Innovation and the New Social Economy

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Robin Murray spoke on the topic of the crisis and the new social economy at the Euclid Network AGM on 18 September 2009, drawing from this essay, which argues that the early years of the 21st century …

Robin Murray spoke on the topic of the crisis and the new social economy at the Euclid Network AGM on 18 September 2009, drawing from this essay, which argues that the early years of the 21st century are witnessing the emergence of a new kind of economy that has profound implications for the future of public services as well as for the daily life of citizens.

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  • Better learning across boundaries – e.g. bolsa familial or grameen bank (something we support via SIX)… or more targeted networks like SHAK

Transcript

  • 1. Social Schumpeter: Innovation and the New Social Economy
    Robin Murray
    Euclid September 18th 2009
  • 2. The present crisis is about a long wave transition from the 20th century paradigm of mass production, to what? to the 21st century paradigm of the distributed system economy?
  • 3. MATURITY
    SYNERGY
    FinancialBubble
    Market saturation and social unrest
    Technologicalexplosion
    Golden Age
    FRENZY
    TURNING POINT
    IRRUPTION
    Crash
    Institutionalrecomposition
    The sequence of propagation has four phases and a break
    20 – 30 years
    20 – 30 years
    INSTALLATION PERIOD
    DEPLOYMENT PERIOD
    Degree of diffusion of the technological revolution
    Time
    big-bang
    Nextbig-bang
  • 4. TURNINGPOINT
    Bubble
    Golden Age
    1793–97
    GreatBritish leap
    Canal mania
    1848–50
    Railway mania
    The Victorian Boom
    London funded global marketinfrastructure build-up(Argentina, Australia, USA)
    Belle Époque (Europe)
    “Progressive Era” (USA)
    1890–95
    The roaring twenties
    Europe1929–33
    USA1929–43
    Post-warGolden age
    Telecom mania, Internet emerging marketsand NASDAQ
    Sustainable global knowledge-society ”golden age”?
    2000/7–?
    The historical record: bubble prosperities, recessions & golden ages
    DEPLOYMENT PERIOD
    INSTALLATION PERIOD
    1771Britain
    1829Britain
    1875 Britain / USAGermany
    1908 USA
    1971 USA
    Each Golden Age has been facilitatedby enabling regulation and policies for shaping and widening markets
  • 5. Digital economy reconfiguring production around the user. The Lego principle. Households become designers, processors and assemblers. The house becomes an office/recording studio/learning lab/doctors’ surgery/power station. Rise of distributed systems and the support economy
  • 6.
  • 7. Strong social and technological tides which provide the basis for the expansion of the social economy
  • 8. The social economy
  • 9. i) Intractable Problems. Widespread recognition that the big issues not solvable with business as usual.
  • 10. But the social economy is particularly well suited to tackle these issues and is the source of many innovations in these areas.
  • 11. ii) Insistent voices, active lives.
    The rise of expressive culture - the post modern citizen actively searching for identity, meaning and self improvement , individually and collectively through social movements
  • 12.
  • 13.
  • 14. New models of social provision:
    Open University
    Open College
    Elderpower
    The Key
    Chronic health care
  • 15.
  • 16. Social economy can become an innovative driver of economic transformation in the deployment period
    Can do so only if conditions transformed in each part of the social economy and their inter-relations
  • 17. State. Major structural reform - Innovation episodic and centralised.
    Interfaces: innovation contracting
    independent project boards
    invest to save budgeting
    SFI not PFI
    c) Design. New barefoot designers.
  • 18.
  • 19. d) Formation: theory and methods
    e) Wiring the micro. Mondragon/Third Italy/Japanese consumer co-ops
    f) Conditions for household engagement and collaboration
  • 20. Working time
    Lifeskills
    Platforms and support services
    Physical; space
    Digital spine
    Tax, benefits and volunteerism
    Distributed public facilities (local nodes)
  • 21. Platforms – from the linear to the multi-nodal
  • 22.
  • 23. Social Schumpeter
    Innovation in the social economy now becoming central to the future of capitalism
  • 24. References:
    Christopher Freeman & Francisco Luca, As Time Goes By, Oxford 2001
    Francois Jegou and EzioManzini, Collaborative Services: social innovation and design for sustainability, Poli Design 2008
    Richard Koo, The Holy Grail of Macroeconomics, Wiley, 2009
    Richard Lipsey, Kenneth Carlaw & Clifford Bekar, Economic Transformations, Oxford 2005
    Jim Maxmin and Soshana Zuboff, The Support Economy, Allen Lane 2002
    Carlota Perez, Technological Revolutions and Financial Capital, Edward Elgar 2002
    Walter Stahel, The Performance Economy, Palgrave 2006
    Robin Murray
    robinmurray(AT)blueyonder.co.uk