Building Resilient Economy, Zagreb, Croatia 241 SOCIAL INCLUSION AS INNOVATION Alessandra Morgado Ramiro de Lima
Building Resilient Economy, Zagreb, Croatia 242 children in need, with the motto"No money in the world can afford the smile on a child's
Building Resilient Economy, Zagreb, Croatia 243 The consolidation of these ideas is reinforced by the analysis of the other two examples
Building Resilient Economy, Zagreb, Croatia 244 each of these NGOS, participating in the Service Society that pervades our time, act with
new Social welfare State, based on a service economy and sustained by civil society, which is being generated territorially in the small community,
Building Resilient Economy, Zagreb, Croatia 245 LITERATURE 1. Andrã I, Abreu A. Dimensã es e espaã§os da inovaã§Ã£o social.
Finance and Economics, Manchester Metropolitan University, Manchester, UK Received 10 april 2013; final version received 28 august 2013
Advanced economies face a growing number of social, economic and environmental challenges. More concretely European nations are currently undergoing major demo
economies. Europe†s economic woes further intensified with the sovereign debt crisis and subsequent deficit-cutting policies.
economic crisis hit vulnerable people particularly hard. Unemployment is acute among young people. Over one in two people aged 15†24 are out of work in Spain and Greece
the creative economy is interaction and proximity, or a broad social, cultural and geographic milieu (the other two being technological creativity and entrepreneurship
Atlanta†s urban informal stakeholder networks is noteworthy in this respect. Simplified Stone argues that, in order successfully to implement change in an urban setting, local
Entrepreneurs and their stakeholders, in the words of Sarasvathy and Venkatraman 2011), â€oeoften end up co-creating new opportunitiesâ€.
creative content is the motor of today†s economy. The role of culture and creativity as
and the skills gap may offer routes to inclusion, economic activity and financial independence for the most disadvantaged groups in the population.
We move on to the broader economy and economic policy. Some social innovation can be †and is delivered †in the framework of the market.
paradigm argues in general that markets are placed best to deliver economic growth and widespread prosperity. Thus Adam smith in 1759 coined the (much overused) phrase
that societal challenges offer new opportunities for economic growth. Key growth sectors for many European economies in the coming years will be health education and social
care (Mulgan et al. 2007. For example, spending on healthcare is currently between 5 and 13%of GDP for EU countries and is set to rise by approximately 4%by 2050.
economies, the strong involvement of public policy and a need for models of innovation that are very different from those that have worked in the technology and finance sectors
businesses operating in the social economy. Other examples of innovative finance are complementary local currencies such as the Brixton and Bristol pound (see, for example
innovation that will deliver on its promise to create sustainable economic growth and benefit those groups of society
arrangements, macro-level economic policy, regulatory and legal frameworks, welfare regimes and modes of production. Countries have different kinds of ways to distribute
on market forces, economic and fiscal policy, welfare systems and regulatory frameworks might seem to fit comfortably with economic positivist models and methods which draw
all stakeholders, including the groups who are intended to benefit, to articulate expected achievements. Carol Weiss, who is associated closely with the development of the â€oetheories
and partnership between various stakeholders (the public sector, private enterprise and the free market, civil society, the charitable sector and individual citizens) that make up the
Working in the Social Economy. †Social Enterprise Journal 5 (1: 30†49. doi: 10.1108/17508610910956390
Economy, Society and Culture. Oxford: Wiley-Blackwell Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating
The Moral Consequences of Economic growth. New york: Vintage Fromhold-Eisebith, M. 2004. â€oeinnovative Milieu and Social Capital†Complementary or Redund
Britain. †Review of Economics and Statistics 89 (1: 118†133. doi: 10.1162/rest. 89.1.118
Knowledge Economy. †Soziologie 34 (4: 424†441. doi: 10.1007/s11617-005-0212-z Howaldt, J,
Ecological Economics. †Ecological Economics 32 (2: 319†332. doi: 10.1016/S0921-8009 (99 00112-3
With the globalization of economies and competition, innovation has become the most important factor in
Digital Networks & Social networks, isociety Alex Macgillivray, New Economics Foundation Downey, J, . & Mcguigan, J. ed)( 1999).
Journal of Production Research, International Journal of Production Economics, Industrial Management and Data systems, Technovation, and Journal of International Technology and
Internet Entrepreneurship and Economic growth
Social Innovation Whitepaper Social Innovation to answer Society†s Challenges  2014 Frost & Sullivan www. frost. com2
EFFECTIVE STAKEHOLDER MANAGEMENT...18 IV. COLLABORATION...18 V. CONVERGENCE AND INTEGRATION...19 D. WHO ARE THE STAKEHOLDERS?..
19 3. THE AREAS THAT ARE POISED FOR GROWTH...20 4. CONCLUSION...21 Social Innovation to answer Society†s Challenges
world with their far-reaching impacts on businesses, societies, economies cultures, and personal lives Mega Trend Impact on Society
Companies will now look at new economies â€oebeyond BRIC€ and new hotspots for their business operations
Meanwhile, developing economies will contribute around 65%to 70%of global growth in the next 10 years and the 40 largest urban Mega Regions
will account for 66%of global economic activity and about 85%of global technological and scientific innovation
Powering the global economic growth, urbanisation and expanding populations in a sustainable manner is one of the biggest challenges and
from railroads, shipping, local economies, and farming. In the US for example, shale gas will increase from 22.8%in 2010 to 46%in 2035 in the
be a driver of economic growth. In fact, investments in high speed rail have been estimated to have potential to add 2 to 3%to countries†GDP
stakeholders in our global future In the second half of this Whitepaper we will go on to define Social
deliver it successfully, the business models of the future, the stakeholders and the areas and sectors that are poised for the highest growth
has many stakeholders †companies, social enterprises, governments NGOS, charities and public sector organisations to name but a few.
stakeholders and integrating those expectations into its management and business value creation with a strong focus on technology deployment and
multiple stakeholders, the initiative focuses on energy and transportation infrastructure and the application of autonomous
different groups of stakeholders involved. There is also increased involve -ment from the society (users, patients, citizens etc.
The B2s perspective is created by a complete stakeholder focus and is a core element of Social Innovation.
EFFECTIVE STAKEHOLDER MANAGEMENT The long-term success of Social Innovation lies with the proactive engagement of local stakeholders and beneficiaries.
Crucial to this success is the ability to understand the local impact of global mega trends and
models tend to involve multiple stakeholder groups and the successful social innovators will be those that can bring integrated solutions to deliver
clear value and benefits to the multiple interconnected local stakeholders Successful Social Innovations tend to occur within a cross sector context
where different stakeholders from different sectors of society, government or industry work together towards common goals and hence share
collaborative working between the multiple stakeholders. Projects are often large and complex, meaning that smooth delivery of innovative
m-services) to play a role in collaboration by enabling stakeholders to work competently, effectively and efficiently, with par tners, anytime and
optimise stakeholder processes and increase productivity One example is Cisco and Schlumberger who have worked together to
circular economy where there is no wastage and every product and service is reusable Social Innovation to answer Society†s Challenges
D. WHO ARE THE STAKEHOLDERS Social Innovation at its best delivers value to the full spectrum of
stakeholders: Positive transformational change to communities; accelerated advancement for Governments; enhanced efficiency and sustainability to
Key Stakeholders for Social Innovation â€oeability to deliver integrated, converged and connected solutions is a critical
economic growth Communities Communities/users /patients/citizens: increased ownership, engagement and interest Corporations Looking at long-run
Multi-Stakeholder Models â€oeclinics Set up Overseas Using NHS Brand †The Department of health DH) and the UK Trade and
economies Source Frost & Sullivan Source: Frost & Sullivan Social Innovation to answer Society†s Challenges
a balance between profit for stakeholders and improved lives for individual citizens, focusing on progress both for business and our global society.
intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies For information regarding permission, write
Plant the SEEDS †Grow the Economy JEI ***Table of contents Acknowledgments 5 Chairman†s Foreword 7
4. 5 Bio Technology and the Green Economy 87 4. 6 Creative Industries and the ICT sector 90
4. 7 Social Economy and Economic Self reliance 95 5. Appendices 101 5. 1 Membership of the Joint Committee 101
State Agencies and stakeholders to monitoring the progress being made on the ongoing implementation of the recommendations contained in this report as well as other policy initiatives
Development & Digital Media and Biotechnology & the Green Economy We need a joining up of local and national policy.
and that brings together representatives of the key stakeholders, with clear lines of work through subcommittee structures
While geographic inequalities in the economy are recognised by the State; there is a continued prioritisation of the urban centres.
and grow the regional economy Stakeholder consultation meetings were held in each of the five counties.
The Joint Committee invited key witnesses from the region to a special sitting of the committee to discuss specific solutions
and interventions necessary to help grow the regional economy The report is divided into five chapters, an executive summary, a profile of the Southeast, key development areas,
This report placed a particular emphasis on adding to the sum of research that already exists by consulting directly with the widest possible range of stakeholders in the region
For the Southeast to succeed in generating economic growth and creating employment, a sense of shared purpose to create real regional cohesion is a prerequisite.
Supporting tourism as a key driver of economic growth through a coordinated and integrated regional strategy and the development of a strategic tourism vision
and measuring the economic value of festivals and tourism generally To develop Eco-tourism in the region and specifically the opening and operation of the world class Mount Congreve gardens as a major tourist attraction
Bio Technology and the Green Economy Key Proposals Develop a green economic strategy for the Southeast region,
Develop a regional branding and strategy and market the Southeast as a Green Economy region with support from Government departments and relevant agencies
Social Economy and Economic Self reliance Key Proposals The development of a pilot †Programme for Economic Self Reliance†in the region whose aim would be to create ten jobs in every community and a regional network of micro-economies
The Southeast Economic Development Forum should establish a sub group tasked with mobilising and coordinating the resources available, pilot a variety of enterprise projects across the five counties for replication across the region,
The holding of information sessions in each county in the region to build awareness of the social economy and social enterprises
Bio Technology and the Green Economy 2. Profile of the Southeast †Strengths and Weaknesses
However during the most recent economic downturn the region has seen a significant drop in construction and manufacturing.
A recurring theme across the consultation meetings that inform this document is the vital role of education in building the economy
Waterford City and County Councils point out that numerous reports published regarding the re-designation of WIT as a university have highlighted that this deficit in infrastructureâ impacts negatively on the region†s economy.
and to retain them in the local economy and also the ability of WIT to attract R&d funding
and Bio Technology and the Green Economy Improving Educational Attainment In the consultations, WIT€ s Dr. à heagartaigh spoke to changing the culture of the region
where opportunities are established for employers locally to engage with all education stakeholders (from primary right through to FET and third level
and appropriate activation measures to address the unacceptable low literacy levels in Irish society is cost-effective to the individual, their family, society and the economy
a total of 15%over the two years reflecting the sharp downturn in the economy over that period.
Any business model for Rosslare Europort and its business stakeholders needs to track emerging trends and respond to them appropriately so as to ensure timely investments are made
New Business model †A shared vision and action plan is needed across all key stakeholders on the appropriate business model for the Port
to bring together the various stakeholders to share information; resources and develop an holistic package and marketing brand for the county.
The economic downturn has accelerated this process. Port traffic has gravitated increasingly towards the larger ports in recent years to avail of capacity and economies of scale,
ilte Ireland and other relevant stakeholders. †Colin Buchanan Consultants published results of a survey of businesses in their Waterford Airport Economic Impact Assessment in February 2010
Colin Buchanan is of the view that Waterford Airport is key to the economy of the Southeast region
The Regional Aid Guidelines 2014-2020 were adopted after extensive consultations by the Commission with many stakeholders and with the European parliament, the Committee of Regions and the European Economic and Social Committee
Small and Medium Enterprises make up over 99%of businesses in the enterprise economy in Ireland
Since 2008, Ireland has seen a marked decline in its business environment, reflected in the number of layoffs and the collapse in private sector investment in the economy.
Milk and beef production are vital cogs in the Southeast economy and the region has the potential to be a world leader in all aspects of the industry,
so it is little wonder that tourism plays such an important role in the economy of the Southeast
however, because of its dependence on the domestic and British market, the Southeast has been particularly hard hit by the economic downturn, with sharp falls in visitor numbers
Such a strategy will require a level of combined effort among stakeholders across the region and recognition that a rising tide lifts all boats
and measuring the economic value of festivals and tourism generally, in terms of economic activity generated and jobs created
This strategy will entail convincing Tourism Ireland of the benefit of marketing the Southeast to overseas markets as a distinct brand
and measuring the economic value of festivals and tourism generally To develop Eco-tourism in the region and specifically the opening and operation of the world class Mount Congreve gardens as a major tourist attraction
4. 5 Bio Technology and the Green Economy Any economic development plan for Southeast must trade on the green and clean credentials of the region, with its good weather, fertile landscape, low density of population, lack of traffic,
Develop a regional branding and strategy and market the Southeast as a Green Economy region with support from Government departments and relevant agencies
Taken together, the creative and cultural sector is a vital element of any regional economy.
4. 7 Social Economy and Economic Self reliance Community Enterprise Community Enterprise is an important sector
and value of a strategy for economic self-reliance in the region, fostering a spirit of †doing it for ourselves†and expanding opportunities in the social economy and social enterprise sectors
whose aim would be to create ten jobs in every community and a regional network of micro-economies
such as reaching economy of scale and making a business more viable Because cooperatives are owned and democratically controlled by their members,
The owners of a cooperative are not external shareholders for whom there is a profit motivation;
Developing the Social Economy The social economy is also an important and often misunderstood sector.
It offers the potential to create sustainable jobs and enterprise in the region. However, it needs to be supported properly through national and local government intervention
To this end, we recommend the holding of information sessions in each county in the region to build awareness of the social economy and social enterprise and the development of a pilot Social Enterprise Business Training Programme for community
Social Economy and Economic Self reliance Key Proposals The development of a pilot †Programme for Economic Self Reliance†in the region whose aim would be to create ten jobs in every community and a regional network of micro-economies
The Southeast Economic Development Forum should establish a sub group tasked with mobilising and coordinating the resources available, pilot a variety of enterprise projects across the five counties for replication across the region,
The holding of information sessions in each county in the region to build awareness of the social economy and social enterprises
The Southeast†s number of overseas-based pharmaceutical and life sciences companies account for a significant amount of export income to the economy
Companies based in the Southeast account for a significant amount of export income to The irish economy
The QNHS only provides an aggregate measure of unemployment for the economy as a whole and does not measure unemployment in each economic sector
which are essential to delivering the high quality infrastructure required to support a growing competitive economy focused on attracting foreign direct investment
multiethnic society and a knowledge-based economy -Develop programmes of ongoing and long-term support for activities that are
Economist editor: Big data is a goldmine for companies...p. 6 Boosting e-skills in European higher education
the economic downturn, as ICT is widely adopted in all corners of society. Experts believe a new wave of big data and
â 63 billion to the economy, with a positive impact on youth unemployment â€oethe real issue is that there are going
economy as a whole â€oewe need more highly specialised computer engineers. The ICT sector currently lacks people with the right skills
loss for the European economy and for millions of customers who could benefit from ideas contributed by talented women
The app economy workforce is predicted to triple its revenues from â 17.5 billion to â 63 billion from 2013 to 2018
Economist editor: Big data is a goldmine for companies Computer algorithms are better at diagnosing severe cancer than
Economist and co-author with Viktor Mayer -Schã nberger of Big data: A Revolution That Will Transform How We Live Work and
Economy is our commitment. We mean it when we say that the digital literacy is on the
economy, despite the fact that in the future â€oe90%of jobs will require at least some basic digital skills. †â€oein Europe, 25%of adults do not
â 800 billion in the European economy. The data mentioned is catalytic and shows us
Kalantari 2010) particularly in economic theory (Teese 2010 The plethora of definitions poses significant challenges for understanding the
and how it creates value for its stakeholders (2000 b. Timmers defines the business model as architecture for product, service and
stakeholder identification, value creation, visions, values and networks and alliances 2. 2 Why Digital Business models
stakeholder network, value interfaces, value ports and value exchanges 8 No No Linder and Cantrell
<paul. david@economics. ox. ac. uk >Understanding the Digital economy's Evolution and the Path of
1. The Computer Revolution, the"Productivity Paradox"and the Economists Over the past forty years, computers have evolved from a specialized and limited role in the information
and, ultimately, prospects for economic growth national security and the quality of life. Not since the opening of â€oethe atomic age, †with its promises of power
performance of the economy at large crystallized around the perception that the U s.,along with other advanced
industrial economies, was confronted with a disturbing"productivity paradox.""The precipitating event in the formation of this"problematic"view of the digital information technology was an offhand (yet nonetheless
pithy) remark made in the summer of 1987 by Robert Solow, Institute Professor at MIT and Economics Nobel
and the divergence of opinion that emerged within the economics profession on this question has persisted,
new economy"or"new paradigm"of macroeconomic behavior It should not be surprising, therefore, that shifting understandings about the nature of the information
subscribed publicly to a strongly optimistic reading of the American economy's prospects for sustaining rapid
economic transformation in which the U s. economy is taking the lead: 2 â€oewe are living through one of those rare, perhaps once-in-a-century events...
and satellite technologies have changed fundamentally the structure of the American economy. †Yet, many economists continue to demur from this view,
and there has been no lack of skepticism regarding the potential of the new information and communications technologies to deliver a sustained surge of
Among academic economists the consensus of optimistic opinion now holds a wait -and-see attitude,
the U s. economy well into the 1990's. The figures relating to the private non-farm business economy are
because the deflation of the current value of output has been carried out by using price indexes that re-weight the component goods and
4 Moving from the private domestic economy to the private business economy concept also eliminates the distortions in the
economic growth. Indeed, most of the labor productivity growth during the interval extending from the 1830's
has been contributing to economic growth in the closing quarter of the twentieth century, except for the fact that
perplexing conjuncture with the wave of ICT-embodying investments in the U s. economy thus have continued
persistence of the slow trend rates of TFP growth experienced in the U s. economy during the past two decades
and measure the performance of the economy which is undergoing significant and unprecedented structural changes.
are identified above, it seems to have been rather misleading for economists to have approached these as though
which a national income accounting system devised to deal with ordinary goods and services is able to cope with
the shift towards integrating such commodities with the services of information. These considerations suggest the possibility that the past two decades have been marked by a more pronounced bias towards the
The introduction of new commodities again raises the problem of comparability in forming the price deflators for an industry
2. 1 Over-deflation of output: will this account for the productivity slowdown That there is a tendency for official price indexes to overstate the true rate of inflation (understate the
which there seems to be broad agreement among economists. The magnitude of the bias, however, is another question.
the private domestic economy over the period 1966-89.10 Were we to allow for this by making an upward
whether structural changes in the U s. economy have exacerbated the problem of output underestimation, and thereby contributed to the appearance of a productivity
and employment in the"hard-to-measure"sectors of the economy is immediately pertinent. The bloc of the U s
private domestic economy comprising Construction, Trade, Finance, Insurance, and Real estate (FIRE), and miscellaneous other services has indeed been growing in relative importance,
the better-measured, commodity-producing sections, but the impact of the economy†s structural drift towards
growth were measured properly for the rest of the economy. Taking account of the increasing relative weight of
the hard-to-measure sector in the value of current gross product for the private domestic economy, the implied
measurement bias for the whole economy--under the conditions assumed--must have become more 13 Gross product originating in Griliches†â€oehard-to-measure†bloc average 49.6 percent of the total over the years 1947
market for the class of commodities for which they can be regarded as substitutes. During that period, however
The difficulties created for price index statisticians by the turnover of the commodity basket due to the
--namely, the higher rate of appearance of new goods in the basket of commodities available to consumers--is
central theme in the business and economics literature on â€oemodern manufacturing†at least since the 1980's. 15
token, the hedonic deflation of investment expenditures on computer equipment contributes to raising the measured growth of the computer capital services,
Beyond the technical problems of the way that the national income accountants are coping with accelerating product innovation and quality change lie several deeper conceptual issues.
appeared when economists sought to illuminate the macro-level puzzle through statistic studies of the impact of
the economy, which emerges starkly from the growth accounting studies by Stiroh (1998), may be in some part an artifact
efficiency of the economy by calculating TFP as the ratio of aggregate real output to the aggregate inputs of
increasingly widespread as digital information technologies diffuse throughout the economy, deserves further consideration 3. 2 Leaving out investments in organizational change:
technology be treated for national income accounting purposes? The factor payment side of the official National Income and Product Accounts (NIPA) include the expenditures that this may entail--for labor time and the use
in the national income and product accounts. This carries a potential for the conventional statistical indicators to
Bresnahan and Trajtenberg (1995), of â€oegeneral purpose technologies†that transform an economy by finding many new lines of application,
the economy. While the positive, long-run growth igniting ramifications of a fundamental technological breakthrough of that kind are stressed in the formalization of this vision by the new growth theory literature, the
can result in long delays in the acceleration of productivity growth in the economy at large.
output, and productivity indexes of the economy. As this theme already has been aired well (in sections 2 and 3
the U s. economy could be said 33 See e g.,, chapters by Helpman and Trajtenberg (1998), Aghion and Howitt (1998),
â€oecomputerization†that had been achieved in the whole economy by the late 1980's was roughly comparable with
Some economists who have voiced skepticism about the ability of computer capital formation to make a substantial contribution to raising output growth in the economy point to the rapid
technological obsolescence in this kind of producer durables equipment, and argue that the consequent high depreciation rate prevents the stock from growing rapidly in relationship to the overall stock of producer capital in the economy.
The latter argument would be relevant were one focussing on the impact on real net output,
surge of readily discernable productivity growth throughout the economy. To say that, however, is not at all the
and transforms the organization of production in many branches of an economy. One cannot simply infer the
economy to enjoy a pervasive quickening in the pace of conventionally measured multifactor productivity improvements, alongside the continuing proliferation of new branches of industry offering novel and
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