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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 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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Innovation and the New Social Economy

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