Abstract

This article argues that innovation-led growth requires public policies that create and shape markets, not only 'fix' them. Indeed, those 'mission oriented' investments that led to putting a man on the moon (with the resulting technological spill-overs) - and are today catalysing investments to tackle climate change world-wide - required dynamic public agencies to be active in shaping and creating new market landscapes. The article considers four key questions which arise from such a 'market creating' framework: decision-making on the 'direction' of change; the nature of (public) organisations that can welcome the underlying uncertainty and discovery process; the evaluation of mission- oriented and market creation policies; and the need to share both the risks underlying the innovation process and also the rewards - so that 'smart' innovation-led growth can also become 'inclusive' growth.