Mariana Mazzucato, director of the University College London Institute for Innovation and Public Purpose, joins Bloomberg Markets to discuss her influential mission economy concept. Recorded during the Bloomberg CityLab conference in Madrid, the conversation explores how public investment can drive technological innovation and economic growth by setting clear, ambitious goals for societal challenges.

Mazzucato specializes in the political economy of technological development and offers insights on strengthening state capacity in strategic sectors. Her ideas challenge conventional thinking about government's role in innovation, proposing that public sector investment can outperform private markets when focused on ambitious, society-changing goals rather than short-term profit maximization.

A key concern addressed is how to prevent top talent from fleeing to the private sector through better compensation structures and meaningful public sector impact. Mazzucato's approach emphasizes mission-driven organizations that combine entrepreneurial agility with public purpose, creating new models for innovation governance that benefit both society and investors.