1. This project has received funding from the European Union’s Seventh
Framework Programme for research, technological development and
demonstration under Grant Agreement No. 613411
Boosting the Impact of Social Innovation in
Europe through Economic Underpinnings
Judith Terstriep
3. 3
Global Challenges
Thinking in new directions
Health,
demographic
change &
wellbeing
Inclusive,
innovative &
reflective
societies
Liberalised &
deregulated
economic
systems
Climate
change
TI are not enough!
New ways of Thinking!
SOCIO-ECONOMIC CHALLENGES
4. 4
Youth Unemployment 2013
An urgent need for action
30 – 40%
> 40%
< 10%
10 - 20%
20 – 30%
24,9
55,7
40,0
7,9
20,5
23,4%
Average
Unemployment
15- 24 Year-old
10,8%
All EU28
Source: Eurostat
5. 5
OECD Better Life Index
Comparing Germany, France & Spain
DE FR ES
Life
Satisfaction
7,2
6,4
4,7
Income
5,3
5,0
2,5
Household Income &
Financial Wealth
Community
8,9
8,2
8,8
Quality of social support
networks
Education
8,0
6,5
2,6
Educational Attainment
& Student’s Skills
Health
7,2
7,9
8,7
Life Expectancy &
Self-reported Health
Environment
8,8 8,4
6,0
Air pollution &
water quality
Source: OECD Better Life Index 2013
6. WHAT IS SOCIAL INNOVATION?
Actors, Processes & Structures
7. 7
Social Innovation
Towards a working definition
Social Innovation can be understood as
1 EVOLUTIONARY PROCESS of development, implementation,
practical application and consolidation of
2 new IDEAS (products, processes, models) & new FORMS
OF COLLABORATION
with the aim to PROACTIVELY and SUSTAINABLY respond to
social and societal challenges.
3
They go beyond singular individual activities and contribute to
SOCIAL/SOCIETAL ADDED VALUE.
4
8. 8
Sociale & Technological Innovation
Ein Konitinuum
Twitter
HOSPICEMotive social profit
Typology ???? established
Focus hybrid sector specific
Imapct social/societal economic
Measures ??? Oslo Manual
LAPTOP
SI TIcontinuum
9. 9
SI Actors
Diversity as an Opportunity
Informal Sector
Private Sector
Public Sector Non-Profit Sector
Social EnterprisePPPs
Social MovementsCo-Produktion
Collaborative consumption ‚Mass Collaboration‘
‚Multilevel Governance‘
Prosumption
Co-creation
Shadow Economy
10. 10
Social Innovation as Process
From Need to Systemic Change
1
Need
2Ideas
3Prototyps
4Sustaining
5 Scaling
6
Systemic
Change
Source: Adpated from Murray et al. (2010): The Open Book of Social Innovation
Micro-level
Meso-level
Macro-level
14. 14
Concept
From Roots to Results
Theoretical
Foundation
Collecting
Evidence
Stronger SI
Concepts
Methods,
Tools &
Instruments
Continuous Stake-
holder Dialogue
Modelling & Testing
Middle Range Theorising
» Evolutionary thinking
» SI typology according to economic
principles, objectives & components
Evidence-based
Knowledge
» Meta-analysis
» Business case studies
» Social Innovation
Biographies
Improvement for Spread & Growth
Evidence-based
Decision Making
» Indicator sets
» National accounts
» Policy instruments
» Specifics of New
Member States
18. 18
Economic Underpinnings
Principles, Objectives & Components
COMPONENTS
Strategic Objectives
Dynamic Objectives
OBJECTICES
1
2
2
1
1 2
time
1
Modes of Efficiency
Modes of Governance
Societal Efficiency
PRINCIPLES
1
2
Institutional
setting
Civil society
Economy
Policy
Actors
Knowledge
Human Capital
Social & Relational Capital
Finance …
Resources 1
19. THANK YOU !
FOR YOUR ATTENTION
JUDITH TERSTRIEP
Westphalian University Gelsenkirchen
Institute for Work and Technology
Innovation, Space & Culture
Mail: terstriep@iat.eu
Web: www.simpact-project.eu
Editor's Notes
The index comprises is based on 11 categories identified by the OECD as being essential for citizens well-being.
Areas: material living conditions (e.g. employment, income, financial wealth, living conditions) plus qualitativ aspects (e.g. health, life satisfaction)
The data mostly come from official sources such as the OECD or National Accounts, United Nations Statistics, National Statistics Offices.
More than 60 000 users of the Better Life Index around the world have shared their views on what makes for a better life.
Ranks 1 to 36
Life Satisfaction => DE: Rank 18 (SwitzerlandRank 1); ES: Rank 24
Health => DE: Rank 20; ES: Rank 4
TI typologie: product, process, marketing, organisational innovation
SI typologie: roles, relations, norms, values
Collaborative Consumption (kurz: Co-consupmption = Sharing Economy)
Sharing, exchanging, renting and giving of tangible and intangible resources (things, place, time, capacities) facilitated by online platforms and social networks
Mass collaboration: self-organized process of collaboration and involving the mass (e.g. Wikipedia)
Prosumption: Consumers as producers (e.g. Facebook)
Co-Production: Development and provision of public services jointly with citizens
SIMPACT’s theoretical and empirical work is framed around the following research questions that affect social innovations’ potential, scope and economic and social impact:
Which ENABLERS & CHARACTERISTICS sustain SI contribution contribution to productivity and competitiveness facilitating smart and inclusive growth? And what are their specific cultural, economic, spatial and social contexts?
Which business models are most appropriate for instigating, improving, resourcing, sustaining as well as scaling and diffusing social innovation?
How can the economic and social impact of social innovation be measured?
Which policy frameworks support the acceleration of SI impact across all governance levels?
How can policies, programmes and initiatives best be evaluated to monitor their social and economic impact?
How can social innovation stakeholders better cope with innovation related uncertainties (e.g. acceptance, opportunities for scaling and diffusion, regulative and financial framework etc.)?
SIMPACT‘s concept links
The theoretical foundation of the economic dimensions of SI in the interaction of markets, public sector and institutions with
collecting empirical evidence to be translated into
stronger social innovation concepts facilitating improvements for spread and growth as well as
methods, tools and instruments supporting social innovation stakeholders.
Modelling and testing will validate the developed concepts, tools and instruments and help stakeholders to better cope with social innovation related uncertainties.
A continuous stakeholder dialogue will facilitate learning and processes of co-creation by integrating actors’ views into SIMPACT’s research activities.
Advanced theoretical knowledge Middle range theorising (WP1): Classifying social innovations according to their economic principles, objectives and components is a first step to advance the understanding of the economic dimensions of social innovations.
Advanced Empirical Knowledge
Meta-analysis of existing successfull and less successfull SI cases (existing databases from all over Europe: SozialMarie...)
From general to a more concrete and determined level:
Analysis of 30 Business Cases focusing on creative communities, social entrepreneurs and digital social innovation to identify alternative business models
25 Innovation Biographies
Methodology developed at IAT allwoing for the reconstruction of innovation processes in time and space from the idea to scaling and diffusion, identifying involved actors, processes, networks and their interplay
Advanced Practical Knowledge & Learning
Policy instruments & guidelines
foresight by SI scenarios (reduce uncertainty)
SI indicator sets
development of policy & business toolboxes
Improvement for spread & growth
Designerly aapproach SI can be designed co-creation processes
Scaling & Diffusion (Scaling = growth of organisation / Diffusion = adopt by individuals, firms & sectors: spread in same context, replication = transfer into different context)
Methods, Tools & Instruments for
Policy Makers effective policy instruments
Social Innovators, Investors, other stakeholders indicator sets, national accounts
Evaluation & impact assessment of SI initiatives and programmes
Agent-based simulation models, stakeholder experiments
SIMPACT investigates the economic foundation of SI in relation to markets, public sector and institutions in order to be able to provide a dynamic framework for action at the level of individuals, organisations and networks.
Economic foundation in the here used sense should not be interpreted as economisation of SI limited to e.g. questions of market efficiency
It is about economic principles, objectives and components that make SI successful in terms of economic and social/societal value.
COMPONENTS
Actors (individuals, firms, governments) => organisation (formal & informal) = collective actors => actors from the civil society, economic field & political field
Resources are central production factors
Institutions refer to rules and norms that structure behaviour, but do not determine it including social institutions = culture, conventions, traditions
Actors are embedded in specific institutional contexts that defines the game of the rule (resources, modes of interaction, access etc.)
OBJECTIVES
Refer to the goals underlying the motivation of actors to engage in SI; they can be social, economic or both
Social impact is the prior objective and conflict may arise between social and economic impact
Organisations are driven by their objectives
Accounting for the dynamics of SI, it is assumed the objectives may change during the innovation process (= dynamic objectives). E.g., a social enterprise (SE) can become a for-profit company or retain its status as SE.
Objectives can be studied at different levels: i.e. on the micro-level of organisations (organisational sustainability) or macro-level (institutional change)
PRINICIPLES
Comprise modes of efficiency and governance
Modes of efficiency refers to resource allocation as subject to the set objective
Modes of governance are likewise related to policy-making and self-regulation of private actors, co-regulation of public and private actors and the delegation of tasks to regulatory agencies
In order to realise its objectives organisations need to optimise their resources and face trade-offs
Economic principles are internal and external => internal: efficiency, opportunity costs, rationality => external: pareto optimum, externalities