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This lecture introduces the concept of Grand Challenges (GCs) and missions, focusing on various types of capital essential for growth and welfare. It covers specific GCs like climate, environment, and health, emphasizing the importance of innovation in addressing crises. The course explores the distinction between GCs and missions, highlighting the need for specialized expertise and the sharing of policy practices. It discusses the role of innovation in providing solutions to global challenges, emphasizing the value of economic and social changes. The lecture also delves into the application of Artificial Intelligence in areas like clean energy, smart cities, and sustainable agriculture, showcasing its potential impact on different sectors.