that spam more than the 70%of the Industrial Economy CLUSTER POLICY 9 X Warsaw (February 2012
OPENÂ ECONOMY AXISÂ 2 INNOVATIVE, Â ENTREPRENEURIALÂ ANDÂ TECHNOLOGICALLYÂ ADVANCEDÂ ECONOMY AXISÂ 3: Â SUSTAINABLEÂ ECONOMY
AXESÂ of the Basque Competitiveness Plan 15 X Warsaw (February 2012 AXIS 1: OPEN ECONOMY
†40 †30 †20 †10 0 10 20 30 40 2008 2009 2010 2011â (I†III
USA EU€ 27 Spain Basqueâ Country GROWTH OF INTERNATIONAL EXPORTS %16 X Warsaw (February 2012
OPEN ECONOMY Foreign Trade 17 X Warsaw (February 2012 The Competitiveness Plan is an umbrella plan, various Government
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.
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
Integrating Circular Economy, Capability Approach and Action Research Maria Angela Ferrario 1 Zoltã¡n Bajmã cy
reflective approach that integrates a) the principles of circular economy b) the practices of open-source
Circular Economy Capability Approach (CA Theme: 7. Special sessions Subtheme: 7. 34. Transformative Science for Transformative Social Change:
We argue that the circular economy approach 10 as well as the human development and capability approach 3 are meaningful ways for exploring potentially sustainable technology development
The circular economy approach is a thinking framework that considers economy as a network of systems that
weakens our economy by concentrating wealth and power in the corporate network of the few 17 instead of
The SMES are the backbone of European economy (there are now over 19 million SMES in Europe) but they are lagging behind in the adoption of e-business as a strategic
of becoming the world†s most dynamic and competitive knowledge-based economy by 2010 with the need to promote an †Information Society for Allâ€,
entirely different in regions with less developed economies, particularly in Southern Europe ï€'The digital divide by company size arising from the significant †gaps†between
This covered the adoption of ICT and ecommerce in all sectors of the economy 2 Benchmarking national and regional ebusiness policies for SMES Final Benchmarking report 12 june 2002
evolution toward the knowledge economy ï€'funding of longer term risk projects that will feed the Small Business cycle on an
managerial expertise needed for operating in a networked economy SMES critically depend on â€oeon-the-job competenceâ€.
result, the preponderance of SMES in Europe†s economy is matched not by their use of
economy /multiregional economy L o c a l d i g i t a l ecosystem /network of local
digital ecosystems Digital environment +se rv i ces f o r agrifood in 3 innovation nodes
management of the Chile†s economy; the largest project ever launched on this subject (â€oehow should cybernetics be used in the exercise of national
for Europe to quickly exploit the new opportunities of the economy and in particular the Internet.
Parsons sees a social system as part of a social action system that comprises the economy (social adaptation to
characterised by a limited state intervention in the economy (e g. the US, some Western Europe countries), industry is the driving force, with the other two spheres as ancillary
finance as the engine of New York†s economy. In 2011, New York†s Mayor Bloomberg
be too weak to restart the economy. A shift to a knowledge-based economy was
sought, in which universities would play a greater role, moving on from the position of R&d labs for industry they had played earlier.
a Low Carbon Economy: Economic, Institutional and Management Approaches. Edward Elgar Cheltenham 37 Bergek, A s. Jacobsson, B. Carlsson, S. Lindmark,
and the knowledge economy Industrial and Corporate Change, 10,945-974 Cooke, P.,Boekholt, P.,TÃ dtling, F. 2000.
The Warhol Economy. Princeton: Princeton university Press Cusumano, M. A.,Elenkov, D. 1994. Linking international technology transfer with strategy
Technology and economy theory. Pinter London Freeman, C. 1991. Networks of innovators: A synthesis of research issues.
the Knowledge-based Economy. Leadership 5, 5-23 Godin, B. 2007. National Innovation System: The System Approach in Historical
Distributed economies †A new engine for innovation. Journal of Cleaner Production 13,971-979 Kaufmann, A.,Tà dtling, F. 2001.
Economy: A Triple Helix of University†Industry†Government Relations. Cassell Academic London Leydesdorff, L. 2000.
The Knowledge-Based Economy: Modeled, Measured, Simulated Universal Publishers, Boca raton, FL Leydesdorff, L. 2008. Configurational Information as Potentially Negative Entropy:
economy in terms of triple-helix relations among'technology, organization, and territory Research Policy 35,181-199 Leydesdorff, L.,Meyer, M. 2006.
Economy and Society. Routledge & Kegan Paul, London Pavitt, K. 1984. Sectoral Patterns of Technical Change:
96) puts it, â€oein an economy where the only certainty is uncertainty, the one sure source
individual entrepreneur, the knowledge-based economy is mixed a blessing: more and more information is freely available,
economies in production, and to reduce the time taken to develop and commercialize new products (Tidd et al.
innovation and, concomitantly, technological change and advancement in the economy e g. Howells, 1999; Toâ dtling and Kaufmann, 1999;
Cooke, P. and Leydesdorff, L. 2006), â€oeregional development in the knowledge-based economy the construction of advantageâ€, Journal of Technology Transfer, Vol. 31 No. 1, pp. 5-15
OECD (1996), The Knowledge-Based Economy: Science, Technology and Industry Outlook, OECD Paris OECD (2005), The Measurement of Scientific and Technological Activities:
Economy 5, 330-356. Crossref 13. Thuy Hang Do, Tim Mazzarol, Thierry Volery, Sophie Reboud. 2014.
ï Creating a competitive greener economy -Towards a greener economy -Future transport policy ï Fully exploiting the Single Market
ï Competitiveness in the global market Overall, do you think that the Europe 2020 strategy has made a difference?
Economic Forum (WEF), the EU-compared with other economies in the developed world -continues to underperform in terms of building a smart, innovation-based, knowledge-driven
economy. It trails other advanced economies in all four â€oesmart†areas identified by the Europe 2020 strategy,
as less competitive markets, more regulatory requirements and fewer available sources of finance make the European operating environment for businesses
its economies to unlock new sources of growth While welcoming the efforts undertaken by the various actors in the EU since 2010
creating jobs in the European economy Tools Do the current targets for 2020 respond to the strategy's objectives of fostering growth and
However, for all European economies investments in knowledge-generating assets will translate into important drivers for future
In a globalised economy, open markets and a predictable trade policy are pivotal in furthering Europe†s competitiveness and job creation.
The next five years will be critical in returning the European economy to growth and job creation. Retail and wholesale can contribute,
Commerce plays a unique role in the European economy, acting as the link between manufacturers and
and Communication Economy...178 9. 5. 1 The Strategic Variables...181 9. 5. 2 From the Traditional Model of Innovation
Generation Z represents the source and the target for what the Economist called a Data Deluge 4,
4. The Economist (2010) Data, data everywhere. Special report on information management 5. Davenport TH, Patil DJ (2012) Data scientist:
towards a service economy, through a consequent change in IT innovation for service management, as claimed by Rai and Sambamurthy 4
In fact, a Gartner group prediction, reported by the Economist 4 states 1 billion smartphones will be sold in 2015, up from 468 million in 2012
4. The economist (2011) consumerisation†the power of many. economist pp 1†4 5. D†Arcy P (2011) CIO strategies for consumerization:
specialists such as economists, social psychologists, anthropologists, organiza -tional theorists, educators, and others who could explain
typical virtual groups within the same economy or region. Researchers and practitioners need to investigate the previously mentioned causes and other issues
economy 6 However, confusion can happen because of the lack of common understanding of the Cross Organizational Collaboration (COC),
that collapsed at the outbreak of the new economy bubble during the years 2000 and 2001 can be identified precisely in the absence of an economically successful
-called industrial economy and will therefore be called upon to design and implement a business model able to deal with and exploit such characteristics of
the traditional industrial economy on one side and that of the digital economy on the other.
In the industrial economy a process of value creation starts from raw materials and from the physical inputs that are needed to produce finished products
The industrial economy is driven by the offer side with a constant focus on cost containment, while, as already discussed, the
economy, the essential input of the value creation process is information itself, for example, customer profiles and preferences that companies need to collect
However, in the industrial economy knowledge generation and application processes are aimed essentially at making production more efficient
Industrial economy Digital economy Business process orientation •Guided by offer •Guided by demand Economic focus •Cost minimizing •Value maximizing
and Communication Economy The consolidation of the information and communication economy is the culmi -nation of the process of evolution that had the service economy gradually replaced
the industrial economy, and its extraordinary success is mainly due to the strengthening of its main infrastructure, the network.
In this context, information is 178 9 Reinventing Business models defined as any product that can be digitized,
represented as a sequence of bits and thus distributed rapidly and at an irrelevant cost over the network. 3 Newspapers
9. 5 The Business model in the Information and Communication Economy 179 experience goods must devise strategies to persuade users to overcome their
of the information economy can be summed up in the contrast between the need for users to understand the characteristics of the main product/service that is
peculiarities of the information economy, is the so-called ††freemium††(combi -nation of ††free††and ††premium†â€.
9. 5 The Business model in the Information and Communication Economy 181 companies for many years, pushing towards a profound transformation of these
9. 5 The Business model in the Information and Communication Economy 183 broadening the portfolio of solutions and projects
The New york times, The Economist, The Wall street journal and other publi -cations). ) On the Mobile Payments side, the ios and Android app, on the one hand
9. 5†The Business model in the Information and Communication Economy 9. 5. 1 The Strategic Variables
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