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,
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.
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.
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.
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.
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:
Thematic objective (4) supporting the shift towards a low-carbon economy in all sectors:(a) promoting the production and distribution of renewable energy sources;(
37 3. 2. 1. The social economy...37 3. 2. 2. Microfinance...39 3. 2. 3. Incubation...
48 3. 4. Social entrepreneurship to revive the social economy...49 4. Conclusion: scanning the future to shape the future...
yy the 2013 International Labour Organisation report2 notes that, in advanced economies, the challenge is to stimulate job creation while addressing macroeconomic imbalances;
They have now become active participants in the development of social innovations at local, national and European levels. 9 In all Member States, representatives of the national and local authorities, social entrepreneurs and social economy organisations,
The rise of the collaborative economy from Airbnb (the social networking service for bed and breakfast) to car sharing
there are some challenges for the EU. yy First, in the reconfiguration of the economy which is currently taking place under the influence of network giants,
'At the time, the idea was to find a renewed impetus for a laissez-faire market-based economy,
as pointed out by The Economist, 20 the‘social market economy'broadly refers to the study of the different social institutions underpinning every market economy
and the social dimensions of an integrated European economy can be strengthened mutually.''This excerpt from the mission letter from the President of the European commission, José Manuel Barroso, inviting former Competition Commissioner, Mario Monti, to prepare a report setting out recommendations for an initiative to relaunch
i e. the 20 http://www. economist. com/economics-a-to-z/s#node-21529660.21 Article 3 of the Treaty on European union states:‘
This unanimity should not hide underlying ambiguities in overcoming corporatist approaches and acquired interests in the sphere of the social economy,
A term like social entrepreneurship tends to overlap with terms such as social economy, third sector, nonprofit sector, social enterprise and social entrepreneur, some
In countries with a long tradition of social economy like Italy and France, a variety of well-established tools have been developed while in newcomers like Latvia or Romania,
social innovation can play a pivotal role in serving as a competitive future advantage for European economies
Finally, social innovations (seen as drivers in the current transition41) could open the way to developing a new competitive advantage for European economies,
or beliefs of the social system'in which they occur. 44 The benefits of overcoming the challenge of measuring social innovation will allow further developments in different aspects of social innovation at a crucial moment for the post-crisis economy Both micro
The press has echoed more than usual to the financing of the social economy in general but also to associated financial innovations such as social impact bonds or crowdfunding.
for a long time, tried to develop new thinking to modernise European economies and their social model to meet societal expectations.
and networks to fight social inequalities and stimulate social cohesion at local level. 3. 2. 1. The social economy 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. For instance, the Emilia romagna region has published a study on the importance of the social economy 73 Jane Jenson
and Dennis Harrisson in Social innovation research in the European union Approaches, findings and future directions-Policy Review http://ec. europa. eu/research/social-sciences/pdf/social innovation. pdf. 74 Its first results were presented
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
Secondly, 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 of‘économie sociale et solidaire'.
For example, Avise75 has launched a call for proposals with the aim to accelerate social innovation in the social economy,
/The Kiút Programme, self employment and microcredit for Roma in Hungary Kiút aims to support Roma to work in the formal economy by starting up a business.
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 public sector. Celebrated examples include Google,
institutions, economy, education, culture. Portugal has to restore economic growth, employment, and make long-term structural reforms at all levels,
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.
Most of them consider social innovation to be linked to the social economy and/or work organisation,
. 4. Social entrepreneurship to revive the social economy Beyond the priority measures in its short-term action plan,
More than 2000 social entrepreneurs and supporters representing the rich diversity of the social economy came together to affirm that social enterprises must play a bigger role in the future of Europe
notably where the social economy is developed less. 7. The Commission, the Member States and regions must boost cooperation between social enterprises across borders and boundaries,
and the consultation and involvement of various social economy stakeholders and supporters of social enterprise.
Europe's economy is expected to continue its decline, and policymakers should focus on a‘new growth paradigm'centred on society, not growth.
which should continue to increase in advanced economies and to further develop in China. In Europe,
Aside from fixing the economy, the report argues that the real challenge for European policymakers will be to break the trend of rising poverty risks,
Public, private and social economy organisations will be encouraged by investors, funders, and governments to produce social value results in the long 93 cf.
environmental and social issues) will become mainstream in the social economy. From grants to investment:
What is also at stake is the emergence of a different conception of the economy,
a shared economy that is not focused exclusively on growth. yy Finally, empowering the citizen remains at the very heart of social innovation issues.
refocused political attention on an environmentally and socially sustainable economy and changes inherent to the digital age.
The Single Market Act and the Social Business Initiative are designed to address the social economy,
which aim to make the EU economy more efficient (a resource-efficient Europe, an industrial policy for the globalisation era), foster innovation (a Digital Agenda for Europe, Innovation Union) and fight unemployment and exclusion
which supports the shift towards a resource-efficient and low-carbon economy, provides a long-term framework for embedding the smarter use of resources as a principle to take into account in the design of economic and social policies.
A major societal challenge is the transformation of the European energy system into an almost CO2-emission free economy(-80/95),
which includes four major roadmaps (moving to a competitive low-carbon economy, a Single European transport area and a resource-efficient transport system,
workers and consumers to fully exploit the benefits that an economy can generate. Mutual societies, cooperatives, third-sector organisations in general and social business are an integral part of this wider economy and,
while this initiative does not explicitly mention social innovation or flag it up as a priority,
which has a direct or indirect impact on organisations in the social economy which may be prime movers on social innovation.
and in particular for social policy experimentations. 103 It is important to remember that Europe's economy represents 500 million people,
and yy involving the social partners in examining how the knowledge economy can be spread to all occupational levels
All these elements can apply to the development of social entrepreneurship and jobs in the social economy as well as in other purely commercial sectors.
and reforms'by supporting experimentation and‘promoting a partnership approach to the social economy'to harness its potential. 111 110 http://eur-lex. europa. eu/Lexuriserv/Lexuriserv. do?
U P O L I C i e S 67 Promoting a partnership approach to the social economy Actions under the European Platform against Poverty for Working in partnership
and harnessing the potential of social economy are: ll Measures to improve the quality of the legal structures relating to foundations,
Single Market Acts and the Social Business Initiative The social economy is addressed in the Innovation Union flagship initiative, 113 in the Single Market Act I114 and II, 115 in the Employment
and of the social economy at large. Social enterprises seek to serve the community's interest (social, societal,
and the real economy. It is the EU's principle investment tool for delivering the Europe 2020 goals:
129 including through social innovation, the social economy and social entrepreneurship. With a view to that challenge
Under this priority, interventions will concentrate on fostering innovation, cooperation and the development of the knowledge-based economy in rural areas.
Eco-innovation is essential for the transition to a resource-efficient circular economy. It includes innovations in terms of products, technologies, business models but also social innovations.
the European Economic and Social Committee (EESC) and the City of Strasbourg hosted a large interactive European event on social entrepreneurship and the social economy.
and defined the way forward for the social entrepreneurship sector in a final declaration (The Strasbourg Declaration) summarising the outcome of the discussions and making ten precise recommendations for the sustainable development of the social economy.
'while a fringe event was organised by social innovation stakeholders to discuss social innovation and the social economy as a solid response to the need for job creation.
This is essential to boost the economy while safeguarding Europe's social model. In July 2013 the Bureau of European Policy Advisers held a high-level seminar on public sector innovation attended by the President of the European commission (cf. part I,
and focus their work on areas that are important for European citizens and the European economy, for instance, re-163 http://ec. europa. eu/enterprise/policies/sme/files/craft/social economy/doc
innovative and inclusive economy. yy As far as the award criteria are concerned, the focus is on the most economically advantageous tender.
This is an issue for the European economy as small businesses are among the most important drivers for growth and employment.
and are granted typically to micro and social economy enterprises or to others which are considered not bankable
needs and contribution to the economy and wellbeing. While deeper and keener knowledge is addressed by research from a variety of angles181,
sustainable lifestyles and wellbeing, recycling and sustainable consumption, green economy, etc.).191 COM (2011) 681.
and material flows through a community's economy provides a systemic reading of the present situation for goal and objective setting and development of indicators for sustainability.
Public service providers are key players in the non-monetary economy. Nonetheless they do not pay enough attention to the need to account for their services on the peer-usage base,
CROSS207 (CIP ICT PSP) seeks to exploit these opportunities for services and applications in the field of non-monetary economy,
and yy communities of volunteers assisting persons with disabilities. 207 http://www. crossproject. eu/tag/non-monetary-economy/.
vibrant picture of social innovation in practice and demonstrates the vitality of this rapidly emerging economy.
ideas and resources 124 Section 3 Ways of supporting social innovation 141 1. Support in the public sector 146 2. Support in the grant economy 167 3
. Support in the market economy 180 4. Support in the informal or household economy 195 Bibliography 209 Index 211 Acknowledgements 220 2 THE OPEN BOOK OF SOCIAL INNOVATION
and tools for innovation being used across the world and across different sectors the public and private sectors, civil society and the household in the overlapping fields of the social economy, social entrepreneurship and social enterprise.
This is as true for the private as for the social economy. New paradigms tend to flourish in areas where the institutions are most open to them,
An emerging social economy Much of this innovation is pointing towards a new kind of economy.
We describe it as a‘social economy 'because it melds features which are very different from economies based on the production and consumption of commodities.
Its key features include: The intensive use of distributed networks to sustain and manage INTRODUCTION 5 relationships,
Much of this economy is formed around distributed systems, rather than centralised structures. It handles complexity not by standardisation
This domestic sphere has previously been seen as outside the economy, as too complex and ungovernable,
In both the market and state economies, the rise of distributed networks has coincided with a marked turn towards the human, the personal and the individual.
(what Jim Maxmin and Shoshana Zuboff call the‘support economy');'it has led to lively innovation around personalisation (from new types of mentor to personal accounts;
With this emphasis on the individual has come an interest in their experience as well as in formal outcomes, in subjective feedback as well as the quantitative metrics of the late 20th century state and economy (hence the rise of innovations like the Expert Patients programmes, or Patient Opinion.
for example, are not always directly transferable to the social economy. Measuring success Measuring success in the social economy is particularly problematic.
In the market the simple and generally unambiguous measures are scale, market share and profit.
trial and error and rapid learning that are accompanying the birth of this new economy. But we can be certain that its emergence will encourage ever more interest in how innovation can best be supported,
including those within each economy: the public sector, the grant economy of civil society, the private sector,
and the household. Some of these conditions are about structures and laws, others are about cultures.
and testing ideas is particularly important in the social economy because it's through iteration,
and innovations take hold in the social economy in many other ways, whether through inspiration and emulation,
private sector, grant economy and household sector, usually over long periods of time. In this part of the book we explore each of these stages in depth,
Within the social economy, especially amongst artists, entrepreneurs and community groups, there is a long tradition of taking advantage of empty, abandoned or derelict buildings and spaces.
Nooteboom, B. 2000)‘ Learning and Innovation in Organisations and Economies.''Oxford: Oxford university Press. 12. Laderman Ukeles, M. 2001) On Maintenance and Sanitation Art.
however, competition is not always the driving force behind the development of new innovations in the social economy.
In the social economy, however, there are arguments for sharing, rather than shifting, the risk. This can be achieved through a stage-gate process
The business concepts of the social economy require as much care and creativity in their generation as the social ideas The two are developed best together to sustain
For the social economy the issues of control, the team and relations with users are likely to have greater priority,
SUSTAINING 63 In the social economy, ownership is an ambiguous concept. Its organisational structures are the site of contending pressures of goals and interests.
Much of the social economy is made up of organisations that are not dissimilar to those in the state or private business
But as with supply chains, the goal is to have the demand chain reflecting the social mission of the venture. 4 SUSTAINING 71 133) Shared backroom economies.
both in what they receive back from a reciprocal economy of information, and in extending the value
In a volunteer economy, roles, relationships and incentives have to be thought about differently to those where there is a contractual wage relationship.
There are distinct forms of lending within the social economy that include saving and lending circles,
The private economy is structured to reserve the benefits of an innovation to its own organisation
The social economy being oriented primarily around social missions, favours the rapid diffusion of an innovation,
This is one reason why the social economy has less compulsion to organisational growth and more towards collaborative networking as a way of sharing innovation. 1 As a result of these differences,
The tools for effective supply include reshaping of projects to reap different kinds of economy (scale,
and express the idea behind the project becomes a key method for the social economy,
and can also lead to economies in processing tenders. The public sector's procurement portal in the UK is Buying Solutions,
Transmitters We look at platforms as the nodes of the new economy, and at other ways in which users and originators can engage in the evaluation
and scale There are currently pressures to promote mergers and takeovers within the grant economy. However, we suggest that in a distributed economy a different conception of scale is needed, one that focuses on economies of information and communication,
and structures that can deliver that. Organisations within the social economy have less compulsion to organisational growth
and more towards collaborative networking as a means of sharing innovation. 200) Organisational growth is the simplest way to grow an innovation.
Where these succeed they create a political constituency for public investment in early years'education as well as effective models for delivery. 234) New models of the support economy.
such as feedback sites on public services or M-PESA's platform for phone-based banking. 246) Rewiring economies, connecting sectors like the utilities and automotive industries for the development of plug-in hybrid cars,
Framing involves linking particular events such as natural disasters, crises of care or of the economy to underlying causes,
as in private business, we would expect social economy intermediaries to become more explicitly focused on their knowledge and relationships.
as well as innovation for the economy. The Department for Business, Innovation and Skills (BIS) in the UK is one example.
and build a functioning website. 136 THE OPEN BOOK OF SOCIAL INNOVATION Innovation networks Networks can serve as alternatives to formal organisational structures within the social economy‘they can leverage the assets that already exist in a system by connecting them to others'.
'5 The very nature of networks bring a range of benefits that are particularly important within the social economy:
we discussed the emergence of a new‘social economy'which is characterised by the following features:
This social economy is the source of social innovation. However, while it already plays the key role in developing new models and services to meet social needs,
it could play an even greater role. 142 THE OPEN BOOK OF SOCIAL INNOVATION It has been argued elsewhere that the social economy,
and new kinds of institutions, especially in the fields of finance and formation The french term for the creation of skills and culture. 1 Progress in achieving this has been hampered by the fact that the social economy remains little understood.
So, what is the social economy? The Social Economy The social economy is a hybrid.
It cuts across the four sub-economies: the market, the state, the grant economy, and the household.
Each of these sectors has its own logics and rhythms, its own means of obtaining resources, its own structures of control and allocation,
and its own rules and customs for the distribution of its outputs. But the parts of these economies which we term the social economy are united by their focus on social goals, by the importance given to ethics,
and by their multiple threads of reciprocity. Their production ranges from the micro scale of domestic care in the household to the universal services of a national welfare state.
If the social economy is a hybrid, so are the firms, states, charities and households that operate within it.
Yet organisations like Oxfam and Age Concern are shaped still primarily by the grant economy in how they raise their money,
The shaded area in the diagram opposite represents those parts of the four sub-economies that together constitute the social economy.
The diagram shows that none of the four sub-economies is concerned wholly with the social economy.
if there are four sub economies, there will be six interfaces. The first three interfaces are between the state
and the other three sub-economies. 3 Central to these interfaces is the way finance crosses the borders,
and the platforms and tools provided by the state for the actors in other parts of the social economy.
The fourth interface is between the private market and grant economy. These relations include, for example, corporate sponsorship, charitable donations, mentoring,
and NGOS, exemplified in the work of Philips in developing new models of The State The Market The Household The Grant Economy The Social Economy Source:
The fifth and sixth interfaces (along with the third) constitute the household economy's relations with the other three sub-economies.
The extent to which social networks and a gift economy operate in the sphere of consumption has long been remarked on by anthropologists for example (from Christmas presents to the purchase of rounds of beer.
Between the grant and the household economies there are also two way movements of donations and volunteering from one direction, to a multitude of services from the other.
when associations and movements from the household economy partially transfer themselves into the grant economy,
In practice, however, each sub-economy may relate simultaneously to a number of others. 4 For example,
the state can promote social innovation in the market as well as the grant economy by applying certain policy and regulatory levers such as minimum trading standards,
and apply to the three interfaces between the household and the other sub-economies. First is the development of new systems of support economy as put forward by Jim Maxmin
and Soshana Zuboff in The Support Economy. 5 This is closely linked to the development of co-creation
and co-production representing a partnership between households and professionals. Personal budgets (introduced for people with disabilities in the UK in the 2000s),
Neither the state nor the grant economy has the structure or incentive to innovate in this way.
Crisis and the new Social Economy.''Provocation. London: NESTA. 2. This is a wider definition than the more usual one
which refers to the social economy as the third sector namely NGOS and social enterprises.
The definition here includes both the public economy whose values and goals have much in common with those of the third sector
and the informal economy of the household. 3. The social components of these three sub economies outside the state are the economic parallel to civil society,
and could be thought of as the civil economy, that is to say that part of the social economy that is outside the state. 4. There are also interfaces within each sub economy,
for example between the private and social markets. This may take the form of joint ventures, as in the recent case of Grameen-Danone and their collaboration in a social enterprise producing yoghurt for low income households in Bangladesh. 5. Maxmin, J. and Zuboff, S. 2004)‘ The Support Economy:
Why Corporations are Failing Individuals and The next Episode of Capitalism.''New york: Penguin. 6. This is the argument of Beinhocker, E. 2007)‘ The Origin of Wealth.'
but this does not deal with those areas of the economy which are difficult to commodify. 146 THE OPEN BOOK OF SOCIAL INNOVATION 1 SUPPORT IN THE PUBLIC SECTOR In the past,
and support social innovation. 382) Policy instruments to remake markets to promote the social economy such as compulsory targets,
) 385) Planning and tax rules to promote creative economies such as subsidised rent in art districts,
Crisis and the new Social Economy.''Provocation. London: NESTA. 3. See for example, Murray, R. op cit.;
'No. 7, Winter 2008.1 SUPPORT IN THE GRANT ECONOMY 167 2 SUPPORT IN THE GRANT ECONOMY Civil society and the grant economy are the most common sites of social innovation in campaigns
We describe this sector as the grant economy because grants play an important part, even though much of the income received within this sector comes from other sources, such as contracts with governments and other kinds of trading income.
and encourage the generation and adoption of innovation within the grant economy, there need to be new kinds of finance, platforms, packages of support,
and what mix of funding for individuals, teams The State The Market The Grant Economy The Household 2 SUPPORT IN THE GRANT ECONOMY 169 and enterprises works best,
and procurement'(see methods 170-183) for ways in which the public sector can support innovation within the grant economy.
and connectivity to villages in the developing world. 2 SUPPORT IN THE GRANT ECONOMY 171 408) Intermediaries who allocate grants for specific projects on behalf of the donor,
ECONOMY 173 Governance and accountability Too often within the grant economy, governance and accountability structures do not resonate with the organisation's social mission.
and whether the innovation itself and the process surrounding it meet their needs. 2 SUPPORT IN THE GRANT ECONOMY 175 424) Members and associates as sources of innovation and review,
and formation within the grant economy and identified a lack of training and experience as one of the main barriers to the sector's success. Leaders of nonprofit organisations,
and stakeholder management while keeping the organisation aligned to its mission and values. 430) Developing skills within the grant economy.
Image courtesy of the Young Foundation. 2 SUPPORT IN THE GRANT ECONOMY 177 intelligence model.
and wider scope for charity operations. 435) Planning and tax rules to promote creative economies such as subsidised rent in arts districts,
models and ideas for building a‘bright green'future. 2 SUPPORT IN THE GRANT ECONOMY 179 End notes 1. Blackmore,
There is an asset The State The Market The Household The Grant Economy 3 182 THE OPEN BOOK OF SOCIAL INNOVATION lock,
prisoner rehabilitation or disability services. 447) Extending the cooperative economy in production, including MONDRAGON and Peruvian coffee co-ops. 448) Foundations as owners of corporations,
They remain critical to the social economy, both in assessing products and services on the basis of social criteria,
They create their own protected economies with discounts for particular products and services from specified places.
The growth of parallel mechanisms to favour the social economy has been geared primarily at promoting the local economy.
and development of the sector. 483) Specialist academies linked to social economy initiatives, such as: the University of Mondragón in Spain;
which has grown out of the slow food movement. 4 484) Retraining of business leaders to play roles in the social economy,
Rizzoli International. 3 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 195 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY Many innovations begin in the informal life of households a conversation around a coffee, a kitchen table,
Over time what they do may become more formalised and shift into the grant economy and subsequently into the public or market economy.
The informal household economy has generally been recognised under as a source of innovations. But it has played a critical role in fields including the environment and health
Within the household economy, we can see a number of emergent trends. One is new forms of mutual action between individuals whether in the form of open-source software,
Paris. 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 197 providing others, selling information on users and so on. 1 In the field of opensource software,
However, this is not just a virtual economy. It is also about care and support in the home and the neighbourhood,
This question is of course central to current discussions of urban and rural policy (from lighting, The State The Market The Household The Grant Economy 4 198 THE OPEN BOOK OF SOCIAL INNOVATION to curfews
But to spread the benefits of the social economy, we will need to rethink many of the ways in which the household economy relates to the two main sources of finance the market and the state.
Issues such as the distribution of working time, the valorisation of voluntary labour, the content and channels of life skills learning, the role of many of the social and educational services, the arrangements for retirement and unemployment, the size
which provides an online publishing platform for tens of thousands of citizen reporters. 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 199 498) Hosts and moderators as online guides.
Propertising not privatising In the social economy, rather than restricting access to knowledge and information, there is value in diffusing and sharing ideas and information as widely as possible.
and of means to strengthen a reciprocal economy by limiting free riders. Examples include open licences. 500) Open licensing has redrawn the traditional battle lines between the interests of society
or the rights to sabbaticals provided in some professions. 505) Flexible terms of formal employment to enable a sustainable informal economy,
such as the right to request flexible working time. 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 201 506) Training for volunteers the provision of training and incentives for volunteers,
They create an economy based on direct household time and can serve as alternatives to mainstream currencies
OR HOUSEHOLD ECONOMY 203 514) Extending public spaces for domestic production such as allotments and opening parts of parks or schools for residents and students to grow flowers, fruits, and vegetables.
Image courtesy of Mike Russell. 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 205 517) Users as producers such as the Expert Patients Programme,
Image courtesy of San Patrignano. 4 SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 207 This could include educational coaching services, relief and backup for home carers, health coaches, birthing
They have been generated largely from within the household economy, and have developed innovative forms of distributed network organisation and action,
Jim Maxmin and Soshana Zuboff, The Support Economy: Why Corporations are Failing Individuals and The next Episode of Capitalism, Penguin, 2004.
Walter Stahel, The Performance Economy, Palgrave Macmillan, 2006. INDEX 211 INDEX 5 a Day Campaign 86 10:10 Project 87 27e Region 148;
148 Finance For emerging ideas 54-57 For new ventures 78-80 For systemic change 121-122 Public economy 149-161 budgets to promote internal
and means of payment 156-157 public investment 157-160 fiscal moves to promote social innovation 160-161 Grant economy 168-173 grant giving 169-171
71 Grant Economy 142-145; 167-179 Green Homes 88 Green Valleys 55 Greenpeace 28;
31 The Household economy 142-145; 195-208 Hubs 129; 135 I Want Great care 21;
202 Sobrato Family Foundation 169 Social economy 4-6; 63; 82; 84; 136; 141-145;
18 Supply Chains 13,62, 70,94-95,171 Support Economy 5, 111,144 Sure Start 111,150-151 Tällberg Foundation 44 Taproot Foundation 172
THE AUTHORS ABOUT THE YOUNG FOUNDATION Robin Murray is an industrial and environmental economist. His recent work has focused on new waste and energy systems and on projects in the social economy.
He was cofounder and later chair of Twin Trading the fair trade company and was involved closely in the companies it spun off,
and tools for innovation being used across the world and across the different sectors the public and private sectors, civil society and the household and in the overlapping fields of the social economy, social entrepreneurship and social enterprise.
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