“History tells us that innovation is an outcome of a massive collective effort – not just from a narrow group. If we want to solve the world’s biggest problems, we better understand that. “ — Mariana Mazzucato, Wired interview

Over the past decade, my focus has increasingly gravitated towards understanding the profound influence of capital in sculpting our future: social movements and cultural trends shaping markets and societies. In our collective pursuit of a sustainable future, we’ve often been shackled by a vision that merely aims to “do less harm” or “have less impact.” While efforts towards sustainability are commendable, the urgency of today’s environmental crises and expanding social inequalities demand a more ambitious, holistic approach. This approach doesn’t just aim to mitigate negative impacts but actively seeks to heal, restore, and regenerate. This is the crux of a regenerative economy, a concept transcending sustainability to offer a blueprint for rejuvenating our planet and revitalizing our communities in harmony with natural systems.

Mazzucato’s Vision: A Catalyst for Transformation

Drawing upon the pioneering insights of renowned economist Mariana Mazzucato and her book the Value of Everything, this narrative delves into how a bold reimagining of value, innovation, and public-private collaboration can spearhead a transformative, regenerative future. The regenerative economy is not a mere utopian vision; it’s an imperative evolution. Climate change, environmental degradation, and social disparities present us with pressing challenges that demand transformative solutions. A regenerative approach recognizes the intrinsic link between the health of our environment and the well-being of communities, our societies, championing practices that restore ecosystems, enhance biodiversity, and rejuvenate depleted soils, thus transforming agriculture, industry, and urban development into agents of environmental restoration.

This diagram illustrates the concept of a Value-Driven Economy. It shows how different elements like the Entrepreneurial State, Community & Ecosystem Wellbeing, Mission-Oriented Innovation, and Inclusive Business Models interact to create a regenerative economic system focused on shared value. The model emphasizes public-private collaboration, ecosystem restoration, societal goals, and shared risks and rewards. Key components include driving innovation, promoting sustainability, and improving stakeholder benefits across government, business, and citizens. The transition pathway and stakeholder benefits are highlighted, demonstrating how this economic model aims to balance growth with social and environmental considerations.

Regenerative economics, influenced by the work of Professor Mariana Mazzucato, advocates for reshaping our global economic systems to prioritize the well-being of communities and ecosystems over mere profit alone. Mazzucato’s concept of the “entrepreneurial state” highlights the critical role that government plays in driving innovation, often taking the initial risks that lead to significant advancements. To ensure that society benefits equitably from these innovations, it is crucial to implement clear policy guidance that aligns public and private sector efforts with broader societal goals. This can be achieved through mission-oriented innovation policies, where governments set priorities that focus on public welfare, such as sustainability and health, and by structuring public-private partnerships to share both risks and rewards. Additionally, reforming intellectual property governance to balance private incentives with public access can help ensure that essential innovations are accessible to all, while fostering transparency and accountability in the use of public funds ensures that the benefits are distributed fairly.

Moreover, to build enterprises that thrive while serving multiple stakeholders — including workers, communities, and the environment — governments should promote inclusive business models like social enterprises and B Corporations through supportive policies and incentives. Long-term investment in public sector capacity is also essential to effectively manage these partnerships and ensure that public investments are strategically aligned with long-term societal goals. By adopting these strategies, governments can foster an economy that not only thrives but also contributes positively to the well-being of all its members, reflecting the principles of regenerative economics and Mazzucato’s vision of an economy driven by public purpose.

Historical Precedent: Singer Sewing Machine

The concept of a regenerative economy isn’t entirely new. Historical examples, such as the Singer Sewing Machine Company in the late 19th and early 20th centuries, demonstrate how business models can create positive, compounding returns across multiple forms of capital.

Singer’s innovative approach to selling sewing machines through installment plans made their product accessible to a broader range of consumers, including working-class families and women entrepreneurs. This business model not only generated financial returns for the company but also contributed to social capital by empowering individuals, particularly women, to start home-based businesses or improve their domestic productivity. This at a time when women were not allowed to vote.

Moreover, Singer’s global expansion strategy involved setting up local manufacturing facilities and training centers, which helped transfer skills and technology to various communities worldwide. This approach created jobs, stimulated local economies, and fostered long-term prosperity in the regions where Singer operated for a group that was without many viable economic opportunities.

Modern Example: Everytable

In the contemporary landscape, Everytable presents a compelling case study of a business model aligned with regenerative economic principles. Founded in 2016 by Sam Polk, a former Wall Street trader, Everytable’s mission is to make healthy food accessible and affordable to all communities (Crunchbase, n.d.).

Key aspects of Everytable’s regenerative approach include:

Sliding Scale Pricing: Everytable adjusts its prices based on the average income in each zip code where it operates. This innovative pricing model ensures that healthy food is accessible to all, regardless of socioeconomic status (The New York Times, 2022).

Local Economic Development: With a large kitchen in Los Angeles and another in New York City, Everytable creates local jobs and stimulates regional economic activity (YouTube interview with Sam Polk, 2024).

Health and Social Impact: By providing healthy, affordable meals, Everytable addresses issues of food insecurity and diet-related health problems in underserved communities. Their “food as medicine” approach aligns with growing mainstream recognition of the link between nutrition and health (YouTube interview with Sam Polk, 2024).

Sustainable Growth: Everytable’s expansion from 10 stores in 2021 to 70 stores across Southern California and New York by 2024 demonstrates a scalable model for regenerative business practices (YouTube interview with Sam Polk, 2024).

Innovative Distribution: Through their “Smart Fridges,” e-commerce platform, and partnerships with large institutions, Everytable maximizes its reach and impact (YouTube interview with Sam Polk, 2024).

Principles of Regenerative Economics: The Centrality of Dignity

Central to regenerative economics is the principle of dignity, a fundamental human need that our economic systems must prioritize. Everytable exemplifies this principle by striving to be “a force that is inclusive, ties everyone together, and respects everyone. Treat every community with dignity” (YouTube interview with Sam Polk, 2024).

To nurture a regenerative economy, we must develop indicators reflecting our societies’ and planet’s health, resilience, and sustainability.

As we examine the challenges and opportunities faced by growing social economic anxiety and those faced by underrepresented entrepreneurs, we’re reminded of the necessity to address systemic inequalities actively. By focusing on efficient capital allocation and moving beyond short-term profits, regenerative economics seeks to forge a more sustainable and equitable financial landscape.

The Government’s Role in Nurturing Innovation

Mazzucato’s work on the entrepreneurial state, value creation, and mission-oriented innovation underscores the government’s crucial role in steering economic growth towards the common good. She advocates for ambitious, problem-solving public investments as a blueprint for mobilizing resources towards regenerative goals. Setting clear, audacious missions —like achieving carbon neutrality, reversing biodiversity loss, and fostering circular economies — can unite public institutions, private enterprises, and civil society in a collective endeavor to tackle our most daunting environmental and social challenges.

Redefining Economic Value

At the heart of Mazzucato’s vision lies a call to fundamentally redefine how we measure economic value. She argues that traditional metrics, such as GDP, fail to capture activities’ true worth that enrich our ecosystems and empower our communities. To nurture a regenerative economy, we must develop indicators reflecting our societies’ and planet’s health, resilience, and sustainability. This paradigm shift is vital for redirecting investments towards initiatives that yield economic returns and contribute to the environment and humanity’s long-term well-being.

Financial System Reform for Sustainability

Achieving a regenerative economy necessitates reforming the financial system to incentivize sustainable and restorative practices. Mazzucato champions regulatory changes, green investment incentives, and innovative financing mechanisms that favor long-term ecological and social outcomes over immediate gains.

Technology for the Public Good

Furthermore, Mazzucato underscores the importance of leveraging technology and innovation for the public interest. In a regenerative economy, research and development should propel breakthroughs that replenish the planet’s vitality and support equitable social development. Everytable’s use of technology in their distribution models, such as “Smart Fridges” and e-commerce platforms, exemplifies how innovation can be harnessed to serve the public good.

Embracing a Roadmap for Regenerative Economic Systems

As we navigate the complexities of the 21st century, the insights from historical examples like Singer Sewing Machine and contemporary models like Everytable, combined with Mariana Mazzucato’s economic theories, present a compelling framework for crafting an economy that heals and enriches. By embracing these principles and learning from successful models, we embark on a journey towards an economy that truly regenerates, offering hope and direction for a world in dire need of renewal.

However, it’s important to note that challenges remain. For instance, Everytable’s aspiration for high gross margins and potential public offering raises questions about maintaining its regenerative principles as it scales (YouTube interview with Sam Polk, 2024). Similarly, the long-term sustainability of its sliding scale pricing model in lower-income neighborhoods will need to be carefully managed to avoid the pitfalls of gentrification and “enshittification” (Notes on Sam Polk and Everytable, 2024).

As we move forward, it’s crucial to continually evaluate and refine our approaches to ensure that regenerative economic practices truly serve the broadest possible spectrum of society while fostering environmental renewal. By doing so, we can work towards an economic system that not only sustains but actively improves the world for future generations.