Synopsis: Entrepreneurship:

This is an area that presents significant opportunities to leverage the power of European talent by fully

engaging stakeholders, citizens, and civil society actors in the innovation process by taking advantage of

2. Mobilise a big variety of stakeholders and Support a community of civic innovators and users.

3. Broad communication with the general public and citizens, reach out and analyse social needs and integrate feedback coming from end-users

i e. the civil society is considered as a fourth and full stakeholder in addition to the traditional innovation actors, research organisations, businesses and public authorities (Triple Helix;

economy. It is fantastically rich, and demonstrates the diversity of initiatives being led by entrepreneurs and campaigners, organisations

Like the social ventures it describes, we want this work to grow and develop. Your comments, thoughts and stories are welcome at the

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 This book is about the many ways in

and the household †in the overlapping fields of the social economy, social entrepreneurship and social enterprise.

It draws on inputs from hundreds of organisations to document the many methods currently being used around the

of developing workable ideas and setting up a social venture in a way that ensures its financial sustainability;

innovations as new ideas (products, services and models) that simultaneously meet social needs and create new social relationships or collaborations.

Civil society lacks the capital, skills and resources to take promising ideas to scale Rising costs

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, and

An emerging social economy Much of this innovation is pointing towards a new kind of economy.

It combines some old elements and many new ones. We describe it as a †social

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, helped by broadband, mobile and other means of

communication •Blurred boundaries between production and consumption •An emphasis on collaboration and on repeated interactions, care and

Much of this economy is formed around distributed systems, rather than centralised structures. It handles complexity not by standardisation and

outside the economy, as too complex and ungovernable, but has now come to be recognised as economically critical, with all the needs for support, tools

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

quantitative metrics of the late 20th century state and economy (hence the rise of innovations like the Expert Patients programmes, or Patient Opinion

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. In the social field the very measures of success may be

contested as well as the tools for achieving results. Is it good or bad to cut car

social enterprises, mutuals, co-ops, charities, companies as well as loose associations. But the many examples set out below also show a field that is

book on civic entrepreneurship in the USA. Whereas in business the firm is the key agent of innovation, in the social field the drive is more likely to come

sector, providers in social enterprises, advocates in social movements, and entrepreneurs in business. This is one of many reasons why it†s misleading to

translate business models directly into the social field. For example, trying too hard to privatise ideas, or protect their IP,

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

venture capital with those from tendering and grant giving. Others are combining ethnography, visualisation techniques from product design, user

Conversely, some NGOS are learning from venture capital not only how to finance emerging ideas, but also how to kill off ones that aren†t

funds, agencies, brokers, incubators, and intermediaries. In the social field these institutions remain much less developed than in other fields.

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

or unresolved by services organised by the state. Social innovation can take place inside or outside of public services.

stakeholders and territories. †Social innovation†seeks new answers to social problems by identifying and delivering new services that improve the quality of life of individuals and

communities; identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

3 Prototypes 2 Proposals 1 Prompts 12 THE OPEN BOOK OF SOCIAL INNOVATION The six stages of social innovation

pilots, prototypes and randomised controlled trials. The process of refining and testing ideas is particularly important in the social economy

because it†s through iteration, and trial and error, that coalitions gather strength (for example, linking users to professionals)

firm, social enterprise or charity, that will carry the innovation forward In the public sector this means identifying budgets, teams and other

how market demand, or demand from commissioners and policymakers is mobilised to spread a successful new model.

This process is referred often to as †scalingâ€, and in some cases the word is appropriate,

the social economy in many other ways, whether through inspiration and emulation, or through the provision of support and know-how from one

social movements, business models, laws and regulations, data and infrastructures, and entirely new ways of thinking

economy and household sector, usually over long periods of time In this part of the book we explore each of these stages in depth, with a

competitions for the crowdsourcing of innovations say that it is the stage of framing a good question which is the key to the competition†s success. 1

that demand action on an issue, or that mobilise belief that action is possible 1) Crisis. Necessity is often the mother of invention,

services to be designed and delivered in new ways. Major cuts can rarely be achieved through traditional efficiency measures.

3) Poor performance highlights the need for change within services This can act as a spur for finding new ways of designing and delivering

deliver services more effectively. Examples include computers in classrooms, the use of assistive devices for the elderly,

the actual and potential need for goods and services, specifically where the need is need a social.

These sites show how to run competitions for †mash up†ideas from citizens using government data, such as Sunlight Labs and Show Us a

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

local area, identifying empty spaces and opportunities for reuse. In Croatia, for example, Platforma 9. 18 mapped out

and social care services. Service users are responsible for all stages of the research process †from design, recruitment, ethics and data

various physical and social environments. The primary method of the ethnographer is †participant observationâ€.

environments 15) Action research is designed a method to encourage reflective and collective problem formulation and problem solving.

environment in descriptive form, action research is geared normatively toward prescriptions emerging out of the data

of users and better tailor services accordingly. In industry and commerce the capacity to collect

20) Holistic services include phone based services such as New York†s 311 service which provide a database that can be analysed for patterns of

It is an opportunity for the walkers and villagers to share and reflect on innovative practice.

are biodiversity competitions, recipe competitions and a felicitation ceremony for creative villagers 30) Media Spotlight.

In today†s media-intensive environment, one of the most valuable resources is attention. Without it, social change is painfully slow.

Deming, E w. 2000) †The New Economics for Industry, Government, Education. †2nd ed Cambridge, MA:

Nooteboom, B. 2000) †Learning and Innovation in Organisations and Economies. †Oxford Oxford university Press

to encourage creativity and new ideas †such as competitions and prizes online platforms and idea banks.

to redesign services 37) User-led design. Users are placed often best to identify their own

38) Redesigning services with users and producers such as the work undertaken by design consultancies like IDEO, thinkpublic, Participle

and doctors can develop and prototype new processes for improving service delivery. In another project, Hilary

and customers of goods and services knowledge of variation (the range and causes of variation in quality, and

49) Reviewing extremes such as health services or energy production in remote communities. Design for extreme conditions can provide insights

and ideas for providing services to mainstream users. For example redesigning buildings and objects to be used more easily by people with

as resources, assets and opportunities for social innovation Assets can be reclaimed and reused and, in the process, environments

can be revitalised, social needs can be met, and communities energised One example is the work of †activist architectâ€, Teddy Cruz.

environment. Another example is the regeneration of Westergasfabriek by Reuse in Amsterdam, or the transformation of a disused elevated

54) Competitions and challenges can be an effective means of uncovering new sources of social innovation.

market, however, competition is not always the driving force behind the development of new innovations in the social economy.

This means 2 that competitions need to be structured in such a way that participants have the opportunity to collaborate,

share and learn with each other Examples include NESTA€ s Big Green Challenge and the various X-Prizes

see method 94 for more information on the Big Green Challenge and method 407 for X-Prizes

include setting up social enterprises, and lowering hand straps in the Metros for shorter passengers

Brookings and the American Enterprise Institute. The most visible tend to focus on policy innovation. In the past, they acted as intermediaries

such as the New Economics Foundation and Forum for the Future 80) Design labs. In Finland, the national innovation agency SITRA has set

E-Communications Strategy. †Unpublished 8. Mccardle, H. 2008) †The case of the sneaky wiki. †Unpublished

also looks at various funding tools for emerging ideas and prototypes Prototypes, pilots and trials

As an idea progresses through multiple stages of rapid prototyping, it faces many challenges: the feasibility of making the product,

what the economics look like, and how it could be made cheaper. The driving principles at this stage are speed,

used to refer to services as well 82) Fast prototyping emerged first in the software field,

testing out to the users†actual environment for a †real-world†test. The service/product is introduced to a small number of people who are then

Cafã is a not-for-profit organisation which brings people together from all around the world in conversation through the use of Telepresence screens

interconnected elements rather than the discrete services or actions usually associated with pilots. A good example is the current experiment

both supply and demand driven This is one of Google†s test cars. This fleet of hybrid plug-in vehicles is

Minister†s Enterprise Fund, or the UK€ s Invest to Save Budget. These are open to applications from existing public agencies, sometimes

favour of prizes and competitions is the way in which it provides those giving out the prize a means of finding a solution to a problem without

Indeed, with competitions, it is the participants who are expected to foot the financial risk. In the social

economy, however, there are arguments for sharing, rather than shifting the risk. This can be achieved through a stage-gate process, where

participants increase the level of investment as they pass through the various stages. This is how NESTA€ s Big Green Challenge was organised

The Big Green Challenge, aimed at the not-for-profit 3 PROTOTYPING AND PILOTS 55

combine the investment decision and business support. Typical units for individual projects range from £2k-£250k,

enterprises created 98) Paying for time. Taking innovative front line workers out of service roles and putting them into incubators or prestigious time-limited roles

to turn ideas into business plans (with the time costs then potentially turned into equity or loans

99) Vouchers to provide purchasing power directly to NGOS or service providers to buy research in universities;

commission incubators (being tested by the ESRC 100) Collective voice and credits. Allowing staff in an organisation to vote

public procurement can create sufficient demand to establish entirely new markets for innovation. One example is the Internet,

other times existing services need to be transformed or replaced. But to move from pilots and prototypes to a securely established public innovation, it is

often advisable to set it up as a separate venture, with public finance and a

service contract that can prove itself at scale. Indeed, this may be crucial if the new idea is to have the right culture and ethos

•A business model that runs parallel to the core idea of the venture and which sets out how it can become sustainable

•Sources of finance, both start-up capital in the short term and income streams over the longer term

•A network and communications model to develop what we refer to as the venture†s †relational capitalâ€

These will be translated into an economic or business plan, which details the service or initiative, how it will be provided, by whom, with what inputs, how

Any venture driven by a social mission has an interest in maximising the spread of an innovation beyond the

Most social ventures have to do both †to remain open and collaborative, while surviving financially.

this openness, together with the social mission of the venture, that attracts voluntary contributions in terms of volunteer time, resources, and donations

Social ventures have much to gain from keeping open, yet this is easier said than done.

Ventures are subject to the day to day disciplines of keeping the show on the road. They tend to turn inwards behind their organisational moat

depends on a business model †a clear idea of how it will generate a sufficient income stream that covers more than costs.

105) Innovative business models. 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 and re -enforce each other. For social enterprises, the business model represents

a strategy for sustainability. It needs to be simple, persuasive and striking, since along with the social idea,

Business models that work are themselves a prime area for social innovation. They are as diverse as business models in commercial

markets, ranging from direct service provision to commissioners through models that create value for customers to models similar to

those around the web that share knowledge and intellectual property 106) Business strategies. The context for a business model is a business

strategy about how the proposed venture is positioned on the economic field of play. There will be key points of control in any sector of

production. In some it is retailing and distribution; in others it is a key stage in processing;

There are a range of social business models that involve recognising the potential value of a venture†s assets and

and services 11. Business plan1. Communities of benefit 12. Cash These are useful tools, both for managers and investors, that drive

4. Business plan 5. Marketing3. Manufacturing 6. Sales2. Product 7. CEO1. Technology 8. Team12. Control 9. Board11.

axis (as we might expect in Silicon valley), along with the business plan the CEO and the financing axes.

For the social economy the issues of control, the team and relations with users are likely to have greater

which a venture is based. In the diagram below we identify 12 alternative axes which may be more appropriate for social ventures

62 THE OPEN BOOK OF SOCIAL INNOVATION 4 disaggregating its activities to generate alternative income streams

Particularly instructive for social ventures are the lessons from the business models adopted by web companies which, like social ventures

have an interest in maintaining free access, while at the same time generating revenues indirectly as the result of the response that the free

108) Business plans. Business models together with business strategies then need to be turned into business plans. Although it is rare for a

social venture to be a straightforward implementation of a blueprint (it is much more like a process of discovery and unfolding), plans help to

clarify tasks, milestones, and sequencing †for example of investment in people, equipment and market growth.

Business plans cannot design the future, and few survive their first encounters with reality. But they

provide a chart for a venture†s theatre of operations and demonstrate the competence of those engaged in taking the venture forward

109) Business plan assessment methods. There are many methods that help to define business models and business plans. The Bell-Mason

methods from the field of venture capital, for example, provide a rigorous framework for paying attention to the many elements that together make

up a credible business plan, such as skills, marketing, and finance. Their model for new ventures has shown 12 axes in the diagram below.

For each of them, progress is mapped in four stages. First is the concept stage. This is seeded and then developed as a product.

Finally there is the market development stage. They have used this diagnostic model to chart the progress of more than 450 ventures,

in order to identify key areas for further development Ownership and organisational form There comes a point

when every venture has to decide what organisational form to take, what kind of decision making and accountability processes to

adopt, and which kinds of information and financial management systems to put in place. These decisions can be costly and time consuming.

But getting it right early on provides structures and systems which act as skeletons that help hold the organisation together.

In the social economy, ownership is an ambiguous concept. Its organisational structures are the site of contending pressures of goals and interests.

For some social ventures, simple private company models are the most suitable: they may help with raising equity, and

as new capital is brought in), and they cannot be tied indefinitely to a mission or a set of values.

Most social ventures depend on restrictions Just a few of the houses built by Un Techo para Chile (A Roof for Chile

creating different categories of shareholder; by giving particular groups voting rights; or golden shares. These arrangements can be fixed

form adopted by Riversimple, a project to prototype an electric car 114) Co-ops and Associations tend to be less flexible than private

communities in which they operate, providing work, services, and support. Examples include Japanese food consumer co-ops, and the

trusts, with a further 95 supporters†trusts having shareholdings in their clubs. There has also been a growth of †New Mutualismâ€,

services. There are now 125 NHS Foundation Trusts that have been established as multi-stakeholder mutuals; GPS have organised mutuals to

provide out of hours primary care; there has been a growth of publicly funded childcare co-ops,

as well as leisure trusts and social enterprises running public leisure facilities. There are now 109 such leisure mutuals

enterprises, and is similar to charitable status. CIC status enables social ventures to access equity investment while maintaining the social goals

of the enterprise as paramount. They do this by having a lock on assets and a cap on dividends,

which partially insulates the enterprise from the private market†s imperative for profit maximisation and capital

growth. One example is Working Rite, which specialises in work-based mentoring projects. Based on the idea that †everyone remembers their

first bossâ€, Working Rite matches an unemployed young person with a skilled tradesman and supports the young person through a six month

and governance reinforce relational capital, creating a source of resilience for when the enterprise goes through difficult times

119) Boards are one of the key design features of any organisation. As instruments of governance of social ventures, they have a dysfunctional

history. They represent a division between moral and manual labour between the board that interprets the social goals of the organisation

Yet the success of a social venture depends on an integration of the two. The means of overcoming this

work of the venture. Boards are required legally to act as guardians of values and mission, and often see themselves as having to resist

But increasingly social ventures are seeking ways to involve stakeholders that do not depend on representation on a board

120) Boards for innovation. Some design features of boards can actively promote innovation. In principle, user and beneficiary representation

significant source of engagement and capital. Most businesses see AGMS as an annoying necessity where small shareholders can vent their anger

Social movements, by contrast, use AGMS to reinforce commitments to the mission 122) Stakeholder governance.

There are a number of ways in which core stakeholders can be incorporated in the structure of an organisation and

its processes. These include the constitution, a shareholders†agreement or the terms of a limited partnership

comprehensive guides to help ventures make decisions about governance models and organisational forms. These can be used at an

early stage to guide negotiations between stakeholders. We anticipate considerable web-based innovation in this field, with websites providing

members and stakeholders 124) Consumer shareholding can be used to involve consumers more directly in the work of a venture, both directly, and through

representation on the board. This was one of the main reasons Cafã direct opted to have a share issue geared to small shareholders as a

means of raising finance 125) Gold standards and Golden Shares. Social businesses like Cafã direct have adopted a detailed Gold standard to provide a constitutional

anchor to the company†s social character, and have a separate company of Guardians to ensure that the gold standard is maintained.

Much of the social economy is made up of organisations that are not dissimilar to those in the state or private business which have a

consumer demand is being met successfully. The demands of a †Just in Time†system of production, for example, provide the structure and

discipline to front line staff formerly supplied by hierarchical managers The manager†s task in this case is to assess variances in performance and

services 128) Distributed organisations. Many social ventures try and avoid strict hierarchical structures by remaining small and by subdividing (like

cells) or collaborating with other similar ventures. Some have adopted a franchised model, to allow each unit to remain relatively small, while

benefitting from economies of scale for the group of ventures as a whole This is the basis for the expansion of Riverford Organic Vegetables Ltd

which franchises distributors of its organic produce, while involving 12 sister farms in a cooperative of regional producers.

his venture small, and production local. The resulting network now delivers 47,000 organic food boxes a week

commonly a tension between the demands of continuing operations and the venture†s ability to maintain innovation.

demands of innovation may put pressure on existing business. There are different management styles that may be appropriate for innovation

The distinctive value and values of a social venture show up not just in its structures but in its operations †how it works with others, uses technologies

reflect the values of the venture are often a key element in sustaining and expanding a social venture.

An organic food box scheme, for example, depends on its certified supply chain. A fair trade company

132) Socially-oriented demand chains. For some ventures providing intermediate goods or services the challenge is how to develop a demand

chain that processes or distributes the good or service. The community movement for recycling worked with local and regional governments to

promote processing factories †and in some cases industries †to use the materials that they had collected.

different types of demand. Sometimes the chain may be linked closely Farmer†s co-ops in Italy for example, supply cooperative processing

demand chain reflecting the social mission of the venture 4 SUSTAINING 71 133) Shared backroom economies.

Many new ventures carry high overheads because of their small scale, or they fail to invest in financial

and operational systems that are important for their effective working It is important for ventures to find ways of sharing these overheads, or

access part-time specialists, or download systems (such as web designs and technologies) that are becoming freely available.

services such as booking, accounting, legal advice, and even political representation to its federated artisans 134) Collaborative technologies.

It is often important for ventures to adopt technologies that are flexible, adaptable, and suitable for distributed

Relational capital New ventures put much of their energy into securing financial capital †money

to invest in fixed assets on the one hand, and working capital on the other. But relational capital is just as important.

This is both the knowledge and trust built up between a venture and its users and suppliers, and the relationships

between a venture and its staff and volunteers. Conventional accounting takes little account of this intangible capital,

yet in all social ventures it is the foundation of their strength, and of their distinctiveness

We use the concept of relational capital to capture the quality of relationships within which economic exchanges take place.

This is the issue of greatest relevance for a social venture, as its fortunes depend on the range and depth

of its relationships that These relationships are multifaceted. They include the nature of its connections: to users and investors;

to suppliers and distributors; and with its own staff, board and volunteers. With many of them there will be formal

property and contract, for a social venture the boundaries are more porous †internal and external interests mesh

It is one of its greatest potential assets that a social venture can attract support and resources from outside itself,

project, for it is from an open and inclusive culture that a social venture draws much of its strength

ventures tend to rely on their idea to galvanise funders and users They place their operational focus more on supply than demand.

But 4 SUSTAINING 75 to ensure that the venture remains generative rather than static, users

should remain central †a service should know who they are and who is missing,

Just as no venture can operate without a finance and accounting system, it requires a system of user relationships and

All social ventures now have to have a website. But their full potential has begun only to be explored.

Many ventures are by their nature information intensive †in respect to the quality and tangibility

It has therefore become crucial for ventures to have access to the tools †wikis, chat rooms, forums, comment boxes, and

Above all, a venture needs to devote resources to the constant updating and active hosting of their sites.

Social ventures, particularly those that are tax-funded or grant-aided, have been suspicious of branding

But all ventures have an appearance and a style. It is part of the way they communicate.

Social ventures should see branding as a flame that indicates a presence and attracts people

Some ventures go further and make their workplace into a working gallery or museum. They demonstrate much of their work

It is always a useful exercise for a venture 4 76 THE OPEN BOOK OF SOCIAL INNOVATION

140) Open events to provide an opportunity for organisations to engage a wide variety of people in the work of the organization.

much more important for social ventures than commercial ones. They allow a wider group to share in the spirit of the venture

141) Open forms of intellectual property to maximise the spread and diffusion of the idea or service.

Social ventures have an interest in adopting open forms of intellectual property. They stand to benefit

from a reciprocal economy of information, and in extending the value and impact of the knowledge they contribute.

venture that initiated the zero carbon development at Bedzed) recently placed its most valuable technical information on the web for open

For some ventures this may involve the foregoing of possible income streams from the sale

training and shared orientation of those engaged in the venture plays a critical role in providing cohesion to social ventures.

It informs the articulation of the venture†s central purpose. It provides meaning for those working for the venture, for investors and volunteers, and it gives

to the venture a living, reflexive power that is not limited to particular individuals or levels in the organisation,

but to all those involved. This is important also, for public innovation, through, for example, bodies like

not only for the venture itself, but to create a group of individuals able to put the ideas into practice more widely.

In a volunteer economy, roles, relationships and incentives have to be thought about differently to those where there is

expense, but there is great potential value to a new venture if it makes one of its goals the attraction and effective employment of a wide

like the social housing venture Habitat for Humanity, are primarily volunteer organisations of this kind

Venture finance Every innovation process requires some finance. For social ventures it is key that the sources of finance should share the venture†s social goals as the

primary driver of the enterprise. This may not always be possible. Raising capital may involve some compromise with the providers of capital, but the

goal should always be to find ways for the core finance to come from those

who share the venture†s mission As a rule, the earlier stages require the least money,

To finance new ventures there are a range of ethical banks and social funding agencies devoted to supporting new and expanding ventures.

All forms of finance bring with them power relationships, which can sometimes threaten the values and relationships which the venture is built on.

To guarantee that the initial venture funding remains subordinate to the values of the social

mission, enterprises can raise social equity, limit the quantity of common shares, and seek subordinated loans from sources ready to share early risk

without demanding a counterbalancing share in the project†s equity 145) Grant funding is provided sometimes to grow social ventures

This usually depends on one or two wealthy philanthropists having a sufficient commitment to the project.

within the social economy that include saving and lending circles, but much of the loans now being made for social ventures are coming from

specialised social finance organisations, sometimes seeking security usually from property), and sometimes lending against contracts

enterprises, and supporting spin outs from the public sector. It can be used for various kinds of social enterprises as well as for-profits.

The forms used will include: quasi-equity †which can be based royalty, or profit based;

148) Crowdfunding. Instead of raising funds through banks and other intermediary institutions, the web opens up the possibility of making

This is how My Football Club raised enough capital to purchase Ebbsfleet United 149) Public share issues are most suitable at times of expansion, when the

enterprise has proved itself, and risks are reduced. They sometimes have an advantage over venture capital funding in that they can tap investors

who want to make social impact their primary incentive rather than financial returns Here is one of Britain†s few cooperatively owned wind farms at Westmill in

It has 2, 400 shareholders. Image courtesy of Andrew Watson 4 80 THE OPEN BOOK OF SOCIAL INNOVATION

151) Venture philanthropy uses many of the tools of venture funding to promote start-up, growth,

and risk-taking social ventures. It plays an important role in diversifying capital markets for nonprofits and social

in Estonia, Invest for Children (i4c) in Spain, Oltre Venture in Italy, and both Social Venture Partners and Venture Philanthropy Partners in the

US Sustaining innovations through the public sector Sustaining ideas in the public sector involves different tools to those needed in

markets or for social ventures. There are similar issues of effective supply (the proof that a particular model works) and effective demand (mobilising sources

of finance to pay for the idea or service 152) Business cases within the public sector. In some parts of the public

The supply of ideas and demand for them tend to co-evolve: there are relatively few fields where there are

The private economy is structured to reserve the benefits of an innovation to its own organisation or to those

The social economy †being primarily oriented around social missions, favours the rapid diffusion of an

economy has less compulsion to organisational growth and more towards collaborative networking as a way of sharing innovation. 1

an innovation depends on effective supply and effective demand: effective supply refers to the growth of evidence to show that the innovation really

Effective demand refers to the willingness to pay. Both are needed †but sometimes the priority is to prove effectiveness while in other cases the

priority is to create demand †both by persuading people that there is a need to be met,

Some of the methods for effective supply include investment in evaluations and research data to demonstrate effectiveness

reap different kinds of economy (scale, scope, flow, penetration etc To grow effective demand, there may then be need a for diffusion through

advocacy, raising awareness, championing a cause, and campaigning for change. Advocacy is the key to creating demand for services, particularly from

public authorities †for example, making the case for public funding for drugs treatment or sex education

and requires more investment in professional skills 5 84 THE OPEN BOOK OF SOCIAL INNOVATION

idea behind the project becomes a key method for the social economy as does developing a capacity to respond to those inspired by the idea

Diffusing demand The promotion of social innovation has tended to focus on the supply side and how innovations can be diffused among service providers through experts

services should start from the user, and that its diffusion should be approached from the perspective of users, not least because they are in many cases also co

We also argue that a distinction should be made between services where demand can be expressed in the market (for fair trade or green goods

for example), those where demand is expressed through the state (lobbying for disability provisions or swimming pools, for example), and those involving

intermediate demand (public commissioning on behalf of citizens 158) Information for consumers. Providing free or cheap information can

also be a means of affecting consumer behaviour and demand. This is the case with smoking for example,

or food labelling, or cheap energy auditing 159) User groups and their campaigns. User/consumer/citizen groups

User groups create a demand for services, particularly from public authorities by spreading information and lobbying.

on businesses and the public sector to improve their products, services and processes. As social movements, they constitute an important

160) Promotion and marketing of innovative services and programmes to encourage behavioural change. This includes market

the †5 a day†campaign, the promotion of free smoking cessation services and the new NHS campaign †Change4life†which promotes healthy

kind of demand or activity. They encourage innovation in how to meet the target Scaling and diffusion in the public sector

new, or alternative, technologies and services. This removes an element of risk and encourages organisations to invest in specific technologies.

166) Creating intermediate demand via the professions for innovative goods and services. This could include purchasing

and reusing goods made from recycled or green materials †for example, re-skinned office equipment, or †environmentally friendly†building materials

Governments are big customers of goods and services †for example, the UK Government purchases £125 billion worth of goods and services per year

Alongside initiation, escalation and embedding, public procurement plays a role in relation to consolidation by purchasing services at scale. 5

170) Commissioning innovative services. Commissioning has become increasingly important in the public sector, with the increase in

contracting out services. Although often driven by costs, it has also been used as a means to introduce service innovation in publicly funded

provision. Local government in the UK has used commissioning to experiment with alternative service models provided by social enterprises

and grant based organisations, often working closely with them on extending the new practices. Another example is the NHS commissioning

and to create better services which 5 90 THE OPEN BOOK OF SOCIAL INNOVATION are tailored to the needs of service users.

an †early user†of new goods and services, demonstrating their value to the wider market.

which can help organisations refine their products and services so that they can compete more effectively in the global marketplace.

the aim is to design market structures in public services which create incentives for innovation. It has been one of the driving

to †buy†health services for their population, with Primary Care Trusts PCTS) continuing to hold the †real†budget.

services for patients to enable better use of resources 175) Payment by results in the NHS involves paying providers a fixed price

and can also lead to economies in processing tenders. The public sector†s procurement portal in the UK is Buying Solutions,

important where there are complex needs and multiple services involved. Examples include: drug action teams; behaviour and education

child and adolescent mental health services; or youth offending teams 182) †Share in savings†contracts, as pioneered by the US Information

director is given enough start-up capital and decides what he/she needs in terms of staff and equipment.

services at sporting events. 6 This is an instance where the goals of the organisation †to generally improve the quality of life for the blind â€

with demand has been one of the current issues being tackled by the Fairtrade Labelling Organisation (FLO.

A venture may take it on itself to ensure this synchronisation of growth, but it is undertaken also by

body National Energy Services (NES 5 SCALING AND DIFFUSION 95 189) Adapting models to reduce costs

developing the venture and the way it connects, and is held together by a common core of meaning

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 adaption of

their services †ranging from microcredit to housing and sanitation 193) Trade fairs are an important means of spreading information about

new products, services, and organisations. They also fulfil an important networking function. They can be used as an explicit tool to spread

based on the communication principles of various social groups found in nature †such as ants, bees, geese, and dolphins

is the creation of a database of open business models 199) Barefoot consultants. There is an important role for consultants and

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

However it is surprisingly rare †innovations more often grow through other means. Small social enterprises and other NGOS generally find

organisational growth difficult: it requires changes to leadership, culture and structures of accountability which may not be wanted,

or may be impossible More than 460 Barefoot Solar Engineers trained by the Barefoot College of Tilonia, Rajasthan, India have electrified solar homes in rural communities

adaptation to changing markets and environments. Complex multidimensional needs are a key site for potential collaboration

medium social enterprises, such as flexibility, drive, and dynamism 203) The consortium model. In Italy, small and medium firms have

developed consortia to provide collective services where scale is important. Many of these consortia are for marketing, with groups of

208) Standard investment appraisal methods †there are a wide range of tools in use in banking, venture capital and other fields of investment

which assess current and future cash flows, asset values, etc 209) Cost-benefit analysis (and its variant cost-effectiveness analysis

transport investment and large development projects 210) Stated preference methods monetise social value by drawing on

opportunity to do something; †bequest use (leaving something for the future); ) and †existence use†(satisfaction that things exist even if you

211) Revealed preference methods come from the field of economics and focus on the choices people have made in related fields in order to

217) Social Return on Investment (first developed by REDF), has become increasingly popular within the nonprofit world.

The benefit of SROI is helping stakeholders to recognise all of the potential benefits a project or program might have,

enterprise activities. However, REDF and others have retreated from the original claim that SROI could create single number measures,

them instead as processes for discussion between stakeholders 218) Social accounting methods have been used by many countries

indicators (ranging up to 400) showing how enterprises affect society Italy has a similar bilancio sociale

value to notions of opportunity cost (that is, what people would give up in order to receive a service or outcome whether through payments

personalised services; giving time (for example, as a school governor or giving up other personal resources (for example, giving blood.

a regeneration scheme, for example, showed that modest investments in home safety †which cost about 3 per cent as much as home repairs â€

222) Methods within the built environment. A Young Foundation study identified nearly 30 methods in use:

methods focused on profits residuals, and replacement costs; methods using multiple regressions and stepwise regressions; methods using artificial neural networks

or competitions such as the Singapore Public service Awards. Another example of this is school inspections †inspectors assess and then

surveys undertaken by citizens on services provided by the state †used to gather chronic disease data in Sheffield

228) Outcome benchmarks, such as the local surveys now undertaken to measure answers to questions such as how well people get on with each

Creating High Impact Non Profits. †Stanford Social Innovation Review. †Fall 2. A good summary of diffusion studies can be found in à berg,

Tracking the intersects and opportunities of economic, social and environmental value creation. †Available at:

2006) †Mapping Value in the Built Urban Environment. †A Report to the Commission for Architecture and the Built Environment.

London: CABE 11. This example is discussed in Seddon, J. 2003) Freedom from Command and Control

Systemic innovation is very different from innovation in products or services It involves changes to concepts and mindsets as well as to economic flows

laws, regulations, business models, habits in the home (separating waste collection systems, and new ways of reusing

or a new set of investment devices Systematic approaches to innovation are rare. But the UK health service

It is involved already heavily in innovation through investment in research and development on pharmaceuticals and medical instruments, and close

whole environments are reshaped to support healthier living Such top-down efforts succeed only to the extent that they mobilise the

challenge for bottom-up ventures is how to access the power and money to 6 110 THE OPEN BOOK OF SOCIAL INNOVATION

formerly centralised production is recasting many services. In energy services, for example, localised energy systems are reappearing, linked

both to domestic energy generation through renewables, or micro combined heat and power, and through the development of community

231) Changing the †scripts†around services. The script of a service or practice provides its meaning and rationale.

new regulations, directives, business models, and public attitudes 232) Prevention. Many new scripts are about investing in prevention rather

So is the slow re-orientation of healthcare services from illness to the creation of conditions for positive living.

of the 1930s Peckham experiment to create holistic environments for healthier living are a good example,

services more effective and fulfilling. An example, which could be applied in other fields, is holistic early years†education provision.

public investment in early years†education as well as effective models for delivery 234) New models of the support economy.

These reorient services around support for the user rather than the simple delivery of a standardised

package. The idea has led to radical models for reshaping care for the elderly, for example, that involve new platforms, and combinations

communication and service delivery in rural Maine 6 112 THE OPEN BOOK OF SOCIAL INNOVATION

236) Holistic support models for services such as The Key, Ten UK€ s support service for head teachers

237) Personalized support services such as personal health and fitness coaches, increasingly backed up by shared data services and networks

Service design in the 1980s and 1990s often focused on disaggregating services, creating back offices separate from the front line, and breaking

services into modular elements. In practice this often led to lower These are envac points at the Hammarby Sjã stad low-carbon housing

development in Stockholm, Sweden. Waste is dropped in the inlets †a vacuum system sucks it to the collection terminal where it is sorted.

working prototype for a new and sustainable way of living. Image courtesy of Liz Bartlett

Demand Driven System Change with Agenda Alignment Between •Donor Community •National Governments Prove Success & Scale

and investment in community-based solutions focused on prevention. These are part of a †family†of innovations in

-profit organisations trying to effect change on a systemic level. The Nike Foundation†s work to develop the ability of adolescent girls in developing

This was seen as crucial to creating a holistic set of services to deal with children†s needs,

246) Rewiring economies, connecting sectors like the utilities and automotive industries for the development of plug-in hybrid cars, or

experience of working in small social enterprises. These could play a critical role in training up a future cadre of social innovators

253) Establishing working prototypes of the new system, for example the low carbon housing in Vauban in Switzerland,

digital learning environments such as colleges in second life 255) Comprehensive pilots, such as the Bastoey Island prison in Norway

256) Blocking technology and other investment choices that will impede changes to systems. This is particularly relevant to key infrastructures

investment, or reinvestment, in an old model can be the key to creating space for investment in new alternatives

257) Frames for change. Framing involves linking particular events †such as natural disasters, crises of care or of the economy †to underlying

causes, and using this as the basis for proposing major systemic change Here, the combination of framing, communications techniques, and

campaigning are critical: for example, using the tragedy of deaths of older people from heat waves to advance radical change in how social

environment to equality, has depended on recognition of its principles in law New legislative and regulatory architectures can be the keys to unlocking

to new demands on systems of provision, that often lead to service and process innovation

environmental investment, as with home insulation in the UK, biofuels renewable energy equipment and recycled paper in the Czech republic

systemic ideas they need different methods to those used for investment in established systems. At an early stage there is unlikely to be any clear

or any benchmarks to draw on. Instead, assessments need to include some judgement of the broader direction of change in the field as a

rough assessments of the relational capital they bring. Not surprisingly, these tools and approaches are rare â€

care, or environment and transport 274) The creation of new investment flows can do the same, particularly

when these are supported by new kinds of property or asset, such as the Clean Development Mechanism (CDM) in climate change.

encourage preventative services. One example is Oregon†s Justice Reinvestment programme †a local approach to justice decision making

The Opportunity, 2050 Roadmap. †Discussion Paper. London: Department of energy and Climate Change 3. Allen, R. and Stern, V. Eds)( 2007) †Justice Reinvestment †A New Approach to Crime and

specialists in technology transfer, venture capital firms, conferences, and academic journals †which sit alongside consultants adept at looking at

They are one of the reasons why economics has found it hard to understand innovation without a substantial dose of sociology added in

because their business model draws on the fact that any new venture needs to be based somewhere,

and people tend to like to congregate with others like them In the medium term however,

economy intermediaries to become more explicitly focused on their knowledge and relationships. One of their roles is to grow fields and markets:

range of social ventures to become more effective in tackling social problems We†ve suggested that much social innovation comes from linking up the

They help to establish markets for new services and projects, and to spread innovations by developing networks which highlight

for Real Services. The Young Foundation has employed an experienced investigative journalist to play a similar role in healthcare, scanning for

278) Social intrapreneurs are people who work inside large organisations to develop and promote practical solutions to social or environmental

Social intrapreneurs apply the principles of social entrepreneurship inside a major organisation. They can also be

characterised by an †insider-outsider†mindset and approach. 1 One example is Win Sakdinan at Procter & gamble who developed the

shaping the environment of BEN PCT so that innovation becomes embedded and is hardwired into its systems and processes.

enterprises to improve local health outcomes within the first 12 months of the project The Saheli Women†s Centre in Balsall Heath, Birmingham.

are multidisciplinary and able to engage a wide range of stakeholders in the design, development,

enterprises, and the research community under one roof to promote user-centred innovation A day in the life.

on supporting innovation in schools and children†s services, the third sector, and local government 282) Local innovation teams such as SILK at Kent County Council, which

including helping fathers to access statutory services, and teaching young women about healthy living and how to cook healthy food on a

knowledge, experience, and investment. Borrowing from the best of a member†s club, an innovation agency, a serviced office and a think-tank

the Hub have created a very different kind of innovation environment places with all the tools and trimmings needed to grow

ventures; places to access experience, knowledge, finance and markets And above all, places for making connections

enterprise with a mission to catalyse social innovation in its home base of Toronto, and around the globe.

and the right environment. It is this unique approach that distinguishes the CSI model and which forms

a business park for social enterprises and cooperatives. The park will include start-ups, regional and governmental organisations, and

such as climate change and welfare by linking small-scale social enterprises and projects to big institutions, laws,

innovation, as well as innovation for the economy. The Department for Business, Innovation and Skills (BIS) in the UK is one example.

a wide-ranging portfolio, covering regulation, enterprise and business support, higher education, innovation, and science. Another example is

the Finnish Ministry for the Environment whilst at the same time making important progress in the opening of international markets to Finnish

enterprises 288) Specialist innovation agencies such as the NHS Institute for Innovation and Improvement in the UK,

others act as internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations,

or Singapore†s Enterprise Challenge. Some funds are increasingly branching into service CONNECTING PEOPLE, IDEAS AND RESOURCES 133

290) Innovation incubators play a critical role: they bring together the skills and expertise necessary to help sustain

enterprise; provide a space to test out new ideas rapidly in practice, with quick assessments; allow fast learning across a community of innovators

many different kinds of incubator and innovation agency to develop a model that seeks to create new ventures and back social entrepreneurs

†with a multidisciplinary team, a staged investment model, and an emphasis on linking business expertise with understanding of policy

contexts. Mars in Toronto links a university, a hospital, research labs and a business incubator, alongside a social innovation investment fund

Mars is a nonprofit innovation centre connecting science, technology and social entrepreneurs with business skills, networks, and capital to

stimulate innovation, and accelerate the creation and growth of successful Canadian enterprises. It was created in 2000 on the site of the old Toronto

General Hospital. Image courtesy of Mars Discovery District 134 THE OPEN BOOK OF SOCIAL INNOVATION

Economics, and the Catholic University of Leuven. There is also the Poverty Action Lab at MIT which tests out alternative interventions

299) Innovation accelerators bring people together to quicken the initial stages of innovation. One example is Social Innovation Camp which

the social economy ††they can leverage the assets that already exist in a

range of benefits that are particularly important within the social economy they can expand rapidly and widely;

Inclusive Entrepreneurship (COPIE) brings together a wide variety of stakeholders to discuss issues relating to inclusive entrepreneurship, local

development, and social entrepreneurship 305) Action learning sets are groups of between four and seven people

who come together on a regular basis to reflect on their work, support each other, and learn from formal evidence as an aid to both innovation

accredited professionals and others that provide similar services 311) Co-production platforms. Traditionally, we think of businesses

providing and charging customers for a particular service. With platforms, the distinction between customers and producers dissolves as

†customers†produce services themselves. This is the case, for example with Lego. Lego have created a web platform †Designbyme 3. 0 †which

enables users (mainly children) to design their own Lego sets. The designs are collated together in the Lego gallery

Here, customers are co-producers and co-creators 312) Online laboratories equip innovators with the tools to carry out their

This includes file sharing services such as Napster, and open-source software such as the Linux operating system, the Mozilla Firefox browser,

1. Sustainability (2008) †The Social Intrapreneur: A Field Guide for Corporate Changemakers. †London:

Brokering Innovation In public Services. †London: Innovation Unit. Other interesting articles on the role of intermediaries in supporting innovation include:

communication •Blurred boundaries between production and consumption •An emphasis on collaboration and on repeated interactions, care and

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, as a source of innovation and production, could stand on an equal footing with the private

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. Although analytically distinct from the private market, it includes social enterprises engaging in the market, as well as

some of the activities of private companies that have primarily social goals. 2 If the social economy is a hybrid,

so are the firms, states, charities and households that operate within it. They have a base in one of the four sub

-economies, but also operate across its boundaries. In the market, private firms receive grants from the state, for example,

and social enterprises attract all sorts of voluntary support. But for both private and social enterprises the

primary discipline is the market. Similarly, some charities and other grant -based organisations run their own shops and other market enterprises

and many contract services to the state. Yet organisations like Oxfam and Age Concern are shaped still primarily by the grant economy in how they

raise their money, how they distribute their services, and in their forms of accountability 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 WAYS OF SUPPORTING SOCIAL INNOVATION 143 The interfaces Formally, 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, inwards in the form of taxation and fees, outwards in the form of grants, procurement

and investment. There are many others, including the regulatory, fiscal and legal conditions determined by the state,

and the platforms and tools provided by the state for the actors in other parts of the social economy.

Each of these can be critical for innovation (for example changes in personal tax to allow

new forms of caring), and are subject to innovation in themselves (for example the creation of Community Interest Company status as an element in company

law The fourth interface is between the private market and grant economy. These relations include, for example, corporate sponsorship, charitable donations

mentoring, and various types of corporate social responsibility. There are also emergent forms of productive collaboration between private corporations

and NGOS, exemplified in the work of Philips in developing new models of The State The Market

The Household The Granteconomy The Social Economy Source: The Young Foundation 144 THE OPEN BOOK OF SOCIAL INNOVATION

healthcare, combining commercial provision of goods and services with mutual support and roles for NGOS

The fifth and sixth interfaces (along with the third) constitute the household economy†s relations with the other three sub-economies.

Taking the interface between the household and the private market first, this is of course the space where firms operate,

selling products and services to households and engaging individuals as workers. In some cases, firms have used 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

economy of environmental change 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.

One of the most sensitive areas of this interface is when associations and movements from the household economy partially

transfer themselves into the grant economy, appointing professionals paid for by subscriptions or grants These examples are the tidy, analytical depiction of the interfaces.

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 compulsory targets for the employment of

people with disabilities This is also the case with household-generated innovation. There are a number of areas to explore that cut across

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), for example, are an important innovation in this space â€

Neither the state nor the grant economy has the structure or incentive to innovate in this way.

hand †that most distributed of economic systems †generates ideas but on its own lacks the capital, surplus time,

and organisational capacity to develop them Here, we look at some of the methods used within each sector to promote

1. Murray, R. 2009) †Danger and Opportunity: 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. †Cambridge, MA:

Harvard Business school Press. He puts forward an evolutionary model of growth, parallel to that of Darwin, in which the market is the primary mechanism of selection.

The parallel between ecological and market economic mechanisms is one reason why many in the environmental

not deal with those areas of the economy which are difficult to commodify 146 THE OPEN BOOK OF SOCIAL INNOVATION

and parcel various activities and services out to contractors from the market and third sector †such as prisons, healthcare

-scale in terms of funds, commitment of people and political capital. But serious innovation is tied closely into strategy.

sometimes playing direct roles in redesigning services. Examples include expert patients, groups and mobilising ex-offenders in service design

opportunity to design and develop innovative approaches to policy. Its 1 SUPPORT IN THE PUBLIC SECTOR 149

develop a culture of co-creation, creativity, design thinking and visualisation in public authorities. Image courtesy of The 27e Region

cent of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support for technological and scientific

324) Dedicated innovation funds and internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations, The

Enterprise Challenge in Singapore, and the $700 million US education innovation fund. In the UK, the NHS has established a £220 million

tested, with £20 million to be spent on a public competition for medical breakthroughs 325) Crosscutting budgets that support broad programmes which leave

services, and bring all the problems associated with performance incentives, including deciding who in a team should benefit

Fund competition †The People†s 50 Millionâ€. Another example is †Help A London Parkâ€, an initiative launched by the Mayor of London to

and run their own services in place of existing state, regional, or national bureaucracies. These can be a powerful driver for innovation

maintenance and other services 340) Tracking public finances may be aided by public balance sheet accounting and greater transparency of public finance (as happens

from utilities †for investment in emerging green technologies and other innovations 348) Community pledgebanks are a development of the Pledgebank idea

and hypothecated fees for services by the state 1 156 THE OPEN BOOK OF SOCIAL INNOVATION

and competitions provide another source of funding for activities at one remove from the state.

funding for community ventures 351) Socialising risk. New forms of social insurance for long term care â€

solutions which will reduce demand for services Public mediums of exchange and means of payment

arrange, and pay for their own care and services (see also method 183 353) Quasi-currencies and environmental permits, such as Packaging

services to be reconfigured, often prompting innovative ways of thinking about services. Cards like the Hong kong Octopus transit card or the

London Oyster card have considerable potential for expansion 356) Loyalty and incentive schemes can support and promote healthy

Public investment Financing public investment is complicated by the common difficulty in quantifying the effects of an investment,

or capturing returns that are multi -dimensional and diffuse. This particularly applies to preventative investment

Private funding can be used where there are clear streams of revenue resulting from the investment, with the public funding element covering the wider

social impact elements of an investment †and reducing risk 359) Local bonds, including Tax Increment Financing (TIF) and Business

Improvement Districts (BIDS. These create flows of resources at the local and very local levels,

and can support new functions at arm†s length from the local state 360) Generating revenue from public investment on the US railroad

model. Prior to investment, property rights are vested in a Community Land Trust (CLT) or public body which then benefits from the increased

rental value of sites after the public investment has been undertaken The Greater london Enterprise Board financed its operational

expenditures for many years through the sale of industrial property it had bought during the recession of the early 1980s

1 158 THE OPEN BOOK OF SOCIAL INNOVATION 361) Social investment funds, such as the proposed Social Investment

Bank to be funded from unclaimed bank accounts, which would act as a wholesaler for a range of financing needs (see method 475

362) Social enterprise investment funds, such as the Social Enterprise Investment Fund launched by the UK€ s Department of health with

around £100 million, using a mix of loan and equity finance 363) Endowment finance such as the National Endowment for Science

Technology and the Arts (NESTA) in the UK, or the various endowments established by the Canadian Government in the 2000s

contributions, sponsorship or community investment 366) Layered investments combining tranches with different rates of risk

/return and different sources of capital (philanthropic, public, private such as Blueorchard (Switzerland) or Big Issue Invest in the UK

367) Scheduling returns to ensure investors with the highest discount rates are given priority in the initial revenue flows from a project

369) Investment guarantees, with any claim on the guarantee being paid out with a one year delay.

counted in a public authority†s current investment programme (Sheffield City council pioneered this delayed payment method in the 1980s

370) Securitising future payment†streams to provide investment capital, as with the Prime Carbon scheme in Australia which contracts

capitalised to fund farmers†investment. Similar measures could be used to fund domestic or corporate energy efficiency measures

371) Financial instruments for preventative investment including the UK€ s †Invest to Save†budget, the USA€ s Justice Reinvestment

to make preventive investments. They were endorsed in a government white paper in December 2009 373) Health Impact Contracts are a potential new financing device

government), with investments by local authorities (for example in home based care for the elderly) tied to future payments by the NHS

†determined by whether the investment leads to lower pressure on hospitals and acute services

374) Bonus payments on spending aligned to social outcomes such as the UK Government†s Performance Reward Grant for local area partnerships

375) Public investment aimed at social innovation growth strategies such as the proposed Social Investment Bank, the Toronto Atmospheric

Fund, and Enterprise Boards 376) Public Finance Initiatives, also referred to as †public-private

partnershipsâ€, have been used mainly to finance physical structures and infrastructures, from roads and school buildings to prisons.

Enterprise Investment Scheme (EIS) for social enterprises, or property tax holidays for early-stage social enterprise and charities

378) Experimental zones are geographic areas which are used as a test bed for new ideas that can then be introduced nationwide.

zones provided a range of tax incentives to attract foreign investment and paved the way for the sweeping reforms and the unprecedented

economic growth of the past three decades. More recently there have been experiments in health insurance in Chongqing, and democratic

personal public investment, such as those for higher education, elder care and environmental investment 380) Charitable status extended to allow tax allowances on

investment funds, as with charitable investment in Community Interest Companies, or the L3c model in the US

which allows for programme-related investments from foundations 381) R&d tax credits for the design and development of innovations.

R&d tax credits have been extended to cover design, and although they are primarily designed for commercial companies,

fit the economics of social businesses Legislation and regulation Governments shape the conditions in which social entrepreneurs, businesses

economy such as compulsory targets, including the employment of people with disabilities, regulations for renewable energy, fiscal

385) Planning and tax rules to promote creative economies such as subsidised rent in art districts, including Soho in New york and Hackney

its prestigious annual awards competition, the programme has served to highlight innovative projects within fields as diverse as youth justice

a series of prototypes to try out alternative methods of exchanging 1 SUPPORT IN THE PUBLIC SECTOR 165

These prototypes were refined and adapted as a result of feedback from the nurses. The new system proved very successful and

and private enterprises, and vice versa 402) Collaborative structures for more innovative service design and delivery †such as Denmark†s School, Social services and Policy

IDEA (2005) †Innovation in public services: literature review. †London: IDEA; Mulgan, G. and Albury, D. 2003) †Innovation in the public sector. †London

new features and design of services;(iii) delivery innovations (new ways of delivering services and interacting with service users;(

iv) process innovations (new internal procedures and organisational forms; and (v) system innovations (including governance structures

2. Murray, R. 2009) †Danger and Opportunity: Crisis and the new Social Economy. †Provocation

London: NESTA 3. See for example, Murray, R. op cit.;Mulgan, G. 2007) †Ready or Not?

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, social movements, non-governmental organisations and associations. By its nature this sector tends to be fragmented and small in

scale. But its sense of mission often means that it is better than other sectors

entrepreneurship and venture philanthropy have also been better at supporting individual projects than making them more than the sum of their

We describe this sector as the grant economy because grants play an important part, even though much of the income received within this sector

smaller, but visible, trend has been the growth in venture philanthropy, with much greater involvement of donors in projects and organisations.

grant economy, there need to be new kinds of finance, platforms, packages of support, and regulatory, governance and accountability frameworks.

SUPPORT IN THE GRANT ECONOMY 169 and enterprises works best, or how to stage funding to maximum effect

We anticipate rapid evolution in this space as philanthropists develop more sophisticated hybrid tools that can combine grants, loans, and equity

grant economy Grant giving Increasingly, donors are trying to avoid some of the limitations of traditional

are treating grants more like investments †alongside project involvement technical support, continuous funding, and the coverage of core costs. 4

Entrepreneurship, the Social Entrepreneur of the Year Award (organised by the Schwab Foundation for Social Entrepreneurship), and the

Macarthur Fellows Program which grants $500, 000 to recipients over five years. Such awards can be an effective means of distributing funds

In addition, the teams have to prepare business plans which demonstrate how the car can be taken to market immediately.

407) Competitions and challenge funds can be an effective means of spurring social innovation. The X Prize Foundation, for example, have

SUPPORT IN THE GRANT ECONOMY 171 408) Intermediaries who allocate grants for specific projects on behalf of

411) Grants as investment including tapered grant funding, public equity and preference shares 412) Grants as complements to innovation investment packages.

Grant funding for off-balance sheet expenditure, for example Cordaid†s investment and development packages for commodity development

projects, or the UK€ s Department for International Development (DFID Frich grant programme for UK market development for African supply

New Philanthropy Capital in the UK and Geneva Global in the US perform this role

414) Giving and social investment circles such as the Funding Network United Way, Social Venture Network,

or the North Virginian Giving Circle of HOPE (Helping Other People Everydy. The last of these has

Grant programme which provides not-for-profit organisations with pro bono marketing, human resources and IT consulting services

417) Philanthropic †ebaysâ€. Philanthropic platforms such as Volunteermatch which help people find volunteering opportunities in

their local area 418) Donor platforms, such as Globalgiving, Altruistiq Exchange, Network For good, Firstgiving and Guidestar.

Mission-related investment Philanthropy has moved increasingly to softening the distinction between grant and investment †viewing funds as supporting projects that contribute to

a specific mission, including transformations of whole sectors for social ends 419) Strategic investments to transform sectoral provision, for

example, the Bill and Melinda Gates Foundation†s investment in small high schools across America; and the Prosperity Initiative;

which creates sectoral partnerships to stimulate industries that create income and employment for the rural poor

420) Venture philanthropy focused on innovation in particular sectors, such as the Robert Wood Johnson Foundation†s (RWJF€ s) Pioneer Portfolio

SUPPORT IN THE GRANT 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, in the UK at least there are often questions about who a charitable or nonprofit organisation

SUPPORT IN THE GRANT ECONOMY 175 424) Members and associates as sources of innovation and review

425) Metrics for venture philanthropy such as those developed by Homeward Bound, a project to end homelessness in the US, or †blended

stakeholder communications (for more information on metrics see methods 208-229 426) Effective philanthropy methods, encompass many tools for feedback

Guidestar†s services and databases in many countries worldwide, and New Philanthropy Capital in the UK

Packages of support A network of support services for grant-based organisations has developed some are specialist private firms,

some are social enterprises, and some are charities themselves. They provide legal and business advice, offer free

mentoring services, and help to raise funds 428) Support services for innovators including mentoring, information

and advice, connections and networks, and public visibility, such as Cleveland†s Civic Innovation Lab in Michigan and the Social Innovation

Generator in Toronto, Canada 429) Capacity-building support. Venture philanthropists, including Private Equity Foundation and Impetus Trust, are now using the skills of the

private equity industry to help †turn around†charities and build their internal capacities. The Private Equity Foundation has worked already

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

of financial sustainability and stakeholder management while keeping the organisation aligned to its mission and values

430) Developing skills within the grant economy. In the UK, ACEVO and the NCVO provide a range of training programmes for nonprofit

and entrepreneurship, such as Echoing Green†s SEQ †social emotional Teaching an Uprising. Uprising is a youth leadership programme based in

SUPPORT IN THE GRANT ECONOMY 177 intelligence †model. Many programmes now include a strong emphasis

Many MBAS now offer modules on social entrepreneurship, and there is a thriving market in specialist courses

435) Planning and tax rules to promote creative economies such as subsidised rent in arts districts,

SUPPORT IN THE GRANT ECONOMY 179 End notes 1. Blackmore, A. 2006) †How voluntary and community organisations can help transform public

services. †London: NCVO 2. Thomson, L. and Caulier-Grice, J. 2007) †Improving Small Scale Grant Funding for Local

4. John, R. 2006) Venture Philanthropy: the evolution of high engagement philanthropy in Europe. †Skoll Centre for Social Entrepreneurship Working Paper. †Oxford:

Saã d Business School, University of Oxford. Available at: http://www. sbs. ox. ac. uk/centres/skoll/research

/Documents/Venture%20philanthropy%20in%20europe. pdf. For large scale developments in this field, see: Bishop, M. and Green, M. 2008) †Philanthrocapitalism. †London:

ECONOMY The boundaries between the private sector and the social sector are breaking down for many reasons.

opportunities: for growing brand equity (through association with well known charities or social enterprises; attracting talent (particularly younger

people who want to believe that their employer has a social conscience and to stimulate cultures of innovation in the mainstream business through

The most significant development has been in the growth of social enterprises These are businesses which earn a profit

but are focussed on their social goals. 1 The main challenge for social enterprises is to maintain their commercial

position in the market whilst staying true to their social goals. Many, being small, lack economies of scale and scope.

In some cases, clusters of social enterprises have developed a network for collaboration and joint services which has enabled them to access services

†normally available only to large firms †while remaining small themselves Increasingly though, there are examples of social enterprises establishing

themselves in the mainstream Inspirational examples and more information on successful business models 3 SUPPORT IN THE MARKET ECONOMY 181

are critical for the growth and sustainability of the social enterprise sector There need to be diversified more capital markets, packages of support

for social entrepreneurs, and more supportive regulatory and legislative frameworks. More broadly, business leaders also need to become aware of the

Social business models Social business models are enabling organisations to tap into new sources of funding, and organise governance

and accountability structures in a way that resonates with the mission of the organisation (see also methods on ownership

442) Social enterprises operate in the market to achieve social goals There is currently no universally accepted definition of social enterprise

This is because social enterprises can take numerous forms, are engaged in multiple spheres of activity,

and because legal structures vary from country to country. For example, in Italy, social enterprises are constrained by a non-distribution clause †that is,

all income has to be reinvested in the enterprise. In the UK, the Community Interest Company (CIC) was created as a new legal form in 2004 to reduce the

tensions between finance and mission. CIC status makes the social mission dominant, and limits the returns on capital.

Economy TTTHEHEHE Stat Stat Stateee The Granthe Granthe Granttt Economeconomeconomyyythe Househthe Househseholseholseholddd 3 182 THE OPEN BOOK OF SOCIAL INNOVATION

limit on dividends of 35 per cent of profits. The term also covers a wide

Social enterprises can generate income in a myriad ways. Some may generate their income through direct provision of a service

Point in the UK provides †among other things †rehabilitation services for those affected by drugs or alcohol.

Others sell goods and services to customers while working towards their objectives behind the scenes

such as the Archipelago Cooperative which came out of the San Patrignano rehabilitation community in Rimini, Italy,

443) Social enterprise mutuals as providers of joint services for their members, such as the service consortia in the, Third Italy, or Work

Ventures in Australia 444) Consumer co-ops such as the Japanese food co-ops which have 13 million members.

-to-work services, 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, such as the Bertelsmann

part of a company†s profits to a separate foundation, or the US model where an entrepreneur becomes rich through one business and then

Some are more †hands on††such as the provision of services for social good †and others are more †hands off††such as providing resources

450) Hybrid business models that combine business capacities with 3 184 THE OPEN BOOK OF SOCIAL INNOVATION

451) Corporate not-for-profit management of social provision such as Academy Schools in the UK and Charter schools in the US

452) Partnerships between social enterprises and corporations with not-for-distributed profits such as BASF-GAIN initiative for Vitamin a in

Africa, the Danone-Grameen yoghurt enterprise in Bangladesh and the BASF †Grameen venture, also in Bangladesh,

which hopes to improve health and business opportunities for those on low income in the

country 453) Market commitments such as Cadbury†s commitment to buy only fairtrade cocoa for one of its products

M-PESA allows people to transfer money using a mobile phone. The term M-PESA comes from a combination of †M†for mobile and †Pesaâ€

One of the big challenges for social enterprise is growth. Partly, this is because they face limited access to risk and growth capital,

enterprises grow, they often face difficulties in balancing conflicting pressures Much has been written about social returns on investment, triple bottom

lines and †blended value†2 but how to ensure that the interests of investors

enterprise Social finance Increasingly, there are a range of financial instruments and packages which take into account the particular needs of social enterprises and businesses

with social goals. A number of these, like public share issues, funding through cooperative subscription and crowdfunding are discussed in section 4 on

Sustaining. Here we look at other emerging channels of social finance 456) Ethical investing, also known as †socially responsible investingâ€

both social and financial returns on investment †or at least, reduce the negative impacts of investments.

Investments can be screened negatively †to exclude, for example, companies and organisations which are responsible for exploitative labour practices,

cause harm to people and planet or are at odds with the values and mission of the investing

Investments can also be screened positively to include companies which further social and environmental goals. For example, the Norwegian Government

investments which †may contribute to unethical acts of omissions, such 3 186 THE OPEN BOOK OF SOCIAL INNOVATION

personal investment into green, sustainable and ethical products 457) Mission-connected investment is a form of ethical investing

†it allows organisations to tie their investments closely to their missions in order to achieve their charitable goals.

So, for example an environmental foundation might choose to invest in recycling and renewable energy companies,

458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank, which invests in high impact and commercially

sustainable social enterprises. Their aim is to help grow a dozen or so social enterprises in the UK

459) Social venture funds that use equity-like investments for start-up and early-stage social ventures where loan financing is unsuitable

Examples include Bridges Community Ventures in the UK, which invests in businesses based in regeneration areas and in sustainable business

sectors, including the environment, education, and healthcare 460) Microcredit for microproduction. Grameen, BRAC and ASA in

Bangladesh, and the multiple versions of microcredit inspired by them as well as much older traditions of microcredit in Europe.

Triodos Bank in the UK, has invested in the microfinance sector since 1994. The Bank now has a total of â 140 million lent

investment for charity, and for those paying off loans †all the interest goes to charity as well.

can invest in the start-up equity of social ventures, as with the Mustard Seed charity†s investment in the fair trade Community Interest Company

Liberation Foods 465) Investment-readiness support aims to get projects or promising enterprises to a stage where traditional investors can make investments

This can include, for example, providing interim finance directors or accelerating product or service testing, in order to allow loan and equity

providers to come in. Other useful elements include standardised due diligence packs (business plan, accounts, legal information, etc) to

enable approaches to any funder 466) Philanthropic investment for growth such as the CAN Breakthrough Social Investment Fund which provides strategic support and growth

capital to established social enterprises with the ambition and potential both to scale up their businesses and maximise their social impact

Breakthrough was founded by CAN (formally known as Community Action Network) and the private equity firm Permira in 2005.

CAN founded in 1998, runs CAN Social Investment, leveraging business support from leading private sector companies, as well as CAN

Mezzanine, which provides shared office space for more than 115 charities and social enterprises in sites in central London (see also

method 487 467) R&d mentored funding prior to start-up lending, such as MONDRAGON€ s Caja Laboral.

to the specific needs of social enterprises and businesses with social and environmental goals 468) Ethical banks including Triodos Bank and the Cooperative bank

of shareholders and savers in the company†s decision making process must be encouraged; each organisation which accepts

of the proposal and the prospects of the enterprise. If the judgement is positive, the committee then promises to guarantee a bank loan

to the enterprise, backed by a small capital reserve and the personal guarantees of each member of the consortium.

473) Bank-based funding for social enterprises and not-for-profit organisations including Banca Prossima in Italy

474) Business angels provide finance for social ventures, often with advisory roles, and sometimes supported by networks to link investors and

476) †ebays†for social investment, for example, Clearlyso, an online market place for social enterprises

and lenders that takes a small margin on the financial transaction Information Improving market information can help consumers differentiate between

food and services 480) Consumer guides and reviews. Since Raymond Postgate founded the †Good Food Guide†in 1951 and Michael Young founded the Consumer

They remain critical to the social economy, both in assessing products and services on the basis of social criteria, and in

providing publicity to social enterprises. Countries like Cyprus have used the model of a †Good Food Guide†to upgrade the quality of the island†s

food and restaurant industry 481) Social movement campaigns around corporate conduct such as the Nestlã baby milk campaign

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 primarily geared at promoting the local economy.

There remains scope for a considerable expansion of these methods to promote social and environmental

goods and services 482) Local trading currencies. There are now an estimated 2, 500 local currencies operating world wide, particularly payment-voucher systems

that are exchangeable for the mainstream currency. In Europe, Germany has more than 20 such currencies.

Local business can then decide to give customers special offers for using the money (see methods on Informal Trading

There is growing interest and investment in the development of financial resources for social enterprise. As yet, very few resources have been devoted

to labour market development. However, developing skills within the field of social enterprise is critical to the growth and development of the sector

483) Specialist academies linked to social economy initiatives, such as: the University of Mondragã n in Spain;

the Sekem Academy in Egypt for the research and study of agriculture, pharmaceuticals and medicine

economy, such as Harvard†s Advanced Leadership Programme pioneered by Rosabeth Moss Kanter and launched in 2008/9

486) Lessons in social entrepreneurship such as the programmes offered by INSEAD and the Skoll Centre for Social Entrepreneurship

at Oxford†s Saã d Business school. Another model is the School for Social Entrepreneurs (SSE) mentioned in method 206,

which promotes social entrepreneurship and social enterprise across the UK (see also method 466 3 SUPPORT IN THE MARKET ECONOMY 193

Currently a number of social enterprises trade shares through matched bargains between registered buyers and registered

investigate the viability of a social stock exchange for social enterprises in the UK 492) Social indices such as the FTSE4GOOD Index Series, which measures

responsible investment, as a way of identifying environmentally and socially responsible companies, and to track their performance over

1. For more information on social enterprises and social entrepreneurship see, Nicholls, A Ed.)(2006) †Social Entrepreneurship:

new models of sustainable social change. †Oxford Oxford university Press; Gregory Dees, J. 2001) †The Meaning of Social Entrepreneurship. â€

Reformatted and revised, May 30, 2001; Defourny, J. and Nyssens, M. 2008) Social Enterprise in Europe:

Recent Trends and Developments. †Social Enterprise Journal. †Vol. 4, Issue 3, 2008 and Defourny, J. and Nyssens, M. 2008) †Conceptions of social enterprise in Europe and the

United states: convergences and divergences. †Paper presented at the 8th ISTR International Conference and 2nd EMES-ISTR European Conference, Barcelona, July 9-12,2008;

Borzaga C. and Defourny, J. Eds)( 2001) †The Emergence of Social Enterprise. †London and New york

Routledge 2. Emerson, J.,Spitzer, J. and Mulhair, G. 2006) †Blended Value Investing: Capital Opportunities

for Social and Environmental Impact. †Geneva: World Economic Forum 3. For more information see:

Office of the Third Sector (2009) †Social Investment Wholesale Bank: A consultation on the functions and design. †London:

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,

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, usually leading ahead of government and business,

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

new systems are developing innovative business models to cover the costs involved †this is especially the case where services are provided for free

Organisations are finding new and alternative ways of raising money †through subscriptions, donations, charging for some services to cover the costs of

100 400 350 300 200 150 50 250 0 Germany Italy UK France Finland USA

SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 197 providing others, selling information on users and so on. 1 In the field of open

However, this is not just a virtual economy. It is also about care and support in

Economy TTTHEHEHE Stat Stat Stateee TTHEHE Ma Marrkekett TTTHEHEHE GGGRANTRANTRANT EEECONOCONOCONOMMMYYY 4 198 THE OPEN BOOK OF SOCIAL INNOVATION

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 and location of

SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 199 498) Hosts and moderators as online guides.

In the social economy, rather than restricting access to knowledge and information, there is value in diffusing and sharing ideas and information

economy by limiting free riders. Examples include open licences 500) Open licensing has redrawn the traditional battle lines between the

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, and networks for linking volunteers and projects (such as

They create an economy based on direct household time and can serve as alternatives to mainstream currencies

SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 203 514) Extending public spaces for domestic production such as

the production of services. In the words of Alvin Toffler, they have become †prosumers††producers as well as users of services.

They are playing a critical role in areas from health and education to recycling and the energy

SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 205 517) Users as producers †such as the Expert Patients Programme, which

520) Group services for networks of households, generalising the principle of sheltered accommodation. These are increasingly being

having profound implications on services and models of collective action 522) Developing new models of care and support.

SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 207 This could include educational coaching services, relief and back

-up for home carers, health coaches, birthing and post birth support and support teams for end of life care.

ways of organizing services Social movements Social movements have been the source of major waves of social innovations

over the past 40 years †notably in food, the environment, healthcare, and in transforming the social relations around gender,

economy, and have developed innovative forms of distributed network organisation and action, further facilitated by the advent of the internet

Entrepreneurship, Democratic Action, and the Cultivation of Solidarity, Cambridge MIT Press, 1999 Geoff Andrews, The Slow Food Story, Pluto Press, 2008

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

311 Services 21 Aalto University 134 Abecedarian Project 111 Academies 116; 192; 185 Accelerators 135

Accountability 3; 68-69; 152-155; 173 -175 Accounting 71; 74; 75; 99; 102; 104;

Bridges Community Ventures 186 Brokers 134 212 THE OPEN BOOK OF SOCIAL INNOVATION Brookings Institute 48

Business plans and models 59-63 Buying Solutions 91 Cadora, Eric 159 Cafã direct 68 Camp for Climate Action 120;

Entrepreneurship (COPIE) 137 Community Shared Agriculture 205 Competitions 38; 54-55; 156; 170 Complaints Choirs 26;

27 Consortium Model 99 Co-ops 65-66; 69; 70; 75; 80; 100; 182 183; 187;

Crowdfunding 79; 172 Cruz, Teddy 36 Curitiba 14; 16; 108; 157; 177 INDEX 213 DARPA 57;

For new ventures 78-80 For systemic change 121-122 Public economy 149-161 budgets to promote internal

innovation 150-152 democratic accountability and democratic innovation 152-155 new forms of taxation and revenue

public investment 157-160 fiscal moves to promote social innovation 160-161 Grant economy 168-173

grant giving 169-171 improving the grant relationship 171-172 mission related investment 172-173

Market economy 185-189 social finance 185-187 social finance institutions 188-189 Firstgiving 172 Fishbowls 47

Grant Economy 142-145; 167-179 Green Homes 88 Green Valleys 55 Greenpeace 28; 99

The Household economy 142-145; 195 -208 Hubs 129; 135 I Want Great care 21; 148

Incubators 133 Information systems 20-22; 89; 119-120 Infrastructure 114-115 Innocentive 134 Innovation Innovation Challenge Prize 54

Intrapreneurs 126 Invest to Save Budget 54; 132; 150; 159 Islington and Camden Training Network

National Health Service Social Enterprise Investment Fund 158 NHS Innovation Hubs 135 NHS Institute for Innovation and

Improvement 132 national innovation funds 92; 132; 160 National Institute for Clinical Excellence NICE) 87

New Economics Foundation (NEF) 49 New Philanthropy Capital 171; 175 New York†s Open Book 154

New zealand Police Act Wiki 42-43 Niagara Peninsula Homes 206 Nike Foundation 113 Nobel prizes 169

Oltre Venture 80 One Click Organisations 68 Open Open Access Journals 200 Open Brands 83;

Prime Minister†s The Enterprise Challenge (TEC) 150 Private Equity Foundation 175 Pro-Ams 139

Relational Capital 74-77 Report Empty Homes 18 Research & Mapping 17-20 Risk 54;

Entrepreneurship 169 Scripts 22; 110 Seating Arrangements 47-48 Seedcamp 44 Sekem 74; 192 Seoul Metropolitan Government 39

Skoll Centre for Social Entrepreneurship 192 Saã d Business school, Oxford university 126; 192 Skoll Foundation 169

Social economy 4-6; 63; 82; 84; 136 141-145; 192; 198; 199 Social Enterprise 2;

60; 66; 78; 86; 98 99; 103; 130-132; 142; 158; 162; 180 -189; 193

Social Venture Network 171 Social Venture Partners 80 218 THE OPEN BOOK OF SOCIAL INNOVATION

Sonoma Mountain Village 112 Space 18; 36; 45-46; 114; 129; 130; 148 153; 197;

Support Economy 5, 111,144 Sure Start 111,150-151 Tällberg Foundation 44 Taproot Foundation 172

Venture Philanthropy 80,167-168,172 175 Visiting 36,205 Vodafone 183-4, 219 Voting 41,65, 153-154

Work Ventures 183 Working Rite 66-67,220 World bank 19,38, 89 Worldchanging 178 WRAP 135 X-Prize 39

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,

entrepreneurship to meet social needs. We have a 55 year track record of success with ventures such as the Open university, †Which?

â€, the School for Social Entrepreneurs and Healthline (the precursor of NHS Direct. We work

over 40 ventures at any one time, with staff in New york and Paris as well as London and Birmingham in the UK

economy, social entrepreneurship and social enterprise. It draws on inputs from hundreds of organisations around the world to document the many

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