.pdf
The macroeconomic impact of government innovation policies, Paolo Agnolucci, Matteo Deleidi, Vincenzo de Lipsis, Mariana Mazzucato & Josh Ryan-Collins
Bone Dodds, G. (2018). "Better Banking: A Public-Good Banking Network for Scotland". Common Weal.
Lamperti, F., Mazzucato, M., Roventini, A. and Semieniuk, G. (2017). ‘The Green Transition: Public Policy, Finance and Innovation’. ISIGrowth Policy Brief, 22 June 2017. http://www.isigrowth.eu/wp-content/uploads/2018/06/ISIGrowthPolicy_brief_Clima.pdf

Blogs

Books

Marois, T. (2021) Public Banks: Decarbonisation, Definancialisation, and Democratisation. Cambridge University Press.
Kattel, R., Drechsler, W. and Karo, E. (2021) Innovation bureaucracies: Let’s Make the State Entrepreneurial. Forthcoming in Yale University Press.
McDonald, D.A., Marois, T., and Barrowclough, D.V. (eds.) (2020) Public Banks and Covid-19: Combatting the Pandemic with Public Finance. Municipal Services Project (Kingston), UNCTAD (Geneva), and Eurodad (Brussels). https://publicbankscovid19.org/index.php/publications
Mazzucato, M. and Penna, C. Eds (2015) Mission-Oriented Finance for Innovation: New Ideas for Investment-Led Growth, Rowman & Littlefield, Book, ISBN 978-1-78348-495-9 http://www.policy-network.net/publications/4860/Mission-Oriented-Finance...

Book chapters

Mikheeva, O. and Juuse, E. (2021). ‘Development Finance in the Baltic States and the Process of Europeanisation.’ In Matthias Thiemann, Daniel Mertens and Peter Volberding (eds.) The Reinvention of Development Banking in the European Union: Industrial Policy in the Single Market and the Emergence of a Field, pp. 253-282. Oxford University Press.
Bone Dodds, G. & Pollard, J. (2020), Islamic Finance: diversity within difference. In: Gibson-graham, J.K & Dombroski, K eds. The Handbook of Diverse Economies. Cheltenham UK: Edward Elgar, pp. 346-353, https://www.e-elgar.com/shop/gbp/the-handbook-of-diverse-economies-97817...
Hemerijck, A., Mazzucato, M. and Reviglio, E. (2020) “Social Investment and Infrastructure” in C. Saraceno A European Public Investment Outlook, Chapter 7. Eds Cerniglia, F. and Saraceno, F, Open Book Publishers, Cambridge, UK. https://doi.org/10.11647/OBP.0222
Marois, T. (2020) ‘The KfW And Covid-19: Coordinating Public Finance Responses At Home And Abroad’. In: McDonald, David A. and Marois, Thomas and Barrowclough, Diana, (eds.), Public Banks And Covid-19: Combatting The Pandemic With Public Finance. Municipal Services Project/Eurodad/UNCTAD, pp 149-170.
Mazzucato, M. and Wray, L.R. (2016) “(Re) introducing Finance into Evolutionary Economics: Keynes, Schumpeter, Minsky and Financial Fragility” in Schumpeter’s Capitalism, Socialism and Democracy: A Twenty First Century Update, Eds. Burlamaqui, L. and Kattel, R. Routledge Studies in History of Economics, Oxford, UK, (WP version http://www.levyinstitute.org/pubs/wp_837.pdf)
Mazzucato, M. (2016) “Innovation, the State and Patient Capital”, in Rethinking Capitalism Economics and Policy for Sustainable and Inclusive Growth, Chapter 6. Eds Jacobs, M. and Mazzucato, M, Wiley-Blackwell, London, UK

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