This working paper is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.
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Systemic capacities and capabilities for mission-oriented innovation policies: A novel framework and a case study of Brazil’s Inova programme | UCL Institute for Innovation and Public Purpose (IIPP) Working Paper (WP 2025-02)
Authors:
- Caetano C. R. Penna | Director at CGEE, Member of the IIPP Global Industrial Strategy Group and Visiting Scholar in Economics of Technology and Innovation at the TU Delft
- Mariana Mazzucato | Professor in the Economics of Innovation and Public Value, University College London, and Founding Director of the UCL Institute for Innovation and Public Purpose
- Guilherme de Oliveira Santos | Associate Researcher at the UFRJ, and Expert at the Technology Directorate of FAPERJ
Abstract
This paper develops and applies a novel systemic framework for analysing the capacities and capabilities required for successful mission-oriented innovation policies. The framework identifies six critical dimensions where both structural capacities and dynamic capabilities must align: state, technical-administrative, policy, scientific-technological, industrial and demand dimensions. We demonstrate how specific capacities and capabilities contribute to policy outcomes through an explanatory case study of Brazil’s Inova programme, particularly comparing the PAISS Industrial (bioethanol) and Inova Petro (oil and gas) subprogrammes. While PAISS Industrial’s success stemmed from strong alignment across all dimensions and effective mobilisation of existing capabilities, Inova Petro struggled, despite substantial resources, due to misalignment between technical requirements and industry capabilities, coupled with limited market-shaping mechanisms. The analysis reveals that successful missionoriented policies require not just individual capacities and capabilities, but their systematic alignment and effective mobilisation across all dimensions. Furthermore, sophisticated design and implementation capabilities are central in translating capacity into impact, particularly when building upon previous experiences. The findings have significant implications for policy design, suggesting that mission-oriented policies should consider existing capacities and capabilities, while simultaneously serving as vehicles for developing new ones through implementation.
Reference:
Penna, C.C.R; Mazzucato, M and Santos, G.O. (2025). Systemic capacities and capabilities for mission-oriented innovation policies: a novel framework and a case study of Brazil’s Inova programme. UCL Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2025-02).
Available at: https://www.ucl.ac.uk/bartlett/public-purpose/wp2025-02
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.