Patient Finance and Public Banking

IIPP research explores new forms of public banks, finance and governance to promote sustainable investment, working with public sector financial institutions and governments.

About

Tackling today's societal challenges, from Covid-19 recovery and climate change to improving public health and adjusting to demographic changes, requires steering investments and innovation towards achieving concrete public purpose goals. This needs not just any type of finance but patient, long-term, and transformative public finance. It also demands strategic design and coordination of public policies and capable financial bureaucracies to steer finance towards meeting policy goals. 听

IIPP is working closely with public banks, multilaterals, investment funds, central banks, sovereign wealth funds and public financial authorities from around the world to transform their activities based on new theoretical and evidence-based insights into public purpose, financing of innovation and mission-oriented finance. IIPP has advised on the establishment of Scottish Investment Bank and published a number of policy reports exploring mission-oriented finance with case studies from various public financial institutions.

IIPP鈥檚 work on patient finance, public banking and governance looks at how diverse types of public financial institutions 鈥� from municipal to multilateral public banks 鈥� are helping to overcome economic, social, technological and ecological challenges; how different design features of public financial institutions affect their ability to operate successfully; where the multiple opportunities for new forms of public finance for public purpose exist around the world; what form financing policies can take and how these new policies and institutions affect and transform financial governance 鈥榯oolbox鈥�.

Policy implications

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Central banks and sustainability

European Investment Bank

Priming Public Financial Institutions for Green Innovation (PUFFIN)

Scottish_Investment_Bank_Research Scottish National Investment Bank

Development Finance Institutions in Europe (DeFInE)

The Green Giant: New Industrial Strategy for Norway

Publications

Journal articles

Marois, T. (2021) .听Review of Political Economy. Online March 2021. (working paper version)
Mikheeva, O. (2021) Financial governance of strategic investments: development banks and state-led investment function. Innovation and Development, special issue Financing Innovation for Development in the Global South, forthcoming.
McDonald, David A and Marois, T. and Spronk, S. (2021) '. Water Alternatives, (14) 1, pp 117-134.
Deleidi, M., Mazzucato, M., & Semieniuk, G. (2020). 鈥淣either crowding in nor out: Public direct investment听听 mobilising private investment into renewable electricity projects鈥�.听Energy Policy, 111195. (working paper version)
Laplane, A. and Mazzucato, M. (2020), 鈥�Socializing the risks and rewards of public investments: Economic, policy, and legal issues.鈥� Research Policy.
Lamperti, F., Mazzucato, M., Roventini, A., & Semieniuk, G. (2019). 鈥淭he green transition: public policy, finance and the role of the State鈥�.听Vierteljahrshefte zur Wirtschaftsforschung/Quarterly Journal of Economic Research,听88(2), 73-88.
Ho, S. and Marois, T. (2019) 'China鈥檚 Asset Management Companies as State Spatial鈥揟emporal Strategy'. The China Quarterly, 239: 728-751.听
Mikheeva, O. and T玫nurist, P. (2019). 'Co-Creation for the Reduction of Uncertainty in Financial Governance: The Case of Monetary Authority of Singapore.鈥� Administrative Culture, 19 (2), 60-80.
Mikheeva, O. (2019). Financing of Innovation: National Development Banks in Newly Industrialized Countries of East Asia. Journal of Post Keynesian Economics, 42 (4), 590-619.
Juuse, E., Raudla, R., Cepilovs, A. and Mikheeva, O. (2019). 'The Europeanization of Financial Regulation and Supervision On the Baltic-Nordic Axis: National Bureaucracies鈥� Perspective鈥�. Journal of Baltic Studies,
Mazzucato, M. and Semieniuk, G (2018) 鈥�Financing renewable energy: who is financing what and why it matters鈥�, Technological Forecasting and Social Change,听127, 8-22. (WP version 听/bartlett/public-purpose/sites/public-purpose/files/iipp-wp-2018-04.pdf)
Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G., & Tanaka, M. (2018)听, Nature Climate Change, 8 (6), pp. 462-468.
Grilli, L., Mazzucato, M. Meoli, M. and Scellato, G. (2017), 鈥淪owing the seeds of the future: Policies for financing tomorrow鈥檚 innovations鈥�, Introduction to Special Issue in Technological Forecasting and Social Change.
Mazzucato, M. and Semieniuk, G. (2017) 鈥淧ublic financing of innovation: new questions鈥�, Oxford Review of Economic Policy, Volume 33 (1): 24鈥�48. 听听
Ryan-Collins, J. (2017)听, The British Journal of Sociology, 68 (4), pp. 643-669
Mazzucato, M. and Penna, C. (2016) 鈥淏eyond market failures: the market creating and shaping roles of state investment banks鈥�, Journal of Economic Policy Reform, 19(4): 305-326,
Marois, T. and G眉ngen, A.R. (2016) 鈥楥redibility and Class in the Evolution of Turkey鈥檚 Public Banks鈥�, Journal of Peasant Studies, 43(6): 1285 1309.听
Burlamaqui, L., and Kattel, R. (2016). Development as leapfrogging, not convergence, not catch-up: Towards Schumpeterian theories of finance and development.听Review of Political Economy,听28(2), pp. 270-288.
Burlamaqui, L. and Kattel, R. (2016). Assessing divergent development trajectories: Schumpeterian competition, finance and financial governance. Revista Brasileira de Inova莽茫o, 15(1), pp.9-32
Mazzucato, M. (2013), 鈥�Financing innovation: creative destruction vs. destructive creation,鈥� in special issue of Industrial and Corporate Change, M. Mazzucato (ed.), 22(4): 851-867.

Working papers

A dynamic theory of public banks (and why it matters), Thomas Marois
Innovations in development finance and conditioning factors,听Jo茫o Carlos Ferraz,听Luma Ramos,听Bruno Plattek
Managing nature-related financial risks:听A precautionary policy approach for central banks and financial supervisors, Katie Kedward, Josh Ryan-Collins, Hugues Chenet
Challenge-driven economic policy: A new framework for Germany,听Rainer Kattel, Mariana Mazzucato,听Keno Haverkamp,听Josh Ryan-Collins
A mission-oriented framework for the Scottish National Investment Bank,听Mariana Mazzucato,听Laurie Macfarlane
Climate-related financial policy in a world of radical uncertainty,听Hugues Chenet,听Josh Ryan-Collins,听Frank van Lerven听
Neither crowding in nor out,听Matteo Deleidi,听Mariana Mazzucato,听Gregor Semieniuk听
Socialising the risks and rewards of public investments: Economic, policy and legal issues,听Andrea Laplane,听Mariana Mazzucato
State investment banks and patient finance: An international comparison,听Mariana Mazzucato, Laurie Macfarlane
Financing green growth,听Gregor Semieniuk,听Mariana Mazzucato
Public investment fiscal multipliers: An empirical assessment for European countries,听Matteo Deleidi,听Francesca Iafrate, Enrico Sergio Levrero
Supermultiplier, innovation and the ecosystem: A stock-flow dynamic model, Matteo Deleidi, Riccardo Pariboni &听Marco Veronese Passarella
Credit where it's due: A historical, theoretical and empirical review of credit guidance policies in the 20th century, Dirk Bezemer, Josh Ryan-Collins, Frank van Lerven & Lu Zhang
Bringing the helicopter to ground: A historical review of fiscal-monetary coordination to support economic growth in the 20th century, Josh Ryan-Collins & Frank van Lerven
Putting Austerity to Bed: Technical progress, aggregate demand and the supermultiplier,听Matteo Deleidi,听Mariana Mazzucato
Patient strategic finance: opportunities for state investment banks in the UK, Mariana Mazzucato, Laurie Macfarlane
Mazzucato, M. and Penna, C. (2015) 鈥溾€� SPRU Working Paper Series 2015-26听

Policy Reports and Briefs

The Green Giant: New Industrial Strategy for Norway,听Rainer Kattel,听Mariana Mazzucato,听Jonas Algers,听Olga Mikheeva
The EIB and the new EU missions framework,听Mariana Mazzucato,听Olga Mikheeva
Public wealth funds: Supporting economic recovery and sustainable growth,听Dag Detter,听Stefan F枚lster,听Josh Ryan-Collins
Financial and legal barriers to the creation and operation of a British national investment bank, Rob Jump & Natalya Naqvi
The macroeconomic impact of government innovation policies,听Paolo Agnolucci,听Matteo Deleidi,听Vincenzo de Lipsis,听Mariana Mazzucato听&听Josh Ryan-Collins
A mission-oriented framework for the Scottish National Investment Bank, Mariana Mazzucato & Laurie Macfarlane
State investment banks and patient finance: An international comparison,听Laurie Macfarlane,听Mariana Mazzucato
The effectiveness and impact of post-2008 UK monetary policy, Matteo Deleidi & Mariana Mazzucato
Patient Finance for Innovation-Driven Growth, Mariana Mazzucato & Laurie Macfarlane听
State investment banks and patient finance: An international comparison, Laurie Macfarlane & Mariana Mazzucato听
Response to the Treasury Select Committee Inquiry, Mariana Mazzucato & Matteo Deleidi
Bone Dodds, G. (2020). "". Finance Innovation Lab.
Financial and legal barriers to the creation and operation of a British national investment bank,听Rob Jump & Natalya Naqvi.
Bone Dodds, G. (2019). "A Bank for the North East", Centre for Urban and Regional Development Studies, All In, & The RSA.听
The macroeconomic impact of government innovation policies,听Paolo Agnolucci,听Matteo Deleidi,听Vincenzo de Lipsis,听Mariana Mazzucato听&听Josh Ryan-Collins
Bone Dodds, G. (2018). "". Common Weal.
Lamperti, F., Mazzucato, M., Roventini, A. and Semieniuk, G. (2017). 鈥楾he Green Transition: Public Policy, Finance and Innovation鈥�. ISIGrowth Policy Brief, 22 June 2017.

Blogs

Books

Marois, T. (2021) Public Banks: Decarbonisation, Definancialisation, and Democratisation. Cambridge University Press.
Kattel, R., Drechsler, W. and Karo, E. (2021) Innovation bureaucracies: Let鈥檚 Make the State Entrepreneurial. Forthcoming in Yale University Press.
McDonald, D.A., Marois, T., and Barrowclough, D.V. (eds.) (2020) Public Banks and Covid-19: Combatting the Pandemic with Public Finance. Municipal Services Project (Kingston), UNCTAD (Geneva), and Eurodad (Brussels).
Mazzucato, M. and Penna, C. Eds (2015) Mission-Oriented Finance for Innovation: New Ideas for Investment-Led Growth, Rowman & Littlefield, Book, ISBN 978-1-78348-495-9

Book chapters

Mikheeva, O. and Juuse, E. (2021). 鈥楧evelopment Finance in the Baltic States and the Process of Europeanisation.鈥� In Matthias Thiemann, Daniel Mertens and Peter Volberding (eds.) The Reinvention of Development Banking in the European Union: Industrial Policy in the Single Market and the Emergence of a Field, pp. 253-282. Oxford University Press.
Bone Dodds, G. & Pollard, J. (2020), Islamic Finance: diversity within difference. In: Gibson-graham, J.K & Dombroski, K eds. The Handbook of Diverse Economies. Cheltenham UK: Edward Elgar, pp. 346-353, ...
Hemerijck, A., Mazzucato, M. and Reviglio, E. (2020) 鈥淪ocial Investment and Infrastructure鈥� in C. Saraceno A European Public Investment Outlook, Chapter 7. Eds Cerniglia, F. and Saraceno, F, Open Book Publishers, Cambridge, UK.
Marois, T. (2020) 鈥楾he KfW And Covid-19: Coordinating Public Finance Responses At Home And Abroad鈥�. In: McDonald, David A. and Marois, Thomas and Barrowclough, Diana, (eds.), Public Banks And Covid-19: Combatting The Pandemic With Public Finance. Municipal Services Project/Eurodad/UNCTAD, pp 149-170.
Mazzucato, M. and Wray, L.R. (2016) 鈥�(Re) introducing Finance into Evolutionary Economics: Keynes, Schumpeter, Minsky and Financial Fragility鈥� in Schumpeter鈥檚 Capitalism, Socialism and Democracy: A Twenty First Century Update, Eds. Burlamaqui, L. and Kattel, R. Routledge Studies in History of Economics, Oxford, UK, (WP version )听
Mazzucato, M. (2016) 鈥淚nnovation, the State and Patient Capital鈥�, in Rethinking Capitalism Economics and Policy for Sustainable and Inclusive Growth, Chapter 6. Eds Jacobs, M. and Mazzucato, M, Wiley-Blackwell, London, UK听

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