The Common Good Economy: How to Make Capitalism Work for Us All

by Mariana Mazzucato

From the award-winning author of The Entrepreneurial State and Mission Economy, an inspiring call to solve our deepest challenges—from inequality to climate change—by embracing a radical new approach to economics and the economy

Whether it’s the water crisis, widespread poverty, or the next global pandemic, the problems that threaten humanity require collective action. But policymakers are confronting these problems armed with economic models that are missing one crucial They do not treat the common good as an objective worth achieving.

In this ambitious and timely new book, economist Mariana Mazzucato issues a corrective to prevailing economic thinking by defining a new theory of economics with the common good at its center. She shows how to go beyond fixing markets around the edges and instead reshape them to embody principles of reciprocity rather than extraction, and collectivism rather than individualism. It is not enough, she argues, to talk about “public goods” and the “commons”; we must truly achieve the “common good.” Drawing on wide-ranging philosophical traditions and global examples where seeds of the common good are found, Mazzucato reveals how common-good economics can help systematically transform how we build community and an economy that serves all.

The Common Good Economy is a stirring call for governments, the private sector, and everyday people to act boldly to achieve the greater good.

Genres: Economics, Nonfiction, Politics, Political Science, Audiobook

352 pages, Hardcover

Published September 8, 2026

About the author

Mariana Mazzucato (PhD) is Professor in the Economics of Innovation and Public Value at University College London, where she directs the Institute for Innovation and Public Purpose. Her best selling books include The Entrepreneurial State, The Value of Everything and Mission Economy. Her many prizes include the 2020 John von Neumann Award and the 2018 Leontief Prize for Advancing the Frontiers of Economic Thought. She is Chair of the World Health Organization’s Council on the Economics of Health for All and a member of the UN High Level Advisory Board for Economic and Social Affairs.

Reviews

[Richard Marney]

This book is an ambitious attempt to redefine the purpose of the economy around the pursuit of the common good rather than narrow measures of efficiency or shareholder value. The central argument—that governments should shape markets rather than merely correct market failures—is both timely and intellectually coherent. Her treatment of mission-oriented policy, innovation and industrial strategy is persuasive and supported by a wide range of historical examples. The book is strongest in explaining why markets require direction and why public institutions can be engines of value creation. Where it is less convincing is on implementation. It underestimates the realities of politics, weak institutions and vested interests that frequently derail well-designed policies. The risks of government failure receive considerably less attention than the failures of markets. For investors and policymakers, the framework is therefore more useful as a strategic compass than as an operational manual. The key question is not whether governments should pursue the common good, but whether they possess the capability and discipline to do so effectively. An important, thought-provoking book that will shape debates on industrial policy, even if its practical roadmap remains incomplete.

An outstanding book. Thus far in 2026, my “book of the year”!!!

[ThinkReadReflect]

This book is an essential read. It shows the reader that a common good economy is indeed achievable. That states do not have to be passive and simply correct mistakes and fight inefficiently against wealth extraction. Full of strength, optimism and fortifying examples.

[Nils]

The natural culmination of a longer body of work. Over four previous books — The Entrepreneurial State (2013), The Value of Everything (2018), Mission Economy (2021), and The Big Con (2023) — Mazzucato has been constructing an overarching intellectual scaffold: the state as active risk-taker, not passive market-fixer; value-creation as distinct from extraction; mission-oriented governance as a practical framework; and consulting capture as the pathology undermining state capacity. This new book draws those threads together and discusses the wider set of principles that must be in place for any of that work to deliver genuine economic transformation for people and planet.

For too long, Mazzucato argues, economics has treated "the good" (public goods or the commons) as merely correcting for what the private sector fails to do, filling a financial gap without attention to the form of finance or the relationships embedded in it. This framing has trapped policy-making in an endless reactive cycle, patching problems rather than proactively building the economy that is actually needed. The "commons" framing, meanwhile, treats the problem as a government failure, placing an unrealistic burden on citizens to fill the gap left by dysfunctional states. Neither framing is sufficient.

Common good economics moves away from corrections and toward objectives, where how organizations interact matters as much as what they are trying to accomplish together. That means embedding the good into all contracts, whether water rights, property rights, procurement contracts, or bailout terms from the state, from the beginning, rather than cleaning up the mess afterward.

The book's conceptual heart is what she calls the "common good compass", a five-element framework that Mazzucato developed from an earlier academic article published in 2023 in the Journal of Economic Policy Reform. The five elements are: (1) Purpose and Directionality: setting a clear direction and proactively aligning economic activity toward collective goals; (2) Co-creation and Participation: ensuring all stakeholders are genuinely at the table, creating real interfaces between public, private, and civil society actors; (3) Collective Learning and Knowledge-Sharing: embedding shared learning in governance structures, from IP rights to open-access platforms; (4) Access for All and Reward-Sharing: using both redistribution and pre-distribution to equitably share risks and rewards; and (5) Transparency and Accountability: the enforcing element, without which the other four cannot hold.

The compass adds something The Entrepreneurial State and Mission Economy lacked: an ethical architecture. It aims to ensure that economic priorities are determined collectively and directed toward socially desirable outcomes. Mazzucato is candid about the failure mode this is designed to address: neglecting any one of the five elements leaves the framework open to capture, producing what she calls "common good washing," where public and private actors claim to serve a shared purpose while their actual policies and programs do nothing of the kind.

Part I of the book develops the theoretical foundations, drawing on political philosophy — from Aristotle on telos and polis to the neo-communitarianism of Michael Sandel — to argue that wellbeing and community-building are inseparable goals. Part II applies each element to real economic relationships: co-creating missions, sharing knowledge in vaccine production, reinvesting public funds in communities, and building data commons that enable transparency and accountability.

Mazzucato's body of work marks the return of industrial strategy from a four-decade exile: the US Inflation Reduction Act, the CHIPS Act, Germany's €500b infrastructure fund, Brazil's New Industrial Policy, and the UK's nascent Industrial Strategy all signal that market-shaping, not just market-fixing, is back inside the Overton Window. Simultaneously, the language of "missions" has spread rapidly — to the European Commission's Horizon program, to governments across Latin America and Europe, to private firms — but adoption has outrun application, generating the "mission-washing" dynamic the compass is designed to counter.

Mazzucato's core premise is that we cannot create good without a clear theory of what the good looks like. The compass is a practical instrument for holding governments, businesses, and international institutions accountable not just for what goals they announce, but for how they govern the pursuit of them.

[Venky]

Prominent economist Mariana Mazzucato, in her latest book, proposes a set of five principles – terming them taken together as a ‘compass’ – which, according to her should characterise an economy. These principles are purpose and directionality, co-creation by citizens, collective learning, reward sharing, and accountability. Subsequent to the identification of the principles, the book dissects the merits and worth of each principle.

The book begins with a historical journey tracing the philosophical origins of the common good. The works of Aristotle, Plato, Cicero, Thomas Hobbes etc. are alluded to before providing alternative challenges in the form of the communitarian visions of philosophers such as Micheal Sandel. This cascade of theories dealing with the collective good is an unintentional strain on the reader as the chapters seem to possess a strong drag value.

The author calls for a defining shift in terms of market shaping, ecosystems and collective value creations that will usher in a rethink on the roles of key actors and stakeholders. For example, in exhorting for a move from public interest or social value to dynamic public value, Mazzucato proposes a transformation from static market analysis to dynamic market analysis, change of focus from what will be delivered to will be tasked with the delivery, and technocratic approach to a more political and participatory one.

Urging the business to transform from bestowing attention to shareholder value to concentrating on “collective value creation,” Mazzucato dwells on the proposals made by Nobel Laureate Oliver Hart and professor of business administration, R. Edward Freeman (amongst others), in the realms of corporate governance and stakeholder value maximisation.

The book is replete with arresting and unique real-life examples that bolster the clarion call for introducing the “compass” into an economy. For example, while discussing the principle of co-creation, Mazzucato brings her readers’ attention to the European Union initiative, Horizon Europe. A mission on Climate-Neutral and Smart Cities, the mission has led to a fruitful and voluntary integration of local residents, local businesses, and community groups in designing transition road maps. Similarly, community led governance on natural resources has resulted in the creation of water co-operatives with a view to enhancing the conservation and preservation measures.

Alluding to a need to foster robust tax redistribution policies with a view to address income and wealth inequalities, Mazzucato vehemently advocates a “tax-the-rich” policy. Traversing in the footsteps of economists Gabriel Zucman, Thomas Piketty, and Emmanuel Saez, Mazzucato, argues in favour of imposition of wealth taxes and financial transaction taxes. Not stopping at the mere institution of redistribution measures, the author also strongly backs pre-distribution strategies such as imposition of conditionalities by the Governments into its contracts. Such conditionalities will function as pre-distribution tools that ensure that societal benefits are baked in from the very beginning. An example being the prohibiting conditions in the Creating Helpful Incentives to Produce Semiconductors (“CHIPS”) Act, that bar government funds from being employed for stock buybacks and payout of dividends.

The Common Good Economy – part optimistic part Utopian.

The Common Good Economy: A New Compass by Mariana Mazzucato is published by Allen Lane.

Thank You Net Galley for the Advance Reviewer Copy!

[Christian]

Awesome - definitely worth reading (a paper copy, since the Information is so dense and needs to be reread and digested slowly)

My notes from the book, with bountiful Apple voice to text transcription issues I’m sure :
- This book’s premise is that economic growth has been left up to antisocial values such as maximizing shareholder revenue as the primary goal. We can and should replace that underlying value which has been so harmful in creating inequality with actual societal values that our economic growth should support.
- A great deal of crossover with books I love such as donut economics
- market shaping and a positive aspect of creating structures that achieve social goals, rather than the idea that all we need to do is fix market failures
- Since economics is largely psychology and understanding, social systems, each economist also needs to be a biologist at heart, understanding ecosystems
- Relationships with ecosystems are never neutral as economist often assume. Biologist understand by classifying these as parasitic relationships, mutually beneficial, relationships, or dominant relationship relationships.
- They movement away from individualism towards seeing individuals within communities embedded in larger societies and ecosystems - buen vivir in Ecuador
- It’s not only the structure of the decision-making process of the economy overall, but the quality and type of businesses within it. Once the concept of shareholder value above all else become cemented, you have a further engine of the production of specific market outcomes. I can’t just be fixed by the overall structures, you need people within it to change.
- This is relational governance we are getting to, where relationships and empathy have as much as sway as the profit motive
- Pre distribution vs redistribution - allocating a larger share to workers before taxes. This is the point of workers being on boards, unions.
- Workers remain the backbone of the economy, precarious work cannot be the central pillar of a growing economy, stability and confidence get the best out of people not desperation and fear.
- A goal: have the characteristics of ecosystems matter as much as the rate of economic growth.
- With art being the medium by which culture evaluates and judges and changes its values and morals, the devaluation of the arts then is the biggest risk to entrenching the existing values and thus the benefits for those whom the current model serves the best. This is especially pernicious across the modern tech Bro and financializstion culture which encourages the rise of hard skills at the cost of the fine arts because what better way to become a cog in the machine, so that do not question the very machine you need hard skills to power.
- Pessimism of the intellect, optimism of the will
- past energy transitions have led to rapid increases in energy usage, and we should expect this one to be no different

[Patrick]

In “The Common Good Economy,” author Mariana Mazzucato advocates for creating an economy that allows us all to flourish. Tackling big problems, such as climate change, access to safe drinking water, and universal health care, requires collective action to achieve good outcomes for the common good. To solve these challenges, governments, businesses, communities, and individuals need to collaborate and use practical tools.

The author provides these tools as part of a unifying framework, which she refers to as a “common good compass.” The framework consists of five principles: purpose and directionality, co-creation and participation, collective learning and knowledge sharing, access for all and reward sharing, and transparency and accountability. These principles are rooted in the philosophical traditions of the ancient Greeks, communitarian thinkers, and other societies devoted to a common good way of life.

The author declares that these principles are largely absent from today’s global economy and, as such, disadvantaged individuals and communities are not receiving the support they need. The principles are intended to reshape markets from being primarily redistributive (and reactionary) to ones that create value and growth through collective action. The author clearly defines and develops each principle. She also includes examples of how they have been (or can be) used to support mission-oriented goals.

‘Purpose and directionality’ enable a transition from a growth-only mindset to one that actively serves the common good. ‘Co-creation and participation’ allow all stakeholders to collaborate in setting goals and how best to achieve them. ‘Collective learning and knowledge’ are a form of collaborative governance, where knowledge is created and openly shared (vs. narrowly owned). ‘Access for all and reward sharing’ incorporate a pre-distributive approach to preventing inequalities through the equitable sharing of risks and rewards. ‘Transparency and accountability,’ an overarching principle, create trust between stakeholders and empower the public to shape outcomes.

Given how divisive geopolitics has become, it may seem improbable that stakeholders will utilize the author’s framework to tackle global problems. However, stakeholders realize that the status quo will likely exacerbate global problems and inequality. The author skillfully and convincingly exhibits why we need her framework and how it can promote the common good. Governments, businesses, and other stakeholders collectively willing to adopt the “common good compass” framework can foster collaboration, build trust, boost disadvantaged communities and individuals, and create more balanced and equitable global economic growth.

[My special thanks to Basic Venture (Hachette Book Group) and NetGalley for an advance reading copy of this book.]

[Jackie McGinnis]

This is an essential read. The Common Good Economy recognizes the feelings of fear and being stuck that surround today’s economy while providing hope and a way forward (without burning it all down first).

Mariana Mazzucato presents The Common Good Economy in three parts: the theory, the practice, and places where people meet and relationships are built. I found it fascinating to find a common good practice in historical economies like Ancient Rome and Greece. Then bureaucratic capitalism rose and pushed public interest… without defining what is good! It’s no wonder we aren’t all moving in the same direction.

So, what is good? Part two introduces the compass of 5 things that make up a common good economy. Within this framework, Mazzucato explores healthcare, water availability and cost, technology, and more. She explains the current situation, like how capitalism has publicized risk but privatized the reward. For example: AI innovation; the public has taken on the risk, but a select few are making money from it. Mazzucato also presents research and potential solutions; I.e. AI could be useful if we found a common good way to incorporate it into our economy and environment.

The examples included in the book are worldwide, primarily sharing successes or pointing our society in the directions we should be looking for solutions together. I highly recommend this thought-provoking read.

Thank you to NetGalley and The Basic Books Group for the eARC!

[Ellen]

Economist Mariana Mazzucato has written an extensive, well researched argument for the modification of our basic economic systems. Marzzucato defines the Common Good Economy as a market system where the government, in contrast to stepping in to correct failure, shapes the market in advance by setting mission-oriented goals which take into consideration forces (such as climate change) that affect

The information she shares here is complex, and its depth and complexity are most appropriately read by someone who already understands the language and history of economics. That would not be me. While I was lost in the forest for much of the book, I was able to understand enough to believe this is an intriguing concept that deserves attention at the highest levels.

I don’t think I’m exaggerating in saying that someday we may hear Mazzucato’s name along Smith and Keynes. But first, that takes a will to pay attention. Many thanks to Hachette and NetGalley for the opportunity to read this advance reader’s copy. All opinions are my own.