In Conversation With Alberto Cottica – Innovation by Necessity: Can Crises Push Institutions Forward?

Innovation, Cottica argues, must be a continuous process – yet history shows that societies often innovate only when forced by crisis.

As public institutions grapple with mounting pressures – from climate breakdown to economic instability – institutional innovation is no longer optional, but essential for survival.

According to Cottica, one of the most urgent frontiers for institutional innovation lies in economic governance.

Despite profound societal and environmental shifts, many economic systems remain rooted in policy models developed in the 1970s, prioritizing efficiency, growth, and market liberalization over equity, resilience, and planetary boundaries.

This entrenched orthodoxy has made it difficult  to experiment with alternative models, even as rising inequality, environmental degradation, and economic fragility demand new approaches.

Yet history and anthropology remind us that other ways of organizing economies are possible.

Cottica points to diverse examples, from the seasonal economies of pre-colonial North America to community-driven social economies in Messina, Italy, and the rise of the 20-minute city model.

Cities, he argues, are often at the forefront of economic experimentation – closer to citizens’ needs and more agile in testing new systems.

How can institutions anticipate crises rather than simply reacting to them?

Cottica advocates for a dynamic approach to innovation.

In times of stability, change should be incremental – prototyped through experimental policies, regulatory sandboxes, and small-scale pilots.

But in moments of upheaval, more radical transformations become not only possible but necessary. As he puts it: “You cannot break a system that is already broken.”