Ownership and inclusive growth: sharing both risks and rewards

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here. 

Dates of the project: 2017

The Challenge 

Innovation-led growth often fails to deliver inclusive outcomes. While the public sector plays a critical role in funding early-stage, high-risk innovation, the rewards – such as profits, intellectual property, and market dominance and are frequently captured by private actors. The challenge is to ensure that both the risks and rewards of innovation are more equitably distributed, so that public investments lead to broader societal benefits. 

Our Approach 

UCL IIPP is researching how to design policies and institutions that enable inclusive innovation ecosystems. This includes: 

• Mapping global examples of policy instruments that share financial returns with the public, such as equity stakes, royalties, and IPR retention.
• Exploring mechanisms like compulsory reinvestment in the real economy and tax or governance reforms that promote fairer reward distribution.
• Reframing the role of the state as a “market maker”, not just a market fixer – actively shaping new sectors and technologies through bold, mission-oriented investment. 

This work builds on Mariana Mazzucato’s concept of the Entrepreneurial State, and her research with IIPP on how public-private partnerships can become more symbiotic. 

Why This Matters 

Inclusive growth requires recognising and rewarding the public sector’s role in value creation. By designing policies that ensure the public shares in the upside of innovation, this project supports a more equitable economy where innovation serves not just investors, but society as a whole. IIPP’s work helps build the strategic capacity of governments to lead innovation with purpose and fairness. 

Resources 

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here.