The purpose of this project is to integrate two research paradigms that have strong policy relevance in understanding the causes of the recent financial crisis, and also the path to a postcrisis long-run recovery. The first might be called the Keynes-Minsky vision that puts effective demand front and center in economic analysis, and the second is the Schumpeter-Minsky vision that focuses on innovation and competition. The aim of the project is to bring these two visions together to provide rigorous analysis of innovation and competition in the financial sphere and how it interacts with innovation and competition in the industrial sphere.
The Financing Innovation project is a joint research effort by the Levy Economics Institute of Bard College and the University of Sussex Science Policy Research Unit (SPRU). It is co-led by Levy Institute Senior Scholar L. Randall Wray and Mariana Mazzucato (SPRU), with a joint team of researchers. The project is funded in part through a grant from the Institute for New Economic Thinking (No. IN012-00036).