This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth.
which involves creating economic value in a way that also creates value for society by addressing its needs and challenges.
This will drive the next wave of innovation and productivity growth in the global economy. It will also reshape capitalism and its relationship to society.
That is in part because economists have legitimized the idea that to provide societal benefits companies must temper their economic success. In neoclassical thinking,
Anything more is seen by many as an irresponsible use of shareholders'money. Governments for their part, have regulated often in a way that makes shared value more difficult to achieve.
and nutritious meals to students daily and does so at a higher gross margin than traditional competitors.
while earning a substantial gross margin through fertilizer sales and carbon credits. The blurring of the boundary between successful for-profits
but the return will be greater economic value and broader strategic benefits for all participants. The Roots of Shared Value At a very basic level, the competitiveness of a company and the health of the communities around it are intertwined closely.
especially in a global economy where facilities and jobs can easily move elsewhere. NGOS and governments have not always appreciated this connection.
Facing growing competition and shorter-term performance pressures from shareholders, managers resorted to waves of restructuring, personnel reductions,
How Shared Value Is created Companies can create economic value by creating societal value. There are three distinct ways to do this:
The ability to create shared value applies equally to advanced economies and developing countries, though the specific opportunities will differ.
Arguably, they are the greatest unmet needs in the global economy. In business we have spent decades learning how to parse
In advanced economies, demand for products and services that meet societal needs is rapidly growing.
economies develop, and societal priorities shift. An ongoing exploration of societal needs will lead companies to discover new opportunities for differentiation and repositioning in traditional markets,
creating major economic value for the company. Employee productivity. The focus on holding down wage levels, reducing benefits,
and unlock new economic value that most businesses have missed. Enabling Local Cluster Development No company is self-contained.
Clusters are prominent in all successful and growing regional economies and play a crucial role in driving productivity, innovation, and competitiveness.
A company's efforts to improve framework conditions for the cluster spill over to other participants and the local economy.
The benefits of cluster building apply not only in emerging economies but also in advanced countries. North carolina's Research Triangle is a notable example of public and private collaboration that has created shared value by developing clusters in such areas as information technology and life sciences.
The opportunity to create economic value through creating societal value will be one of the most powerful forces driving growth in the global economy.
The foundation carefully focuses on commodities where climate and soil conditions give a particular region a true competitive advantage.
well connected to the goals of all stakeholders, and tracked with clear metrics. Governments and NGOS can enable
and introduce new products and processes in a way consistent with the economics of their business. Fourth, they put in place universal measurement
Companies will come to understand that the right kind of regulation can actually foster economic value creation. Finally, regulation will be needed to limit the pursuit of exploitative, unfair,
But that purpose should arise not out of charity but out of a deeper understanding of competition and economic value creation.
but self-interested behavior to create economic value by creating societal value. If all companies individually pursued shared value connected to their particular businesses,
and expertise of the company to create economic value by creating social value. In both cases, compliance with laws and ethical standards and reducing harm from corporate activities are assumed.
Business and government courses will examine the economic impact of societal factors on enterprises, moving beyond the effects of regulation and macroeconomics.
and do not depart from economic value creation. Instead, they represent the next stage in our understanding of markets
The analysis of the interplay between governments, NGOS, development agencies, industry and social enterprises is called multi-stakeholder analysis. It would be incorrect to see social innovation as a new or isolated concept or as a disruptive innovation.
To quote the social economy Strasbourg Declaration of 16 january 2014:''Europe's social model needs to reinvent itself.
national governments and other stakeholders active in the collective awareness projects and social innovation projects. 4 OLD POWER NEW POWER Currency control,
After a workshop on social innovation in 2009, President Barroso asked the Bureau of Economic policy Advisors to draft a report on social innovation as driver for social change,
and environmental sphere (Social Economy & Social Entrepreneurship, 2013). The Innovation Union supports social innovation,
the legal rights-related issues of social network such as the management of personal data and the potential economic value of users activities on social networks and the engagement and security issues of CAPS. 6 Tab. 2-CAPS ongoing project
must be driven primarily by economic value. In contrast, the social innovator's projects are driven primarily by social values,
The IA4SI methodological framework is based on a quali-quantitative multi-stakeholders approach, which engages projects coordinators,
they will select their stakeholders and end-users in this way describing who will benefit from the project outputs 3. Thirdly,
a report for the use of European stakeholders, including citizens. These actions will make possible to better evaluate the investments made so far;
but that ultimately it is stakeholder engagement that makes the difference to sustainable social innovation.
An Introduction iforewordin just three decades, the internet has evolved from an experimental tool for researchers to a pervasive, omnipresent backbone for society and the economy.
CAPS Stakeholders and End users 24 Synergies between Projects 28 Collective Awareness Platforms 31 4. Starting Out 46 Societal Challenges 47 Framing the Challenges
but is created co by different stakeholders who share the knowledge, risk and benefits of the innovation.
For example, forms of collaborative consumption that promote sustainable economics and socially responsible companies, can be of use for people
or of the economy are oriented towards the creation of and the engagement with effective experiments of social innovation, promoting their scalability
and transferability. 17 Such social innovation experiments should try to be increasingly multi-stakeholder, with a community-wide participation at the local and European level,
Studied extensively in economics, the network effect has also been used to analyse company behaviour, showing how being embedded in a network can provide benefits
and by almost any discipline dealing with human social organisations (e g. law, economics, anthropology, sociology, history).
building from existing collective innovation frameworks and pushing them further, developing methods and tools that can be used by all interested stakeholders.
Contribute to a low-carbon economy, for instance by lending, exchanging and reusing goods at scale, across geographic boundaries (collaborative consumption).
The first step in making a set of goals concrete is to define the targeted stakeholders and end users.
Stakeholders are persons and organisations interested in the project activities and outcomes. At the bottom line we find end users
The chapter following'CAPS Stakeholders and End users'describes the typologies of stakeholders and end users addressed by CAPS projects to date.
'have the power to amplify the impacts of a platform in the process from idea to action. 24 CAPS Stakeholders
This section treats stakeholders and end users separately. Even though end users are also project stakeholders, the distinction is that end users use the project outputs directly,
while stakeholders benefit from project outputs in an indirect way. Stakeholders will be informed of the project's progress
and can, to a certain extent, influence the development of the projects. Stakeholders will tend to belong to one of the following four groups:
research, business, civic society, and policy and government. On the right-hand page is a figure visualising the main stakeholders of the CAPS projects.
End Userscaps projects raise awareness among their users and mobilise different categories of users. Below is a list of possible users;
the same person can of course belong to more than one category. The list illustrates the diversity of topics
25 Figure 2caps Stakeholders 26 Citizens and initiatives active in commons-based peer production and sharing economy (e g.
USEMP aims at empowering social network users with regards to the sharing of their personal data and its potential economic value.
therefore a more in depth, precise analysis of the solutions they offer to their stakeholders will only be possible later on in the projects'development lifecycle.
reused and made available to stakeholders through various exploitation strategies. The term'innovation'is used here with reference to both totally new outputs, such as products and services,
balancing the traditional focus on‘executive information dashboards'serving the needs of only a few senior stakeholders.
or the connection between personal data, economic value, and currencies (USEMP). Moreover, assessment of the CAPS projects themselves is key to these projects,
New Economic Modelsthe transformation of societies and economies following the diffusion of digital technologies, with increases in productivity, the redistribution of international divisions of labour,
and the emergence of new professions, has questioned the way the world economy has been organised, the way business can be done,
and economy by linking it to the Internet of things (Iot), sensor network and cloude services in order to support open online social media and distributed knowledge co-creation thus maximising the network effect,
39 CAPS2020 liaises with all CAPS stakeholders, including organisations developing similar projects in other regions of the world.
and time, combine their insights to find well-founded solutions for such complex multi-stakeholder multi-disciplinary('wicked')problems such as sustainability,
resilient societies and economies, deploying ad hoc networks of citizen experts around client's needs. 16.
to analyse the perceptions of various stakeholders, and to identify and track emerging trends. 30.
the players and stakeholders involved, and the objectives to be pursued through the solution. The problem may involve a single sector of the society or different types of stakeholders,
and may be located in different social, political and economic contexts. The root causes of the problem may be recognised by many,
Tackling a problem involves negotiating a way through the requirements and preferences of the stakeholders involved.
Other stakeholders influence and can also be influenced by any change triggered by a technological development.
The role of these stakeholders such as policy makers or regulators, must be taken into account through a participatory research approach (see chapter'CAPS Stakeholders and End-users'.
'But What is Engagement? Both in the dictionary and in the context of CAPS, the term'engagement'has several meanings.
When involving stakeholders in a CAPS initiative, this element mixed with others (practical arrangements, power situations, etc.)
could make it difficult for stakeholders themselves to articulate their feelings and preferences consistently, or completely and accurately.
It is vital that the dialogue with stakeholders is given the highest priority, as it is this dialogue that sets the CAPS projects apart by creating a collective awareness. 59 Dealing with the Sociocultural Diversityeach community of interest involved in the CAPS projects has different sociocultural contexts.
in order to support the participative engagement of the stakeholders, as in the SCICAFE2. 0 project. The first goal is to support shared meaning and deeper understanding of the values, motives, needs,
and trade-off tipping points of each stakeholder group in each relevant context of their exposure to the problem situation.
which takes account of the dynamic relationship that can develop between the stakeholders and the solution as illustrated in Figure 7 below.
Rejection and (Misappropriation Cycles by Stakeholders 64 For example as per UI-REF-based requirements of co-design and evaluation criteria which need to be applied on a wide scale should incorporate:
and stakeholders to exert an influence on the other layers. The real-time visualisations of digital content provided by DECARBONET (Figure 9) exemplifies how user-generated information in different social media channels can be used by NGOS
Society, economy, and even human psychology itself are undergoing an irreversible change, which we as citizens and policymakers are still struggling to understand.
with least activity around DSI science and technology projects (110) and DSI finance and economy solutions, such as crowdfunding for social good projects (104).
the collaborative economy, cities and public services; open tools and distributed architectures; and citizen engagement and direct democracy. 2. Make it easier to grow and spread DSI through public procurement:
and economic value is understood relatively well, yet its potential for solving large-scale social challenges remains largely untapped.
in particular campaigning sites such as Avaaz and parts of the collaborative economy and the maker movement.
3) collaborative economy;(4) new ways of making;(5) open democracy; and (6) acceleration and incubation.
and incubation Open democracy Open access Collaborative economy Awarness network Open Networks Open Knowledge Open Data Open Hardware Organisations More Filters Screenshot of the crowdmap www
the collaborative economy, local exchange and trading systems, digital currencies, and awareness networks that incentivise experimentation with new models in a variety of domains.
which create new forms of value that are limited not to economic value, but that result in largescale social impact.
We are undergoing a transformation that involves society and the economy, driven by the fast evolution of ICT.
This vision requires more investment in fundamental research to promote net-neutrality, strong encryption, banning of trivial patents, open standards and free software together with the multi-stakeholder governance model.
Health and Wellbeing, Finance and Economy, Energy and Environment, Education and Skills, Culture and Arts, Work and Employment, Participation and Democracy, Neighbourhood Regeneration,
Economy Open Democracy Funding Acceleration and Incubation The organisations and projects identified to date can roughly be grouped within six broad domains.
1) New ways of making,(2) Open democracy,(3) The collaborative economy,(4) Awareness networks enabling sustainable behaviours and lifestyles,(5) Open Access
Hexegan schematic of the 6 areas of DSITHE collaborative economy and the many other umbrella terms used to describe the rise of digital marketplaces for people to make transactions and share skills,
The Collaborative Economy has been documented by organisations like the P2p Foundation, Nesta, and Ouishare. Across the world the burgeoning field of collaborative consumption is using digital platforms to change how people share resources and exchange goods and services,
It is now setting up branches in the UK and USA COLLABORATIVE ECONOMY New collaborative socioeconomic models that present novel characteristics,
Growing a Digital Social Innovation Ecosystem for Europe 25 Ouishare SHARING ECONOMY NETWORK Ouishare is a global collaborative consumption network founded in January 2012.
The overarching aim of Ouishare is to shift the focus of the economy to one that can find new ways to connect,
Ouishare. net and collaborative economy events. Ouishare. net is an online community where members can post articles on collaborative consumption
which brings together the global collaborative economy community. The 2014 event took place in Paris
or interested in, the collaborative economy. In parallel thousands of alternative currencies are focused in use some on localities (e g. the Brixton Pound in the UK or Chiemgauer in Germany;
Bitcoin) 7. Some of these have encouraged deliberately a changed awareness of how economies work for example, valorising labour time equally,
Goteo SHARING ECONOMY NETWORK A vibrant ecosystem of makers is developing across Europe and globally.
When using urban labs as a tool for urban development city government can improve relationships with their citizens by testing ideas in real world settings with all relevant stakeholders:
and sharing economy platforms like Peerby are creating new forms of relationships and services. Inspired by the open-source movement, individuals, self-organising groups
Expert bodies are essential for providing expertise and coordinating inclusive processes of decision-making amongst key stakeholders.
including crowdfunding and P2p lending that has been documented deeply by Nesta in the UK14 36 Growing a Digital Social Innovation Ecosystem for Europe Case studies categorised into the 6 different types of DSI COLLABORATIVE ECONOMY FUNDING ACCELERATION
-based knowledge economy. The project is a joint research effort sponsored by the Coordinating Ministry of Knowledge and Human Talent, the Senescyt,(Secretaria National de Educacion Superior, Ciencia, Tecnologia e Innovacion) and the IAEN
FINANCE AND ECONOMY EMPLOYMENT SMART PUBLIC SERVICES ENERGY AND ENVIRONMENT Health and Wellbeing Finance and Economy Energy and Environment Participation and Democracy Smart public services Science and technology Education and skills Culture and Arts Work and Employment DSI AREAS AREAS OF SOCIETY New
ways of making Funding acceleration and incubation Open democracy Open access Collaborative economy Awarness network TECHNOLOGY AREAS Open Hardware
Open Networks Open Knowledge Open Data 47 45 44 41 40 38 34 25 18 17 15 12 6 5
AND ECONOMY ENERGY AND ENVIRONMENT PARTICIPATION AND DEMOCRACY NEIGHBOURHOOD REGENERATION SCIENCE EDUCATION AND SKILLS CULTURE AND ARTS WORK AND EMPLOYMENT 254 251 164 163 162 138
The collaborative economy and open knowledge is the specialty of the second largest but also more scattered community (7. 41 per cent), consisting of Esade, the IRI,
and Horizon 202022 present an integrated approach to help the EU economy become more competitive,
and the collaborative economy. These platforms based on open technology can gather and integrate information in order to allow participation and citizens'feedback,
and agents (stakeholders in a broad sense, including implementers and decision makers. The Futurium platform is based on the metaphor of emergent collective intelligence,
and combines the informal nature of social networks with a methodological approach of foresights to engage stakeholders in the poliy making process.
In Seoul, the Mayor has designed programmes for the sharing economy and citizen engagement. Colombia set up a centre for social innovation within its government,
which is the local agency for employment and economic growth for the area of Barcelona35. Growing a Digital Social Innovation Ecosystem for Europe 69 Some other examples come from private organisations.
The competition invited Europeans to come up with new solutions to reduce unemployment and minimise its corrosive effects on the economy and society.
Standards will enable new business models for co-operation between multiple stakeholders such as companies, public authorities and citizens to develop meaningful technologies.
when it is perceived as fair by all stakeholders, seeking the right balance between the interests of creators (to control their work
The European commission estimates the economic value of the PSI market at approximately €40 billion per annum. The 2013 revision of the European commission Directive on the reuse of public sector information will further enable the opening of public sector data in a harmonised and more transparent way.
therefore allowing for innovation in the wider economy based on the Future Internet users must be able to come (no barriers to entry)
engaging effectively in multi-stakeholder processes. Distributed and open architectures Community and bottom-up networking 5. 3 RESEARCH
Qualitative responses to the idea-interviews or meetings/consultation with key stakeholders, such as domain experts and possible purchasers of the service to establish what social challenges need to be addressed
This focus could be on four key areas of opportunity in DSI. a. Collaborative economy b. Digital social innovation in cities and public services c. Open tools and distributed architectures
health authorities and universities to pilot large-scale DSI experiments around collaborative economy, direct democracy, distributed energy, civic health and bottom-up smart city solutions.
Within the single digital social market it should be easier for digital social innovations such as collaborative economy
'Technology and Society Magazine, IEEE 31.4 (2012): 54-62.5 http://www. nesta. org. uk/publications/making-sense-uk-collaborative-economy Manchester
15 3. Social entrepreneurship, social enterprises, social economy: what is the difference? 2. Upscale social innovation into public policies 17 1. 1. Evaluating social innovation 17 2. 2. Social policy experimentation 18 3. Examples of social
innovation funded by the Structural Funds 21 1. Social inclusion 22 2. Migration 25 3. Urban regeneration 26 4. The social economy 29 5
Economy was producing wealth, society was spending. In the 21st century economy, this is not true anymore.
Sectors like health, social services and education have a tendency to grow, in GDP percentage as well as in creating employment,
is achieved through a process of organisational development and changes in relations between institutions and stakeholders.
Many EU approaches that involve‘stakeholders'are attempting to move in this direction such as the EQUAL programme (driven by the idea of changing the balance of power between users and providers4) and LEADER5.
2008). 8 Hans Schlappa and Peter Ramsden http://urbact. eu/fileadmin/general library/URBACT 16 08 11 PRE BAT-3. pdf 8 involve widening the range of stakeholders and deepening their engagement in deliberative
They then co-design new proposals with stakeholders and users, in a participatory way. Their programme"La Transfo"has installed already social innovation laboratories in a number of French regions. http://www. la27eregion. fr Citilab is a centre for social and digital innovation in Cornellá de Llobregat,
Europe 2020, the EU's leading strategy, aims at a smart, sustainable and inclusive economy.
Four years into the crisis, Europe is facing unprecedented problems that have put in jeopardy its currency, economy and social model.
It is capable of integrating various stakeholders to tackle this jointly, through new ways of working together and involving users;
As the regional level is close to the local and regional economy and social tissue with its place-based particularities, it is a good level to start to tackle these social and societal needs,
11 http://www. economist. com/node/16789766 12 Storper, 1997; Malmberg and Maskell, 1997 12 Demography:
the annual damage of climate change to the EU economy in terms of GDP loss is estimated to be between €20 billion for the 2. 5°C scenario and €65 billion for the 5. 4°C
The EU has set itself some ambitions targets to become a low-carbon economy, known as the 20-20-20 targets.
and the specific ambition to become a leading social innovation lab into reality making a difference in the real economy.
social enterprises, social economy: what is the difference? Social innovations can come from both the public and the private sector.
When they come from social enterprises or the social economy, it is most helpful to think of them as overlapping but distinct concepts.
Social enterprises are driven not solely by the need to maximise profit for shareholders and owners.
whose primary objective is to achieve social impact rather than generating profit for owners and shareholders;
customers and stakeholders affected by its business activity.''23 Basically, this covers enterprises for which the social or societal objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation,
Finally, there are frequent confusions between the terms social enterprise and social economy. Social enterprises are part of the social economy,
which also includes foundations, charities and cooperatives. Social enterprises are businesses trading for social purposes, within the (social) economy.
In a discussion on social innovation it is worth summing up by saying that not all social enterprises are innovative,
1. Social inclusion 2. Migration 3. Urban regeneration 4. The social economy 5. Microfinance 6. Health and ageing 7. Incubation 8. Workplace
Via support from the Social Economy network in The netherlands Belgium and Germany the funds were raised to meet the matching requirements of EU ERDF (OP Zuid) and national grant arrangements.
and retail companies involved as well as foundations, welfare organisations and other stakeholders. Funding comes out of the EU funded Competitiveness programme for 2007-13 under a specific priority for sustainable urban and regional development, from federal government and federal state budgets and from the municipalities.
promoting the local economy; forming a link between the neighbourhood, city and other levels of decision-aking;
The neighbourhoods work with a wide range of stakeholders but the strongest emphasis is on citizen participation described as a‘red thread'.
The Local Support Group has a wide range of stakeholders including the municipality and municipal companies, local schools, police, childcare and social services,
Community programmes, trainings and events. 4. The social economy Social enterprises can play a unique role in identifying unmet needs and in developing new types of service.
According to the EU Social Business Initiative, the social economy employs over 11 million people in the EU, accounting for 6%of total employment.
The social economy can clearly play a role in regional development. The Emilia romagna region recently published a study on the importance of the social economy for territorial and social cohesion.
Its main conclusions are that public policies are the fruit of the combined contribution of public authorities and social economy organisations in the provision of public utility services, in
which the joint participation of both players is an essential requirement to ensure quality; and that publicprivate partnership is a tool to deliver more effective and efficient primary social services,
and stakeholders. 42 The social economy and social entrepreneurship are also a tool for social inclusion.
the ESF can mobilise extra funds targeted at the development of the social economy and the promotion of social entrepreneurship and easily accessible for social enterprises.
The social economy has different traditions in different parts and Member States of Europe. Some countries, like France, have a strong tradition in"économie sociale et solidaire,
"the social and solidary economy as they call it. They are gearing up with social innovation in its"newer"meaning
For example, Avise, an official ESF intermediary, has launched a call for proposals with the aim to accelerate social innovation in the social economy
self employment and microcredit for Roma in Hungary Piloting Stage Kiút aims to support Roma to work in the formal economy by starting up a business.
and ageing Health is a major sector of the economy in its own right and one of the fastest growing sectors.
It combines technological advances with social innovations involving the user group plus all relevant stakeholders
The new collaborative structure consists of different stakeholders such as municipalities suppliers, citizens, the third sector, universities, regional developers, specialists, financiers and regional, national and international networks.
and promotion of projects promoting a sustainable economy driven by innovative entrepreneurship, which creates value for people and planet.
It was set up to support the area's move from heavy industry to an information and knowledge based economy.
Workplace innovation concerns not only the private sector but also large parts of the social economy such as charities and foundations as well as the the public sector. Celebrated examples include Google,
Most of them see social innovation linked to the social economy and/or work organisation,
they integrate workplace innovation, social dialogue and support to the social economy as key elements. 79 78 OECD Reviews of Regional Innovation:
which is capable to integrate various stakeholders to address social needs and societal challenges. Similarly, growing social problems more often have to be solved with fewer funding:
Effective partnership means that all stakeholders national or regional authorities, social partners, civil society-can influence
setting up an implementation framework which enhances the involvement of the stakeholders with the best competences to address a specific need,
When enhanced partnership shall ensure a constructive institutional context necessary for accessing funds by all stakeholders,
Thematic objective (4) supporting the shift towards a low-carbon economy in all sectors:(a) promoting the production and distribution of renewable energy sources;(
Is there a strong involvement of stakeholders and users? Up-scaling. Is the impact of the project or programme measured?
which is addressed, positive external effects, experimentation and risk taking and involvement of stakeholders. 88 BEPA definition:
bring various stakeholders together, put forward strategic thinking and support the generation of fresh ideas to overcome societal and social challenges.
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