Boosting the Impact of Social Innovation through Economic Underpinnings
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1 13 January 2015 TU Berlin, Module «Sustainable Innovation» Boosting the Impact of Social Innovation through Economic Underpinnings Judith Terstriep mpact This project has received funding from the European Union s Seventh Framework Programme for research, technological development and demonstration under Grant Agreement No
2 Europe in a Globalised World WHY SOCIAL INNOVATION?
3 Inclusive, innovative & reflective societies Health, demographic change & wellbeing TI are not enough! SOCIO-ECONOMIC CHALLENGES Liberalised & deregulated economic systems Global Challenges Thinking in new directions Climate change New ways of Thinking! 3
4 25.4% of people in Europe are at risk of poverty Long- term GDP growth in EU27 is pro- jected to fall from 2.7% before 2008, to 1.5% up to 2020 Unemployment is highest in the EU in over one decade State of Play in Europe 4
5 < 5% 5 < 7% 7 < 9% 9 < 11% 11 < 18% > 18 Lowest: Upper Bavaria 2.6% Average Unemployment Highest: Andalucía 36.3% 15 or over, EU % Source: Eurostat (lfst_r_lfu3rt) Unemployment Rate 2013 Increasing regional disparities across Europe 5
6 < 10% 10-20% 20 30% 30 40% Average Unemployment > 40% 20,5 7,9 24,9 40, Year-old 23,4% All EU28 10,8% 55,7 Source: Eurostat Youth Unemployment 2013 An urgent need for action 6
7 Source: Goldin (2014) 5/30 8/30 2/30 4/30 GERMANY SPAIN SWEDEN UK Citizen Participation Economic Opportunity Education % 85% experience lower-median and low wellbeing Health experience high or upper-median wellbeing ICT Safety & Security Global Youth Wellbeing Index Opportunities, current state & perceptions 7
8 Actors, Processes & Structures WHAT IS SOCIAL INNOVATION?
9 «[ ] new ideas (products, services and models) that simultaneously meet social needs (more effectively than alternatives) and create new relationships or collaborations.» Murray et al. (2010) «In some parts of Europe, the term social innovation refers to what the European Commission calls workplace innovation.» «[ ] new solutions [ ] that simultaneously meet a social needs [ ] and lead to new or improved capabilities and relationships and a better use of assets and resources.» The Young Foundation (2012) DG Enterprise and Industry (2014) «[ ] zielgerichtete Neukombination bzw. Neukon4iguration von sozialen Praktiken in bestimmten Handlungsfeldern [... ] mit dem Ziel Probleme oder Bedürfnisse besser zu lösen [... ].» Howaldt/Schwartz (2010) Sociale Innovation A term with various meanings 9
10 Social Innova/on refers to 1 NOVEL COMBINATIONS OF IDEAS and DISTINCT FORMS OF COLLABORATION 2 that transcend ESTABLISHED INSTITUTIONS 3 with the effect of EMPOWERING and (RE-)ENGAGING vulnerable groups in society 4 either through the INNOVATION PROCESS or as a RESULT of it. Social Innovation Towards a working definition 10
11 Measures??? Oslo Manual Imapct social & economic economic Focus hybrid sector specific Typology???? established TWITTER Motive social HOSPICE LAPTOP profit SI continuum TI Social & Technological Innovation Two distinct types of innovation 11
12 Private Sector PPPs Social Enterprise Multilevel Governance Public Sector Co-creation Shadow Economy Prosumption Non-Profit Sector Co-Production Social Movements Collaborative consumption Informal Sector Mass Collaboration SI Actors Diversity as an opportunity 12
13 Idea 2 Need 1 Micro-level Systemic Change Macro-level 6 Prototype 3 Sustaining 4 Meso-level 5 Scaling Source: Adpated from Murray et al. (2010) Social Innovation as Process From needs to systemic change 13
14 Social Innovation EXAMPLES OF SOCIAL INNOVATION
15 Education for Housing Association Gelsenkirchen Location Target group Activities Location Duisburg Students Provision of free housing for up to 12 students, who in turn volunteer children in the neighbourhood with homework, language and learning assistance and leisure activities (up to 4 hours/week) TalentScout University Young migrants Foster and advance the talent of the target group through individual consultancy, events, governance Target group Activities SI Examples (I) Thematic areas «education», «employment» & «migration» 15
16 Teach First Germany NGO Profit % Foundations Location Berlin Camp4us 25% Total turnover 2.0 Mio 34% Target group Pupils Activities «Ambassadors» - who have completed a two year qualification programme - are volunteering as school governors to support pupils in deprived areas Currently: 130 ambassadors active in schools in Baden-Wuerttemberg, Berlin, Hamburg, Hessen, NRW und Thueringen 0,1% 3% Private donations 25% Companies Source: Teach First (2012) SI Examples (II) Thematic areas «education», «employment» & «migration» 16
17 Intel Company Programme Scope JA-YE Social Enterprise Programm (Partnerschaft) Europe Target group Young people (aged 15 to 18) Activity Increase the pool of potential social entrepreneurs by providing access to education in social enterprise to young people P&C Future friendly Consumers Support customers to save water, waste and energy at home with trusted P&C brands Programme Target group Ac/vi/es Procter & Gamble Win Skadian SI Examples(III) Social engagement & «social intrapreneurship» 17
18 SIMPACT CONCEPT, OBJECTIVES & WORKPLAN
19 12 Partners 10 Countries 450 Stakeholder 3 Years Westphalian University Institute for Work & Technology social innovation C E P S sfs SIMPACT Basic information 19
20 Mind- shift from «vulnerable as burden of society» towards «Vulnerable as untapped potential for society» Focus on Vulnerable Groups Making use of an underutilised potential 20
21 Enablers & Characteristics Impact Measurement Business Models Policy Frameworks Policy Assessment Uncertainty Reduction SI s Scope, Economic & Social Impact Research Questions 21
22 Improvement for Spread & Growth Modelling & Testing Evidence-based Knowledge Stronger SI Concepts Evidence-based Decision Making» Meta- analysis» Business case studies» Social Innovation Biographies Collecting Evidence Methods, Tools & Instruments» Indicator sets» National accounts» Policy instruments» Specigics of New Member States Continuous Stakeholder Dialogue Theoretical Foundation Middle Range Theorising» Evolutionary thinking» SI typology according to economic principles, objectives & components Concept From roots to results 22
23 Theoretical Foundation FIRST RESULTS
24 » No common theoretical framework» Contributions draw on a variety of disciplines such as sociology, business administration, economics, urban development and political sciences => resulting in different meanings (cf. Rüde/Lurtz, 2012; Caulier- Grice et al, 2012; Pol/Ville, 2009; Moulart, 2009)» SI are heterogeneous (products, processes, services) and transcend sectors and encompass different levels and methods of analysis Towards a SI Typology First results from the literature review 24
25 » SI do not necessarily involve a commercial motive, but do not prelude such (cf. Phills et al, 2008; Westley & Antadze, 2010)» SI tend to originate in contradictions, tensions and dissatisfaction» SI are manifested in changes of attitudes, behaviour, or perceptions (cf. Cajaba- Santana, 2014)» SI are contextualised, i.e., they are embedded in specific socio-economic and sociopolitical contexts (cf. Moulaert/Sekia, 2003; Moulaert, 2009)» SI as evolutionary process are characterised by an iterative process of experimentation and learning with an open end including failure» Social relations next to outcomes are central to SI (cf. Defourny & Nyssens, 2013) Core Characteristics of SI Common agreement on some features 25
26 COMPONENTS Strategic Objectives Dynamic Objectives Institutional setting 1 1 OBJECTICES Actors 1 Resources 1 Knowledge Human Capital Social & Relational Capital Finance Civil society Economy Policy 1 time 1 2 PRINCIPLES Modes of Efgiciency Modes of Governance Societal Efgiciency Economic Underpinnings Principles, Objectives & Components 26
27 Evidence- based Knowledge COLLECTING EVIDENCE
28 Policy Case Studies! Social Innovation Biographies Business Case Studies! " "! Case selection Meta-analysis of existing SI Cases Components! ID Components Objectives Principles Case selection! Empirical Research Process! Guiding Ques/ons From general meta-analysis to SI processes and business models» Actors & their roles» Institutions» Resources Objectives» Challenges/needs addressed» Short term effective outcome» Long term impact Principles» Process of SI» Effectiveness & efficiency» Business model & governance 28
29 2 «Grand Societal Challenges» explicitly associated to vulnerable groups in society Employment associated with empowerment and capacity building Migration in terms of integration, but also literacy Demographics including elderly plus cases addressing younger generations (e.g., childcare) Gender as transversal issue Scandinavian model Liberal Anglo-Saxon model Continental model Eastern European model Mediterranean model 100 Number of cases 1 Welfare regimes Meta- Analysis of existing Cases Selection criteria 29
30 Problem addressed 1 Particular problem, need or demand Socio-economic & policy framework Idea/opportunity Value chain & Process 30 Number of cases 3 Development stage Involved actors & roles (including target groups & policymakers) Ownership principles Resources used (how was access achieved by initiators of SI) Financing sources Core solution & functioning Type of SI (new product/service, method, new skills, competences, resources) Actors objectives Spatially bounded Organisational structure Business model Revenues Impact (social, economic, both) 2 Motivation & Solution 4 Economic data Business Case Studies Desk research plus telephone interviews 30
31 40 Number of cases STEP 1 Case Selection STEP 3 STEP 2 Narrative Interview Egocentric Network Analysis STEP 4 Interviews with other SI Actors STEP 5 Triangulation Guiding Questions 6 Steps from Case Selection to SIB Digging into the innovation process STEP 6 Building the SIB & further Analysis 31
32 Core Challenges & Dilemmas NEW MODES OF POLICY PRODUCTION
33 1 Innovators What context is conducive to SI? Hindering factors: power, anticipated reactions & hegemony How to become an effective partner? Provide space and legitimacy for experimentation, productive reflection and dialogue 2 Organisation 3 Partnerships How to sustain partnerships? Trust-based relationships, dialogue beyond common boundaries, team work Core Challenges & Dilemmas What policymakers and public authorities are confronted with. 33
34 Involving staff in governance Developing & rewarding staff Empowering staff Removing administrative burden Spaces for Involving customers in governance Co-producing tailored services Empowering service users Building trust & support STAFF SERVICE USERS RESOURCES INNOVATION Accessing new markets Joining up public service Streamlining processes Attracting alternative investment dialogue & experimentation Freedom to be flexible Combining business & social practice Knowledge sharing Productive reflection Towards a New Mode of Policy Production Different roles and ways of working 34
35 «One of the key obstacles in moving towards more inclusive models of economic and regional development is the understanding of the relation between economic and social issues in policy thought and practice.» (Perrons/Dunford, 2013: 484) Stakeholder Dialogue Involving policymakers at all governance level 35
36 Cajaiba-Santana, G.(2014): Social innovation: Moving the field forward. A conceptual framework. Technological Forecasting & Social Change, 82(2014): Caulier-Grice, J. et al (2012). Defining Social Innovation. Social Innovation Overview: A deliverable of the project TEPSIE, European Commission 7 th Framework Programme, Brussels: European Commission, DG Research. Defourny, J. & Nyssens, M. (2013). Social innovation, social economy and social enterprise: what can the European debate tell us? In F. Moulaert, D. MacCallum, A. Mehmood, & A. Hamdouch (eds.), The International Handbook on Social Innovation: Northhampton: Edward Elgar. Goldin, N. (2014). The Global Youth Wellbeing Index. Washington: Rowman & Littlefield Publishers (also available online). Howaldt, Jürgen/Schwartz, Michael (2010).»Soziale Innovation«im Fokus. Skizze eines gesellschaftstheoretisch inspiriten Forschungskonzepts. Bielefeld: transcript. Moulart, F. (2009). Social Innovation: Institutional Embedded, Territorially (Re-)Produced. In: MacCallum, D. et al (eds.), Social Innovation and Territorial Development: 11-24, Famham, UK: Ashgate. Murray, R., Caulier-Grice, J. & Mulgan, G. (2010). The Open Book of Social Innovation. Ways to Design, Develop and Grow Social Innovation. London: NESTA, available online. Perrons, D. & Dunford, R. (2013). Regional development, equality and gender: Moving towards more inclusive and socially sustainable measures. Economic and Industrial Democracy, 34(3): Phills, J.A., Deigelmeier, K. & Miller, D.T. (2008). Rediscovering Social Innovation. Standford Social Innovation Review, 6(4): Pol E. & Ville, S. (2009). Social Innovation: Buzz word or enduring term? The Journal of Socio-Economics, 38(6): Rüde D. & Lurtz, K. (2012). Mapping the various meanings of social innovation. Towards a differentiated understanding of an emerging concept. EBS Business School: Research Paper Series The Young Foundation (2012). Social Innovation Overview (Part I). A deliverable of the project TEPSIE, European Commission 7th Framework Programme, Brussels: European Commission, DG Research. Westley, F. & Antadze, N. (2010). Making a Difference: Strategies for Scaling Innovation for Greater Impact. The Innovation Journal, 15(2): Literature & Data Sources 36
37 THANK YOU! FOR YOUR ATTENTION JUDITH TERSTRIEP Westphalian University Gelsenkirchen Institute for Work and Technology Innovation, Space & Culture Mail: Web:
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