The macroeconomic impact of government innovation policies

This report was funded by Innovate UK, part of UK Research and Innovation, for a research project undertaken by the IIPP and UCL Institute for Sustainable Resources.

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UCL Institute for Innovation and Public Purpose (IIPP) policy report: IIPP 2019-06

In this report, we introduce a new theoretical framework for understanding the links between fiscal policy and innovation, arguing that ‘mission-oriented’ innovation policy, which focusses on concrete societal problems that can only be solved by multiple sectors interacting in new ways, can generate very large economic returns—so called ‘supermultiplier’ impacts.

Authors

• Matteo Deledi | Research Fellow, Roma Tre University; Honorary Research Fellow, UCL Institute for Innovation and Public Purpose
• Vincenzo de Lipsis | Research Fellow, UCL Institute for Sustainable Resources
• Mariana Mazzucato | Director, Professor in the Economics of Innovation and Public Value, UCL Institute for Innovation and Public Purpose
• Josh Ryan-Collins | Head of Finance and Macroeconomics, UCL Institute for Innovation and Public Purpose
• Paolo Agnolucci | Associate Professor, UCL Institute for Sustainable Resources

Reference

Deleidi, M., De Lipsis, V., Mazzucato, M., Ryan-Collins, J. and Agnolucci, P. (2019). The macroeconomic impact of government innovation policies: A quantitative assessment. UCL Institute for Innovation and Public Purpose, Policy Report (IIPP 2019-06). https://www.ucl.ac.uk/bartlett/public-purpose/wp2019-06