Stop the fall of private and public investment in R&d. International approach: ü Co--operation with other regions (institutional.
Employment and sustainable economic growth Social and territorial cohesion Improved quality of life 7 Introduction of Castilla y León's work on research and innovation (III) 8 Coordinator:
Knowledge Society Sectoral Analysis Automotive Agribusiness Health and live quality Environment and Energy Habitat Tourism and Heritage Building the evidence base for RIS3 (III) Main
(I) SWOT Analysis R&d&i 12 Opportunities Exploitation of trends of future in some areas, such as agro food, health and quality of life and energy and environment.
technological cross--application of ICT, energy and environment and biotechnology, etc. New programming period 2014--2020 (cohesion funds, Horizon 2020, etc.:
Decline of private investment. especially reduction of R&d&i investment. Reduction of public budget for R&d&i: loss of support structure to R&d&i.
Increasing competition in international markets. Building the evidence base for RIS3 (I) SWOT Analysis R&d&i 14 Strengths Availability of broadband coverage throughout the territory (universal service).
Computer equipment and Internet access; digital natives; use of mobile devices. Existence of facilities and centers of reference in ICT.
Building the evidence base for RIS3 (II) SWOT Analysis Knowledge Digital Society 16 Opportunities Importance of ICT in the new framework of European funding.
Open Data, demand for contents, more usable technologies closer to citizens, etc. Growing possibilities for use of ICT in the public sector (energy saving, education, health, social care.
Low conkidence in digital environment. Low usability of services and complexity in use of digital certiaication systems.
Fast changes in technologies and ICT standards. Lack of interoperability and standardization of digital contents and services.
Building the evidence base for RIS3 (II) SWOT Analysis Knowledge Digital Society The external context, national/international Identiaication of regions for potential collaborations in each macro activity
I, GR, DE, F, UK) 18 Economic activity Castilla y León position in EU 257 Automotive, components and equipment 60 Agribusiness.:
traceability & coherence Employment & sustainable economic growth Social & territorial cohesion Quality of life Cooperation Open innovation (business) Research platforms (critical mass) Identiaication of companies'needs
& technology transfer Higher education--Innovation Competitive economic model New innovative companies Training for innovation Access to Ainance Business innovation services Innovation & creativity social
capital Main objectives of RIS3 21 Priorities SCIENTIFIC AREAS TECHNOLOGY DOMAINS ECONOMIC ACTIVITIES Medicine Agriculture, Biology & Veterinary Chemistry Engineering Advanced materials (incl
Components & Equipment Agro--food Health & Quality of life Energy & Environment Habitat Tourism, Heritage & Spanish language 1. Encourage the deployment of telecommunications networks
and services to ensure digital connectivity. 2. To develop the digital economy for the growth and competitiveness of enterprises. 3. To improve the effectiveness,
efaiciency and quality of public services through an intensive use of ICT. 4. Promoting digital adaptation of citizenship
VEHICLE MANUFACTURING ENERGY & ENVIRONMENT CONSTRUCTION & CIVIL ENGINEERING BUILDING MATERIALS HABITAT TOURISM HERITAGE AND SPANISH LANGUAGE 1, 59%5, 06%2, 93%8, 51
and Implementation Plan ECONOMIC PATTERN Economic activities AUTOMOTIVE & TRANSPORT Clusters & leading companies FACYL, Cluster CBECYL Renault, Nissam, Michelin, IVECO, Grupo Antolín, Nicolas Correa
Regional budget appropriations Funds obtained in competitive calls (national & European) Private R&d&i investments. Need to be realistic (crisis). 27 Evolution of science and technology expenditure in the Regional Government annual budget (1996--2013) Source:
good communication and collaboration between regional ministry for ICT and Commissioner in charge of strategies. Common specialisation pattern.
20 3. 4 Social Enterprise...23 3. 4. 1 Social enterprise and S3...25 4 SOME THOUGHTS ON EMERGING SOCIAL INNOVATION TRENDS IN RIS POLICY AND PRACTICE...
27 4. 1 Emerging collaborative processes...27 4. 2 Societal challenges as the response to S3?..
38 5. 2 The stakeholders engagement challenge...39 5. 3 The‘policy mix challenge'..'40 5. 4 Multilevel governance challenge...
a review of the relevant academic and policy literature, contributions from two workshops with academic colleagues and feedback from regional stakeholders attending the Smartspec kick off conference in Brussels in November 2013.
The conceptual linkages between S3 and SI Social innovation as public service innovation The involvement of users and citizens in processes of design and innovation The role of social enterprise in smart specialisation This paper
and social enterprises can contribute to innovation in the spaces and interfaces where S3 and SI meet;
there is little systematic exploration about their potential for different sectors and areas and its implication for economy and society (Leitner, et al,
but argues with Henry Jenkins (2007: 258), that simply pointing out opportunities, as much of the policy literature on both S3 and SI does,
To date the RIS process has predominantly been concerned with science and technology innovation (STI) and with economic growth.
and that these have potential economic growth impacts. Second, it recognises the importance of the social in the innovation process and as a good in itself.
and within different EU and national/regional policies and should ensure greater involvement of all stakeholders in the innovation process (Foray, et al, 2012).
outline measures to stimulate private RTD investment; build on a region's capabilities, competences, competitive advantages and potential for excellence with European and global value chains;
foster comprehensive stakeholder involvement and encourage governance innovation and experimentation; are based evidence and include sound monitoring and evaluation systems (Foray, et al, 2012).
RIS3 is about the selection of a few investment priorities based on a process of entrepreneurial discovery to identify promising areas for specialization;
and more on the adoption and 2 Foray cites a personal communication from Paul A. David.
, social and service innovations, societal challenges, new business models, etc. demand-side measures, e g.,, through public procurement)( CEC, 2013a.
It is in the context that our research asks what social innovation concepts and practices can be brought to bear in constructing more variegated RIS processes.
innovation, social investment, change and open society. Even if we focus on a single (broad) discipline, such as sociology,
So social innovation is invoked in already under-conceptualised areas such as‘social inclusion',‘the social economy'‘
Harris and Albury, 2009), social entrepreneurship and social enterprises (Murray, et al, 2010; OECD, 2010; Price and Morgan, 2011;
that is to say about constructing alternative economic spaces to the dominant neoliberal market paradigm, drawing on community, social economy and diverse economy traditions?(
and where‘profit'is reinvested (NESTA, 2007a: 1). Here social enterprises and social entrepreneurs have a key role to play (OECD, 2011.‘
‘Philanthropic'capital is a key role of the private sector in the US. Others are more wary of corporate philanthropy
and warn of the difficulties of making this model work (Skapinker, 2013). In a recent book, Mulgan (2013), one of the key advocates of what might be termed‘third way social innovation',points to the tensions between the manner in
1). At the global level, think tanks and policymakers, such as UNDP and the World Economic Forum have organised competitions‘challenges'and global summits 6,
services and models) that simultaneously meet social needs (more effectively than alternatives) and create new social relationships or collaborations.
and stakeholders who have a vested interest in solving a social problem, and empowers the beneficiaries.
Firstly, the grassroots social innovations that respond to pressing social demands not addressed by the market and directed towards vulnerable groups in society.
Third, the systemic type that relates to fundamental changes in attitudes and values, strategies and policies, organisational structures and processes, delivery systems and services.
which creates the conditions for the third an innovation that addresses a social demand (e g. care of the elderly) contributes to addressing a societal challenge (ageing society) and,
Here the accusation is that the study overemphasises social innovation as an instrumental approach to stimulating economic growth
and delivering more cost effective services to open cheap possibilities for growth (Van dyck and Van den broeck, 2013: 132).
A third related criticism might be that the vision of social innovation presented by BEPA has echoes of the social investment state (Giddens,
The'social investment state'represents a pragmatic response to the perceived economic and social challenges facing mature welfare states,
Sociology, urban studies, planning, community economics, social policy; social economy often action focused Market values (with public support) Social values (with public support) Wealth creation/economic growth Social wealth creation/Resource distribution Efficient
socioeconomic arrangements Fair socioeconomic arrangements STI-bias Critical of STI-bias Social market/neoliberal models of capitalism Going beyond‘dominant capitalist
and market discourses'/alternative economies Top-down and technocratic Grassroots/bottom up Economic and innovation funding (e g.,
'From the RIS side, S3 seeks to enrol a broader range of stakeholders, including citizens in the regional innovation design process.
and (iii) social enterprises. 3. 1 Collaborative innovation as the emerging dominant paradigm Putting the S3 concept into practice requires collective action.
which are increasingly based on the networked enterprise, often operating at a global scale, enabling firms to tap into and draw upon a globally dispersed‘collective intellect'(Castells, 2001;
It is argued that these9 processes can be seen in a wide range of industries, such as health, transport, energy, digital media, the built environment and education,
brokering services and trading sites aimed at SMES (Gann and Dodgson (2007: 12). Notions such as user innovation (Von Hippel, 2005) and‘user-led innovation'highlight the source from
2008) in coconstruction and beta-testing products and services.‘‘Continuous testing, 'whereby firms continue to tweak products through large scale field trials,
1) across all stakeholders and at all territorial levels. We emphasise‘all'for two reasons. First, although our research principally focuses on the public sector, users and citizens,
and social enterprises, other stakeholders such as the private sector and‘knowledge institutions'will also have to change.
and innovations to diffuse broadly across sectors of the economy. It does this by rallying existing innovation networks
or by facilitating the development of new ones that bring together a diverse group of stakeholders.
or evidence as to what services are delivered best by whom, or furnish significant evidence of efficiency savings or service improvements,
and in shaping the institutional and legal context to stimulate open innovation practices in an economy (de Jong, et al, 2010: 892).
WP2 Embracing Social Innovation Page 18 brought into collaboration with other actors including the social enterprises, civil society and end users.
each with a different mandate, operating at different spatial scales and within different organisational and policy silos, often with little vertical or horizontal communication.
In the UK, for example, it is clear that many public sector organisations are still wrestling with areas such as transactional services and informational services
The main objectives of investment were improving web site presence and greater and richer interaction with customers.
As with previous rounds of‘e-government'cost savings and improved services are key imperatives behind recent and proposed investment (GOSS Interactive, 2013.
or rhetorical) trend towards engaging with service users (a) to improve services by mobilising the user as customer
civic and social enterprise sectors live in fear of losing their jobs and they 12 See for example:
3. 3 The involvement of civil society, users and citizens New collective experimentations involving multiple stakeholders,
Civil society is made up of charities, voluntary sector organisations, community groups, social enterprises, and more informal structures such as families, friends and communities.
and to consider processes and services, particularly in relation to pubic good services would seek to enrol NGOS as a stakeholder in the construction of strategies,
in addition to private service firms and public sector actors. Even where the main focus remains STI, NGOS could usefully be enrolled in the co-design and diffusion processes:
A recent study of health services in the UK points to the key role played by larger charities such as Age UK and Mind in working with the NHS (Young Foundation, 2013.
Skills and capabilities that the NHS does not have built environment, personal finance, legal advice, community building, local knowledge, cultural specifics etc.
and citizens who demand greater power. 3. 4 Social Enterprise Social enterprise can be seen as a social construct that can be viewed from varying perspectives and dimensions (Chew and Lyon,
‘social enterprise'and‘social entrepreneurship'are used in multiple ways to describe different entities. Noya (2009) distinguishes between the ways that social enterprises are understood in the US and in Europe.
In Europe (our main concern here) social enterprises are seen as a‘different way'of doing business
and are located usually in the third sector (Noya, 2009: 14. Beyond such vague assertions it is difficult frame the concept.
A detailed study for the European commission (KMU Forschung, 2007) illustrated the heterogeneity of social enterprise, both conceptually and in the multiple ways in which the term is applied in the European space.
which allow different kinds of enterprises to become recognised as social enterprises if they meet a country-relevant‘social finality'criteria (Noya,
A conceptual framework for the social enterprise sector Economic criteria Social criteria Directly engaged in production
and/or sales of goods or services Initiatives of citizens with shared aims Voluntarily created
and‘member'voice Decision making power is not based on capital ownership Accept significant levels of economic risk Participatory in nature,
and have limited a distribution of profit Explicitly aim to benefit the community or a specific group of people Source:
the social enterprise sector is rapidly evolving, experimenting with new business models since 2008 in response to the financial crisis that radically reduced its public sector grant funding.
Three examples will help to illustrate the growing heterogeneity in the sector. Firstly, some social enterprises are being enrolled into the NPM agenda and undertaking public service planning and delivery (Chew and Lyon, 2012.
Depending on grants or contracts to deliver social policy potentially throws into question issues of autonomy and‘member'voice.
Alternatively, social enterprises along with other third sector organisations are being displaced by new efficiency-seeking contracts.
Secondly, other social enterprises, such as the UK's mutual financial services providers, have begun to mimic private sector business models;
this has been accompanied by new relationships between senior management and the‘shop floor'and with members. In addition these new approaches have resulted often in either de jure
Thirdly, new tensions are beginning to appear between old and emergent social enterprise models, particularly in the context of globalisation.
The message from these three examples is need that policy-makers to look more closely at organisations that describe themselves as‘social enterprises
if at all these organisations can contribute to the S3 policy agenda. 3. 4. 1 Social enterprise
when considering the ways in which social enterprises can contribute to S3. We need to be sensitive to the socio-spatial context
when exploring the role of social enterprise in innovation. Its contribution is likely to vary between Member States
In short, the contribution of the social enterprise sector cannot be answered in the abstract as it requires empirical inspection.
which social enterprises might contribute to the S3 agenda. First, along with wider civil society organisations, social enterprises could play a larger part in the S3 process
bringing knowledge regarding the interface between the market and the social economy and between the state/public sector and the social economy,
as well as reflecting grass-roots relationships with local communities. Second, social enterprises are involved increasingly in public service planning
and delivery and therefore they could potentially play a role in intervention networks. So, for example, they could contribute to Living Labs
Morgan and Price (2011) argue that social enterprises bring new value and practice sets, such as mutualism, collective entrepreneurship and consensual approaches to innovation and development.
they argue that social enterprises exhibit a shared ethic of interdependent contribution, fundamentally different from both traditional ethics of honour and loyalty,
Significantly, many European regions already host‘market oriented'social enterprises that exhibit the economic and social criteria outlined in Table 3. 1. Markets may be local, national or international.
Enterprises may be leaders in niche global markets or (more likely) operate as partners in global supply chains,
In theory, market extension opportunities are oriented open to‘market'social enterprises as they are to other SMES,
For example, does a region ignore the value system of the social enterprise and merely judge it on an‘excellence'criterion?
or on large social enterprises already operating successfully in mainstream social markets (a reinforcement approach)?
For example, social enterprises are a significant player in‘alternative'food chains, but are these fertile fields for innovation and
Of course, it is likely that some European regions will not have a rich diversity of market oriented social enterprises
There are of course many barriers to social enterprises contributing to the S3 process. Although social enterprises are seen generally as innovative business models that meet both social and economic objectives (Noya,
2009), there is very little empirical evidence to support the view that they are particularly innovative in and of themselves (Morgan and Price, 2011;
For example, Morgan and Price (2011: 23) identify three constraints that have stymied the innovative capacity of the social enterprise sector in the UK:
because many social enterprises tend to be over-dependent on original founders and individual leaders; and when they leave the organisation,
the enterprise cannot sustain itself. Management constraints: the sector suffers from a shortage of management expertise across the skill spectrum.
Funding constraints: constraints on internally generated funds are compounded by the fact that the sector does not register on the radar screens of conventional banks
uncoordinated experiments involving various stakeholders in different learning spaces in and beyond Europe (OECD, 2011: 11).
producing and experimenting with prototypes, and assisting the application of prototypes to wider areas (OECD, 2011: 45).
According to the OECD, RISTEX aims to invite research applications that have clear social missions and clear ideas of how to cooperate with a variety of local actors, local government officers and researchers (OECD 2011: 50).
stating that the process of‘entrepreneurial search'should foster stakeholder engagement (private sector, public sector 20 http://s3platform. jrc. ec. europa. eu/map Smart Specialisation for Regional Innovation:
and help build creative and social capital at the community level. The idea of collaborative partnerships in regional economic policy is not, of course, new.
The best known model for such arrangements is perhaps the‘Triple Helix, 'which privileges the Industry-State-university nexus as the key knowledge partners (e g.
The enrolment of NGOS, the third sector, social enterprises, as well as other parts of civil society in regional innovation processes is,
An era of linear, top-down, expert driven development, production and services is giving way to different forms and levels of coproduction with consumers, customers and citizens.
and energy efficiency and interlink other forms of innovation intermediaries such as science parks and incubators, but the nature of these relationships is researched under (Almirall and Wareham,
which have a‘social mission'and support diversified innovative activities, such as firm or organization development, knowledge transfer, social technology progress, educational and training programs and entrepreneurship services (Lundström
which acts as an incubator of social enterprises which strive to make a major impact for a robust and dynamic social entrepreneurial community both locally and globally.
Some of these challenges are connected more with enterprises, others with Smart Specialisation for Regional Innovation:
Failing to mobilise innovation to address some of the issues that affect populations at the global and local level has very high opportunity costs.
increasing demand from society to get'value for public money'in terms of societal benefits; the threatened competitive position of Europe on the global stage which is forcing policy makers at the highest political level to reflect on new modes of stimulating sustainable growth;
For example, the disconnection between economic growth and well-being, referred to in the OECD, is explained perhaps better by the secular trend towards the redistribution of wealth from the poor,
but also places an emphasis on the opportunities associated with such challenges (BEPA, 2011; CEC, 2010b.
There are business opportunities and synergies to be exploited by better integrating social challenges at the core of innovation activities.
and create market opportunities. As it is drawn here, the figure suggests a technology-based approach to the societal challenges.
The figure does not give a flavour of potential multi-stakeholder processes which may be brought to bear.
the process is advanced most in western economies and Europe has the oldest population of all global regions,
and social care services are paid for and delivered, but it will also have a major impact on other public and private services.
It will also impact on productive resources. So, for example, in the field of employment, the European Statistical Office projects that by 2060 there will be only two people of working age (15-64) in the EU for every person aged over 65,
and if the decline of social and health services continues, but the fundamental point of societal ageing remains.
In line with other societal challenges, the issue of demographic change and ageing is portrayed increasingly both as a threat and an opportunity.
Economic opportunities emerge in a number of ways. Examples include: Expanding and improving the labour pool:
thus freeing up younger people for employment in the formal economy. A cadre of volunteers will also be essential to some of the social innovations envisaged by policymakers (CEC, 2012d.
One estimate puts the current European‘silver economy'at €3trn30. In addition there 28 http://www. who. int/ageing/age friendly cities network/en/29 http://europa. eu/ey2012/ey2012main. jsp?
including rapidly developing and‘newly rich'economies. This presents market opportunities for new products. For example, global spending on drugs is expected soon to exceed $1tn (FT,
19.11.13) and there will be a burgeoning demand for new, cheaper and more effective cures. There are a number of variables
which will affect the size of this market. Two of these factors are the wealth of future older‘generation cohorts'.
Focusing on the market opportunities, Figure 4. 3 imagines an‘elderly'cluster and the range of goods and services which could be required to service this market.
A number of these issues is being discussed in age friendly initiatives and smart cities frameworks31.
Market opportunities for a regional response strategy(‘Elderly Cluster')Source: EURADA (2011: 34) Figure 4. 4 provides a hypothetical illustration as to how a societal challenge approach could be incorporated in the RIS3 process.
On the one hand, citizens, users, citizens representatives, firms, health and care organisations, including the many social enterprises
Social Enterprise UK (2012: 2). Some European cities and regions are already applying social clauses to public tenders in sectors such as food,
The City is also applying social return on innovation (SROI) methods34 to some of its services including Home Care Services aimed at keeping people at home longer. 35 This application of SROI is becoming more widespread. 36 A key
More ambitiously, procurement could actively seek out tenders from cross-sectoral partnerships committed to exploring the co-design of products and services through the innovation cycle.
see, for example, New Economics. http://www. neweconomics. org/teams/entry/valuing-what-matters 35 Cities for Active Inclusion:
New Economics. http://www. neweconomics. org/teams/entry/valuing-whatmatters Smart Specialisation for Regional Innovation:
the prioritization challenge, stakeholders engagement challenge, the policy mix challenge, multilevel governance challenge, the cross-border collaboration challenge, the smart policy-making challenge,
There is not a single regional stakeholder who will ever oppose the sturdy notion of focusing public resources on action with strong added value until final beneficiaries are chosen EURADA (2011: 10.
Of course, this would need to be preceded by a collaborative process of‘entrepreneurial and social'discovery. 5. 2 The stakeholders engagement challenge In Sections 3 and 4 of this reflections paper we emphasised the collaborative nature of new innovation processes
and end-users into this process and innovation that aims directly to address social challenges must cope with specific barriers that cause under-investment
Most of these barriers relate to the multidimensional and multi-stakeholder nature of social challenges.
For example, several reports on Social Return on Investment (SORI) have been published. Fujiwara (2013) suggests that defining social purpose
and it will make exacting demands on the policy-making process at all levels of the EU's multilevel polity, especially at the level of the regional state (Morgan, 2013).
these changes will also require greater involvement of stakeholders who can introduce the necessary capabilities and interests in research and innovation to address social challenges (OECD, 2011: 10).
2008), who set a high premium on the role of what we might call the mundane economy.
The concept of the mundane economy embraces sectors that loom large in meeting core human needs-such as health education, food, water, housing, energy, social care and the like
Although the mundane sectors used to be classified as part of the non-tradeable part of the economy,
for example, are now burgeoning parts of the knowledge economy in most OECD countries. In other words, it is possible for the mundane economy to be represented universally in every region,
so as to meet an array of social and ecological needs, and for each region to develop some aspect of these sectors in a more specialised
S3 seeks to enrol a broader range of stakeholders, including citizens in the regional innovation design process.
which involves its capacity to promote innovation and development through an array of business support services and (ii) the welfare role of the state,
users and citizens (civic stakeholders for short) is belatedly being recognised as an important source of social innovation, especially in the public social services,
the role of civic stakeholders is also being recognised as an important source of new forms of collaborative innovation within the dominant STI paradigm (CEC,
) In other words, the involvement of civic stakeholders is deemed to be important not merely to the meeting of social needs on the SI side,
We sought to visualise the dual role of civic stakeholders in Figure 4. 3, where we outlined a picture of the elderly cluster,
The involvement of civic stakeholders will be important to both sides of the regional amalgam the universal/social as well as the specialised/economic because,
However, we highlighted two major dangers with the involvement of civic stakeholders-the problems of participation and power.
WP2 Embracing Social Innovation Page 46 if the insiders of the Triple Helix are not to exercise a veto over the involvement of civic stakeholders. 6. 4 Social Enterprise Social innovation is equated often (wrongly with
and reduced to the social enterprise sector, when the latter is merely one of the vehicles for the former.
i) that the social enterprise sector was too heterogeneous to justify generalisations about its contribution to either S3
or SI and (ii) that the shortcomings of the sector would become more visible as it sought to accentuate the enterprise side of its vocation.
because the more competent social enterprises will be tempted to become more formal agents of the state in the sense that they will bid for public service contracts,
to deliver the welfare services that are being outsourced by a fiscally constrained public sector. This outsourcing trend is being driven by two distinct forces:
Either way, the social enterprise sector will be faced with a new combination of opportunities (for economic growth)
we identified three major constraints on the social enterprise sector, namely leadership constraints, management constraints and funding constraints (Morgan and Price, 2011).
These systemic constraints on the social enterprise sector are confined not to the UK and therefore they need to be addressed at all levels of the multilevel polity in the EU
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