innovations as new ideas (products, services and models) that simultaneously meet social needs and create new social relationships or collaborations.
or unresolved by services organised by the state. Social innovation can take place inside or outside of public services.
identifying and delivering new services that improve the quality of life of individuals and communities; identifying and implementing new labour market integration processes, new
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.
and social care services. Service users are responsible for all stages of the research process †from design, recruitment, ethics and 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
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 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
used to refer to services as well 82) Fast prototyping emerged first in the software field,
interconnected elements rather than the discrete services or actions usually associated with pilots. A good example is the current experiment
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
and services 11. Business plan1. Communities of benefit 12. Cash These are useful tools, both for managers and investors, that drive
communities in which they operate, providing work, services, and support. Examples include Japanese food consumer co-ops, and the
services. There are now 125 NHS Foundation Trusts that have been established as multi-stakeholder mutuals; GPS have organised mutuals to
services 128) Distributed organisations. Many social ventures try and avoid strict hierarchical structures by remaining small and by subdividing (like
intermediate goods or services the challenge is how to develop a demand chain that processes
services such as booking, accounting, legal advice, and even political representation to its federated artisans 134) Collaborative technologies.
Advocacy is the key to creating demand for services, particularly from public authorities †for example, making the case for public funding for drugs
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
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
new, or alternative, technologies and services. This removes an element of risk and encourages organisations to invest in specific technologies.
goods and services. This could include purchasing and reusing goods made from recycled or green materials †for example, re-skinned office
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 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
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
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€
body National Energy Services (NES 5 SCALING AND DIFFUSION 95 189) Adapting models to reduce costs
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
developed consortia to provide collective services where scale is important. Many of these consortia are for marketing, with groups of
personalised services; giving time (for example, as a school governor or giving up other personal resources (for example, giving blood.
surveys undertaken by citizens on services provided by the state †used to gather chronic disease data in Sheffield
Systemic innovation is very different from innovation in products or services It involves changes to concepts and mindsets as well as to economic flows
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.
So is the slow re-orientation of healthcare services from illness to the creation of conditions for positive living.
services more effective and fulfilling. An example, which could be applied in other fields, is holistic early years†education provision.
These reorient services around support for the user rather than the simple delivery of a standardised
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.
This was seen as crucial to creating a holistic set of services to deal with children†s needs,
encourage preventative services. One example is Oregon†s Justice Reinvestment programme †a local approach to justice decision making
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
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
accredited professionals and others that provide similar services 311) Co-production platforms. Traditionally, we think of businesses
†customers†produce services themselves. This is the case, for example with Lego. Lego have created a web platform †Designbyme 3. 0 †which
This includes file sharing services such as Napster, and open-source software such as the Linux operating system, the Mozilla Firefox browser,
Brokering Innovation In public Services. †London: Innovation Unit. Other interesting articles on the role of intermediaries in supporting innovation include:
already plays the key role in developing new models and services to meet social needs, it could play an even greater role
services of a national welfare state. Although analytically distinct from the private market, it includes social enterprises engaging in the market, as well as
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
how they distribute their services, and in their forms of accountability The shaded area in the diagram opposite represents those parts of the four
healthcare, combining commercial provision of goods and services with mutual support and roles for NGOS
selling products and services to households and engaging individuals as workers. In some cases, firms have used the
of services from the other. One of the most sensitive areas of this interface is when associations and movements from the household economy partially
and parcel various activities and services out to contractors from the market and third sector †such as prisons, healthcare
sometimes playing direct roles in redesigning services. Examples include expert patients, groups and mobilising ex-offenders in service design
services, and bring all the problems associated with performance incentives, including deciding who in a team should benefit
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
and hypothecated fees for services by the state 1 156 THE OPEN BOOK OF SOCIAL INNOVATION
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
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
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
bono marketing, human resources and IT consulting services 417) Philanthropic †ebaysâ€. Philanthropic platforms such as Volunteermatch which help people find volunteering opportunities in
Guidestar†s services and databases in many countries worldwide, and New Philanthropy Capital in the UK
A network of support services for grant-based organisations has developed some are specialist private firms,
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
services. †London: NCVO 2. Thomson, L. and Caulier-Grice, J. 2007) †Improving Small Scale Grant Funding for Local
collaboration and joint services which has enabled them to access services †normally available only to large firms †while remaining small themselves
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
443) Social enterprise mutuals as providers of joint services for their members, such as the service consortia in the, Third Italy, or Work
-to-work services, prisoner rehabilitation or disability services 447) Extending the cooperative economy in production,
Some are more †hands on††such as the provision of services for social good †and others are more †hands off††such as providing resources
food and services 480) Consumer guides and reviews. Since Raymond Postgate founded the †Good Food Guide†in 1951 and Michael Young founded the Consumer
assessing products and services on the basis of social criteria, and in providing publicity to social enterprises.
with discounts for particular products and services from specified places The growth of parallel mechanisms to favour the social economy has been
goods and services 482) Local trading currencies. There are now an estimated 2, 500 local currencies operating world wide, particularly payment-voucher systems
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
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
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
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.
This could include educational coaching services, relief and back -up for home carers, health coaches, birthing and post birth support
ways of organizing services Social movements Social movements have been the source of major waves of social innovations
311 Services 21 Aalto University 134 Abecedarian Project 111 Academies 116; 192; 185 Accelerators 135
innovation through investigating more than 250 case studies of digital social innovation services, support organisations and activities.
to exploit digital network effects both in social innovation activity and in new services and approaches that
of digital services has resulted in an imbalance between the dramatic scale and reach of commercial Internet
to gather a critical mass of users that can adopt the services The main question is,
and policymakers to understand what services, standards or digital projects are being developed, and what is the density of DSI activities in Europe.
products and services. The discussions also highlighted the need to begin more strategic mapping of the
processes or services. Public policy can accelerate and enable developments that are societally desirable, such
for instance in energy, mobility, government services, technology design, quality of care education and working patterns.
and services Competing with the ecosystem Governments as service providers: resources to regulate zero-sum game
Also, they provide a wide range of services and play diverse roles in the quest for articulating user involvement, from support to entrepreneurial lead users to needs-finding or
user experience services. Actually, their goal could be described as the creation of â€oeinnovation arenas†where
focus on groups of services to local citizens. We can therefore speak of urban labs (living labs methodologies
by sharing knowledge, services and even developments based on win-win strategies to pave the way for co
-selling developments and services on the European or global market, rather than just in their local regional
government, 3) citizen advocates who want services and information to make their lives better, 4) open
As a consequence, products and services are the result of individuals†bright ideas and, only to a small extent, of cooperative work
Many new IT-products and services just go unnoticed. This has further consequences. One of the most important has to do with funding.
They provide a wide range of services and play diverse roles in the quest for articulating user involvement, from support to entrepreneurial lead users to needs-finding or user
experience services. Within the innovation ecosystem, there is a wide community of living labs, which are the
spaces in cities, to carry out tests and pilot programmes on products and services with an urban impact, which
digital applications or services, or green living experiments. One interesting example is that of Barcelona68
laboratory available to companies that need to test their products and services in a real environment.
pilot products and services have to respond to an unmet municipal need and must provide a new service that
It offers different types of services to its members depending on the fee they pay: certification, communication and promotion, project development, and
education, organisational capacity building and services, and business opportunities PWFSOBODF of the community actually depends on the networks.
It also offers the basic network secretarial services in order to support the networking activities and information flow among these members.
On one hand, despite the networking services offered by enabling structures such as ENOLL, living labs work very independently,
of the services it offers depends on the resources the living lab has. Going back to one of the examples
and developers are being hindered in making open data products and services due to the poor quality
for crowdfunding and distributed collaboration (services, infrastructure, microtasks, and other resources) for encouraging the independent development of creative and innovative initiatives that contribute to the common
Although Challenge. gov is administered by the US General Services Administrations there are many agencies participating and the challenges are quite diverse:
/services Solving initial support problems Exposure and capital Innovation labs Public funding (initial and projects
New services Generation of economic value Transparency Political incentives (reputation Technical support Monetary incentives Smart citizens Projects
However, related-services might not be For example, open source software and its supporting code are generally free of cost to download,
and technical support services. Though the services cost money, the cost may still be smaller than what legacy commercial products charge and,
if an R user does not need the additional services, then, s/he does not have to pay for them
In this respect, governments might be interested in signing contracts with open source developers for 37 governments are, more and more,
for some of them are also intermediary platforms that provide resources and offer services. That is the case of
same time they provide services to entrepreneurs that support their development. Incubators, for example are physical locations that provide a defined set of services/tools to individuals or small companies.
This may include specific types of office space, flexible lease terms, access to technology, financing, and technical
and other business development services). By locating similar or complementary entities in proximity to each other,
and customised services to users. It serves as a new monetisation channel for app developers.
and developing and commercialising new products/services are the two main motivations for developers. The Developer Economic Report Q1 201498 particularly refers to mobile
also, with support services. Some organisations have launched already incentive programmes that provide support for entrepreneurs in their initial business developments stages.
networks required to transform users†needs into real products and services Fostering economic growth is an important motivation as well.
One of the goals of the activity is to support the creation of new exportable products and services
Offering better and new services is another motivation to engage in open data initiatives. According to Berners
More and more, citizens expect city services to be available online. Reusing public sector data can lead to the development of improved, more efficient online public services.
This can also lead to improved e-government services being developed by public administrations. What†s more, local authorities are actively pursuing open data strategies to collaborate with
citizens and the private sector in developing services from this data. Co-created or co-produced public services
Other services such as reporting tools can allow citizens to report local problems to the council just by locating them on maps
public data, creating services and applications from those free data. This means a new market niche, based
what helps to create richness and the possibility to offer added value services. Additionally it promotes the competitiveness among companies,
its objective, the programme provides to (potential) publishers of open datasets, three types of services:
services in the area of (linked) open data, aiming to build both theoretical and technical capacity to European
new products and services), 2) crowd-voting (where the community votes for their favourite idea or product
cases, new services cannot be envisaged at the time that these open tools are developed, but they are often
build useful services and networks. The traditional emphasis on roadmap-driven programmes and research needs to be complemented by bottom-up initiatives
-people who run services and who know what the problems /challenges/opportunities are Make sure they represent a sam
Microsoft controlling the mobile market and cloud-based services platforms Furthermore, the Digital economy is now mainly based on business models that aggregate,
mechanisms in exchange for free services. This bargain not only undermines privacy and weakens data protection but also commodifies knowledge, identity, and personal data.
deployments and pan European digital services that underwrite robust, equal, society-wide access to connectivity.
alternative to Apple or Android) as a kind of â€oeregulated monopoly†able to ensure some basic services at
European level, on top of which a whole new open ecosystem of services and applications could flourish
platforms it talks to and the platform determines which services, products or spinoffs are supported. One
and services that adds value for users and strengthens overall European added value. Innovation should no longer be the result of top-down push technology strategies but of a
or services and thereby propelling broader-based innovation policies. Although, as stated in section 2,
of these intermediaries offer technical support services and networking activities, a lot remains to be done in order for them to reach a wider audience
products and services to see where they are placed currently on the Standards of Evidence, enabling funders (public and private) to understand how confident they can be
of all the products and services they fund, helping to build an understanding if and how the funded
a lesser extent) developing countries are increasingly dominated by services rather than manufacturing. Over the next 20 years, the biggest growth for national
-er services, in which public policy plays a key role, and in which consumers co-cre
and services that are motivated by the goal of meeting a social need and that are diffused predominantly
or services...Exactly the same challenge faces social innovation The Process of Social Innovation in the public sector and among NGOS,
-ple, the Samaritans in Australia have become a provider of welfare services rather than just a telephone counseling service;
recycling services, and it is now moving into providing primary health care servic -es. Generally, bigger organizations have more â€oeabsorptive capacity†to learn and
-ing programs and services, and there are few incentives for either politicians or officials to take up new ideas.
when contracts for services reward outcomes achieved rather than outputs or activities, or when there is some competition or contestability rather than monop
-erately designed spaces in public services that encourage experimentation (such as the U k. †s public service zones that allowed national rules to be broken, and
services,(London, U k.:Routledge, 1998. For general capacity building, see E. Evans and J Saxton, Innovation rules!
In-car data services Increased safety V2i, V2v, †New revenue opportunities Partnerships European ecall initiative
services Offer concierge services around the maintenance of the car Be an intermediary who manages car-sharing
and assures that shared cars are treated well and maintained †including having the latest driving
successfully applied and transferred, 3 activating services and mechanisms capable of becoming more intelligent and
formalised knowledge, services trainingmodules, skills, business and licencingmodels, laws digital contracts Knowledge Economy Motivation Assumptions Theories and Principles
and critical mass of available services. Such programmes should rather become focused on creating favourable
and connects services and information over Internet links enabling networked transactions, and the distribution of all the digital †objects†present within the infrastructure.
and processed (by computer software and/or humans), e g. software applications, services, knowledge, taxonomies folksonomies, ontologies, descriptions of skills, reputation and trust relationships, training modules, contractual
This economic community produces goods and services of value to customers, who themselves are members of the ecosystemâ€.
descriptions, digital contracts, software services, ontologies, dynamic semantic networks and taxonomies, folksonomies, tag clouds Evolutionary Environment
and services •••10 Bringing these three terms together has been eï €ective in broadening the appeal of the approach to a wide range
8) E g. several authors describe the SAP platform and the surrounding applications and services as a â€oedigital ecosystemâ€
delegating that role to a number of companies that oï €er a range of SME networking services, from meeting and
conference space to ISP services Four years since the emergence of the Digital Ecosystem concept, we still believe that socioeconomic growth depends
combining an open source shared middleware infrastructure with software services, models and information that compete on the revenue models
and its applications/services. It was remarked by Lessig when he observed that â€oethe code is the law of cyberspaceâ€
the †spontaneous†creation and implementation of new protocols and services, would not be possible with a diï €erent
The Internet was designed with no gatekeepers over new content or services The Internet is layered based on a,
and recommending services, for reorganising value chains, and for recommending potentially cooperating business partners. The digital ecosystem inï uences the structure of the enterprises and of their social and business networks
the (references to the) formalised knowledge and the software services where there is a greater probability of their use
considering the services or the business models, this means that in some ecosystems new services will appear, in
others the same services will be modiï ed to be adapted to local conditions, regulations, business models, in yet others
the services will disappear from lack of use. Solutions that need to be developed on a European scale could have
The digital ecosystem in its evolution will acquire more services and will be able to include
the business models and interactions and of their formalisation into software services on their socioeconomic and
infrastructure and middleware, the software services and applications, all the attendant web technologies, and all the software development, requirements capture,
and their services from their locally and socially constructed point of view, automating the generation of the software
complementary goods and services to source software†(Dalle 2005 •••22 also express a process.
European commission, DG-INFSO (2005b) â€oetowards Business Cases and User-oriented Services in Digital Business Ecosystemsâ€, Conclusions of the FP7 Workshop on Needs and Requirements of Regions, Bruxelles, ï oe8 April 2005
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