Building Resilient Economy, Zagreb, Croatia 241 SOCIAL INCLUSION AS INNOVATION Alessandra Morgado Ramiro de Lima Federal University of Rio de janeiro, Business Administration, Brazil
Building Resilient Economy, Zagreb, Croatia 242 children in need, with the motto"No money in the world can afford the smile on a child's face.
Building Resilient Economy, Zagreb, Croatia 243 The consolidation of these ideas is reinforced by the analysis of the other two examples mentioned in the introduction.
Building Resilient Economy, Zagreb, Croatia 244 each of these NGOS, participating in the Service Society that pervades our time,
based on a service economy and sustained by civil society, which is being generated territorially in the small community,
Building Resilient Economy, Zagreb, Croatia 245 LITERATURE 1. André I, Abreu A. Dimensões e espaços da inovação social.
cdepartment of Accounting, Finance and Economics, Manchester Metropolitan University, Manchester, UK (Received 10 april 2013; final version received 28 august 2013) Social innovation discourses see in social challenges opportunities to make societies more sustainable and cohesive through inclusive practices, coproduction and proactive grassroots initiatives.
neo-liberalism Introduction Advanced economies face a growing number of social, economic and environmental challenges.
The 2007/2008 sub-prime financial crisis led to deep recession in many European economies. Europe's economic woes further intensified with the sovereign debt crisis and subsequent deficit-cutting policies.
The economic crisis hit vulnerable people particularly hard. Unemployment is acute among young people. Over one in two people aged 15 24 are out of work in Spain and Greece;
progress in nations where the benefits of economic growth accrue to all (Friedman 2006). In contrast, declining living standards for the majority and the lack of employment opportunities for young people are two of the foundations of the renewed spectre of political extremism
According to Florida (2002), one of the three institutions of the creative economy is interaction and proximity,
and more specifically Atlanta's urban informal stakeholder networks is noteworthy in this respect. Simplified, Stone argues that,
Entrepreneurs and their stakeholders, in the words of Sarasvathy and Venkatraman (2011), often end up co-creating new opportunities.
and creative content is the motor of today's economy. The role of culture and creativity as drivers of growth and employment is high on the European commission's agenda.
and the skills gap may offer routes to inclusion, economic activity and financial independence for the most disadvantaged groups in the population.
We move on to the broader economy and economic policy. Some social innovation can be and is delivered in the framework of the market.
The neoliberal economic paradigm argues in general that markets are placed best to deliver economic growth and widespread prosperity.
Advocates of social innovation argue that societal challenges offer new opportunities for economic growth. Key growth sectors for many European economies in the coming years will be health education and social care (Mulgan et al. 2007.
For example, spending on healthcare is currently between 5 and 13%of GDP for EU countries
These sectors are characterized by mixed economies, the strong involvement of public policy and a need for models of innovation that are very different from those that have worked in the technology and finance sectors (Mulgan et al. 2007).
since been preferred a legal status for businesses operating in the social economy. Other examples of innovative finance are complementary local currencies such as the Brixton
legal provisions) work to encourage social innovation that will deliver on its promise to create sustainable economic growth and benefit those groups of society
There is therefore an urgent need for research on the relation between social innovations and economic policy,
or impede social innovation Markets are embedded in unique national institutional arrangements, macro-level economic policy, regulatory and legal frameworks, welfare regimes and modes of production.
On the one hand, research on market forces, economic and fiscal policy, welfare systems and regulatory frameworks might seem to fit comfortably with economic positivist models and methods
Theory of change encourages all stakeholders, including the groups who are intended to benefit, to articulate expected achievements.
we suggest perceiving social innovation as boosting collaboration and partnership between various stakeholders (the public sector, private enterprise and the free market, civil society,
Working in the Social Economy. Social Enterprise Journal 5 (1): 30 49. doi: 10.1108/17508610910956390. Bakhshi, H,
Economy, Society and Culture. Oxford: Wiley-Blackwell. Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating
The Moral Consequences of Economic growth. New york: Vintage. Fromhold-Eisebith, M. 2004. Innovative Milieu and Social Capital Complementary or Redundant Concepts of Collaboration-Based Regional Development?
Review of Economics and Statistics 89 (1): 118 133. doi: 10.1162/rest. 89.1.118. Granovetter, M. S. 1973.
Die Soziologie in Zeiten der Wissensgesellschaft Sociology in the Time of the Knowledge Economy. Soziologie 34 (4): 424 441. doi:
Redefining Innovation Eco-Innovation Research and the Contribution from Ecological Economics. Ecological Economics 32 (2): 319 332. doi:
10.1016/S0921-8009 (99) 00112-3. Renko, M. 2013. Early challenges of nascent social entrepreneurs.
INTRODUCTION With the globalization of economies and competition, innovation has become the most important factor in development, employment,
Digital Networks & Social networks, isociety Alex Macgillivray, New Economics Foundation. Downey, J, . & Mcguigan, J. ed)( 1999).
Dr Lea has published in numerous journals including International Journal of Production Research, International Journal of Production Economics, Industrial Management and Data systems, Technovation,
EFFECTIVE STAKEHOLDER MANAGEMENT...18 IV. COLLABORATION...18 V. CONVERGENCE AND INTEGRATION...19 D. WHO ARE THE STAKEHOLDERS?..
19 3. THE AREAS THAT ARE POISED FOR GROWTH...20 4. CONCLUSION...21 Social Innovation to answer Society's Challenges 2014 Frost
The top 12 transformative, global forces that define the future world with their far-reaching impacts on businesses, societies, economies, cultures,
Companies will now look at new economies Beyond BRIC and new hotspots for their business operations.
developing economies will contribute around 65%to 70%of global growth in the next 10 years
and the 40 largest urban Mega Regions will account for 66%of global economic activity and about 85%of global technological and scientific innovation.
THE FUTURE OF ENERGY Powering the global economic growth, urbanisation and expanding populations in a sustainable manner is one of the biggest challenges and opportunities of the 21st century.
and has increased the outlook for production across a wide variety of industries from railroads, shipping, local economies, and farming.
in addition to serving as a key connecting node, will also be a driver of economic growth. In fact, investments in high speed rail have been estimated to have potential to add 2 to 3%to countries'GDP growth through wealth and job creation.
and deliver value to all of the stakeholders in our global future. In the second half of this Whitepaper we will go on to define Social Innovation in more detail.
the stakeholders, and the areas and sectors that are poised for the highest growth. 3 Power Patients proactively make use of Google
and has many stakeholders companies, social enterprises, governments, NGOS, charities and public sector organisations to name but a few.
This is done through communication with stakeholders and integrating those expectations into its management and business value creation with a strong focus on technology deployment
Through the collaboration of multiple stakeholders, the initiative focuses on energy and transportation infrastructure and the application of autonomous, decentralised IT systems for energy control.
The key characteristics of delivering Social Innovation include the co-ordination and mediation between the different groups of stakeholders involved.
BUSINESS 2 SOCIETY (B2s) MODEL The B2s perspective is created by a complete stakeholder focus and is a core element of Social Innovation.
EFFECTIVE STAKEHOLDER MANAGEMENT The long-term success of Social Innovation lies with the proactive engagement of local stakeholders and beneficiaries.
B2s models tend to involve multiple stakeholder groups and the successful social innovators will be those that can bring integrated solutions to deliver clear value
and benefits to the multiple interconnected local stakeholders. Successful Social Innovations tend to occur within a cross sector context
where different stakeholders from different sectors of society, government or industry work together towards common goals and hence share common benefits.
It also requires collaborative working between the multiple stakeholders. Projects are often large and complex,
and mobile services (m-services) to play a role in collaboration by enabling stakeholders to work competently, effectively and efficiently, with par tners, anytime and anywhere.
which communications both real-time and non-real time are integrated to optimise stakeholder processes and increase productivity.
This transition toward sharing everything and not owning assets is creating a new circular economy where there is no wastage
D. WHO ARE THE STAKEHOLDERS? Social Innovation at its best delivers value to the full spectrum of stakeholders:
Positive transformational change to communities; accelerated advancement for Governments; enhanced efficiency and sustainability to corporations;
Key Stakeholders for Social Innovation Ability to deliver integrated, converged and connected solutions is a critical success factor Government Increased pressure for sustainable economic growthcommunities Communities/users/patients/citizens:
Collaboration & Multi-Stakeholder Models Clinics Set up Overseas Using NHS Brand The Department of health (DH) and the UK Trade and Investment department (UKTI) have put together a scheme where the NHS establishes overseas clinics.
growing economies Source Frost & Sullivan Source: Frost & Sullivan Social Innovation to answer Society's Challenges 2014 Frost
This new breed of innovators will also strike a balance between profit for stakeholders and improved lives for individual citizens, focusing on progress both for business and our global society.
is prepared your organization for the next profound wave of industry convergence, disruptive technologies, increasingcompetitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
-Support and manage orderly change to a more environmentally sustainable, multiethnic society and a knowledge-based economy;
p. 4 Economist editor: Big data is a goldmine for companies...p. 6 Boosting e-skills in European higher education requires political will at national level...
despite the economic downturn, as ICT is adopted widely in all corners of society. Experts believe a new wave of big data
and contribute €63 billion to the economy, with a positive impact on youth unemployment. The real issue is that there are going to be skill gaps.
but for the economy as a whole. We need more highly specialised computer engineers. The ICT sector currently lacks people with the right skills to accomplish a number of functions, from developing software applications and security systems,
According to Microsfot's Schaart, the technology sector's gender gap is a serious loss for the European economy
The app economy workforce is predicted to triple its revenues from €17. 5 billion to €63 billion from 2013 to 2018.
Digital Commissioner Neelie Kroes. European parliament 6 5-9 may 2014 SPECIAL REPORT ESKILLS FOR GROWTH Euractiv Economist editor:
Kenneth Cukier is data editor at The Economist and co-author with Viktor Mayer-Schönberger of Big data:
In addition, the creation of a digital single market in the EU could add up to €800 billion in the European economy.
Kalantari 2010) particularly in economic theory (Teese 2010. The plethora of definitions poses significant challenges for understanding the essential components of a business model.
and how it creates value for its stakeholders (2000). b. Timmers defines the business model as architecture for product,
Decision variables focus on stakeholder identification, value creation, visions, values and networks and alliances. 2. 2 Why Digital Business models The role of information technology and its relationship to the business has shifted over the last 20 years.
2001) Actors, market segments, value offering, value activity, stakeholder network, value interfaces, value ports and value exchanges 8 No No Linder and Cantrell (2001) Pricing model,
<paul. david@economics. ox. ac. uk>Understanding the Digital economy's Evolution and the Path of Measured Productivity Growth:
Present and Future in the Mirror of the Past 1 1. The Computer Revolution, the"Productivity Paradox"and the Economists Over the past forty years, computers have evolved from a specialized and limited role in the information processing
and, ultimately, prospects for economic growth, national security and the quality of life. Not since the opening of the atomic age, with its promises of power too cheap to meter and threats of nuclear incineration, has a technology so deeply captured the imagination of the public.
and the productivity performance of the economy at large crystallized around the perception that the U s,
. along with other advanced industrial economies, was confronted with a disturbing"productivity paradox.""The precipitating event in the formation of this"problematic"view of the digital information technology was an offhand (yet nonetheless pithy) remark made in the summer of 1987 by Robert Solow, Institute Professor at MIT and Economics Nobel laureate:"
"You can see the computer age everywhere but in the productivity statistics.""1 Almost overnight this contrasting juxtaposition achieved the status of being treated as the leading economic puzzle of the late twentieth century,
and communications technologies have given rise during the latter 1990's to"a new economy"or"new paradigm"of macroeconomic behavior.
Alan Greenspan, subscribed publicly to a strongly optimistic reading of the American economy's prospects for sustaining rapid expansion
which the U s. economy is taking the lead: 2 We are living through one of those rare, perhaps once-in-a-century events...
as a consequence, the emergence of modern computer, telecommunication and satellite technologies have changed fundamentally the structure of the American economy.
Yet, many economists continue to demur from this view, and there has been no lack of skepticism regarding the potential of the new information
Among academic economists the consensus of optimistic opinion now holds a wait -and-see attitude,
or cyclical movements that, in any case, have yet to materially reverse the profound"slowdown"in the economy's productivity growth trend
so that it brought the TFP growth rate all the way back down to the very low historical levels indicated by Abramovitz and David's (1999) statistical reconstructions of the mid-nineteenth century American economy's performance.
May 6, 1998) that enable us to follow the path of measured productivity gains in the U s. economy well into the 1990's. The figures relating to the private non-farm business economy are regraded generally as providing a more accurate picture of recent movements,
because the deflation of the current value of output has been carried out by using price indexes that re-weight the component goods
only slightly above the 1890-1929 rate. 4 Moving from the private domestic economy to the private business economy concept also eliminates the distortions in the picture of productivity that arise from the inclusion of the imputed gross rents on the stock of dwellings
and slow measured growth of total factor productivity is not a wholly new, anomalous phenomenon in the history of U s. economic growth.
and accounting machinery) capital more generally has been contributing to economic growth in the closing quarter of the twentieth century,
except for the fact that this particular category of capital equipment only recently has begun to bulk large in the economy's total stock of reproducible capital.
and the private rates of return on this the new information technology and all of its networked applications. 4 Economists'reactions to questions concerning the anomalous slowdown of TFP growth
and its perplexing conjuncture with the wave of ICT-embodying investments in the U s. economy
1) the productivity slowdown is an artifact of inadequate statistical measurement of the economy's true performance,
along with me in the cautious optimist camp share the view that the persistence of the slow trend rates of TFP growth experienced in the U s. economy during the past two decades is unlikely.
and measure the performance of the economy which is undergoing significant and unprecedented structural changes.
it seems to have been rather misleading for economists to have approached these as though they were necessarily independent, mutually incompatible and hence competing explanatory hypotheses.
by briefly considering the implications of the limited way in which a national income accounting system devised to deal with ordinary goods
and services is able to cope with the shift towards integrating such commodities with the services of information.
The introduction of new commodities again raises the problem of comparability in forming the price deflators for an industry
but, before tackling less tractable conceptual questions we should briefly review their bearing on the puzzle of the slowdown and the computer productivity paradox. 2. 1 Over-deflation of output:
which there seems to be broad agreement among economists. The magnitude of the bias, however, is another question.
This might well be twice the magnitude of the error introduced by mismeasurement of the price deflators applied in estimating the real gross output of the private domestic economy over the period 1966-89.10 Were we to allow for this by making an upward correction of the real output growth rate by as much as 0. 6
whether structural changes in the U s. economy have exacerbated the problem of output underestimation, and thereby contributed to the appearance of a productivity slowdown.
and employment in the"hard-to-measure"sectors of the economy is immediately pertinent. The bloc of the U s. private domestic economy comprising Construction, Trade, Finance, Insurance,
and Real estate (FIRE), and miscellaneous other services has indeed been growing in relative importance, and this trend in recent decades has been pronounced especially. 13 There is certainly a gap in the manhours productivity growth rates favoring the better-measured,
commodity-producing sections, but the impact of the economy's structural drift towards unmeasurability is not big enough to account for the appearance of a productivity slowdown between the preand post-1969 periods.
The simple re-weighting of the trend growth rates lowers the aggregate labor productivity growth rate by 0. 13 percentage points between 1947-1969 and 1969-1990,
whereas prices and real output growth were measured properly for the rest of the economy. Taking account of the increasing relative weight of the hard-to-measure sector in the value of current gross product for the private domestic economy
the implied measurement bias for the whole economy--under the conditions assumed--must have become more 13 Gross product originating in Griliches'hard-to-measure bloc average 49.6 percent of the total over the years 1947-1969,
but its average share was 59.7 percent in the years 1969-1990. See Griliches (1995:
The problem arises from the practice of waiting the chain in new products until they have acquired a substantial share of the market for the class of commodities for
The difficulties created for price index statisticians by the turnover of the commodity basket due to the introduction of new goods (before the old staples disappear) are quite ubiquitous across industries
the higher rate of appearance of new goods in the basket of commodities available to consumers--is one that also can be linked to the effects of the emerging information revolution.
This has been a central theme in the business and economics literature on modern manufacturing at least since the 1980's. 15 The increasing proliferation of new goods and its connection with the application of computers,
in other words, whether the rate of turnover of the economy's output mix has increased. 18 Diewert
the hedonic deflation of investment expenditures on computer equipment contributes to raising the measured growth of the computer capital services,
But, in itself, the substitution of this rapidly rising input for others does nothing to lift the economy's measured growth rate of TFP. 3. Conceptual Challenges:
Beyond the technical problems of the way that the national income accountants are coping with accelerating product innovation
These appeared when economists sought to illuminate the macro-level puzzle through statistic studies of the impact of 20 The difference between the measured TFP performance of the computer-producing
and the computer-using sectors of the economy, which emerges starkly from the growth accounting studies by Stiroh (1998),
The former are closer in spirit to the attempt to measure the productive efficiency of the economy by calculating TFP as the ratio of aggregate real output to the aggregate inputs of labor and capital services;
which is becoming increasingly widespread as digital information technologies diffuse throughout the economy, deserves further consideration. 3. 2 Leaving out investments in organizational change:
and individuals in learning to utilize a new technology be treated for national income accounting purposes? The factor payment side of the official National income and Product Accounts (NIPA) include the expenditures that this may entail--for labor time and the use of facilities,
but the intangible assets formed in the process do not appear on the output side, among the final goods and services produced.
has been marked by a relative rise in the production of intangible assets that have gone unrecorded in the national income and product accounts.
of general purpose technologies that transform an economy by finding many new lines of application, and fusing with existing technologies to rejuvenate other,
preexisting sectors of the economy. While the positive, long-run growth igniting ramifications of a fundamental technological breakthrough of that kind are stressed in the formalization of this vision by the new growth theory literature
The first is concerned to show that lags in the diffusion process involving a general purpose technology can result in long delays in the acceleration of productivity growth in the economy at large.
and productivity indexes of the economy. As this theme already has been aired well (in sections 2 and 3, above),
the U s. economy could be said 33 See e g.,, chapters by Helpman and Trajtenberg (1998), Aghion and Howitt (1998),
the extent of computerization that had been achieved in the whole economy by the late 1980's was roughly comparable with the degree to
Some economists who have voiced skepticism about the ability of computer capital formation to make a substantial contribution to raising output growth in the economy point to the rapid technological obsolescence in this kind of producer durables equipment
and argue that the consequent high depreciation rate prevents the stock from growing rapidly in relationship to the overall stock of producer capital in the economy.
when suggesting (in 1989-1990) that it perhaps was still too soon to be disappointed that the computer revolution had failed to unleash a sustained surge of readily discernable productivity growth throughout the economy.
and transforms the organization of production in many branches of an economy. One cannot simply infer the detailed future shape of the diffusion path in the case of the digital information revolution from the experience of previous analogous episodes;
Coupled with the widespread diffusion of information appliances, they appear to hold out a realistic prospect for the older branches of an increasingly digitalized economy to enjoy a pervasive quickening in the pace of conventionally measured multifactor productivity improvements,
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