On Tuesday 6th December 2016, Professor Mariana Mazzucato gave the Annual Public Policy Lecture. The event, organised with the Masters in Public Policy (MPP) and sponsored by PA Consulting attracted attendees from across the Cambridge faculties as well as external guests. Professor Mazzucato’s lecture follows previous talks from Ha-Joon Chang and David Halpern. Professor Mazzucato drew on her influential book, The Entrepreneurial State: debunking private vs. public sector myths, to highlight the narrow way in which public policy is viewed in economics and the implications of this for our understanding of wealth creation. Focussing on the relationship between the State and innovation-led growth, the talk explored the key role that public policies have had in envisioning change, and taking on extreme risk and uncertainty in the innovation process. This has entailed the State acting not just as lender of last resort, but as investor of first resort. In this context, economic policy is more about market making and shaping, rather than just a market fixing. The lecture went on to consider the implications of this different understanding of public policy, for a more ‘collective’ understanding of wealth creation, and ways to ensure that not only risks but also rewards are socialised.