and human rights or to invest in micro-enterprises in Mumbai or Mexico city. Government data is increasingly being made public
improve communication between residents and agencies, and increase levels of local action. Leadership and entrepreneurship Digital technologies can reach into the handbags
and homes of individuals who are alienated from the democratic process. Through The Youth of Today programme, we found that young people are plugged into digital technologies,
as well as offering opportunities to communicate and collaborate with others and develop skills in these areas.
More capable individuals and communities will grab the opportunities for empowerment afforded to them-including those opened by digital technology.
/2010/05/so was it an internet election. html vii http://www. citybeast. com/londoncyclists. html viii http://www. youngfoundation. org/our-work/ventures-and-investment/healthlaunchpad/portfolio
and Peter Droell and Henriette Van Eij, DG Enterprise, European commission for their insight and advice.
social innovation 100 7. Conclusions and recommendations 108 5 1. Introduction The financial and economic crisis makes creativity
It looks at innovations in all sectors that are achieving high impact and productivity, particularly in relation to goals of better health education, employment or the environment,
it has suffered the worst financial and economic crisis in decades with unemployment set to rise to double digit figures by 2010.
and economic crisis makes social innovation more important than ever, both as a component of economic strategies to build Europe's relative position in growing fields such as healthcare and environmental services,
and as a vital contribution to achieving greater value for money in public services. Just as the Lisbon Strategy for jobs and growth focused on innovation
entrepreneurship and the knowledge-based economy, the new strategy for Europe, Europe 2020, must have social innovation at its centre,
as a means of stimulating a more dynamic, inclusive and sustainable social market economy. Regarding Europe 2020, the key issue is to move towards themes such as‘energy and climate change',for example.
"The EU needs well functioning markets where competition and consumer access stimulate productivity, growth and innovation,
A focus on social innovation in Europe's new strategy would also reinvigorate Europe's leadership building a society not just an economy-for the 21st century.
globalisation and migration have helped to provide a myriad of opportunities for Europeans and contributed to improved living conditions for all.
an ageing population has increased dramatically demands on health and care services and; in some cases migration and hyper-diverse communities have put a strain on community cohesion.
(and in the case of ageing and chronic disease private budgets too) and hamper Europe's competitiveness and economic growth in the long term.
opportunities, access and solidarity in 21st century Europe and the Political guidelines for the next Commissioni:
Economic growth-restarting economic growth and ensuring long-term sustainability and competitiveness for the future. In 2009, GDP fell by roughly 4%for both the EU and the Euro zone.
The Stern Review estimated that climate change could cost between 5%and 15%of global per-capita consumption. iv The European commission's Directorate General for the Environment estimated that average annual damages from 2000 to 2200 would be €18
New solutions need to provide better access to services (health care, housing and education) and opportunities for learning and employment. 8 Public sector Innovation growing social needs,
together with budgetary constraints, call for radically new and innovative public service models. Social innovation is critical to tackling these challenges;
and economic crisis together with these social challenges forms the backdrop to current discussions about building on the achievements of the Lisbon Strategy and developing a new strategy for Europe Europe 2020.
The Lisbon Strategy played an important role in stimulating economic growth and creating jobs across Europe.
However, the focus on developing the most competitive knowledge based economy in the world, with its concomitant focus on innovation through R&d has proved inadequate to tackling the social and environmental challenges facing Europe today.
Growth, sustainable public finances, tackling climate change, social inclusion, a strengthened industrial base and a vibrant services sector are not alternatives.
instead, the recovery must be used as a way to align the best aspects of Europe's social model with a rapidly transforming economy.
and develop products and services for a more sustainable future. They argue: Research and innovation are essential
and services that reach the market. European Technology Platforms have untapped potential and could strengthen their contribution to Europe's efforts to address the grand challenges.
but also in the new business opportunities that societal challenges present. This call to focus innovation and R&d policy on the Grand Challenges has also been echoed by the recent Business Panel on Future EU Innovation Policy,
and technology to how an innovative mind-set can trigger broader systemic changes in society and the economy.
It means that public policy can link people to opportunities, infrastructures, competencies and incentives. Innovation policy to reinvent a new Europe in the future will involve many actors.
and involves many stakeholders across the different sectors, and a new kind of innovation which is pull-through rather than push through
1. Co-creating value with customers and tapping knowledge about users; 2. Global knowledge sourcing and collaborative networks;
4. Public sector challenges as a driver of innovation. 11 The authors argue that companies constantly search for new business opportunities and that social and environmental challenges such as climate change, the supply of clean water,
companies can cultivate new business opportunities.‘‘Corporate social innovation'may be an important new business area for private companies and a core driver of innovation'.
'Equally, challenges facing the public sector increasing demands from citizens for higher quality and more personalized public services,
together with greater budgetary constraints also provide an opportunity for the business sector. However, the authors recognize that private sector involvement in the public sector is fraught with difficulties.
'xiii It also points to the importance of new social business models such as social enterprises, cooperatives or socially driven businesses.
They also highlight the fact that social and environmental challenges also represent significant business opportunities.
Challenges are also opportunities In 2006, the Independent Expert Group on R&d and Innovation chaired by Esko Aho,
The group argued that the lack of innovation-friendly markets in Europe was the main barrier to investment in research and innovation.
intellectual property and nurturing pro-innovation cultures. xiv The Group also suggested focusing action on specific areas including ehealth, energy and the environment.
which aims to facilitate the creation and 12 marketing of new innovative products and services in sectors of strategic importance.
‘markets for innovative products and services with high growth potential, where EU industry can develop competitive advantage to lead in international markets and
respond to customers'needs, have a strong technological and industrial base in Europe and depend more than other markets on the creation of favourable framework conditions through public policy actions.'
which are seen also as challenging for example, healthcare, energy and the environment. This initiative shows that challenges are also opportunities.
Clearly, health, long term care and green products and services are significant growth sectors. For example, spending on healthcare, currently between 5%and 13%of GDP for EU countries is set to rise by approximately 4%by 2050. xviiixvii Most of the projected increase in public spending will be on pensions
healthcare and long term care. In 2006,20 million Europeans worked in the health and social services sector.
The Stern Review on the Economics of Climate Change brought to the fore the costs of inaction on global warming. xix Stern concluded that the cost of stabilising greenhouse gas emissions at 500-550ppm would be approximately 1
many forecasters expect that the green economy will bring with it millions of new jobs. xxi Estimates for Europe suggest that 1m jobs could be created from a 20%cut in present energy consumption. xxii In the US,
The Alliance argues that an investment of $300 billion (€212 billion) would add more than 3. 3 million jobs to the economy,
and therefore job creating than nonrenewable investment. Social Innovation and EU 2020 Social challenges are real and significant;
they threaten to constrain economic growth across Europe in the decades to come. But, they also promise to be significant growth sectors,
it needs to focus on restarting economic growth, whilst tackling the Grand Challenges and laying the foundations for a sustainable, social market economy.
and tackling social challenges must go hand in hand for sustainable economic growth in Europe. This is recognised in the new European strategy, EU 2020,
connected and greener economy 'and‘creating value by basing growth on knowledge'.'This is certainly a clear step towards building a smarter, greener Europe.
Much of the literature on social innovation draws from economics (especially around public finance; management studies (especially in the US;
empower communities and transition to a low carbon economy and there are many organisations and individuals engaged in the development and use of social innovation across Europe.
consumption and distribution and generate further ideas and innovations (like the move to a low carbon economy or the creation of a preventative system of criminal justice).
The term social innovation is used often synonymously with social enterprise and social entrepreneurship. They are overlapping but distinct.
The term social entrepreneurship is used to describe the behaviours and attitudes of individuals involved in creating new ventures for social purposes,
including the willingness to take risks and find creative ways of using underused assets. Social enterprises are businesses with primarily social objectives
whose surpluses are reinvested principally for that purpose in the business or community. They are driven not by the need to maximise profit for shareholders and owners.
There is currently no universally accepted definition of social enterprise. This is because social enterprises can take numerous forms
are engaged in multiple spheres of activity and because legal structures vary from country to country.
Social innovation is much 16 broader than either social entrepreneurship or social enterprise although it will often include one or both of these.
Social innovation describes the processes of invention, diffusion and adoption of new services or organisational models,
whether in the nonprofit, public or private sector. It also describes the outcome the service
or model being developed. A recent Stanford Social Innovation Review piece put it like this: Unlike the terms social entrepreneurship and social enterprise, social innovation transcends sectors, levels of analysis,
and methods to discover the processes the strategies, tactics, and theories of change that produce lasting impact.
and enterprises they create. But it will certainly require understanding and fostering the conditions that produce solutions to social problems. xxiv Even though,
or unresolved by services organised by the state. Social innovation can take place inside or outside of public services.
it focuses on labour market practices and the delivery of services. As such, it is at odds with other definitions
and can deal with new relationships with stakeholders and territories.‘‘Social innovation'seeks new answers to social problems by:
identifying and delivering new services that improve the quality of life of individuals and communities; identifying and implementing new labour market integration processes, new competencies, new jobs,
(which arguably has created more value for society than even the value that has accrued to shareholders and founders).
services and models) that simultaneously meet social needs (more effectively than alternatives) and create new social relationships or collaborations.
-the third sector (for example, Emmaus in Europe or Dialogue Social Enterprise which tackles issues of disability and marginalisation in Germany;
Schumpeterian economics provided a frame in which a critical role is played by individual entrepreneurs engaged in risk and innovation.
and services far beyond any other public services (see chapter 3). Growing numbers of movements are taking shape globally
however well designed, may appear quite inefficient compared to the subtle interdependencies of a real social or economic system.
will have built up their own logic like the military bases in the old Soviet union that propped up local economies,
Most will have sunk investments of time and money in past practices that they are loath to discard
The personal relationships between the movers and shakers in the system create an additional stabilising factor in the form of social capital and mutual commitment.
When systemic change does happen-for example the rise of welfare states fifty years ago, the shift to a more knowledge based economy in the last decades of the 20th century,
or the shift to a low carbon economy in the early 21st century-the opportunities for social innovation greatly increase.
such as the efficiencies that flow into the economy from better public health or low carbon technologies. xlviii This is one of the reasons why big changes are followed often by a honeymoon period.
The uneasy symbiosis of‘bees'and‘trees'This story of change emphasises the interaction between the innovators and the environment they are working in.
and better tailor their services accordingly. There are also many organisations which organise the prompts to themselves through mapping and research,
call for ideas, competitions and so on) and ways of engaging citizens, users and others in the design and development of solutions. 29 3. Prototyping.
This can be done through pilots and prototypes or more formal methods such as randomised control trials.
which attempt to test out interconnected elements rather than the discrete services or actions usually associated with pilots.
social enterprise or charity that will carry the innovation forward. In the public sector this means identifying budgets, teams and other resources such as legislation.
At other times existing services need to be transformed or replaced. But to move from pilots and prototypes to a securely established public innovation, it is often advisable to set it up as a separate venture,
with public finance and a service contract that can prove itself at scale. Indeed this may be crucial
and spreading new services, especially through the growth of contracting out services. Although often driven by the need to cut costs,
Local government in the UK has used commissioning to experiment with alternative service models provided by social enterprises and grant based organisations
public procurement plays a role in relation to consolidation by purchasing services at scale. xlix 6. Systemic change.
Systemic change is very different from innovation in products or services, and usually very different from innovation in business.
social movements, business models, laws and regulations, data and infrastructures, and entirely new ways of thinking
what works on a larger scale establishing working prototypes of the new system, for example the low carbon housing in Hammarby Sjöstad in Sweden and Vauban in Freiburg.
services and models into practice sustainably and on a large scale. Seen through an economic lens the problem of social innovation is that:
There is a shortage of sources of capital for research, development and implementation of social innovations,
and consequently only weak incentives for investment, and There are, at best, imperfect markets for social outcomes,
‘Pull'in the form of effective demand, which comes from the acknowledgement of a need within society,
and third, their communication and dissemination. Effective strategies that connect‘pull'to‘push, 'and find the right organisational forms to put the innovation into practice.
and continues to do so as the environment around it changes. Many promising innovations have foundered because critical elements were missing.
budgetary demands and public opinion. l Diagram 5. Effective supply/effective demand 32 Many routes to growth There are also many routes to growth from organisational growth,
but through emulation. li Growing an innovation depends on effective supply and effective demand: effective demand refers to the growth of evidence to show that the innovation really works.
Effective demand refers to willingness to pay. Both are needed but sometimes the first priority is to prove effectiveness
while in other cases the priority is to create demand, both by persuading people that there is a need to be met,
and then persuading people or organisations with the ability to pay that they should do so.
which makes it difficult for social enterprises and third sector organisations to recruit, retain and develop staff,
causing some organisations to reject opportunities to deliver services; too often contracts set unrealistic prices
funded by the European Social Fund. lvi There is also a role here for incubators, innovation parks and research centres.
For example, Mars in Toronto, links a university, hospital, business incubator, alongside a social innovation investment fund.
the Basque Centre for Innovation, Entrepreneurship, and New Business development in Spain is creating a business park for social enterprises and cooperatives.
The park will include start-ups, regional and governmental organisations, and charitable foundations. Research and development needs will be met by the creation of a school for social innovation.
There are however some proxy measures such as the size and scope of the non profit sector and the social economy
because much of the work of non profit organisations and the social economy does not necessarily fall under the rubric of social innovation-many non profits
and social economy firms are not innovative although they do deliver benefits to the communities they serve.
if the civil society sector in these countries were a separate national economy, its expenditures would make it the seventh largest economy in the world, ahead of Italy and Spain and just behind France and the UK. lvii In these 35 countries, the sector employed 39.5 million full time equivalent workers
which means that civil society employs, on average, 10 times more people than the utilities and textile industries in these countries,
what has been observed in the economy as a whole. The social economy in Europe is a comparable economic force-it employs over 11 million people
equivalent to about 6%of the working population of the EU. In the accession member states, 4. 2%of the wage earning population is employed in the social economy.
This is a lower percentage than the average in the older member states (7. 0%)and in countries such as The netherlands (10.7),
%Ireland (10.6%)or France (8. 7%).One of the most rapid growth areas within the social economy over the last decade has been in the growth of social enterprises.
Information about the scale and scope of the social enterprise sector across Europe remains limited.
There are difficulties in measuring how many social enterprises operate within member states. In part this is because most countries do not collect information on the number of social enterprises instead they collect data on the number of organisations with particular legal forms that is, the number of social cooperatives, associations, social purpose
companies and so on. For example, there were 7, 363 social cooperatives in Italy in 2005. lviii As a result,
only a small proportion of social enterprise activity is collected in official statistics. A few countries have started to collect information about the number of social enterprises.
In Finland, for example, there were 170 registered social enterprises in 2008. lix However because social enterprises in Finland are work integration organisations(‘social firms')-that is, organisations
which focus on integrating highly excluded groups into the labour market, it is highly likely that these figures significantly underestimate the true scale of social enterprise activity in the country.
With the EU, the field of social enterprise may be developed best in the UK. Figures from 2008/9 estimate that there are 62,000 social enterprises in the UK,
with small and medium social enterprises contributing £24 billion Gross Value Added to the UK economy. lx In
what follows, we've pulled together a range of examples of social innovation from across Europe's 27 member states.
As this section will demonstrate there is no shortage of ideas or even innovations. We've organised the material into sectors the public sector, the private sector,
the grant economy and the household-because there are clear and distinct trends in each sector. 36 Public sector As we mention earlier,
the public sector is often the key source of social innovation. In practice public services are not monolithic:
Co-design Participle and Southwark Circle, UK There are a series of design agencies across Europe helping public agencies and local communities co-design services together.
to encourage openly inclusive services, to move away from a financial focus and towards a focus on resources,
Collaboration with users, front line staff and other stakeholders, and partnerships with organisations from the private, public and third sectors. 38 User Led design processes enable both potential end users and existing front line staff, among other specialists,
to be a driving force in the design of new services. Highly Iterative ideas are tested rapidly through prototyping.
Prototypes involve early service models developed in situ, which are tested then and improved in rapid cycles.
Participle are able to design services that people want and will use. Once ideas have been tested
the focus is on implementation and rolling out services. The design process used by Participle is based on the Transformation Design process developed at RED at the Design Council.
The approach is multidisciplinary Participle's team includes designers, social anthropologists, researchers, policy analysts, economists and others.
to design new services to improve the quality of life and well-being of older people. Rather than start with the question
and the way services and systems are configured (away from a near exclusive focus on care and towards building relationships and participation).'
Southwark Circle is a model of how future services might look across Britain. lxiv There has yet to be any full evaluation of the benefits of the programme relative to costs.
Innovative media and communication activities also played a big role in demonstrating the programme for national and international collaborations.
The portal brings together health information and online health services in one place, with personalised features for citizens over the age of 15.
Patient services include health related information and advice, online booking facilities, prescription renewal, ordering prescriptions online, online consultations with health professionals and access to personal medical files.
For healthcare professionals, services include online access to the patient appointment calendar laboratory data, patient records, waiting list information from hospitals and so on.
because business leaders are beginning to see the social innovation as a field for creating new business opportunities,
the development of new social business models. One of the most significant developments has been in the growth of social enterprises.
These are businesses which earn a profit but are focussed on their social goals. lxvii Definitions of social enterprise vary,
but the main features are, the primacy of the social mission, trading income and the provision of services (i e. they do more than campaign, lobby or advocate).
The term social enterprise covers a wide range of organisations from cooperatives to public service providers
and community/voluntary associations to‘work insertion'organisations and companies limited by guarantee. Social enterprises also work across a range of social and environmental fields-in Poland and Finland, for example,
social enterprises are mainly nonprofit work insertion organisations; in France and Sweden, childcare services make up the bulk of social enterprise activity;
in the UK, social enterprises cover education, health and care but increasingly also areas such as housing, culture and sports and;
in Italy, cooperatives make up a significant proportion of social enterprise activity. 43 In the main, however, social enterprise activity falls into two categories.
The first is social service provision childcare, eldercare, care for the disabled and so on. The second is‘work integration
'or‘work insertion'integrating the long term unemployed or disadvantaged and marginalised groups into the labour market. lxviii A study of the WISE sector in Europe carried out by research network EMES,
found that in 12 countries, the sector consisted of 14,209 organisations employing 239,977 people. However, the authors have reason to believe that many organisations are included not in the official statistics
and as such, the figures for total employment are in all likelihood significantly higher. lxix The WISE organisations in Germany are a good example. lxx Social enterprises can also be identified by the types of relationships they have with their beneficiaries, the way in
which they are able to attract voluntary support or the way in which they are embedded within their local communities
what we call‘relational capital'.'Borzaga and Defourny, for example, argue that‘the key feature of social enterprises seems to be their ability to strengthen the fiduciary relationship within and around the organisation,
and to mobilise resources from individuals and from the local community (social capital). They do so using institutional
and organisational mechanisms that rely, inter alia, on the forceful and broader representation of the interests of stakeholders, on a participatory and democratic governance system,
and on the use of volunteer labour.''lxxi As a result of these relationships, social enterprises are embedded often within their local communities.
Consequently, they are attuned more and responsive to the needs of beneficiaries. Social enterprises tend to be relatively small
although some have established themselves in the mainstream. Access to finance has been identified as a significant barrier to the growth of the sector however,
peer-peer lending platforms (such as Zopa) and crowd sourcing models for raising finance (also known as crowdfunding).
which cater specifically for the needs of social businesses and social enterprises (banks for charities such as Banca Prossima in Italy or ethical banks such as Triodos Bank in The netherlands).
1. Businesses developing social innovations 2. Collaborations across sectors 3. The growth of social enterprise 4. The growth of microfinance 44 5. The growth of social finance
Safaricom has built on the vast network of existing mobile phone services and kiosks, transforming them into M-PESA agencies where money can be deposited
M-PESA can be used within different services, including money transfer, bill payment, and in the near future will be accepted as payment on some public transport services.
The system prompts more regular loan repayment as customers in hard-to-reach areas have easier access to a means of money transfer.
The cashless system also provides security for customers who would otherwise be forced to store their money at home
and could potentially allow public service employees, such as transport drivers, to avoid being responsible for cash amounts.
with 43%of customers using the service once a month, and over 90%of users agreeing that M-PESA is a safe service to use.
while Grameen bring their understanding of the local environment together with their extensive networks. The benefits are multiple:
The growth of social enterprise Work Insertion-Diakoniewerk Arbeit & Kultur, Germany Diakoniewerk Arbeit & Kultur ggmbh (or the‘deacon's activities for work and culture')in Mülheim is a fairly typical example
of a German Work Insertion Social Enterprise (WISE. It was set up in 1985 to run a small number of employment measures funded by the regional labour office
but has expanded since into a social enterprise which provides wrap around services for social welfare in the community.
Its three main activities are to get marginalised job seekers back into work; to buy, restore and sell low-priced 46 second hand recycled products (including clothes and furniture) to those on low incomes;
Service Provision Mental health Cooperatives, Greece As part of the broader reform of mental health services in the late 1990s, the Greek government introduced a new legal form,
The Koispe is a relatively unique organisational form in that it is both an independent trading enterprise and an official mental health unit,
which means that it has access to national health services staff and premises. One of the other innovative aspects is that those who work for a Koispe may earn a wage without losing their benefit payments.
operates greenhouses across the island and runs a pastry shop. lxxviilxxviii By providing opportunities for the community as a whole,
since its establishment, raised capital from more than 647,000 lenders (individuals from around the world investing $25 or more towards a specific project).
The netherlands Ethical banks provide a broad range of financial products which seek to maximise both social and environmental returns on investment.
Instead, their portfolio of investment funds will cover a range of more than profit companies that have primarily social or environmental goals.
and‘its principles and independence are guaranteed through a special shareholding trust which protects the social and environmental aims of the bank'.
'Triodos now has offices in the UK, Spain, Belgium and The netherlands as well as an International Development Investment Unit
and services where social need arises. In its mission to effect maximum transparency, all savings and investment accounts are available to view on Triodos'website.
Civil society and the grant economy Civil society and the grant economy are rich sources of social innovation through campaigns
advocacy and service provision, non-governmental organisations and associations are often the pioneers of new approaches to tackling social needs. 1 1 We describe this as the grant economy
because grants play an important part, even though much of the income received within this sector comes from other sources, such as contracts with governments and other kinds of trading income. 49 Amnesty international, Greenpeace, Medecins Sans Frontières, the Red cross, Emmaus,
has been the growth of venture philanthropy. Given the variety and breadth of the grant economy,
all we can do here is provide a very brief snapshot. In what follows we provide a few examples of socially innovative civil society organisations
1. Tackling social exclusion 2. Tackling addictions 3. Using technology to solve social needs 4. Training and skills 5. Venture philanthropy Tackling Social Exclusion
So far, it has established 25 income-generating enterprises (a further 35 are in the process of being created), as well as restoring two redundant large state farms
and the various activities undertaken by Barka over the last 20 years have had a major influence in facilitating the emergence of civil society and social enterprise in post communist Poland.
support the development of civil society and social enterprise in Poland; address the problems of social 51 exclusion with the creation of eight Centres for Social Integration and;
It is anticipated that this will be extended to other London boroughs and European capitals by 2011. Similar models are planned also to be developed in Ukraine (Lvov and Kijev) and Belarus,
The Halfway Foundation is a non profit organisation that helps those suffering from alcohol addictions, are need in of psychiatric treatment,
The Calouste Gulbenkian Foundation, in collaboration with the municipality, local schools, churches and other stakeholders in the community have worked in Casal da Boba
and asked to develop a website prototype over the next 2 days. At the end of the weekend project teams pitch what they have created to the SI Camp judges.
thus stimulating demand for social applications of digital technology and connecting it to supply. In addition, the entire process is designed to create a‘safe space'for experimentation, creative thinking and risk taking.
A recent evaluation by the New Economics Foundation (NEF) concluded that the SSE's learning programme has been highly successful:
Ireland Traditional grant making organisations have for some time been criticised for failing to help non profits build capacity,
grow and become financially sustainable. lxxxvi Venture philanthropy is a response to this criticism, and seeks to use many of the tools of venture capital funding to promote start-up,
growth and risk-taking social ventures. Venture philanthropists seek social as well as financial returns on investment although in many areas,
the majority of venture philanthropy activity is based on nonreturnable grants (i e. seeks purely social returns on investment).
Over the last decade, venture philanthropy has played an important role in diversifying capital markets for social purpose organisations
and reaffirming some key principles for good grant making. In particular venture philanthropy has filled a gap between traditional grants for non profits
and commercial market rate equity and loans. lxxxvii There are six main features of venture philanthropy as it has come to be practiced.
Venture philanthropists: have a close relationship with the social entrepreneurs and organisations they support; provide tailored finance to meet the needs of the projects they support;
provide nonfinancial support (such as strategic planning, marketing and communications, executive coaching, human resource advice and access to other networks and potential funders;
provide medium to long term support, typically between 3 and 5 years, with an objective of helping the organisation to become financially sustainable by the end of the funding period;
focus on building the operational capacity and long-term viability of the organisations in their portfolios, rather than funding individual projects or programmes and;
57 make investments which are based performance, placing an emphasis on measureable outcomes, achievement of milestones and high levels of financial accountability. lxxxviii There are more than 100 venture philanthropy organisations around the world, working with a range of organisations not solely charities and not-for-profits.
These include social enterprises and social entrepreneurs, trading charities and socially driven commercial organisations. Examples from Europe include Bonventure in Germany,
Impetus Trust, CAN-Breakthrough and Venture Partnership Foundation in the UK, d. o. b. Foundation in The netherlands,
Good Deed Foundation in Estonia, Invest for Children in Spain, Oltre Venture in Italy and the One Foundation in Ireland.
The One Foundation, established in 2004, is a venture philanthropy organisation which aspires to improve the lives of disadvantaged children in Ireland and Vietnam by tackling issues of poverty and disadvantage, mental health,
and integration of minorities. It provides a range of financial packages from €40, 000 upwards and the average grant is €1 million over 3 years. lxxxix In line with the model of venture philanthropy outlined above,
the One Foundation provides hands on support for social purpose organisations seeking to grow and scale up their operations.
Their portfolio of investments covers four main areas: childcare and families to break the cycle of disadvantage by making investments in organisations dedicated to early intervention
and prevention to create effective family support programmes for national implementation; youth mental health to improve wellbeing
and resilience by creating more inclusive and accessible mental health support systems for young people; inclusion to make multi-faith education a reality in Ireland
Social Entrepreneurship Ireland and Vietnam to promote social entrepreneurship in Ireland and Vietnam by funding social initiatives and organisations acting as a launchpad for potential entrepreneurs.
When an organisation finally secures investment from the One Foundation, it is usually for 3-5 years.
Investment is based performance, with annual and quarterly targets set that must be achieved for the following years'money to be released.
The One Foundation uses these investments to leverage funding from alternative sources. The One Foundation also provides a range of nonfinancial tailored support. 58 The household The informal household economy individuals
families, informal groups, associations and networks-has generally been recognised under as a source of social innovations.
such as the environment, health and care, where it is often ahead of business or government.
and develop their own innovations. 59 Within the household economy, there are a number of emergent trends.
where users are also producers of services they consume this is especially the case in areas such as health and care, education, recycling and energy management of the home. xc Some of this remains at the level of the individual household,
and money is one of the defining features of this economy. In recent years, the growth of alternative currencies
time credits and vouchers have been one attempt at including elements of the household economy into the mainstream economy by valorising voluntary labour.
According to the organisers,‘this extraordinary project helped to change the waste department system as well as public perspectives on the environment and the possibilities for civic action.'
and new methods of providing opportunities in accordance with current public need. Commanding attention complaints choirs, Finland Complaints Choirs-where people come together
Hamburg and Florence. Choirs have voiced their concerns on issues as diverse as the environment, sexism, inequality, public 61 transport, the quality of social housing, debt, public corruption, incivility and the experiences
mums all over the world can register to use a number of useful services. Global services include the coffeehouse chat room,
where advice can be sought from other parents on issues as varied as new recipes and how to get your child to sleep, to health issues and developmental concerns for their children.
not-for-profit organisations, local or regional authorities (town halls,'Diputacion',regional government departments. Again, the most successful programme today is partially coordinated by a university,
and the opportunity to study, learn a trade, change their lives, and regain their status as full members of society.
It earns part of its income from the wide variety of enterprises it has set up which provide those being rehabilitated with on-the-job skills training.
These cooperatives provide a range of services including carpentry plumbing and decorating and manufacture a range of artisanal products such as cheese, wine, oil and honey.
half comes from the profits earned through San Patrignano's goods and services, following a principle of autonomy.
The rest comes from private donors or companies that believe in the social value of our centre and offer their support to our mission.
has set up an alternative currency to promote the creation of a‘solidarity economy','tackle social exclusion and valorise work (mostly care in the home)
which can be used across social enterprises and is a transferable credit. The second element is based a time credit which aims to make voluntary work visible and accountable.
given by the public sector to specific target groups, allowing them to access specific goods or services.
the Riversimple car has been designed to last both physically and in terms of a business model. Built for a lifecycle of 15 years
and many stakeholders will be involved in the running of the business. The car has also been designed to be recycled.
Overall strategic frameworks for social innovation, social enterprise or entrepreneurship. These remain rare but are beginning to spread, for example Denmark's recent strategy for social enterprise.
Legal frameworks, such as new legal forms. Finance of external projects, programmes and institutions. Dedicated funds exist for early stage ideas, investment, R&d,
and incubation (for example, EU programmes such as EQUAL, Framework or at the national level SITRA/Tekes in Finland).
, growth &c) new roles, incubators, institutionspurchasing, commissioning (in key public services, by place, outcome &c) Sector specific regulationscapacity support (training, infrastructure, IT, networks, lesson
Support for incubators and hubs within cities or regions to concentrate and amplify capacity and activity (for example Denokinn, the Basque Centre for Innovation, Entrepreneurship and New Business Development in Bilbao,
or the world wide network of Living Labs). Innovation agencies, such as VINNOVA in Sweden. Prizes and competitions to engage the public and different fields Regulation well-conceived regulations can elicit much greater innovation (such as feed in tariffs for energy.
Support for capacities ranging from in-house teams to develop innovations (for example Mindlab in Denmark), to investment in skills and capacities,
whether through intermediaries, universities, or civil service colleges. Procurement mobilising public procurement to support promising innovations.
APDC's initiative on Next Generation Services paved the way to a €70 million public fund,
and the EU's encouragement of Social Return on Investment methods. 68 However, we emphasise that this is an emerging field without much strong evidence for the effectiveness of particular policies.
These include calls for ideas, competitions, petitions, youth parliaments, citizen juries, participatory planning and budgeting and so on.
and through the procurement and commissioning of innovative services. The public sector also has established some well tools for financing innovation beyond its borders, particularly through R&d funding for science and technology.
education and health by linking small scale actors such as associations, social enterprises and foundations to big institutions, laws and regulations.
and others act as public venture funds, providing seed capital to social innovators (for example, the White house Office of Social Innovation and Civic Participation).
SITRA, Finland Originally established in 1967, the Finnish Innovation Fund (or SITRA) is an independent public fund overseen by Finland's Parliament.
Its mission is to create systemic change by promoting stable and balanced development in Finland, the qualitative and quantitative growth of its economy and its international 70 competitiveness and co-operation.
Its operations are funded with endowment capital and returns from corporate funding operations. Its annual budget comes to about €40 million.
and support changes in the Estonian economy through foresight projects and venture capital investments. The fund focuses on initiatives with international potential.
The four projects, Industry Engines, EST IT, Service Economy, and Growth Vision are all foresights for the year 2018
The fund has been created to forge a‘policy environment'within which innovations can‘thrive'.'10%of the fund is intended to directly finance not-for-profits, 5%for individual projects,
while 85%will be attributed to grants for other grant-giving organisations. The fund encourages public engagement with its activities and,
Some have argued that the creation of the fund represents a missed opportunity. The remit of the fund is quite narrow.
Social Enterprise Investment Fund UK The Social Enterprise Investment Fund is run by The Social Investment Business on behalf of the Department of health in the UK.
Developed in the wake of the 2006 White paper, Our Health, Our Care, Our Say, which identified the potential role of social enterprises in developing health
and social care to better meet the needs of communities, the fund was established in 2007 to prompt innovation in health and social care.
Funding applicants include multi-agency partnerships (primarily voluntary and community, existing social enterprises and health professionals.
while twenty £200, 000 grants are available for existing social enterprises wishing to expand. The first funding round is in January 2010.
including personalisation to develop services to manage individualised budgets under the personalisation of care agenda, growth for existing organisations, innovation for early stage organisations,
and right to request for organisations proposing alternative provision of NHS services into a social enterprise.
and the public sector. The workshops aim to develop an understanding of the role social enterprise can play in the delivery of primary and community care. 72 Finance Tools for Social Innovation There are also a series of financing devices
and provide better incentives for public organisations to make preventative investments. Investing in social innovation is complicated often by problems associated with quantifying the effects of an investment,
especially where those effects are not financial. This is especially the case with investment in programmes
which are preventative. Social Impact Bonds, UK Social Impact Bonds (SIBS) are a financial tool being developed in the UK to provide a new way to invest money in social outcomes.
Investments (by local authorities, commercial investors or foundations; A programme of actions to improve the prospects of a group (for example 14-16 year olds in a particular area at risk of crime or unemployment;
Local authority SIB Under this model, a local authority borrows for a package of investment in a social impact programme
Contractors would raise their own capital either through social investment sources or on the market.
payments based on results against benchmarks. This model is somewhat more complex, with more handovers and transaction costs,
These range from investment in early years programmes (based on the evidence from the Abecedarian and High/Scope Perry Preschool Programmes for substantial long-term paybacks), to NEETS (focused on life time earnings
and investments in health prevention and improvement. Another potential field for action is in employment creation during the downturn.
and able to engage a wide range of stakeholders in the design, development and evaluation of social innovation.
private enterprises and the research community under one roof to promote user-centred innovation. Mindlab's involvement of citizens and businesses in public-sector innovation processes has two purposes:
design thinking and public administration. Mindlab uses qualitative research techniques such as ethnographic interviews, observation and cultural probing to better understand public sector from citizens'point of view.
and concept 5. Test of new concepts 6. Communication of results 7. Measuring Recent projects include‘burden hunting'reducing administrative burdens on Danish companies.
It was established to provide a creative environment for a wide range of staff to work together on some of the most pressing social challenges facing the local authority.
As well as bringing together local residents and county council staff members to brainstorm solutions to new and emerging needs and design services, it also seeks to build capacity for user-centred innovation across the council.
and stakeholders such as senior managers or elected councillors, in setting out what is required from a service
tested and rolled out. 77 SILK has had a number of success stories including developing services for fathers with Kent Children's Trust.
The research also helped to inform further changes in the way services are delivered. The 27e Region, France The 27e Region is based an NGO in Paris, supported by the Association des Régions de France
The 27th Region works as a laboratory for the 26 French Regional Councils and its goal is to foster creativity, social innovation and sustainability in public institutions, through community projects, prototyping and design thinking.
prototype solutions, develop projects, and propose improvements to the architecture that would really make the school open.
More broadly, Atelier 27 aims to develop a culture of co-creation, creativity, design thinking and visualisation in public authorities.
and the demand for them, does not link up automatically. In science, technology and business a vast array of institutions exist to better connect them.
These include specialists in technology transfer, venture capital firms, conferences and academic journals, consultancies which specialise in assessing companies'IP
these include innovation networks and incubators. Outside the public sphere, there has been a growth in building based intermediaries such as the world wide Hub and the Centre for Social Innovation in Toronto.
Spain There is growing interest in incubators as a method for testing promising new ideas. Incubators have long been widespread in business,
but the creation of social incubators is only a recent phenomenon. Some incubators provide support for social entrepreneurs and social start-ups,
others take a more active role in the design, implementation and evaluation of pilots and projects.
Even though evidence is patchy, these organisations are helping to build the field of social innovation
and are providing new models for taking ideas from inception to impact by helping to create sustainable social enterprises.
Incubators provide a range of supports for social enterprises and social entrepreneurs. Some of these needs are the same as those of mainstream businesses including space
Other needs are specific to social enterprise and arise from their social mission or particular decision-making and ownership structures including legal issues associated with specific forms of incorporation.
third Sector organizations, charities, NGOS and businesses focused on social innovation will have the opportunity to work together,
and develop new joint enterprises in a highly innovative environment. The Social Innovation Park will host more than 50 international companies and associations.
It will also host the first‘Social Enterprise Generator, 'enabling those in receipt of employment
and social security benefits to work for the park's enterprises without losing their benefits and;
Southern Europe's first‘Social Innovation Laboratory',providing the opportunity for those based in the park to work together to generate new social enterprises that will be incubated in the park, with access to training, mentoring and evaluation in the process.
Specific training for upgrading the quality of services for third sector institutions, organisations and enterprises will also be available, in the form of a‘Social Innovation Academy'.
'81 Innovation Agencies Innovation agencies also play a critical role in linking up ideas and resources.
and profitability of healthcare services if new procedures are developed simultaneously in an innovative way. The scope for this programme was estimated initially at €150 million but in practice rose to €177 million.
Current ongoing programmes include Innovations in Social and Healthcare Services which was initiated in 2008 to develop relations between government and public sector bodies in developing healthcare services,
and Built Environment initiated in 2009 to improve productivity through environments designed to promote well-being. cv VINNOVA,
Sweden VINNOVA (The Swedish Governmental Agency for Innovation Systems) promotes sustainable growth by funding needs-driven research
VINNOVA's programmes include Information and Communications technology, Services and IT Implementation, Biotechnology, Working life, Materials, Transportation, Cross-Sectoral Issues, Knowledge of Innovation Systems,
Helix a programme invested in establishing healthier work environments and ways of working, and Gigahertz Centrum a centre developing energy-efficient electronics and mobile communications. cvi Recently, VINNOVA, together with five other leading European innovation agencies-Enterprise Ireland (IE), FFG (AT), Senternovem
(NL), Tekes (FI), and the Technology Strategy Board (UK)- stated that‘The Grand Challenges of Europe are an important driver for new innovation-led policy measures.
These challenges are also potent business opportunities for European SMES provided that policy implementations consider
and Economics and the Internet of the Future. Workshops will be run to enhance co-creation of ideas
and services between the three institutions involved in the hope to create a diverse and wide-reaching hybrid.
and communication of ideas in the preparation and implementation stages of the university's inception. cvii Pro-innovation cultures 83
energise and help entrepreneurs to develop their concept from an idea or modest project to the delivery of a scale-able, sustainable venture.
in exercising due diligence, preparing a business plan, marketing and facilitating introductions to networks and potential clients and commissioners.
The SEIR helps social enterprises currently working outside the NHS to develop services that NHS commissioners want to contract to help deliver better health outcomes.
For NHS clinicians and departments the SEIR can assist in transforming their services, and secure investment from funds such as the Social Enterprise Investment Fund (SEIF) and the Regional Innovation Funds (RIF) managed by the Strategic Health Authorities (SHAS).
In the UK, innovation has been recognised as critical in delivering excellence in clinical care. However, within the complex web of existing NHS and local government frameworks, innovation is notoriously difficult to deliver.
Innovation in health services and social care will happen faster if the entrepreneurial energy skills and values of NHS staff and local enterprises are harnessed
and channelled towards delivering sustainable solutions to address health and social care needs. As well as creating new services, a SEIR with roots in the local social enterprise culture,
works to change the culture of an organisation so that innovation becomes a natural part of its ethos not a barrier to success. Innovations in American Government Awards Innovation awards play a critical role in highlighting innovative programmes and projects within government.
Through its prestigious annual awards competition the programme has served to highlight innovative projects within fields as diverse as youth justice, environmental management, education, public health and e-governance,
A number of governments have initiated open systems for citizens to propose improvements to services. The Seoul Metropolitan government, for example, launched its Imagination Bank in 2006.
Examples of successful projects include setting up new social enterprises and lowering hand straps in the Metros for shorter passengers.
The Big Green Challenge, UK 86 Prizes and competitions can be an effective means of uncovering new sources of social innovation.
The Big Green Challenge, aimed at the not-for-profit sector is the first challenge prize of its kind.
Participants were judged against the likely longevity of their project, the scalability of their solution, and successful community engagement.
and investment as they completed the various stages. And the further the participants progressed the more NESTA invested in terms of support and specialist advice.
and create opportunities for shifting‘power from professional sources of authoritative knowledge to new kinds of knowledge networks'.
This knowledge is crucial in improving services and making government more accountable. Open models provide one approach for tapping into this expertise for generating social innovation.
These new legal forms have helped to build awareness of the social enterprise sector and distinguish social enterprises from charities, associations and other third sector organisations.
Legal forms Many European countries have had long innovative legal forms for social enterprise. They include Italy's social cooperatives Type A and B
which has been superseded by a 2005 law on social enterprise, and France's Société coopérative d'intérêt collective (cooperative society of collective interest), a new type of multi-stakeholder cooperative structure introduced in France in 1982,
introduced as a new legal form in 2002. In the UK, the Community Interest Company (CIC) was created as a new legal form in 2004 to reduce the tensions between finance and mission for businesses with a social purpose.
CIC status makes the social mission dominant and limits the returns on capital. There is an asset lock
'There is also a limit on dividends of 35%of profits. This new legal form has played a critical role in opening up new kinds of finance for social enterprises.
The field is developing fast in the UK where there are an estimated 62,000 social enterprises with small and medium social enterprises contributing £24 billion GVA (Gross Value Added) to the UK economy. cxvi
New legal forms must have clear and direct benefits otherwise take up will be slow. They must also be easy to adopt with little bureaucracy.
Moreover, while public procurement can stimulate innovation and boost the economy, it can also help governments achieve twin objectives of reducing costs
which makes it difficult for social enterprises and third sector organisations to recruit, retain and develop staff,
causing some organisations to reject opportunities to deliver services; too often contracts set unrealistic prices
or dementia services. Personal budgets Personal budgets involve users being allocated a budget to be used for ongoing care needs.
Personal budgets demonstrate real promise for improving the lives of citizens by giving them greater control over the services they receive.
Civil society and the grant economy have long been rich sources of social innovation, but they are placed not well to develop rigorous methods for innovation, lack R&d capacity,
Similarly, the informal household economy plays a critical role in developing social innovations but it remains fragmented,
They relate to capacity and capital, both financial and human. A key dimension of the problem lies in the area of finance,
These silos are characterized by a lack of mutual awareness, trust and communication. This current lack of a rich enabling eco system is one of the key overarching factors that threaten to inhibit the development of social innovation as a‘field'.
-Funding for fundamental research and development of concepts-Seed funding for promising ideas 92-Funding for pilots and prototypes,
as well as for evaluations-Finance for embedding successful models-Finance for growth Social economy firms remain heavily dependent on grant financing,
community and voluntary organisations, associations, foundations as well as a significant bulk of the social enterprise sector.
and a scenario where smaller, voluntary and community organisations paying disproportionately high prices for their basic services
incubate, launch and operate social economy firms at a small scale. cxxiiicxxiv But, while grant funding is valuable in the prototyping
A common problem faced by social economy firms is an inability to secure growth capital (also known as expansion capital) in general,
and risk-taking growth capital in particular which is critical to enabling them to move from start-up to the next level of development. cxxva transition away from grant dependence towards commercial finance is crucial for the longer-term sustainability
and growth of social enterprises and ventures. The Business Panel on Future Innovation Policy notes that the current finance system is not fit for the new types of innovation required to address grand societal challenges.
94 Existing support for smaller or innovative companies (grants, seeds, venture capital, loan guarantees) is fragmented and fails to mobilise private sector investment efficiently or consistently. cxxvi Current risk capital markets lack openness and transparency, leading to limited access and sub-optimal decision-making.
No Pan-European risk capital market, meaning European funds lack size and expertise, and companies lack growth financing.
which are intended to grow the field of social enterprise. In February 2008, for example, the Office of the Third Sector committed £10 million for the creation of the Risk capital Fund for Social Enterprise.
It is the first fund of its kind and is intended to help social enterprises and early stage social start-ups to access funding to grow
and develop their businesses. While financing is clearly an issue there is a need to think more broadly about the kinds of support needed by individuals and organisations in the field of social innovation through the various stages of the innovation lifecycle.
A study for the 95 European commission on innovation and public procurementcxxvii highlights a very significant increase in political support for the use of public demand to stimulate the creation of new markets, spread and mainstream emerging innovations,
public procurement can create sufficient demand to establish entirely new markets for innovation, and intervention can be particularly crucial in overcoming various market failures in this phase of the innovation lifecycle.
and services, demonstrating their value to the wider market. In this way, the government can provide revenue
and services so that they compete more effectively in the global marketplace. In the consolidation phase of innovation
set standards and create critical mass for the acceptance of new or alternative technologies and services.
Access to tender opportunities can also pose problems, including difficulties in getting on to preferred supplier lists;
which makes it difficult for social enterprises and third sector organisations to recruit, retain and develop staff,
causing some organisations to reject opportunities to deliver services; too often contracts set unrealistic prices
the fact that their services are often only emerging from prototype or niche production stages,
or the immediate capital to finance expansion directly. Essentially, the early stage testing and prototyping of a disruptive social innovation cannot be procured in the same manner as an established technology or service.
and services can be reduced substantially by allowing procurement officers to work closely with potential suppliers.
to third sector organisations that need investment to help them bid for, win and deliver public service contracts.
and expects a positive and substantial social return on investment to be audited by a third party.
investees must be able to repay the loan element of their investment. cxxxii Skills and formation While there is growing interest and investment in the development of financial resources for social innovation,
very few resources have, as yet, been devoted to labour market development. Our analysis suggests that this is as important an issue as finance.
Europe lacks a strong field of people with skills in the many dimensions of innovation from finance, to development of projects and business models, to design and marketing.
There are many existing courses and programmes for social entrepreneurship and a few for social innovation. However, while some existing training programmes have some good elements, many lack coherence, comprehensiveness,
Many MBAS now offer modules on social entrepreneurship, and a market in specialist courses is beginning to emerge.
Specialist academies linked to social economy initiatives, such as the University of Mondragon in Spain, and the University of Gastronomic Science in Bra and Colorno in Northern Italy,
and skills formation strategies within the grant economy in particular and identify a lack of training
and an unstructured NGO-government relationship. cxxxiv Some programmes are currently serving to develop skills within the grant economy on both national and European-wide level.
A key priority for Europe must be to strengthen the field of social innovation, with proper investment in training materials, understanding of methods,
and characterised by a lack of mutual awareness, trust and communication. cxli and collaborations. This requires:
'In order to connect them, that is the demand for social innovation, coming from the acknowledgment of a need within society,
There is significant absence of intermediaries able to connect the demand and the supply side and to find the right organisational forms to put the innovation into practice cxlv.
include (1) a measure of the amount of investment in innovation in the UK economy,
and the effect that this has on economic growth and productivity, (2) a tool to understand innovation at the firm level that captures‘hidden innovation
or simple way of applying existing indices for innovation to the field of social innovation given that these typically measure inputs (i e. investment in R&d spending or the number of patents granted) and not outcomes.
measuring and evaluating the efficacy and success of social ventures, initiatives and services, which incorporate social as well as financial impact,
Some specific examples of a move beyond narrow economic indicators include the UNDP's Human Development Index (HDI) to benchmark countries based on combined measurement of GDP/capita, health and education.
measuring and evaluating the efficacy and success of social ventures, initiatives and services, which incorporate social as well as financial impact,
and practical applications in the form of tools such as Social Returns on Investment (SROI) and Multi Criteria Decision Analysis methods.
and for big capital projects (where it's notorious for underestimating costs). clv Equally common are methods (drawing on economics)
which seek to monetise social value by asking people what they would pay for a service or outcome(‘stated preference methods').
'clvii clvi Another set of methods coming from economics focus on the choices people have made actually in related fields(‘revealed preference'.
Within the nonprofit world Social Return on Investment Methods (first developed by REDF) translated the methods of the social impact tradition into the language of rates of return.
such as Finland's methods for assessing social enterprises. clviiithe burgeoning field of environmental economics has spawned methods for measuring everything from wetlands to emissions,
and policies. clxi A Young Foundation study of methods for measuring value in the built environment, identified nearly 30 in use,
for example, showed that modest investments in home safety which cost about 3%as much as home repairs generated four times as much value in terms of life satisfaction. clxiv Finally there are the many accounting methods used at the level of national governments and regions.
France's‘bilan sociétal'is a set of 100 indicators showing how enterprises affect society.
and economists to develop better indicators of social progress and well-being, bearing fruit in the Stiglitz Commission's work for President Sarkozy in France
Early stage/low value promising ideas Late stage/high value approaches considered for serious investment This is done using four main dimensions,
risks, management risks, staff benefits) 4. Cost effectiveness (cost savings, scalability, wider economic gains) The tool also makes explicit the strength of the knowledge base underpinning the assessments.
what is valued on the‘demand'side of the equation. The great majority of measurement tools presume that there is an objective measure of value.
which turn out to be problematic in fields such as health and the environment. It provides a framework for learning about what works over time.
We are less confident that social return on investment models can provide this common architecture for the reasons stated above.
Second, and longer term, developing some economy and society wide measures for both the generation
Priority fields for action (for example young people, ageing, carbon reduction) Priority tools for action (investment, capacity, networks, procurement etc) Milestones and targets for achievement over 2, 5
or family of funds to be operated through DGS, EIB etc, covering the full range of financing needs, from seed funding for ideas through investment, growth and so on.
and investment in more rigorous lesson learning. This has been a key weakness in some past programmes.
and open up opportunities for innovation. -Reporting at regular intervals on the overall success of the programme. 111 Diagram 10.
testing for replication and scalability, demonstrating financial feasibility and risk evaluation are necessary. Given the range of funding requirements we do not propose a single social innovation fund.
specifically focussed on the opportunities for social innovation in the field of ageing. We suggest more programmes which tackle these priority challenges,
notably the development of a more effective network of 112 incubators and hubs to advance the quality of practice in social innovation across Europe.
-European Social Fund-European Investment Bank along the lines of joint EIB and European commission initiatives such as JESSICA, JASMINE, JASPER and JEREMIE-EIF to promote social enterprise alongside enterprise.
and ideas and solutions can be put forward by citizens and stakeholders across Europe. This could be based on,
and directed to the appropriate specialist provider. 113 3. Incubators and intermediaries Linking, brokerage and innovation intermediaries are crucial in the development of the social innovation field,
and for scaling social innovations, specifically to connect the existing demand (societal needs) and supply (innovative ideas which will become concrete projects) sides of social innovation.
Intermediaries and physical incubators encourage and facilitate the ability of organisations, companies, and whole communities to find better,
Innovation intermediaries and incubators come in a variety of forms. Across Europe, infrastructures of this kind already exist, specifically for business innovation i e. business innovation centres
regional innovation funds, venture capital funds, innovation awards and so on. However, there is currently no equivalent for social innovation.
Support for a network of incubators across Europe, with a trailblazing first round and then subsequent rounds developed in the light of experience (with funding potentially as described above, from technical assistance strands of structural funds):
and those involved in social innovation from businesses, the public sector and the grant economy. It is not that a range of tools isn't available;
and grasp new opportunities. Social innovation, in addition to traditional business and technology innovation, provides this opportunity.
Europe must start innovating for social return, not just for return on investments and all sectors of the economy should be drivers for innovation.
This includes the private sector, in which the nature of innovation is also transforming. Since the current societal challenges make up a large section of the market,
for new business opportunities. The concept of social innovation should therefore also include Corporate Social Innovation. 3 3 Chapter 1,
Enterprise Ireland (IE), FFG (AT), Senternovem (NL), Tekes (FI), Technology Strategy Board (UK) and VINNOVA (SE) acknowledged that the Grand Challenges of Europe are an important driver for new innovation
These challenges are also potent business opportunities for European SMES provided that policy implementations consider
EU policies should encourage the creation and adoption of next generation societal services by both the public
and innovation of consumers and entrepreneurs to create new social and business models and new consumption patterns.
Broadband is not simply a new communication line but a new social infrastructure. clxxiii 6. Making Social Innovation a theme in Europe As we have demonstrated in chapter 3,
Towns and cities would have the opportunity to bid each year those who demonstrate inclusive programmes to tackle social challenges,
and further based on the development of a network of social innovation hubs or incubators, cities which find the most creative solutions to specific social challenges should be awarded annually.
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Nicholas Stern (2007) The Economics of Climate Change: The Stern Review, London: HM Treasury. Available at:
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http://www. eurofound. europa. eu/pubdocs/2009/82/en/1/EF0982EN. pdf Accessed on 11 december 2009. xixn Stern (2007) The Economics of Climate Change:
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'(and in economics to offer a synthetic theory of growth). However, all theories of this kind are based on a simple error:
Even within economics, overarching theories of change and growth have not fared well compared to more modest theories focused on such things as the dynamics of labour markets or monetary policy.
New york. xlviii Economists generally emphasise allocative efficiency. But other kinds of efficiency can be just as important for long-term growth.
Oxford, Blackwell. liii Cabinet Office (2006) Partnership In public Services: An action plan for third sector involvement, London.
http://www. istat. it/dati/catalogo/20080807 03/inf 08 04le cooperative sociali italia05. pdf lix P. Pattiniemi,(2009) Social Enterprise Legislation in Finland.
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Social Enterprise Coalition. Available at: http://www. socialenterprise. org. uk/data files/stateofsocialenterprise2009. pdf lxi Robin Murray (2009) Danger and Opportunity:
Crisis and the new Social Economy, Provocation 09, London: NESTA. lxii Jocelyne Bourgon, The Future of Public Administration:
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convergences and divergences',paper presented at the 8th ISTR International 122 Conference and 2d EMES-ISTR European Conference, Barcelona, July 9-12;
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I. Bode, A Evers and A. Schulz,(2002)‘ Work Integration Social Enterprises in Germany',Working papers Series, no. 02/04 Liège, EMES European Research Network. lxxi A. Bacchiega & C. Borzaga
,‘Social enterprises as incentive structures: an economic analysis'in C. Borzaga & J. Defourny (eds.
2001) The Emergence of Social Enterprise, London and New york: Routledge. lxxii Muhammad Yunus (2008) Creating a World Without Poverty:
Vigorous independent enterprises meeting social needs or the emergence of‘entrepreneurial not-for profits with limited social liability'?
Innovation Camp at http://www. sicamp. org/lxxxiv School for Social Entrepreneurs at http://www. sse. org. uk lxxxv New Economics Foundation,‘School
and Grossman, A (1997), Virtuous Capital: what foundations can learn from venture capital, Harvard Business Review, Cambridge, MA. lxxxvii Emerson, J, Freundlich, T,
and Fruchterman, J,(2007), Nothing Ventured, Nothing Gained: addressing the critical gaps in risk-taking capital for social enterprise, Skoll Centre for Social Entrepreneurship Working Paper, Said Business school, University of Oxford, Oxford: UK lxxxviii
Andrew Milner,(eds. 2009)‘ European Venture Philanthropy Directory 2009/2010'.'Brussels: European Venture Philanthropy Association.
Available at: http://www. evpa. eu. com/downloads/EVPA DIRECTORY 2010 WEB ISSUE1. pdf lxxxix Andrew Milner,(eds. 2009)‘ European Venture Philanthropy Directory 2009/2010'.
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, social connections and relationships, the environment, and (economic and/or physical) insecurity. cliv Hoegen, M. 2009) Statistics and the quality of life:
‘option use'(having the opportunity to do something;‘‘bequest use (leaving something for the future), and‘existence use'(satisfaction that things exist
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"INNO-Partnering Forum's view on the future European Innovation Plan, 8th december 2009. clxxiii European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe
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