The way of doing business is currently changing on a global scale and at a rapid pace. The implications of this change for public institutions and state policies is analysed in a new paper by the German economist Gustav Horn. The former director of the Macroeconomic Policy Institute (IMK) argues that active state intervention is necessary to meet the challenges posed by digitalisation, climate change and globalisation. A new type of public goods has to be produced to address the demands brought about by the current transitions. This requires a new innovation policy based on cooperation between the state and the market. To be successful, the state must be willing to take higher risks.
Read more in the paper “Innovation policy in times of change – The new relationship between state and market” by Gustav Horn.