Governments globally are revitalizing industrial strategies to steer economic growth toward lower inequality and environmental sustainability. To prevent public support from becoming unconditioned handouts, modern policies employ “conditionalities”—reciprocal requirements attached to grants, loans, tax incentives, and procurement contracts. Authors Mariana Mazzucato and Dani Rodrik, published by UCL’s Institute for Innovation and Public Purpose, examine how these conditions direct private firm behavior toward public goals, including equitable access, green transitions, profit-sharing, and reinvestment in domestic R&D. By organizing conditionalities across clear criteria, policymakers can ensure public investments socialize both risks and rewards to build inclusive, resilient economies.
