What it is
Mariana Mazzucato, professor at University College London, challenges the way modern economics defines value. She argues that the financial sector increasingly extracts value rather than creating it, while public investment drives the fundamental research behind most breakthrough technologies, from the internet to clean energy.
Why we picked this
Mazzucato's work is essential for understanding why the green transition requires active government investment, not just market signals. Her research showing that every major technology in the iPhone was publicly funded challenges the narrative that private markets alone drive innovation.
Key takeaways
- Every major technology in the iPhone (GPS, touchscreen, internet, Siri) was developed with public funding before private companies commercialized them.
- The financial sector has shifted from facilitating productive investment to extracting rents through speculation, share buybacks, and financial engineering.
- Green innovation follows the same pattern: public research institutions and government programs fund the basic science that private companies later scale.