Contrary to decades of economic orthodoxy, forthright and prolific economist and author, Professor Mariana Mazzucato of University College London, is a vocal advocate of strong public sector leadership in collaborations that bring prosperity by addressing difficult societal challenges, the missions and ‘moonshots’ of our time.

In her early work on ‘The Entrepreneurial State’, Professor Mazzucato demonstrates that governments have led the way on transformative innovations from GPS technology, to internet searching and smart phones. She rejects as flawed the conventional view that entrepreneurship is the province of the private sector, with governments focused only on keeping the broad economic settings and conditions on an even keel and fixing market failure.

Rather, Professor Mazzucato envisages the public sector as a first funder of technologies, a shaper and co-creator of markets and a leading player in realizing the opportunities to enhance living standards and economic inclusion. Central to this is championing the complex aspirational missions that challenge us, such as net zero emissions and climate change; reindustrialization and the transition to green energy; enhancement and equity in health care and aged care; closing the gap on indigenous disadvantage.

But, activating this more radical approach is not a trivial exercise.

Sandy Plunkett in an InnovationAus.com article questioned it as Australia’s mission impossible. She pointed to gaps in Australia’s capabilities in both public and private sectors:

They range from (lack of) large project management expertise…..; siloed and disconnected ministers and their departments; an economic and industry structure that is dominated by the subsidiaries of foreign tech, defence, and industrial multinationals; and a public service that has been gutted of internal expertise.

So, how do Australia’s policymakers confront these hurdles and make a start on missions-based economic prosperity?

One answer is going local. 

Going local means undertaking mission-oriented problem-solving projects at the level of local communities. Working at this smaller geographic scale is more manageable and allows for a variety of different tailored initiatives to be experienced. Most importantly, local projects benefit from operating at the level closest to the community, with ready access to informants with local insights and to networks which can be distribution channels for information, learning and engagement with other stakeholders. 

However, the most significant reason for going local is that action in local communities provides an ‘innovation lab’ for high-impact policy that is fit for purpose.

The radical new thinking needed for mission-based initiatives to be implemented can’t rely on traditional policy development measures, nor just involve the usual suspects with strong existing links to decision-makers.

Action projects at local level can provide a live policy innovation experiment in the following ways:

• Joined-up policymaking and program delivery—collaboration at the local level across the myriad of government agencies and programs with a responsibility for some aspect of the mission-based project. Local players usually have existing working relationships with each other, not just case by case transactions. They are more likely to negotiate compromises and shared outcomes, and to collaborate for joining up different policy areas, or using a single point of entry for accessing different government programs.

• Embracing local differences— variation is at the heart of evolutionary change and innovation, so customizing universal or central government programs for local circumstances is a positive move for good policymaking. This diversity allows for autonomy at the local level in implementing programs and policies, while maintaining a coherent unifying purpose overall. Further, mission-based projects that prove successful in one local community can be rolled out in others, or scaled up to be a nation-wide initiative.

• People-centred change—-action at local level can build relationships and regular interactions between policymakers, and residents and local community members. This is more effective a communication channel than spasmodic consultation. It makes it easier for local people to engage, not just to provide ideas and feedback, but to be co-creators of locally-suitable policies and programs, together with solutions to problems that matter to them.

• Local communities as Innovation Spaces—-when dealing with the big intractable issues in missions-based projects, we can learn from the edge, i.e., make deliberate efforts to source fresh insights and imaginative solutions from other than mainstream views. The edge refers both to geography (local covers towns, cities, suburbs, districts, regional centres, remote settlements) and perspectives and experiences that are usually overlooked. Some local activities and places can be earmarked as Innovation Spaces, safe places for blue sky thinking and for all policymakers to experiment and stress-test early policy ideas.

Usually, prescriptions for Australia’s economic and social development feature centralised, one-size-fits-all policies, which are spatially neutral.  But given the more ambitious dynamics of a mission-based economy, the insights from the local level are more valuable.

‘Going local’ capitalizes on a positive side effect of the global pandemic, namely, the importance of place and the comeback of community.

REFERENCES:

M. Mazzucato, The Entrepreneurial State, (2013), London, Anthem Press.

S. Plunkett, Australia’s mission impossible: What next if we choose to accept?, InnovationAus.com.au, 15^th March 2024.