Join us for this lecture that Mariana Mazzucato will deliver as part of the Lionel Robbins Lecture Series.
Where does value come from? What is the difference between value creation and value extraction? And what is the role of the state in directing and co-shaping economies that are innovative, inclusive and sustainable? Mariana Mazzucato will explain how we lost sight of what value means and why we need to rethink the economic theory and practice that is shaping our economies.
The contemporary concept of value - as interchangeable with price - has trapped policymakers in a debate about public “spending” rather than public “investment.” This has enormous implications for how economies are structured, and has impacted how leaders across the political spectrum frame economic policy and industrial strategy. Notably, as industrial policy is being revived, there is an opportunity to embed dynamic conditionalities in state funding to steer growth that is sustainable and inclusive – tackling wealth creation and inequality on a pre-distributive basis.
Changing the status quo requires a different understanding of public value and public purpose, and the design of policy as not just market fixing but market shaping. Key to this is also the revival of stakeholder value through a new social contract between public and private actors, ensuring that partnerships between the state, private sector, and labour create shared value. In this way, governments can impact not only the rate of growth, but it’s direction.
Meet our speaker and chair
Mariana Mazzucato (@MazzucatoM) is Professor in the Economics of Innovation and Public Value at University College London (UCL), where she is Founding Director of the Institute for Innovation & Public Purpose (IIPP). She is the author of four highly-acclaimed books: The Entrepreneurial State: debunking public vs. private sector myths (2013) which investigates the critical role the state plays in driving growth; The Value of Everything: making and taking in the global economy (2018) which looks at how value creation needs to be rewarded over value extraction; Mission Economy: a moonshot guide to changing capitalism (2021) rethinks the capacity and role of government within the economy and society; and most recently The Big Con: How the Consulting Industry Weakens our Businesses, Infantilizes our Governments and Warps our Economies (2023).
Richard Layard is Emeritus Professor of Economics at the London School of Economics and Political Science, and currently heads the CEP's Wellbeing research programme.
More about this event
Lionel Robbins was one of the outstanding men of his time: economist, public servant and supporter of the arts. The lectures, which were established in his name, take place each year and are a major event in the life of LSE, featuring eminent economists from around the world.
This event forms part of LSE’s Understanding the UK Economy series, showcasing research and expertise on the state of the UK economy, its global context and its future.
The Centre for Economic Performance (@CEP_LSE) carries out policy-focused research on the causes of economic growth and effective ways to create a fair, inclusive and sustainable society.
You can order the book The Big Con: How the Consulting Industry Weakens our Businesses, Infantilize our Governments and Warps out Economies and Mission Economy: A Moonshot Guide to Changing Capitalism (UK delivery only) from our official LSE Events independent book shop, Pages of Hackney.
There were scheduled to be two more lectures in this series (on 15 and 16 March), but due to planned UCU strike action these will not take place.
Twitter Hashtag for this event: #LSEUKEconomy
Podcast & Video
A podcast of this event is available to download from Putting Collective Value Creation at the Heart of Economic Thinking and Practice.
A video of this event is available to watch at Putting Collective Value Creation at the Heart of Economic Thinking and Practice.
Podcasts and videos of many LSE events can be found at the LSE Public Lectures and Events: podcasts and videos channel.