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Creating Seedbeds for Social Innovation

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Creating Seedbeds for Social Innovation

  1. 1. Creating Seedbeds for Social Innovation Advanced Policy Research 2006-2007 H. John Heinz III School of Public Policy and Management Carnegie Mellon University Pittsburgh, Pennsylvania USA
  2. 2. Special Thank You To The Following Experts <ul><li>Heather Arnet - Women and Girls Foundation • Terry Beggy - Pittsburgh Social Venture Partners • Marie Coleman – Institute for Social Innovation, Carnegie Mellon University • Diana Bucco - The Forbes Funds • Courtney Ehrlichman - Friendship Development Associates • Colin Lacon - Northern California Grantmakers • Al Mercer – Social Enterprise Accelerator • Elizabeth Lynn - The McCune Foundation • Harold Miller - PittsburghFuture.com • Jerry Paytas - GSP Consulting • P aul Shoemaker – Social Venture Partnership • George Duncan – Heinz School of Public Policy and Management , Carnegie Mellon University • Don Smith – University Partnerships • Richard Florida – George Mason University, The Richard Florida Creative Group • S teven Pedigo – Greater Washington Initiative • Kirsten Gagnaire – Social Enterprise Group • Gregg Behr – The Grable Foundation • Perla Ni – Great Nonprofits, founder of Stanford Social Innovation Review • Denise Rousseau – Institute for Social Innovation, Carnegie Mellon University • Tim Zak – Institute for Social Innovation , Heinz School of Public Policy and Management (Australia) • Tim White – University Partnerships • Donald Bonk – Carnegie Mellon University </li></ul>
  3. 3. Creating Seedbeds for Social Innovation <ul><li>AGENDA </li></ul><ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  4. 4. Creating Seedbeds for Social Innovation <ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  5. 5. Definition of Social Innovation Social innovations are organizations in any sector that are motivated by a social mission and that are financially sustainable in one or both of the following ways: creating program-generated income or receiving resources from a Support Organization – whose mission is to support and promote Social Innovation (e.g., Ashoka, Echoing Green, foundations, Venture Philanthropic Partners)
  6. 6. Social innovation’s impact on the economy Economic Development Can we demonstrate this relationship? Social Innovation Factors Can we demonstrate this relationship?
  7. 7. Measuring the relationship between social innovation and economic development <ul><li>Build the database of socially innovative organizations </li></ul><ul><li>Analyze the impact of social innovation on a region’s economic development </li></ul><ul><li>Create the Fertile Ground Index – a model that indicates a region’s potential for social innovation </li></ul>
  8. 8. Creating Seedbeds for Social Innovation <ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  9. 9. Building the database of socially innovative organizations <ul><li>Ashoka </li></ul><ul><li>Center for the Advancement of Social Entrepreneurship </li></ul><ul><li>Common Good Ventures Nonprofit Partnerships </li></ul><ul><li>Echoing Green </li></ul><ul><li>Draper Richards Foundation </li></ul><ul><li>Fast Company Social Capitalist Award 2005-2007 </li></ul><ul><li>Fusion </li></ul><ul><li>Kaufmann Foundation </li></ul><ul><li>New Profit </li></ul><ul><li>REDF (The Roberts Enterprise Development Fund) </li></ul><ul><li>Schwab Foundation </li></ul><ul><li>Social Enterprise Alliance/Community Wealth Ventures </li></ul><ul><li>Skoll Foundation </li></ul><ul><li>Social Enterprise Accelerator </li></ul><ul><li>Social Enterprise Group </li></ul><ul><li>Social Innovation Forum </li></ul><ul><li>Social Venture Network </li></ul><ul><li>Surdna Foundation </li></ul><ul><li>University Network </li></ul><ul><li>Venture Philanthropy Partners </li></ul><ul><li>Yale-Goldman Sachs Business Plan Competition for Nonprofit Organizations 2002-2005 </li></ul>- Over 800 organizations in the United States - Sources include:
  10. 10. Ranking of cities in increasing count of socially innovative organizations Foundations only funding socially innovative organizations Networks only supporting socially innovative organizations Akron, OH Arlington, TX Aurora, CO Birmingham, AL Honolulu CDP, HI Mesa, AZ Oklahoma City, OK Omaha, NE Rocky Mount, NC San Antonio, TX Savannah, GA St. Petersburg, FL Stockton, CA Toledo, OH Tulsa, OK Wichita, KS Anchorage, AL Buffalo, NY Durham, NC Jacksonville, FL Jersey City, NJ Las Vegas, CA Lexington, KY Long Beach, CA Phoenix, AZ Rochester, NY Tallahassee, FL Bethesda, MD Charlotte, NC Colorado Springs, CO Concord, CA Dallas, TX El Paso, TX Nashville, TN Raleigh, NC Sacramento, CA San Jose, CA Erie, PA Indianapolis, IN Louisville, KY Memphis, TN Miami, FL San Diego, CA Santa Clara, CA Santa Cruz, CA Albuquerque, NM Columbus, OH Detroit, MI New Haven, CT Newark, NJ St. Paul, MN Tampa, FL Tucson, AZ Houston, TX New Orleans, LA Palo Alto, CA Austin, TX Berkeley, CA Cambridge, MA Denver, CO Cincinnati, OH Portland, OR Kansas City, MO St. Louis, MO Baltimore, MD Oakland, CA Arlington, VA Philadelphia, PA Los Angeles, CA Minneapolis, MN Portland, OR Alexandria, VA Milwaukee, WI Cleveland, OH Atlanta, GA Seattle, WA Pittsburgh, PA Chicago, IL Washington, DC Boston, MA San Francisco, CA New York, NY Total: 82 0 1-10 11-20 21-40 41-70
  11. 11. Creating Seedbeds for Social Innovation <ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  12. 12. U.S. hubs of social innovation
  13. 13. Ratio: Population to Organization
  14. 14. U.S. hubs of social innovation samples <ul><li>Hub Selection Criteria </li></ul><ul><li>Cities that represented different geographic regions </li></ul><ul><li>Cities in differing developmental life cycles </li></ul><ul><li>Cities that had higher than average number of socially innovative organizations </li></ul>
  15. 15. Boston block group locations
  16. 16. Boston control group: changes in median household income 1990 2000
  17. 17. Boston sample group: changes in median household income 1990 2000
  18. 18. Case study cities exhibit significantly higher growth levels in areas with high concentrations of socially innovative organizations
  19. 19. While population increased, the labor participation rate also increased
  20. 20. Case study cities exhibit significantly higher income levels in areas with high concentrations of socially innovative organizations
  21. 21. Economic development key points <ul><li>Correlation appears evident between the placement of socially innovative organizations and the level of economic development </li></ul><ul><li>Organizations act in conjunction with other regional revitalization efforts in order to increase the standard of living and attract new growth in a given area </li></ul>
  22. 22. Creating Seedbeds for Social Innovation <ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  23. 23. Certain factors influence social innovation Ideas Resources Need Quantitative Measures <ul><li>Education level </li></ul><ul><li># of Patents </li></ul><ul><li># of Universities </li></ul><ul><li>University R&D </li></ul><ul><li>Diversity </li></ul><ul><li>Voter breakdown </li></ul><ul><li>Age </li></ul><ul><li>Cost of living </li></ul><ul><li># of Foundations </li></ul><ul><li>New start-ups </li></ul><ul><li>Population growth </li></ul><ul><li>Transportation </li></ul><ul><li>Support Organizations </li></ul><ul><li>Employment levels </li></ul><ul><li>Industry of employment </li></ul><ul><li>Household income </li></ul><ul><li>Poverty rate </li></ul><ul><li>Vacancy rate </li></ul><ul><li>Regional GMP </li></ul>
  24. 24. Model selection <ul><li>Three Decision Criteria </li></ul><ul><ul><li>Adjusted R-squared </li></ul></ul><ul><ul><ul><li>Reflects accuracy of the model </li></ul></ul></ul><ul><ul><li>Mallows C-p </li></ul></ul><ul><ul><ul><li>Measures biases associated with the number of predictors </li></ul></ul></ul><ul><ul><li>Sum of Residuals </li></ul></ul><ul><ul><ul><li>Represents the prediction error associated with each variable </li></ul></ul></ul>
  25. 25. Fertile Ground Index <ul><li>Factors of Social Innovation </li></ul><ul><li>A = Foundation Count </li></ul><ul><li>B = Foundation Giving </li></ul><ul><li>C = Population Ages 22-34 </li></ul><ul><li>D = Population Ages 35-64 </li></ul><ul><li>E = Percentage of Participants in Labor Force </li></ul><ul><li>F = Percentage of Population Below Poverty </li></ul><ul><li>G = 9 – 12 Grade Educated Population </li></ul><ul><li>H = High School Educated Population </li></ul><ul><li>I = Percent Democrat </li></ul><ul><li>Your Region’s Score </li></ul><ul><li>Expected number of socially innovative organizations = </li></ul><ul><li>- 0.000111 + 0.008720 A + 0.00000001 B </li></ul><ul><li>+ 0.00039238 C + 0.0003736 D - 0.00021237 E </li></ul><ul><li>+ 0.00014131 F - 0.00037172 G + 0.00014075 H + 0.00000048 I </li></ul><ul><li>Step 1: Normalize Data </li></ul><ul><li>Step 2: Insert normalized data into social innovation equation variables </li></ul><ul><li>Step 3: Solve equation </li></ul>
  26. 26. Model limitations <ul><li>Relatively small data set </li></ul><ul><li>High variance in actual organizations </li></ul><ul><li>Under 90% R Squared </li></ul><ul><li>Biases associated with large cities </li></ul><ul><li>Biases introduced through data collection method </li></ul><ul><li>Scale of the city </li></ul>
  27. 27. Creating Seedbeds for Social Innovation <ul><li>Introduce project concept and definitions </li></ul><ul><li>Discuss the socially innovative organization database </li></ul><ul><li>Correlate social innovation with economic development </li></ul><ul><li>Launch the Fertile Ground Index </li></ul><ul><li>Share conclusions and facilitate Q & A session </li></ul>
  28. 28. Recommendations for future research <ul><li>Update the database to include more cities and socially innovative organizations </li></ul><ul><li>Apply model to international cities </li></ul><ul><li>Apply economic development analysis to other hubs of social innovation </li></ul><ul><li>Conduct additional qualitative research </li></ul><ul><li>Examine attrition rates in socially innovative cities </li></ul>
  29. 29. Future directions <ul><li>Publish research to reach target audience </li></ul><ul><li>Provide policy recommendations for: </li></ul><ul><ul><li>Foundations </li></ul></ul><ul><ul><ul><li>Support education and promotion of social innovation. Utilizing the FGI, understand and recognize where funding will have the biggest impact in the region. </li></ul></ul></ul><ul><ul><li>Entrepreneurs </li></ul></ul><ul><ul><ul><li>Utilize the FGI when assessing region to start social innovation. </li></ul></ul></ul><ul><ul><li>Researchers </li></ul></ul><ul><ul><ul><li>Update this research via various methods. Track and evaluate applications of the FGI and continually update the data and disseminate updated information. </li></ul></ul></ul><ul><ul><li>Economic developers </li></ul></ul><ul><ul><ul><li>Attract more social innovations in revitalization efforts, see social innovators as partners. </li></ul></ul></ul><ul><ul><li>Government leaders </li></ul></ul><ul><ul><ul><li>Support local social innovators and economic developers and help facilitate relationship between the two. Create a more fertile seedbed in the region utilizing the FGI and investing in the appropriate factors. </li></ul></ul></ul>
  30. 30. Discussion questions <ul><li>Are there clarification questions from the presentation? </li></ul><ul><li>In your experiences, which factors have contributed to/best fostered your organization? </li></ul><ul><li>What are some qualitative/anecdotal examples of economic development driven by social innovation? </li></ul>
  31. 31. Thank you for attending Advanced Policy Research 2006-2007 H. John Heinz III School of Public Policy and Management Carnegie Mellon University Pittsburgh, Pennsylvania USA

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