This working paper is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.
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UCL Institute for Innovation and Public Purpose (IIPP) Working Paper Series: IIPP WP 2023-07
Authors:
- Mariana Mazzucato | Professor in the Economics of Innovation and Public Value | University College London, Institute for Innovation and Public Purpose (IIPP)
- Dani Rodrik | Ford Foundation Professor of International Political Economy | Harvard University, John F. Kennedy School of Government
Reference:
Mazzucato, M. and Rodrik, D. (2023). Industrial Policy with Conditionalities: A Taxonomy and Sample Cases. UCL Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2023-07). Available at: https://www.ucl.ac.uk/bartlett/public-purpose/wp2023-07
Abstract:
In the context of a shift towards longer-term, public-value-oriented economic thinking, there is a real opportunity to reimagine the contracts that structure public-private relationships. Similar reasoning could also be relevant to the relationship between different public entities, such as the relationship between a country’s state-owned enterprise and the Treasury: benefits to the SOE can be structured with conditions to make sure the SOE directs its investments in particular ways, shares knowledge, makes products/services accessible, etc. Redesigning these contracts means redesigning the direction of the economy from the ground up. To succeed, modern industrial policies must be deliberately sustainable, welfare-oriented, and innovation-led; coordinated as a holistic package; and implemented cooperatively across government agencies and with the private and third sectors. The conditionalities written into contracts are a key site for realizing these aims.
This working paper is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.
Explore more working papers and policy reports here.