Social innovation addresses societal challenges through new solutions, relationships, and ways of thinking. It occurs at micro, meso, and macro levels to meet social needs in a more effective, efficient, and fair way than existing solutions. Social innovation is driven by new actors like social entrepreneurs and requires its own support systems given market failures around public goods. Companies can benefit from social innovation by learning, boosting reputation, and connecting to future markets while also achieving social impacts beyond what governments and non-profits can.

1. TOPIC:
 SOCIAL INNOVATION: ADDRESSING
SOCIETAL NEEDS AND
CHALLENGES
 By: JEAN G. JAVIER
 Discussant
 Professor: DR. ROSANNA D. GONZALES
 PhDDS 317: Development and Management of Innovative Programs

2. Introduction
 Social innovation is becoming a
buzzword which is discussed
around the world. There’s a
surge in attention and
government support for social
development and social
innovation, because it’s seen to
be providing effective ways for
addressing societal challenges
and possible pathways towards
more sustainable, inclusive and
resilient societies.

3.  Today’s global challenges in line
with the Sustainable Development
Goals - from climate change to
unemployment and poverty - are
both economic and social. The
current economic crisis reminds us
of the importance of mobilising all
possible resources - not solely for
generating economic benefits, but
also for anticipating and responding
to social problems.

4. TRENDS DRIVING SOCIAL INNOVATION
First, the traditional concepts and systems are
not adequate to properly understand these
activities. Addressing social challenges by means of
social innovation requires setting clear and agreed
definitions, and creating a new framework to better
understand the changing nature of innovation and
the multiplicity of economic, social and technical
drivers.

5. Social innovations are by nature multidimensional
insofar as a variety of issues are addressed as social
challenges. This entails a significant degree of diversity in
terms of knowledge basis in science and technology.
Social challenges are also addressed by
multi stakeholders (e.g. universities,
research institutes, private companies,
government, civil society, citizens). This
calls for more research activities on
multidisciplinary, and promoting
stakeholders’ involvement—particularly by
favouring the implementation process of
research priorities (while avoiding
lobbyism).

6. Social Entrepreneurs
Moreover, new actors have emerged that challenge the
current established innovation support institutions and
instruments. These actors range from social
entrepreneurs and enterprises to scientists,
International Organisations, NGOs and private
foundations.
Social challenges have a public-good nature. Market
processes are inefficient to coordinate these activities
that directly address social challenges. Prospects of
large profits in the social area are limited, which
hinders incentives to invest and commit resources to
social innovation activities. Consequently, specific
processes and mechanisms should be specifically
established to support social innovation activities that
aim to address social challenges.

7. WHAT IS SOCIAL INNOVATION?
Social Innovation refers to traditional innovation in terms
of ‘value creation’. Its ultimate goal is not only to create
economic value, but to also enhance social institutions.
Social innovation is the
creation of new social
relations and [1]
new ways of doing and
thinking. [2]
Some organisations see
social innovation as an
approach: [3]

8. A pragmatic approach: Social innovation as
‘innovative activities and services that are
motivated by the goal of meeting a social
need and that are predominantly developed
and diffused through organisations whose
primary purposes are social’. [Mulgan et al.
(2007) Social Innovation, What It Is, Why It
Matters, and How it Can Be Accelerated].
A systemic approach: Social innovation as a
‘complex process through which new
products, processes or programs are
introduced, leading to a deep change in daily
routines, resource streams, power relations,
or values within the system affected by the
innovation’. [Westley (2010) Making a Difference-
Strategies for Scaling Social Innovation for Greater
Impact].

9. A managerial stance: Social innovation
as a ‘new solution to a social problem
which is more effective, efficient,
sustainable or fairer compared to
existing solutions; and which generates
value primarily for society instead of single
individuals or organisations’. [Phills et al.
(2008) Rediscovering Social Innovation].
A critical approach: Social innovation is conceived as a process of
‘empowerment and political mobilisation’ targeting a bottom-up
transformation of the functioning of a social system, in terms of
stakeholders and in terms of distribution of material and
immaterial resources. [Moulaert et al. (2009) Social Innovation and
Territorial Development].

10. According to BEPA [4], there are three societal
levels at which social innovation may deliver such
outcomes:
The social demands level: tackling specific
problems faced by specific groups on the
ground that are traditionally not addressed
by the market or existing institutions and
often impact vulnerable people much more
than others. These are typically seen at the
micro level.

11. The societal challenges level: tackling
challenges that affect people at a
larger social scale or across whole
sectors often manifests through
complex mixes of social, economic,
environmental and cultural factors
that require new forms of relations
between social actors. These are
typically seen at the meso level.

12. The systemic change level: enquiring some
fundamental transformation of the way
society, its institutions and actors operate,
for example by changing governance structures,
and creating more participative arenas where
empowerment and learning are both the sources
and outcomes of well-being. This is typically seen
at the macro level. This hierarchical notion of
levels represents a useful taxonomy of the possible
results and aims of social innovation and provides
a simple model of the relationship between social
innovation and social change.

13. USING SOCIAL INNOVATION TO
CREATE SHARED VALUE
For social investors wanting to achieve a
good return the following ideas are
presented as an opportunity to create
shared value:
Preparing a strategy and action plan for
social innovation that is linked to the
organisation’s sustainability strategy.

14. Building capacity for social innovation by
supporting new organisations and adapting
existing organisations. This might involve
supporting independent third sector agencies for
social innovation as well as setting up units within
the public sector. There is also a role for training in
new methods of idea generation, problematizing and
in financial models.
Strengthening the market for social innovations and
encouraging cross sectoral collaborations by using
the power of public procurement to encourage
innovative and cross sectoral approaches.

15. Supporting the innovators to get started and
to grow through business support measures and
by encouraging workplace innovation.
Investing in new financing models for each stage
of the innovation process and specifically for
financing pilots, implementations and scaling up.
Exploring how new financial instruments might
support results-based approaches (e.g. along the
lines of social impact bonds or payment by results
models).

16. Setting up better structures for measuring
the results of social innovation, for impact
evaluation, benchmarking and comparison of
existing and proposed policies and projects.
Promoting exchange and learning on approaches to
social innovation.

17. CONCLUSION
Companies are using their existing business models to address societal
challenges, or even creating social businesses—special subsidiaries that
emphasize social impact over commercial success. These operations can
often achieve what non-profits and governments cannot. Over the long
run, social innovation benefit companies that aim to create shared value
by:
 Providing arenas for learning and experimenting
 Boosting the company’s reputation
 Giving employees a greater sense of purpose
 Connecting the company to potential future markets
 Improving relationships with regulators and other
stakeholders

18. References:
[1] Source: OECD.org
[2] Source: transitsocialinnovation.eu
[3]Source:
http://www.socialinnovationacademy.eu/8-
popular-social-innovation-definitions/
4.Source: BEPA (Bureau of European Policy
Advisers) (2010): Empowering people, driving
change. Social innovation in the European
Union. Publications Office of the European
Union: Luxembourg.

19. Thank you
for listening!!!