This talk will argue that modern economic theory has led to the confusion between profits and rents, and hence the distinction between value creation and value extraction. Using case studies-from Silicon Valley to the financial sector to big pharma, Professor Mariana Mazzucato demonstrates how the current rules of the system reward extractors over creators, and distort the measurements of growth and GDP. In the process, innovation suffers and inequality rises. To move to a different system—with growth that is more inclusive, sustainable and innovation-led—it is critical to rethink public value and public purpose in the economy.
The talk will be followed by a Q&A, moderated by Professor Ngaire Woods, Dean of the Blavatnik School of Government.
This event is co-hosted with INET and the Oxford Martin School.