Government support is not only investing in upstream areas like basic research, but also in downstream areas like applied research and early-stage financing for the companies themselves. This means there are great risks.
Mariana MazzucatoThe globalized nature of production and innovation means that the benefits don't necessarily stay in the country where the investments are made.
Mariana MazzucatoWith a Trump administration we don't know enough yet to make predictions, but if past behavior is any indication, I am not encouraged.
Mariana MazzucatoMost venture capital funds are too short-termist and exit-driven to deal with the highly uncertain and lengthy innovation process.
Mariana MazzucatoMy specific concerns with Trump's plans are that they are likely to investments in infrastructure where the private returns are highest (for example toll roads and bridges) rather than where the public gains are greatest.
Mariana MazzucatoIn my view, the state should be active and work in cooperation with private businesses to spur growth that's sustainable and inclusive. The policy process is about co-creating and co-shaping of markets, creating new opportunities for business investment - and negotiating a better deal for the public too.
Mariana Mazzucato