%V 19 %N 4 %K Social Sciences, Economics, Planning & Development, Business & Economics, Public Administration, state investment banks, public investment policy, market failure, development banking, mission-oriented policy, RESEARCH-AND-DEVELOPMENT, INDUSTRIAL-DEVELOPMENT, POLICY INSTRUMENTS, TECHNOLOGY POLICY, INNOVATION, ENTREPRENEURSHIP, CHALLENGES, MODELS %T Beyond market failures: the market creating and shaping roles of state investment banks %D 2016 %P 305-326 %X The paper develops a typological framework of the roles of state investment banks (SIBs) in the economy. The typology identifies four different roles: countercyclical; developmental; venture capitalist; and challenge-led. The paper conceptually elaborates the typology by first providing a historical overview of SIBs, and then discussing how the mainstream “market failure theory†justifies them. It then advances a different conceptualization based on insights from heterodox economics, showing that all roles of SIBs are more about market creating/shaping rather than market-failure fixing. The paper concludes with a proposal of a new agenda for research on SIBs based on our typological framework. %O © 2016 Informa UK Limited, trading as Taylor & Francis Group. This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. %A M Mazzucato %A CCR Penna %J Journal of Economic Policy Reform %L discovery10045674 %I ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD