The great wave of industrialization and urbanization in the nineteenth century was accompanied by an extraordinary upsurge of social enterprise and innovation:
Economies in both developed and (to Geoff Mulgan The Process of Social Innovation Geoff Mulgan is director of the Young Foundation based in London (U k). He previously worked in the U k. government as director of the Strategy Unit
a lesser extent) developing countries are increasingly dominated by services rather than manufacturing. Over the next 20 years, the biggest growth for national economies is likely to come in health education,
whose shares of GDP are already much greater than are cars, telecommunications, or steel. These growing social sectors are all fields in which commercial, voluntary,
and public organizations deliver services, in which public policy plays a key role, and in which consumers co-create value alongside producers (no teacher can force students to learn
For all of these reasons, traditional business models of innovation are limited only of use and much of the most important innovation of the next few decades is set to follow patterns of social innovation rather than innovation patterns developed in sectors such as information technology or insurance.
and services that are motivated by the goal of meeting a social need and that are diffused predominantly through organizations
Business innovation is motivated generally by profit maximization and diffused through organizations that are motivated primarily by profit maximization.
There are of course very many borderline cases, for example models of distance learning that were pioneered in social organizations but then adopted by businesses,
or for-profit businesses innovating new approaches to helping disabled people into work. But these definitions provide a reasonable starting point.
The Young Foundation's precursors were among the world's most important centers for understanding social enterprise
which demands innovative ways of organizing schooling, language training, and housing, to avoid the risks of conflict and mutual resentment.
Some are celebrated widely Muhammad Yunnus (the founder of Grameen Bank and other microcredit enterprises), Kenyan Nobel prize winner Wangari Maathai,
Indeed, the Internet is now generating a host of new business models that are set to have enormous impact in the social field. 7 Other possibilities may derive from new organizational forms,
and designers to engage with the toughest customers or those facing the most serious problems,
but progress is achieved often more quickly through turning the idea into a prototype or pilot and then galvanizing enthusiasm for it.
rather than waiting for detailed business plans and analyses. The Language Line organization a case in point, began as two people with telephones and a tiny contract with the neighboring police station.
In business, people talk of the chasm that innovations have to cross as they pass from being promising pilot ideas to becoming mainstream products or services.
including faster prototyping, intensive handholding by venture capital companies, and the use of rigorous milestones against which funds are released.
piloting, and testing new ideas either in real environments or in protected conditions halfway between the real world and the laboratory.
Incubators, which have long been widespread in business, have started to take off 152 innovations/spring 2006 In business,
people talk of the chasm that innovations have to cross as they pass from being promising pilot ideas to becoming mainstream products or services...
which have made it easier to turn ideas quickly into prototypes; parallel methods are being developed in the social fields to crystallize promising ideas
including investment appraisals, impact assessments, and newer devices to judge success, such as social returns on investment or blended value.
Communication is essential at this stage. Social innovators need to capture the imagination of a community of supporters through the combination of contagious courage and pragmatic persistence.
Good names, along with brands, identities, and stories play a critical role. Some social innovations then spread through the organic growth of the organizations that conceived them.
because the economics of web-based pilots may make it as inexpensive to launch on a national or continental scale.
Marginal costs close to zero accelerate the growth phase but also the phase of decline and disappearance. Our recent work on scaling up has shown why it is so hard for social innovation to replicate,
and it has pointed to more effective strategies for handling scale. innovations/spring 2006 153 Geoff Mulgan Two necessary conditions are a propitious environment
In charities and social enterprises, the founders who were just right for the organization during its early years are unlikely to have the right mix of skills and attitudes for a period of growth and consolidation.
and trustees, funders and stakeholders do not impose necessary changes. By comparison, in business the early phases of fast-growing enterprises often involve ruthless turnover of managers and executives.
Indeed growth in all sectors nearly always involves outgrowing founders. Wise founders therefore put in place robust succession plans,
For example, the Samaritans in Australia have become a provider of welfare services rather than just a telephone counseling service;
and evolved into a major supplier of curbside recycling services, and it is now moving into providing primary health care services.
Generally, bigger organizations have more absorptive capacity to learn and evolve but small ones can gain some of this ability through the skills of their staff and through taking part in the right kind of networks.
where free communication is inhibited, or where there are no independent sources of money. Generally, social innovation is much more likely to happen
In business, social innovation can be driven by competition, open cultures, and accessible capital, and it will be impeded where capital is monopolized by urban elites or government.
In politics and government, the conditions are likely to include competing parties, think tanks, innovation funds, contestable markets,
and plentiful pilots, as well as creative leaders like Jaime Lerner in Curitiba or Lee Myung-bak in Seoul.
but also because of public subsidy of technology and private investment in incubators, venture capital, and startups. The equivalent potential supports for social innovation foundations and public agencies are much weaker.
It is notoriously difficult for government to close even failing programs and services, and there are few incentives for either politicians
when contracts for services reward outcomes achieved rather than outputs or activities, or when there is some competition
or contestability rather than monopoly provision by the state. How public sectors dock with the social
spotting connections and opportunities, 16 the analyses of how much innovation is understood best as creative reinterpretation,
that in some sectors the best market structure for innovation seems to be a combination of oligopolistic competition between a few big companies
some create semi-autonomous corporate venture units (like Nokia; some grow through acquisition of other innovative companies as well as their own innovation (Cisco for example;
As well as the study of innovation in economics and science, there is a small emerging body of research into the capacity of formally constituted social organizations (nonprofits, NGOS, charities,
and outcomes of public and social organizations, including the fascinating work led by Dale Jorgensen at Harvard on valuing the informal economy and family work,
As it came to be understood just how important science was to the economy (and to warfare),
We therefore advocate what we call innovation accelerators: funds for seeding ideas supported by teams that combine understanding of policy contexts with understanding of business design, growth,
We also have advocated more deliberately designed spaces in public services that encourage experimentation (such as the U k.'s public service zones that allowed national rules to be broken,
and incubators that deliberately focus on mining new technologies for social applications. In all of these, social innovation is likely to be most successful
Kingston, 1984). 2. Michael Young, inspiration for the Young Foundation, was judged by Harvard university's Daniel Bell the world's most successful entrepreneur of social enterprises,
and in his work and his writings he anticipated today's interest in social enterprise
2006). 6. For comparisons between business and the social sector in making organizations great, see<http://www. jimcollins. com/lib/articles. html#>.7. For details about the open-source business model,
see the Economist, Open, but not As usual,<http://www. economist. com/business/displaystory. cfm? story id=5624944>(accessed May 24,
2006). 8. For example, see de E. Bono, Lateral Thinking Creativity Step by step,(London, U k.:Perennial Library, 1970). 9. See Global Ideas Bank,<http://www. globalideasbank. org/site/home/>.
and the Wharton School's Innovation and Entrepreneurship, http://knowledge. wharton. upenn. edu/index. cfm?
S. Osborne, Voluntary Organizations and Innovation In public services,(London, U k.:Routledge, 1998. For general capacity building, see E. Evans and J. Saxton, Innovation rules!
A Roadmap to Creativity and Innovation for Not-For-Profit Organizations (London, U k.:NFP Synergy, 2004). 22.
Attribution-Noncommercial-Sharealike 4. 0 International License Awareness Networks Open Access New Ways of Making Collaborative Economy Open Democracy Funding Acceleration
and interdependent process of many organisations and stakeholders: Policy (at all levels) can play a key role in creating coordinated strategies, common governance frameworks,
and within specific areas, there is still a need to make sure that innovation policy will support societal challenges and economic growth better in the future.
described our work on defining digital social innovation through investigating more than 250 case studies of digital social innovation services,
and civic innovators (developers, hackers, designers) are key stakeholders in support of innovation for social good.
iii) The collabporative economy;(iv) Awareness networks enabling sustainable behaviours and lifestyles;(v) Open Access;
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;(
2) innovative socioeconomic models (3) energy and environment;(3) participation and open governance,(4) science, culture and education;(
Finally, the 1st interim study report demonstrated the prototype method for undertaking a network analysis of strong and weak DSI network in Europe,
and opportunities to nourish and scale DSI in Europe. We will also deepen our research in to policies
and more social innovation is an area that presents significant opportunities to leverage the power of European talent by fully engaging stakeholders, citizens, civil society,
This analysis is presented in this report. on research, strategy and policy aspects of DSI such as governance models, business model innovation and collective incentives,
stakeholders'engagement models, research instruments and impact assessment methodologies in relation to the Digital Agenda and Horizons 2020.
and in new services and approaches that generate social value; but much of this potential isn't yet being realised.
and the growth of digital services has resulted in an imbalance between the dramatic scale and reach of commercial Internet models and the relative weakness of alternatives.
and are unable to gather a critical mass of users that can adopt the services.
and does not only aim to generate profit; it is a concept that is about maintaining communities and enabling processes in a continuous way.
and explore case studies examples. that are available from investors, incubators, accelerators or policy makers. Funders can also discover great DSI projects on the living map that they might want to invest in Find potential partners to collaborate with
and policymakers to understand what services, standards or digital projects are being developed, and what is the density of DSI activities in Europe.
case studies and potential funding opportunities. 9 In the new redesign, we focused on communicating the meaning of DSI,
collaborative economy, awareness networks; open access, and funding, accelerating and incubating). We then created a new visual layout for the 36 DSI case studies that are showcased in on the website and also directly on the DSI map.
and funding opportunities) as this is outside the scope of what we can do within our current resources.
we provided French and Spanish organisations the opportunity to take the survey in French or Spanish with a link to the translated survey.
or funding opportunities that might be of interest to the larger community. Events Throughout the project the project partners have done a number of workshops presentations and other events on digital social innovation.
Ouishare is the largest conference in France focussing on the collaborative economy. Francesca Bria participated in a workshop on Collective Awareness Platforms and the collaborative economy in Horizons 2020, together with the European commission.
The DSI mapping website and the overall research was presented during a dynamic debate about policy
Harry Halpin (IRI) gave a 30 minute presentation of DSI to an audience of 50 people at the Mapping the Collaborative Economy session.
and based on the National Plan For good Living, is called Social Knowledge Economy. Presentation to 75 people predominantly from the Eastern European Social Innovation Community on the DSI research.
if they are to become useful products and services. The discussions also highlighted the need to begin more strategic mapping of the impact created by Fablabs to inform the shape of that future support..
and interdependent process of many organisations and stakeholders: Policy (at all levels) can play a key role in creating coordinated strategies, common governance frameworks,
Innovation policy is defined as public intervention to support the generation and diffusion of new products, processes or services.
such as those that aim at supporting long-term R&d investment and economic growth, whilst reducing income inequalities,
The current economic and financial crisis is an opportunity to propose a new model for European innovation.
and Horizons 2020 3 present an integrated approach to help the EU economy become more competitive,
Some examples of multi-stakeholder processes that have already been implemented include the Healthy Democracy process6
and stakeholders in designing and putting in practice novel ways to tackle a social demand. Some projects that use this approach include Medlab (http://www. medlivinglab. eu),
/Hero (http://urbact. eu/en/results/An example of an interesting project launched under this category is Erasmus for Young Entrepreneurs (http://ec. europa. eu/enterprise/policies/sme
/promotingentrepreneurship/erasmus-entrepreneurs/index en. htm). This tool aims at contributing to developing a climate that is conducive to learning through social innovation and transnational exchange as well as the infrastructure to back it up.
and within specific areas, there is still a need to make sure that innovation policy will support societal challenges and economic growth better in the future.
In recent years, new methods to foster entrepreneurship and innovation have grown rapidly across the world.
and successful tech entrepreneurs such as accelerator and combinator programmes. 12 Early evidence suggests they have a positive impact on the economy
and fostering better digital entrepreneurship. 13 The real question is how these positive beginnings can scale to enable new forms of social innovation to emerge to tackle societal challenges, such as unemployment, clean and renewable energy provision, poverty,
therefore, include technologically-led research, together with business models and socially and environmentally conscious approaches, as reflected in the Internet Science Network of Excellence funded by the European commission. 15society in Future Internet development to achieve these goals is one of the main goals of this study. activities in this area can be summarised under two broad
However, the call for the creation of an open data incubator within Horizon 2020 aims to help SMES set up supply chains,
and to get access to cloud computing and legal advice. Further support, investment advice and funding for SMES and young companies is also available through the Commission's Startup Europe programme for web and tech entrepreneurs.
Other activities are happening in the Internet of things (Iot) arena, where the IERC-23 Internet of things European Research Cluster27 coordinating the different Iot projects funded by the European research framework programmes.
for instance in energy, mobility, government services, technology design, quality of care, education and working patterns.
we will do it Creation of the best idea internally Best from anywhere Choosing the best ideas among internal and external ideas Role of customers Passive recipients Active co-innovators Core competency Vertically integrated product
breakthrough product or business models Attitude towards intellectual property Own and protect Do not share internal intellectual property Sharing internal intellectual property can be profitable Buy/sell:
and operations Internal R&d is the only way to create profit Discover, design, develop, and market in-house inventions External R&d can also create profit
do enough R&d internally to recognize external significant R&d Advantages First movers advantage Having better business models is more important than being a first mover Employees Professional employees inside the company Working with professional within inside
Today information technology is opening up new opportunities to transform governance and redefine government-citizen interactions, particularly within cities (Chan, 2013;
which spans both the early creative stages of ideation and the latter stages of experimentation and implementation.
and refer to RTD policies, interaction-oriented policies, entrepreneurship policies, science policies, education policies, labor market policies,
and competition policies. However, the open innovation perspective assumes that innovation is the result of complex and intensive interactions between various actors.
Thus, innovation happens in innovation ecosystems, that is, integrated and interdependent environments where companies, scientists, policymakers, governments, users, developers, citizens,
Innovation in these ecosystems is supported usually by new developments in information and communication technologies. The resources
and they are governed by open business models. As the table below shows, nowadays, open innovation does
or does not only aim at profit making; it is a concept that is about maintaining communities
& license Foster & enable Intellectual property Governance business models Intermediaries for search Intermediaries for enabling processes
and maintaining communities Incubators Accelerators Competing with your own products and services Competing with the ecosystem Governments as service providers:
resources to regulate (zero-sum game) Governments as platforms orchestrators: resources to leverage on (non zero-sum game) Governments as service providers:
free and not free, empowering entrepreneurship, driven by innovation, stimulating growth Table 5: Open innovation 2003-2014-Source:
hobbyists and anyone interested in creating interacting objects or environments. The community of developers Developers are individuals who develop a new IT product or service.
Also, they provide a wide range of services and play diverse roles in the quest for articulating user involvement,
from support to entrepreneurial lead users to needs-finding or user experience services. Actually, their goal could be described as the creation of innovation arenas where multiple actors can experiment in an open, real life environment.
As a result, living labs are a great place for open innovation. There is a large number of living labs in Europe with a variety of different characteristics.
Some focus on a particular technology such as mobile communications others focus on a particular industrial sector, others focus on groups of services to local citizens.
We can therefore speak of urban labs (living labs methodologies and spaces applied in a urban context,
such as Barcelona Urban Lab or the Lorraine Smart Cities Living Lab) or fablabs (technical prototyping platforms for innovation and invention, providing stimulus for local entrepreneurship, such as Ping
services and even developments based on win-win strategies to pave the way for coselling developments and services on the European or global market, rather than just in their local regional market.
3) citizen advocates who want services and information to make their lives better, 4) open advocates who believe that governments act for the people,
on the other, they pursue to increase economic value by involving developers and entrepreneurs. The commonly accepted premise underlying these objectives is that the publishing of government data in a reusable format can strengthen citizen engagement and participation and yield new innovative businesses.
and apps that bring local residents into the ideation and decision-making processes that lead to developments
One of them is Challenge. gov38 a collection of challenge and prize competitions, all of which are run by more than 50 agencies across federal government.
These include technical, scientific, ideation, and creative competitions where the US government seeks innovative solutions from the public,
bringing the best ideas and talent together to solve mission-centric problems. Another pretty different one is FLOK Society in Ecuador39 a networked participatory process
and open research project to create policy proposals and political actions to transition Ecuador to a social knowledge economy.
High entry barriers (technological skills) Lack of conflict-resolution mechanisms Tension between hierarchy and equality Developers Developers Entrepreneurs Tech events Accelerators/incubators Venture capital
labs themselves Networks Networked Formal enabling/servicing structures Lack of interconnection between different types of labs Cost of being a network member Difficulty to involve the community Open/big data (Local governments Competition organizers
and not-for-profit communities supporting open source activists are considered enablers within the open source community. For example, Canonical40 was created alongside Ubuntu to help it reach a wider market.
meaning that they operate in a much looser environment, which allows for the existence of multiple teams of participants working simultaneously in a variety of possibly opposing directions.
and participates in different activities such as workshops and competitions. Montreal International Startup Festival is another example47 Since 2011, each year, over 2, 000 founders, investors,
Joel Gascoigne's51 or Ryan Carson's52 Others are maintained by different people, organizations or companies and post interesting messages about marketing (such as Startup Marketing53-),venture capital (such as The Startup Lawyer54),
Accelerators and incubators are another type of enablers. Both accept early start-ups that have a potential commercial viability
and they both provide an environment that is meant to serve the needs of a start-up.
For instance, an accelerator is fixed usually a-term programme that provides start-ups with the network and training they need to grow their businesses.
Through its Accelerator, for example, Code for America provides seed funding, office space, and mentorship to civic start-ups56.
The incubator focuses on providing the prerequisites for a company to develop, such as housing, expertise and business contacts.
Innoenergy Highway57 for example, is a European incubator with interesting attributes: it has six entry points,
There are nearly 100 accelerators in Europe. Y Combinator58 was the first of its kind when it started back in 2005
Nowadays, the biggest names are international start-up accelerators such as Techstars59 Seedcamp60or Startbootcamp61 But there is an increasing number of big corporation-backed accelerators, such as Wayra from Telefónica62 or Orange FAB from Orange63,
and a plethora of regional start-up acceleration programs. Finally, venture capital can also be considered as an enabler in relation to the community of developers and entrepreneurs.
Wikipedia defines it as financial capital provided to early-stage high-potential, growth start-up companies.
The venture capital fund earns money by owning equity in the companies it invests in. There are many venture capital firms, many
of which usually invest in technology start-ups. Accel Partners64, Founders Fund65, and Greylock Partners66 are only a few examples in the United states. Regarding governance,
entrepreneurs usually work in isolation. However, s previously stated, they might attend events or join social networks to interact with other individuals
Also, and very related to this issue, last March 2014, the Startup Institute67, a career accelerator that aims to equip 31 individuals with the skills required to work in a start-up, revealed in a survey to 100 firms across the United states and Europe,
As a consequence, products and services are the result of individuals'bright ideas and, only to a small extent, of cooperative work Lack of visibility:
Many new IT-products and services just go unnoticed. This has further consequences. One of the most important has to do with funding.
They provide a wide range of services and play diverse roles in the quest for articulating user involvement,
from support to entrepreneurial lead users to needs-finding or user experience services. Within the innovation ecosystem, there is a wide community of living labs,
to carry out tests and pilot programmes on products and services with an urban impact, which are in the pre-market stage and in line with the city government's aims, priorities and lines of action.
linked to environmental protection, the development of new digital applications or services, or green living experiments.
Barcelona Urban Lab was created to facilitate the use of urban space in the city of Barcelona as an urban laboratory available to companies that need to test their products and services in a real environment.
These pilot products and services have to respond to an unmet municipal need and must provide a new service that helps to improve people's quality of life.
It offers different types of services to its members depending on the fee they pay: certification, communication and promotion, project development,
and 32 learning and education activities are only a few examples. The Fab Foundation (http://www. fabfoundation. org/)is an example of the latter.
education, organisational capacity building and services, and business opportunities. of the community actually depends on the networks.
It is them that organise the community around enabling/servicing structures, as it has just been described regarding ENOLL and the Fab Foundation.
It also offers the basic network secretarial services in order to support the networking activities and information flow among these members.
living labs organise users in needs finding exercises contributing to ideation, support them in acting as entrepreneurs,
On one hand, despite the networking services offered by enabling structures such as ENOLL, living labs work very independently,
Almirall & Wareham (2008) refer to this flaw as the inability to scale due to the limited scalability of the qualitative type of methodologies mostly used and their geographical boundaries.
and getting advantage of the services it offers depends on the resources the living lab has.
They believe the living labs'business model, still heavily dependent on public funding, contributes to limiting their expansion.
on the other, they pursue an increase economic value by involving developers and entrepreneurs. This report will focus on the governments that mainly foster the second objective and,
One example is that of competitions. Particularly competitions'organisers make sure developments and innovation takes place by means of using government open data.
This is the case of the Open Data Challenge74, one of Europe's biggest open data competitions.
It was organized by the Open Knowledge Foundation, the Openforum Academy and Share-PSI. eu. It offered 20,000 Euros in prizes
There are many other competitions, some of them organized by governments themselves. Apps4finland75, for example, is an open data contest that has been running since 2009.
The competition has welcomed new data sources, applications, visualisations and ideas as entries. Apps4ottawa76 is another open data contest organised by the City of Ottawa in Canada.
Some Governments do not interact with other stakeholders and there are many differences between them, both in terms of speed and pace and commitment.
therefore, we can only refer to the governance of relationships with stakeholders (users, first data providers, the information environment),
and how it manages stakeholders and relationships between them. Lastly a lot has been written on open/big data failures.
and services due to the poor quality of information being opened up. In this respect, the release of incomplete datasets such as patchy price and performance information for adult social care, plus factors such as inconsistent reporting across local authorities, mean that the data quality does not help developers.
were not yet generating profits. Competitions and hackatons have aimed at making datasets visible as well as at promoting apps development
but these created solutions often remain at version 1. 0, with little after event follow-up, maintenance or development.
it describes a web-based business model that harnesses the creative solutions of a distributed network of individuals through what amounts to an open call for proposals.
the business model of crowdsourcing is already being applied in nonprofit and government projects. The crowd in those projects are the smart citizens.
a company that runs a communications platform by the same name82 for citizens to report non-emergency issues,
Crowdfunding platforms are an interesting example. They serve as an intermediary between the funder and the person or organization looking for funding.
lending and investing are the four funding forms or underlying business models by which the crowdfunding platforms can be subdivided.
One of them is Goteo85), a social network for crowdfunding and distributed collaboration (services, infrastructure, microtasks,
and other resources) for encouraging the independent development of creative and innovative initiatives that contribute to the common good, free knowledge and open code.
or ecological objectives that generate new opportunities for the improvement of society and the enrichment of community goods and resources.
Many other crowdfunding platforms can be found at Crowdingin86, (a directory of crowdfunding platforms operated by Nesta that facilitates individuals or organisations in the United kingdom raising money from the crowd.
Finally, this community also presents some failures, which, as with other communities, mainly have to do with the lack of linkages.
Although Challenge. gov is administered by the US General Services Administrations, there are many agencies participating and the challenges are quite diverse:
What's more, communication with the crowd is not easy for the organisation aiming to reach out to a group of people it does not know very well.
The nature of government decision and policy making problems (that increasingly become wicked problems) necessitate stakeholders'participation and consultation,
/skills/signalling (developers) Scalability Less cost Increase of profit Contracts/employability Developers Seed funding Events Support to entrepreneurs Incubators
and accelerators/support to entrepreneurs Building a company Developing new products/services Solving initial support problems Exposure
and civil society Extrinsic monetary motivation Opportunities for learning and networking Visibility and reputation Open/big data Organization of competitions Support for networking Knowledge sharing and dissemination New services Generation of economic value Transparency Political incentives (reputation) Technical support Monetary incentives
Smart citizens Projects Platforms Intrinsic motivations, such as personal fulfilment/satisfaction and reputation Making profit Increase in visibility and reputation Direct payment Open democracy Legislation Transparency initiatives Participation projects Increase in democracy
(governments) Reputation (governments) Intrinsic motivations (citizens) Better electoral results (governments) National and international pressure Personal fulfilment (citizens) Development of projects (citizens) Table 8:
However, related-services might not be. For example, open source software and its supporting code are generally free of cost to download,
However, individuals and for-profit businesses can charge for specialised training or for developing new extensions of the core code.
For instance, R is an open source environment and programming language for statistical computing that is also free of cost. While R offers no cost access to its software and source code
and technical support services. Though the services cost money, the cost may still be smaller than what legacy commercial products charge and,
if an R user does need not the additional services, then, s/he does not have to pay for them.
In this respect, governments might be interested in signing contracts with open source developers for 37 governments are, more and more,
Avenali et al (2010), in their study on open software and hardware innovation platforms, point to economic incentives (that may result in a increase of profit),
therefore, improving employability. 38 Other authors have mentioned scalability. In this respect, government attitude towards the open source community is fundamental
and may have an effect in terms of scalability for governments are in a unique position in almost any industry.
We have referred already to some of them in section 5. 4 as enablers for some of them are also intermediary platforms that provide resources and offer services.
That is the case of festivals, hackathons, competitions, and other related events. It is also the case of incubators and accelerators.
They may be considered a tool in themselves to make start-ups and incipient businesses grow. But at the same time they provide services to entrepreneurs that support their development.
Incubators, for example, are physical locations that provide a defined set of services/tools to individuals or small companies.
This may include specific types of office space, flexible lease terms, access to technology, financing,
and other business development services). By locating similar or complementary entities in proximity to each other, the incubator may also play a critical role in promoting knowledge transfer, both formally and informally,
and, therefore, in boosting innovation. Other supporting programmes are also important instruments for this community.
The European Social Fund, for example, promotes entrepreneurship through financial and business support businesses. Targeted support is provided to women entrepreneurs and disadvantaged and disabled people.
They have several funding programmes such as the Knight Enterprise Fund (which provides early-stage venture funding for media innovation) and the Knight Prototype Fund
(which helps media makers, technologists and tinkerers take ideas from concept to demo; with grants of 35, 000usd, innovators are given six months to research,
and customised services to users. It serves as a new monetisation channel for app developers.
The term seed suggests this is a very early investment meant to support the business until it can generate cash on its own
or until it is ready for further investment. Seed funding is probably the hardest money for aspiring start-up entrepreneurs to get.
However, according to CB Insights (2014), 2013 was a big year of venture investments at the seed stage.
and capital sources behind the funding and mentoring of seed investments. Other companies organise events where start-ups are awarded with seed funding.
and developing and commercialising new products/services are the two main motivations for developers. The Developer Economic Report Q1 201498 particularly refers to mobile apps developers
and states that the explosive growth in smartphone adoption has created opportunities for 39 developers of every shape or form.
and the relatively low barriers to entry into mobile development have attracted hundreds of thousands of developers to the app economy.
most developers or organisations that invest in mobile are in fact looking for a return on their investment.
In this respect, the report explores the two main types of business models that are in place: 1) app as a product,
and seed funding) and, also, with support services. Some organisations have launched already incentive programmes that provide support for entrepreneurs in their initial business developments stages.
capital throughout later stages is needed. Literature and research has shown that many start-ups fail. A study by Allman Law, conducted in 2013
Living labs, Fablabs, Maker spaces There is quite a lot of consensus about the fact that a living lab is driven a user open innovation arena or environment based on a business citizens government (public-private-people) partnership,
there are only a limited number of firms willing to participate in a living lab. This business model limits its expansion.
one that results in further motivations such as fostering economic growth, bridging the digital gap, creating innovative societies,
the innovation networks required to transform users'needs into real products and services. Fostering economic growth is an important motivation as well.
The Living Lab for ICT-based Financial Services107 was created in spring 2010 by Ülemiste City AS and Mindware OÜ.
The goal was to create an environment that would bring together various ideas related to ICT-based solutions in financial services, the creators and the end-users,
the Financial services Living Lab gives the opportunity to its creators to better test and develop their products.
One of the goals of the activity is to support the creation of new exportable products and services and,
therefore, to enhance economic growth. Living labs aim at bridging the digital gap as well. Several of their projects have this motivation.
Finally, opportunities for learning and networking are a significant incentive As well as we already stated in section 4, intermediary organizations or enablers,
in this section we will refer to the organization of competitions, to support tools for networking and for knowledge sharing and dissemination.
Competitions aim to bring together the data sets made available by (local governments, with the app developers or the community of open data users.
Competitions are aimed at developers, researchers, journalists and anyone who has a keen interest in the reuse of open data,
as their main goal is to promote the use/reuse of data sets. 41 Many open data competitions have been organised throughout the years by (local governments themselves or by other organisations.
In November 2013, for example, the Energy department of the United states launched a competition to encourage the creation of innovative energy apps built with open data109.
between February and March 2014, the Science for Solutions open data competition took place in order to encourage data visualisations,
what is said to be one of the biggest competitions of open data in the region:
Competitions award participants with monetary prizes but they are also an important tool for developers'to gain visibility and reputation,
Offering better and new services is another motivation to engage in open data initiatives. According to Berners-Lee (2012), opening up data is fundamentally about more efficient use of resources and improving service delivery for citizens.
More and more, citizens expect city services to be available online. Reusing public sector data can lead to the development of improved
This can also lead to improved e-government services being developed by public administrations. What's more, local authorities are actively pursuing open data strategies to collaborate with citizens and the private sector in developing services from this data.
Co-created or co-produced public services better meet the citizens'demands. Also, local governments can use their data to provide (real time) information to address issues from traffic congestion to peak load electricity management.
Other services such as reporting tools can allow citizens to report local problems to the council just by locating them on maps.
Finally local governments are driven also by the possibility that companies produce economic value from their public data,
creating services and applications from those free data. This means a new market niche, based on digital contain,
what helps to create richness and the possibility to offer added value services. Additionally, it promotes the competitiveness among companies,
affording the possibility of tendering this public and free information and obtaining a benefit. Indeed, according to the Eurocities Statement on Open Data, opening
Because reputation from a marketing/image point of view also matters, political incentives in terms of communication, diffusion and knowledge sharing are important as well.
the programme provides to (potential) publishers of open datasets, three types of services: 1) data and metadata preparation, transformation and publication services that will enable them to share the metadata of their datasets on the pan-European linked metadata infrastructure delivered by the project,
2) training services in the area of (linked) open data, aiming to build both theoretical and technical capacity to European union public administrations,
in particular to favour the uptake of linked open data technologies, and 3) information technology advisory and consultancy services in the areas of linked open data technologies, data and metadata licensing,
and business aspects and externalities of (linked) open data. Certainly, monetary incentives also matter. Funding open data projects may encourage the release of public data.
and others (mainly crowdfunding platforms) display a list of projects that need citizens'input. In section 5. 4, we have referred already to online platforms for both crowdsourcing and crowdfunding initiatives.
There are several classifications of types of platforms, although there is some overlap between them. One of them is related to the organisation that sets up the platform:
and insights of a crowd of people to create new products and services), 2) crowd-voting (where the community votes for their favourite idea or product),
and 4) crowdfunding (it offers financing to individuals or groups). Dawson & Bynghall (2012) use a six-category classification of platforms.
and 6) competition platforms (that are becoming more popular to source experts and expertise in different areas.
including 1) the opportunity to support an attractive idea or the producer the smart citizens know,
3) the opportunity to help others realize dreams, 4) the reward-oriented intentions of crowdfunders,
and 5) the reciprocity and cross investment between project 43 creators and crowdfunders. Another stream of literature (Organisciak, 2008) refers to academia, charity, money, fun, community participation, forced participation, self-benefit from the product,
Their findings show that many motivational factors apply consistently whether for-profit or forfun. However, some factors differ significantly;
which are of far more importance in for-profit communities. Knowing what motivates the crowd and what tools they use give rise to the identification of incentives and,
Contest/prize sites pay significantly more money or offer job contracts, product prototypes and royalties.
In a recent communication, the Government of Pakistan described its motivations to become part of the Open Government Partnership
Also, open democracy initiatives provide an opportunity to be informed better of issues in their community.
and agents (stakeholders in a broad sense, including implementers and decision makers. The Digital Futures vision is based on the metaphor of emergent collective intelligence, according to
which stakeholders and policy makers should form a bottom-up social network to co-design policies. The new approach to policy making being experimented with by digital futures supported by the Futurium online platform126 is characterised by:
using digital media to establish a direct and continuous bridge within and between policy makers and external stakeholders,
and to frame a more detailed discussion on how these could be implemented during brainstorming ideas sessions. 48 1 2 3 4 5 6 Opportunities 7
In many cases, new services cannot be envisaged at the time that these open tools are developed,
as Zoe Romano (Arduino communication manager and head of wearable Unit) showed, has a diverse range of applications from running more efficient cement plants (to reduce energy consumption),
which others can build useful services and networks. The traditional emphasis on roadmap-driven programmes and research needs to be complemented by bottom-up initiatives.
and data as knowledge commons. 49 1 2 3 4 5 6 Opportunities 7 and chalenges Generating Ideas Developing
fundamental freedoms and rights in the digital environment Protect individual privacy, rights and fundamental freedoms There is increasingly more personal and social data available online
academics and policymakers. practitioners-people who run services and who know what the problems/challenges/opportunities are.
Make sure they represent a sample of the type of practice you are developing policy for
including any evidence they have of impact Opportunities and challenges What really helped them get their project of the ground
Identify the problems/opportunities. We asked everyone in the room to individually complete this template to quickly generate ideas:
whilst Apple, Amazon and Microsoft controlling the mobile market and cloud-based services platforms). Furthermore, the Digital economy is now mainly based on business models that aggregate,
analyse and sell personal data, turning personal data in what has been defined as the oil of the Internet economy.
Most users have accepted exploitative business models based on privacy infringement and often hidden surveillance mechanisms in exchange for free services.
This bargain not only undermines privacy and weakens data protection but also commodifies knowledge, identity, and personal data. European SMES, developers and social innovators are innovating with cheap open hardware, open source software, open knowledge, open data and analytics faster,
the environment, biometric and sensor data (as shown in the DSI map129 but these data are used not yet to enhance the public good at a systemic level.
1. One big issue is how to provide infrastructural investments such as broadband deployments and pan European digital services that underwrite robust, equal,
society-wide access to connectivity. This includes the need for open data distributed repositories, distributed cloud, distributed search,
or Android) as a kind of regulated monopoly able to ensure some basic services at European level,
on top of which a whole new open ecosystem of services and applications could flourish, in a participatory innovation model,
If the environment is unstable and insecure it will be broken. Users should be able to set the terms for controlling their personal data,
and analysed with the main objective of maximising value extraction (e g. for marketing, economic competition, and surveillance).
which platforms it talks to and the platform determines which services, products or spinoffs are supported.
when it is perceived as fair by all stakeholders, seeking the right balance between the interests of creators (to control their work
Such patterns in public policy consultations show that stakeholders'involvement is crucial, and that the Commission should engage citizens
and other public institutions as genuine stakeholders in discussions about key policy issues and the formulation of policy actions. 6. Digital social innovation projects are generating new forms of digital commons,
New business models based on sharing resources (such as energy, talent and tools), fair distribution of the fruits of collective intelligence, trust and reputation should be experimented
and interdependent process of all organisations and stakeholders: a broad concept of innovation, both research-driven and innovative in business models, design,
and services that adds value for users and strengthens overall European added value. Innovation should no longer be the result of top-down push technology strategies
but of a crowdsourced way of Working in this context, policy (at all levels) can play a key role in creating coordinated strategies, common governance frameworks,
or services and thereby propelling broader-based innovation policies. Although, as stated in section 2,
more investment in this area is needed. Policy-making should encourage social innovations to be tested and implemented in specific social settings.
and do not involve actors and stakeholders actively and proactively. Therefore innovation policies have to address other issues, that complement funding and regulations.
Although many of these intermediaries offer technical support services and networking activities, a lot remains to be done in order for them to reach a wider audience
for example, needs more civic accelerators but also, regarding existing infrastructures, more fiscal incentives are needed as well as a legal space that could give more structure and governance and,
and to improve investment in those that really work. This is, therefore, also a recommendation related to policy making to support digital social innovation.
This means thatthere is an opportunity for the European commission to connect the very small networks and lone organisations to the larger super-network.
and attracting funding opportunities. Even if it is impossible to foresee the precise impact and quantify the multiplier effect of the mapped DSI activities,
and acceptable price point for your customers. Level 5 You can show that your product/service could be operated up by someone else
products and services to see where they are placed currently on the Standards of Evidence, enabling funders (public and private) to understand how confident they can be in social entrepreneurs claims of impact
and help funders (private and public) to measure the impact of all the products and services they fund,
and whether they should receive continued investment. 4. As the basis for understanding and assessing the evidence of impact for a specific intervention or service.
/ph overview/documents/stakeholders en. pdf 8. http://eacea. ec. europa. eu/citizenship/programme/action1 measure1 en. php 9. Competitiveness is defined as the capability of an economy to maintain increasing standards
by providing new economic opportunities, including higher quality jobs. 10.11. http://lod2. okfn. org/12.13. http://ycombinator. com/14. http://www. Nesta
/en/ict-art 36. http://ec. europa. eu/research/participants/portal/desktop/en/opportunities/h2020/topics/95-ict-31-2014
. html 37. http://ec. europa. eu/research/participants/portal/desktop/en/opportunities/h2020/topics/2418-issi-5-2014. html 38.
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-computing. com/revolution-r-enterprise 94. http://floksociety. org/95. http://publiclab. org/96. http://www. whitehouse. gov/economy/business
/startup-america 97. http://www. knightfoundation. org/98. http://www. kickstartseedfund. com/99. http://www. visionmobile. com/product/developer-economics
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