of innovation and productivity growth in the global economy. It will also reshape capitalism and its relationship to society
That is in part because economists have legitimized the idea that to provide societal benefits, companies must temper their economic success. In neoclassical thinking, a requirement
especially in a global economy where facilities and jobs can easily move elsewhere. NGOS and governments have not always appreciated this connection
The ability to create shared value applies equally to advanced economies and developing countries, though the specific
Arguably, they are the greatest unmet needs in the global economy. In business we have spent decades learning how to parse
In advanced economies, demand for products and services that meet societal needs is rapidly growing.
evolves, economies develop, and societal priorities shift. An ongoing exploration of societal needs will lead companies to
Clusters are prominent in all successful and growing regional economies and play a crucial role in driving productivity
participants and the local economy. Workforce development initiatives, for example, increase the supply of skilled employees for many other firms as well
The benefits of cluster building apply not only in emerging economies but also in advanced countries. North Carolina†s
most powerful forces driving growth in the global economy. This thinking represents a new way of understanding customers
To quote the social economy Strasbourg Declaration of 16 january 2014:''Europe's social model needs to reinvent itself.
and environmental sphere (Social Economy & Social Entrepreneurship, 2013 The Innovation Union supports social innovation,
to a pervasive, omnipresent backbone for society and the economy. In my eyes its main
economy are oriented towards the creation of and the engagement with effective experiments of social innovation, promoting their scalability and transferability
†Contribute to a low-carbon economy, for instance by lending, exchanging and reusing goods at scale, across geographic boundaries (collaborative consumption
economy (e g. Wikipedia †Users of online communities interested in knowing more about their data and in
The transformation of societies and economies following the diffusion of digital technologies, with increases in productivity, the redistribution of international divisions of
has questioned the way the world economy has been organised, the way business can be done, and the way income and wealth are
citizen and economy by linking it to the Internet of things (Iot), sensor network and cloude services in order to support open online social media and distributed knowledge co
innovation, smart communities, resilient societies and economies, deploying ad hoc networks of citizen experts around client's needs
Society, economy, and even human psychology itself are undergoing an irreversible change, which we as citizens and
and economy solutions, such as crowdfunding for social good projects (104 The network analysis shows that although there are few very active organisations
the collaborative economy, cities and public services; open tools and distributed architectures; and citizen engagement and direct democracy
such as Avaaz and parts of the collaborative economy and the maker movement. Yet services that exist to help communities collaborate on problems that may not fit in tra
economy;( (4) new ways of making;(5) open democracy; and (6) acceleration and incubation. Crowdmapping DSI organisations and their activities:
Collaborative economy Awarness network Open Networks Open Knowledge Open Data Open Hardware Organisations M or
Collaborative economy Awarness network Open Networks Open Knowledge Open Data Open Hardware Organisations M or
the collaborative economy, local exchange and trading systems, digital currencies, and awareness networks that incentivise experimentation with new models in a variety of domains.
involves society and the economy, driven by the fast evolution of ICT. More than five billion additional people will connect
Health and Wellbeing, Finance and Economy, Energy and Environment, Education and Skills, Culture and Arts, Work and Employment, Participation and Democracy, Neighbourhood Regeneration, Science
Economy Open Democracy Funding Acceleration and Incubation The organisations and projects identified to date can roughly be grouped within
-racy,(3) The collaborative economy 4) Awareness networks enabling sustainable behaviours and lifestyles,(5 Open Access and (6) funding, accelera
The collaborative economy †and the many other umbrella terms used to describe the rise of digital marketplaces for people to make transactions and share skills, assets and
The Collaborative Economy has been documented by organisations like the P2p Foundation, Nesta, and Ouishare Across the world the burgeoning field of collaborative consumption is using digital
ECONOMY New collaborative socioeconomic models that present novel characteristics, and enable people to share skills, knowledge, food
Ouishare SHARING ECONOMY NETWORK Ouishare is a global collaborative consumption network founded in January 2012.
the focus of the economy to one that can find new ways to connect, create and share on the web.
two primary activities, Ouishare. net and collaborative economy events. Ouishare. net is an online community where members
which brings together the global collaborative economy community. The 2014 event took place in Paris
the collaborative economy In parallel thousands of alternative currencies are in use †some focused on localities
economies work †for example, valorising labour time equally, or linking currencies to data. In East Africa the development of M-PESA (a mobile financial payment system born
Goteo SHARING ECONOMY NETWORK A vibrant ecosystem of makers is developing across Europe and globally.
and sharing economy platforms likeâ Peerbyâ Â are creating new forms of relationships and services.
commons-based knowledge economy. The project is a joint research effort sponsored by the Coordinating Ministry
Finance and Economy Energy and Environment Participation and Democracy Smart public services Science and technology Education and skills
Collaborative economy Awarness network TECHNOLOGY AREAS Open Hardware Open Networks Open Knowledge Open Data Arduino
Finance and Economy Energy and Environment Participation and Democracy Smart public services Science and technology Education and skills
Collaborative economy Awarness network TECHNOLOGY AREAS Open Hardware Open Networks Open Knowledge Open Data Arduino
-laborative economy and open knowledge is the specialty of the second largest †but also more scattered †community (7. 41
economy and society by complementing the telecommunications regulatory en -vironment, modernising copyright rules simplifying rules for consumers making
to help the EU economy become more competitive, based on sustainable and inclusive growth fuelled by energy and
democracy, and the collaborative economy These platforms based on open technol -ogy can gather and integrate information
the Mayor has designed programmes for the sharing economy and citizen engagement. Colombia set up a centre
new solutions to reduce unemployment and minimise its corrosive effects on the economy and society.
economies. New forms of data control and data collective ownership by citizens should be encouraged. For instance, in the UK, the government backedâ Midataâ pro
therefore allowing for innovation in the wider economy based on the Future Internet users must be able to come (no barriers to entry)
a. Collaborative economy b. Digital social innovation in cities and public services c. Open tools and distributed architectures
for cities, regions, health authorities and universities to pilot large-scale DSI experiments around collaborative economy, direct
Within the single digital social market it should be easier for digital social innovations such as collaborative economy and crowd
/making-sense-uk-collaborative-economy Manchester Institute of Innovation Research Compendium of Evidence on Innovation Policy
3. Social entrepreneurship, social enterprises, social economy: what is the difference 2. Upscale social innovation into public policies 17
4. The social economy 29 5. Microfinance 34 6. Health and ageing 37 7. Incubation 41
Economy was producing wealth, society was spending. In the 21st century economy, this is not true
anymore. Sectors like health, social services and education have a tendency to grow, in GDP percentage as well as in creating employment,
Europe 2020, the EU's leading strategy, aims at a smart, sustainable and inclusive economy.
currency, economy and social model. Perhaps at no time since the 1940s has social innovation been
As the regional level is close to the local and regional economy and social tissue, with its place-based
http://www. economist. com/node/16789766 12 Storper, 1997; Malmberg and Maskell, 1997 12 ï
EU economy in terms of GDP loss is estimated to be between â 20 billion for the 2. 5â°C
•The EU has set itself some ambitions targets to become a low-carbon economy, known
leading social innovation lab into reality †making a difference in the real economy Social innovation as such is not new13.
3. Social entrepreneurship, social enterprises, social economy: what is the difference Social innovations can come from both the public and the private sector.
social enterprises or the social economy, it is most helpful to think of them as overlapping but
ï Finally, there are frequent confusions between the terms social enterprise and social economy Social enterprises are part of the social economy,
which also includes foundations, charities and cooperatives. Social enterprises are businesses trading for social purposes, within the (social
economy In a discussion on social innovation it is worth summing up by saying that not all social enterprises
4. The social economy 5. Microfinance 6. Health and ageing 7. Incubation 8. Workplace innovation
from the Social Economy network in The netherlands, Belgium and Germany the funds were raised to meet the matching requirements of EU ERDF (OP Zuid) and national grant arrangements
promoting the local economy; forming a link between the neighbourhood, city and other levels of decision-aking;
4. The social economy Social enterprises can play a unique role in identifying unmet needs and in developing new types of
According to the EU Social Business Initiative, the social economy employs over 11 million people in the EU, accounting for 6%of total employment.
The social economy can clearly play a role in regional development. The Emilia romagna region recently published a study on the importance of the social economy for territorial and social
cohesion. Its main conclusions are that public policies are the fruit of the combined contribution of
public authorities and social economy organisations in the provision of public utility services, in which the joint participation of both players is an essential requirement to ensure quality;
The social economy and social entrepreneurship are also a tool for social inclusion. They often
-economy/social-enterprises/index en. htm 30 generate rental income that cross subsidises their other operations (e g. local development trusts
mobilise extra funds targeted at the development of the social economy and the promotion of social
The social economy has different traditions in different parts and Member States of Europe. Some
solidary economy as they call it. They are gearing up with social innovation in its"newer"meaning
social economy, and thus help to find new answers to unmet needs in fields like employment
Kiã t aims to support Roma to work in the formal economy by starting up a business.
Health is a major sector of the economy in its own right and one of the fastest growing sectors.
sustainable economy driven by innovative entrepreneurship, which creates value for people and planet ï Innovation & Action Lab (BE)( http://www
to support the area†s move from heavy industry to an information and knowledge based economy
Workplace innovation concerns not only the private sector but also large parts of the social economy such as charities and foundations as well as the the public sector. Celebrated examples include
innovation linked to the social economy and/or work organisation, but also various forms of incubation, co-creation with citizens, initiatives in the health and care sector, etc. come in. 76
they integrate workplace innovation, social dialogue and support to the social economy as key elements. 79
Thematic objective (4) supporting the shift towards a low-carbon economy in all sectors a) promoting the production and distribution of renewable energy sources
3. 2. 1. The social economy...37 3. 2. 2. Microfinance...39 3. 2. 3. Incubation...
3. 4. Social entrepreneurship to revive the social economy...49 4. Conclusion: scanning the future to shape the future...
economy organisations, the banking and finance sector and the academic and uni -versity sector play an active part in the consultative multi-stakeholders group set
The rise of the collaborative economy †from Airbnb (the social networking service for bed and breakfast) to car sharing
y First, in the reconfiguration of the economy which is currently taking place under the influence of network giants, how is Europe to take advantage of open and col
idea was to find a renewed impetus for a laissez-faire market-based economy, rejecting the centrally planned
economy was the conceptual framework for the †German economic miracle†and deemed critical for ensuring economic †prosperity for all†and social justice.
as pointed out by The Economist, 20 the †social market economy†broadly refers to the study of the different social institutions
market and the social dimensions of an integrated European economy can be mutually strengthened. â€
20 http://www. economist. com/economics-a-to-z/s#node-21529660 21 Article 3 of the Treaty on European union states:
-proaches and acquired interests in the sphere of the social economy, and different un -derstandings in Europe of what constitutes a social enterprise or business.
terms such as social economy, third sector, nonprofit sector, social enterprise and social entrepreneur, some of which are also ill-defined and overlapping.
-tion of social economy like Italy and France, a variety of well-established tools have been
-pean economies and societies has been underlined in many EU documents. 39 The Guide to Social Innovation, published in 2013,
a new competitive advantage for European economies, showing that social and environ -mental value creation is central to the human and ecological sustainability of societies
post-crisis economy Both micro-level measurement (how successfully a social enterprise is contributing to this goal) and macro-level measurement (social enterprises grow in an ecosystem com
The press has echoed more than usual to the financing of the social economy in general but also to associated financial innovations such as social impact bonds
-ernise European economies and their social model to meet societal expectations. Public sector innovation as a positive way to respond to budget constraints has indeed, for
3. 2. 1. The social economy According to the EU Social Business Initiative, the social economy employs over 11 mil
-lion people in the EU, accounting for 6%of total employment. It covers bodies with a
The social economy can clearly play a role in regional development. For instance, the Emilia romagna region has published a study on the importance of the social economy
73 Jane Jenson and Dennis Harrisson in Social innovation research in the European union †Approaches, findings
fruit of the combined contribution of public authorities and social economy organisa -tions in the provision of public utility services, in which the joint participation of both
funds targeted at the development of the social economy and the promotion of social entrepreneurship and easily accessible for social enterprises
The social economy has different traditions in different parts and Member States of Europe. Some countries, like France, have a strong tradition of †à conomie sociale et sol
a call for proposals with the aim to accelerate social innovation in the social economy and thus help to find new answers to unmet needs in fields like employment, housing
Kiã t aims to support Roma to work in the formal economy by starting up a business.
economy such as charities and foundations as well as the public sector. Celebrated examples include Google, which allows employees to spend 20%of their time on their
economy, education, culture Portugal has to restore economic growth, employment, and make long-term structural reforms at all levels, but
Via support from the Social Economy network in The netherlands, Belgium and Germany, the funds were raised to meet the matching requirements of EU ERDF (OP Zuid) and national grant
economy; forming a link between the neighbourhood, city and other levels of decision-making; and developing
Most of them consider social innovation to be linked to the social economy and /or work organisation,
the social economy Beyond the priority measures in its short-term action plan, the Social Business Initiative
-trepreneurs and supporters representing the rich diversity of the social economy came together to affirm that social enterprises must play a bigger role in the future of Europe
notably where the social economy is developed less 7. The Commission, the Member States and regions must boost cooperation between social enterprises across
various social economy stakeholders and supporters of social enterprise To further unlock the potential of this sector,
Europe†s economy is expected to continue its decline, and policymakers should focus on a †new growth paradigm†centred on
which should continue to increase in advanced economies and to further develop in China. In Europe, however, R&d expenses will decrease notably because of the increase in China,
economy, the report argues that the real challenge for European policymakers will be to break the trend of rising poverty risks, increasing income inequality and long
Public, private and social economy organisations will be encouraged by investors, funders, and governments to produce social value results in the long
-nomic, environmental and social issues) will become mainstream in the social economy From grants to investment:
y What is also at stake is the emergence of a different conception of the economy, a
shared economy that is not focused exclusively on growth y Finally, empowering the citizen remains at the very heart of social innovation issues
socially sustainable economy and changes inherent to the digital age. Social innovation found fertile ground in this new context as a public policy concept and as a movement
Initiative are designed to address the social economy, whereas the Social Investment Package (SIP) brings fresh impetus to social policy
which aim to make the EU economy more efficient (a resource-efficient Europe, an in
a resource-efficient and low-carbon economy, provides a long-term framework for embedding the smarter use of resources as a principle to take into account in the
-mation of the European energy system into an almost CO2-emission free economy -80/95%),which the EU aims to achieve by 2050.
four major roadmaps (moving to a competitive low-carbon economy, a Single Europe -an transport area and a resource-efficient transport system,
-ly exploit the benefits that an economy can generate. Mutual societies, cooperatives third-sector organisations in general and social business are an integral part of this wid
-er economy and, while this initiative does not explicitly mention social innovation or flag it up as a priority, it entails crucial elements to create a better regulatory and financial
economy which may be prime movers on social innovation In addition, the Industrial Policy flagship initiative emphasises workplace innovation
It is important to remember that Europe†s economy represents 500 million people 200 million jobs and 20 million companies and that cooperatives, mutual societies and
y involving the social partners in examining how the knowledge economy can be spread to all occupational levels and all sectors and in particular for proposals on
economy. Social business is where it is developed most often 1. 1. 6. The agenda for new skills and jobs
and jobs in the social economy as well as in other purely commercial sectors. In par -ticular, developing specific skills for the third sector, hybrid organisations management
Promoting a partnership approach to the social economy Actions under the European Platform against Poverty for Working in partnership
social economy are l Measures to improve the quality of the legal structures relating to foundations, mutual societies and co
The social economy is addressed in the Innovation Union flagship initiative, 113 in the Sin -gle Market Act I114 and II, 115 in the Employment Package Towards a job-rich recovery116
economy at large. Social enterprises seek to serve the community†s interest (social societal, environmental objectives) rather
EUR 351.8 billion to invest in Europe†s regions, cities and the real economy. It is the EU€ s principle investment tool
innovation, the social economy and social entrepreneurship With a view to that challenge, the Social Investment Package (SIP) has encouraged
economy in rural areas. They should strengthen the links between agriculture, food production, forestry and research and innovation
resource-efficient circular economy. It includes innovations in terms of products, technol -ogies, business models but also social innovations.
event on social entrepreneurship and the social economy. During this two-day event attended about 2000 participants, a collaborative,
-ommendations for the sustainable development of the social economy. This declaration represents the views of stakeholders from the social enterprise sector.
social innovation and the social economy as a solid response to the need for job creation
the economy while safeguarding Europe†s social model In July 2013 the Bureau of European Policy Advisers held a high-level seminar on pub
that are important for European citizens and the European economy, for instance, re -163 http://ec. europa. eu/enterprise/policies/sme/files/craft/social economy/doc/coop-communication-en en. pdf
for a greener, more social, innovative and inclusive economy y As far as the award criteria are concerned,
European economy as small businesses are among the most important drivers for growth and employment.
and are granted typically to micro and social economy en -terprises or to others which are considered not bankable
about the sector, its characteristics, needs and contribution to the economy and wellbe -ing. While deeper and keener knowledge is addressed by research from a variety of an
-sumption, green economy, etc 191 COM (2011) 681 119p A r T I I †M A i N d E V E L O P m E N t S i N e U P O
network or cluster serving the local economy and society. The social dimension of higher 193 BEPA report 2010, page 38
flows through a community†s economy provides a systemic reading of the present situ -ation for goal and objective setting and development of indicators for sustainability.
non-monetary economy. Nonetheless they do not pay enough attention to the need to account for their services on the peer-usage base,
applications in the field of non-monetary economy, where new needs and practices are emerging, and where a new sector of the digital Single Market has the potential for
207 http://www. crossproject. eu/tag/non-monetary-economy /131p A r T I I †M A i N d E V E L O P m E N t S i N e U P O
3. 2. 1. The social economy 3. 2. 2. Microfinance 3. 2. 3. Incubation 3. 2. 4. Workplace innovation
Social entrepreneurship to revive the social economy 4. ï¿Conclusion: scanning the future to shape the future
economy. It is fantastically rich, and demonstrates the diversity of initiatives being led by entrepreneurs and campaigners, organisations
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.
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
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
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
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
refining and testing ideas is particularly important in the social economy because it†s through iteration,
the social economy in many other ways, whether through inspiration and emulation, or through the provision of support and know-how from one
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
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
Nooteboom, B. 2000) †Learning and Innovation in Organisations and Economies. †Oxford Oxford university Press
the development of new innovations in the social economy. This means 2 that competitions need to be structured in such a way that participants
economy, however, there are arguments for sharing, rather than shifting the risk. This can be achieved through a stage-gate process, where
economy require as much care and creativity in their generation as the social ideas. The two are developed best together to sustain and re
For the social economy the issues of control, the team and relations with users are likely to have greater
In the social economy, ownership is an ambiguous concept. Its organisational structures are the site of contending pressures of goals and interests.
Much of the social economy is made up of organisations that are not dissimilar to those in the state or private business which have a
133) Shared backroom economies. Many new ventures carry high overheads because of their small scale, or they fail to invest in financial
from a reciprocal economy of information, and in extending the value and impact of the knowledge they contribute.
In a volunteer economy, roles, relationships and incentives have to be thought about differently to those where there is
within the social economy that include saving and lending circles, but much of the loans now being made for social ventures are coming from
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
reap different kinds of economy (scale, scope, flow, penetration etc To grow effective demand, there may then be need a for diffusion through
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
and can also lead to economies in processing tenders. The public sector†s procurement portal in the UK is Buying Solutions,
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
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
234) New models of the support economy. These reorient services around support for the user rather than the simple delivery of a standardised
246) Rewiring economies, connecting sectors like the utilities and automotive industries for the development of plug-in hybrid cars, or
as natural disasters, crises of care or of the economy †to underlying causes, and using this as the basis for proposing major systemic change
economy intermediaries to become more explicitly focused on their knowledge and relationships. One of their roles is to grow fields and markets:
innovation, as well as innovation for the economy. The Department for Business, Innovation and Skills (BIS) in the UK is one example.
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;
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
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,
Age Concern are shaped still primarily by the grant economy in how they raise their money,
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,
by the state for the actors in other parts of the social economy. Each of these
The fourth interface is between the private market and grant economy. These relations include, for example, corporate sponsorship, charitable donations
The Social Economy Source: The Young Foundation 144 THE OPEN BOOK OF SOCIAL INNOVATION healthcare, combining commercial provision of goods and services with mutual
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
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.
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.
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
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.
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.
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
not deal with those areas of the economy which are difficult to commodify 146 THE OPEN BOOK OF SOCIAL INNOVATION
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
Crisis and the new Social Economy. †Provocation London: NESTA 3. See for example, Murray, R. op cit.;
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
We describe this sector as the grant economy because grants play an important part, even though much of the income received within this sector
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
grant economy Grant giving Increasingly, donors are trying to avoid some of the limitations of traditional
SUPPORT IN THE GRANT ECONOMY 171 408) Intermediaries who allocate grants for specific projects on behalf of
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
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
430) Developing skills within the grant economy. In the UK, ACEVO and the NCVO provide a range of training programmes for nonprofit
SUPPORT IN THE GRANT ECONOMY 177 intelligence †model. Many programmes now include a strong emphasis
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
ECONOMY The boundaries between the private sector and the social sector are breaking down for many reasons.
Economy TTTHEHEHE Stat Stat Stateee The Granthe Granthe Granttt Economeconomeconomyyythe Househthe Househseholseholseholddd 3 182 THE OPEN BOOK OF SOCIAL INNOVATION
447) Extending the cooperative economy in production, including MONDRAGON and Peruvian coffee co-ops 448) Foundations as owners of corporations, such as the Bertelsmann
They remain critical to the social economy, both in assessing products and services on the basis of social criteria, and in
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
483) Specialist academies linked to social economy initiatives, such as: the University of Mondragã n in Spain;
economy, such as Harvard†s Advanced Leadership Programme pioneered by Rosabeth Moss Kanter and launched in 2008/9
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
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
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
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
SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 205 517) Users as producers †such as the Expert Patients Programme, which
SUPPORT IN THE INFORMAL OR HOUSEHOLD ECONOMY 207 This could include educational coaching services, relief and back
economy, and have developed innovative forms of distributed network organisation and action, further facilitated by the advent of the internet
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
Public economy 149-161 budgets to promote internal innovation 150-152 democratic accountability and democratic innovation 152-155
Grant economy 168-173 grant giving 169-171 improving the grant relationship 171-172 mission related investment 172-173
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
Social economy 4-6; 63; 82; 84; 136 141-145; 192; 198; 199 Social Enterprise 2;
Support Economy 5, 111,144 Sure Start 111,150-151 Tällberg Foundation 44 Taproot Foundation 172
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,
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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