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? Professor 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 its direction.

More information is available at LSE Events.

Speakers

Mariana Mazzucato 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 (chair) is co-director of the community wellbeing programme in the Centre for Economic Performance at LSE.

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Lionel Robbins Lectures 2023

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.

Please note, due to planned UCU strike action Wednesday 15 and Thursday 16 March, Mariana's second lecture, in this three-part series, has been postponed and the third lecture cancelled.

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.