Financing innovation: creative destruction vs. destructive creation

By Mariana Mazzucato. 2013

289 citations recorded by the source corpus.

Although the 2007 financial crisis, and the ensuing world-wide recession, has caused policy makers to want to 're-stabilize' the financial sector as well as 'rebalance' economies away from finance toward the 'real' economy, this article claims that to bring finance back to serve the real economy, it is fundamental to (a) also de-financialize companies in the real economy, and (b) think clearly how to structure finance so that it can provide the long-term committed patient capital required by innovation. Without this, the risk is that current policy produces a healthy financial sector (bailed out, ring-fenced, and re-structured) in a deeply sick economy, which continues to reward value extraction over value creation activities. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0a82730eaf4a9a2e8f1bbb34217e9bf89c54db4f

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Citations in the corpus

Artificial Intelligence and Entrepreneurship: Implications for Venture Creation in the Fourth Industrial Revolution (2020, background): “As scholars, we should therefore be wary of lionizing a form of “destructive creation” (Mazzucato, 2013) in which innovation rewards the “few at the expense of the many” (Soete, 2013, p. 135 ) and instead work towards providing evidence and insight that will help steer policymakers towards ensuring…”
Financing Renewable Energy: Who is Financing What and Why it Matters (2018, unknown): “Thus, financing by the public sector also beyond the R &D stage (Mazzucato, 2013) in areas like space, health and low carbon technology has resulted in the creation of whole new sectors, often through mission-oriented projects that were actively decided upon by those who provided the finance (Foray…”
Financial Constraints and the Failure of Innovation Projects (2018, unknown): “However, some investors may prefer low risk and short-term gains, while others may pursue high risk and long-run innovation targets (Mazzucato, 2013).”
Access to finance for innovative SMEs since the financial crisis (2015, background): “Since the analysis of Schumpeter, finance has been seen as a vital part of innovation processes (O’Sullivan 2005; Mazzucato 2013).”
Innovation, SMEs and the liability of distance: the demand and supply of bank funding in UK peripheral regions (2016, background): “Innovation is “essentially a speculative process” (Freel, 2007, p. 23) which involves “a bet on the future, and most attempts fail” (Mazzucato, 2013, p. 851).”
Beyond market failures: the market creating and shaping roles of state investment banks (2016, unknown): “This added focus on the type of risks taken by the state led Mazzucato (2013a) to conclude that ignoring the high-risk and uncertainty that the state has absorbed has caused the fruits of innovation-led growth to be privatised, even though the underlying risk was socialised that is, funded through…”
Financing patterns of European SMEs – an empirical taxonomy (2016, unknown): “In addition, a number of studies focused on the financing determinants of specific types of firms like innovative and high-growth companies (Freel 2006; Hall 2010; Mazzucato 2013; Mina et al. 2013; Vanacker and Manigart 2010).”