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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
WHY SOCIAL INNOVATION?
Europe in a Globalised World
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
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
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
WHAT IS SOCIAL INNOVATION?
Actors, Processes & Structures
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
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
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
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
CONCEPT, OBJECTIVES & WORK PLAN
SIMPACT
12
«SIMPACT»
Basic Information
12
Partners
10
Countries
450
Stakeholder
3
Years
13
SI‘s Scope, Economic & Social
ImpactResearch Questions
Enablers &
Characteristics
Business
Models
Impact
Measurement
Policy
Frameworks
Policy
Assessment
Uncertainty
Reduction
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
TOWARDS A SI TYPOLOGY
First Results
16
Economic Underpinnings
What it is not!
Economic underpinnings
≠
Economisation of SI
17
Economic Underpinnings
What it is!
Economic underpinnings
=
Economic principles1
2 Economic objectives
3 Economic components
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
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

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Judith Terstriep: SIMPACT (Westphalian University)

  • 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
  • 2. WHY SOCIAL INNOVATION? Europe in a Globalised World
  • 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
  • 11. CONCEPT, OBJECTIVES & WORK PLAN SIMPACT
  • 13. 13 SI‘s Scope, Economic & Social ImpactResearch Questions Enablers & Characteristics Business Models Impact Measurement Policy Frameworks Policy Assessment Uncertainty Reduction
  • 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
  • 15. TOWARDS A SI TYPOLOGY First Results
  • 16. 16 Economic Underpinnings What it is not! Economic underpinnings ≠ Economisation of SI
  • 17. 17 Economic Underpinnings What it is! Economic underpinnings = Economic principles1 2 Economic objectives 3 Economic components
  • 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

  1. 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
  2. TI typologie: product, process, marketing, organisational innovation SI typologie: roles, relations, norms, values
  3. 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
  4. 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.)?
  5. 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
  6. 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
  7. It is about economic principles, objectives and components that make SI successful in terms of economic and social/societal value.
  8. 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