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Moonshots and the New Industrial Policy: Questioning the Mission Economy

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Listed:
  • Henrekson, Magnus

    (Research Institute of Industrial Economics (IFN))

  • Sandström, Christian

    (Jönköping International Business School)

  • Stenkula, Mikael

    (Research Institute of Industrial Economics (IFN))

Abstract

The notion that society should be organized around large so-called missions has gained momentum in public debate, and the reemergence of active industrial policy across the world has been inspired by academic scholars promoting the idea of Mission-Oriented Innovation Policies (MOIPs). The volume Moonshots and the New Industrial Policy: Questioning the Mission Economy provides a comprehensive assessment and normative critique of the efficacy of such policies. Besides the introductory chapter, it consists of 16 chapters distributed across three overarching themes: theoretical perspectives, empirical evidence, and alternative paths. This paper provides some additional analysis, pins down the most important general conclusions and suggests future research questions. Today’s economies are highly dependent on a well-functioning process of decentralized experimentation, selection, and screening. Instead of large scale MOIPs, governments should strive to create an institutional framework that levels the playing field for potential entrepreneurs while encouraging productive entrepreneurship.

Suggested Citation

  • Henrekson, Magnus & Sandström, Christian & Stenkula, Mikael, 2024. "Moonshots and the New Industrial Policy: Questioning the Mission Economy," Working Paper Series 1484, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1484
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    1. Cheang, Bryan, 2024. "Why mission-directed governance risks authoritarianism: lessons from East Asia," LSE Research Online Documents on Economics 125640, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Mission-oriented policies; Innovation policy; New industrial policy; Moonshots; Rent seeking; Public choice;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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