Moonshots and the New Industrial Policy: Questioning the Mission Economy

Mission-Oriented Innovation Policies (MOIPs), often referred to as ‘moonshots’, are large-scale, state-led initiatives aimed at tackling ambitious societal goals such as climate change or public health crises. While MOIPs are well-intentioned and increasingly prevalent in the post-pandemic policy landscape, their effectiveness is subject to growing scrutiny. In Moonshots and the New Industrial Policy: Questioning the Mission Economy, Professors Magnus Henrekson, Christian Sandström, and Mikael Stenkula lead a rigorous critique of MOIPs, presenting theoretical insights, empirical case studies, and policy alternatives. The book gathers contributions from 24 scholars worldwide, revealing seven key shortcomings of MOIPs, including their inability to address complex ‘wicked’ problems, the rise of subsidy-seeking firms, and the overestimation of government capabilities. The authors advocate for a more decentralised, competition-neutral, and market-based policy framework as a viable alternative. Their findings suggest that innovation ecosystems thrive better under conditions that promote fair competition, institutional clarity, and limited political interference. Furthermore, their work questions the sustainability and efficacy of current green industrial policies, urging a return to foundational economic strategies that prioritise long-term entrepreneurial resilience over short-term political ambition. The volume serves as a call to reassess the role of government in innovation, highlighting the risks of political failure and the need for robust institutional frameworks. Looking ahead, the authors plan to extend their analysis to the field of renewable energy in their upcoming publication A Green Entrepreneurial State?, continuing their mission to realign innovation policy with economic and environmental realities.