Social Innovation Trends in Europe

Howaldt San Sebastian 2013
Sozialforschungsstelle Dortmund
Central Scientific Institute
1
Social Innovation:
International trends
II European School of Social Innovation
San Sebastian2013
Prof. Dr. Jürgen Howaldt
Social Research Center – TU Dortmund

2
My Topics
I want to
 outline the main characteristics of a sociologically enlightened
new paradigm of innovation
 touch upon the increasing relevance of social innovation
 provide a short overview of the main research fields and exciting
examples
 define mayor challenges regarding the promotion of social
innovation
 give a prospect for future research

3
High-Tech Strategy for Germany
Emerging technologies are the basis for new products, processes
and services which can contribute to mastering current social
challenges. Without them, innovation would be unthinkable
today. Our country's economic future depends on how
effectively we use the opportunities linked to key technologies.
The Federal Government wants to further strengthen Germany's
top position in the field of technology within the framework of
its High-Tech Strategy.

4
“The tracks of international research on innovation
demonstrate that the technology-oriented paradigm –
shaped by the industrial society – does not cover the broad
range of innovations indispensable in the transition from an
industrial to a knowledge and services-based society: Such
fundamental societal changes require the inclusion of social
innovations in a paradigm shift of the innovation system.”
Vienna Declaration: The most relevant topics in social innovation research

5
Basic assumption
The transition from an industrial to a knowledge and services-
based society corresponds with a paradigm shift of the
innovation system.
This paradigm shift also implies an increasing importance of
social innovation as compared to technological innovation.

6A New Nature of Innovation” (OECD 2010)

7
Social Innovation moves from the margins to the mainstream
At the start of 2009 President Obama announced the establishment of a new “Office for
Social Innovation at the White House“ and allocated USD 50million to a fund for social
innovation.
The Fund will focus on priority policy areas, including education, health care, and economic
opportunity.

8
Social Innovation will play an important role in the Europe 2020
strategy
"Creativity and innovation in
general and social innovation in
particular are essential factors
for fostering sustainable
growth, securing jobs and
increasing competitive abilities,
especially in the midst of the
economic and financial markets
crisis."

9
blue: EU research partner, red: non-EU research
partner, green: Advisory Board
Map of the SI-DRIVE consortium members

10
World region/ Value region Countries
Asia/Confucian China
Asia/Islamic Turkey
Asia/South Asia India, Singapore, Thailand
North America/English
speaking
Canada
Latin America Chile, Colombia
Oceania/English Australia, New Zealand
Africa/Islamic Egypt
Africa South-Africa
Europe/English speaking UK, Ireland
Europe/Orthodox Russia, Bulgaria, Romania
Europe/Catholic Europe Spain, Czech Republic, Croatia, Austria, Italy, Lithuania
Europe/Protestant Europe Germany, Netherlands, Sweden

11© European Union/The Young Foundation
2010

12
„Social innovations are innovations that are social in both their ends
and their means.
Specially we define social innovation as new ideas (products, services
and models) that simultaneously meet social needs (more
effectively than alternatives) and create new social relationsships
or collaborations.
They are innovations that are not only good for society but also
enhance society‘ s capacity to act.“
(Bepa report 2010, 9)
Social Innovation in the European Union
„Empowering people,driving change“

13
Social Innovation
 a new combination or new configuration of social practices
 in certain areas of action or social contexts
 prompted by certain actors or constellations of actors
 in an intentional targeted manner with the goal of better satisfying or
answering needs and problems than is possible on the basis of established
practices
 socially accepted and diffused widely throughout society or in certain
societal sub-areas
 finally institutionalized as a new social practice

14
In this light innovation can be understood
“as a process of collective creation, in the course of which the
members of a particular total population learn, i.e. invent and
establish, new ways of playing the social game of collaboration and
conflict, in a word a new social practice, and in the course of which
they acquire the necessary … abilities to do this.”
(Crozier/Friedberg 1993)

15
Key
elements
of social
innovation
theory
Objectives
New practices,
methods, processes
and regulations
Opening of the innovation
process to society by co-creation,
user involvement, empowerment
of citizens, and cross-sector
collaboration
New demands, social needs and
societal challenges, social value
creation
New Innovation Paradigm

16
Areas of social innovation
civil society: the increase in the significance of cohabitation or the
environmental movement
state action: the introduction of social security and national insurance
business world: the advent of team work, knowledge management or new
social services
(Katrin Gillwald 2000)

17
Social Innovation – Social Entrepreneurship
 An innovative, pragmatic and
sustainable entrepeneurial activity
for a significant, positive change in
society
 Connection between entrepeneurial
activity and social goals
 Multitude of global initiatives (e.g.
Ashoka, Grameen Bank) and a barely
clear number of regional initiatives
http://www.businesspj.com/wp-content/uploads/2011/04/socialentrepreneurship.jpg

18
Social Innovators – Mohammad Yunus
 Founder of Grameen Bank in
Bangladesh, that makes available
microcredits for low-income
clientele
 The method of Grameen Bank is
practice in 58 countries today
 Bearer of the Nobel price for Peace
www.grameen-info.org
http://www.br-online.de/content/cms/Universalseite/8MIGRATION/
wissen-bildung/thema/nobelpreis/struktur/cumulus/
BR-online-Publikation--51823.jpg

19
Social Innovators – Victoria Hale
 Founder of Institute for OneWorld
Health (IOWH), a welfare oriented
pharmaceutical firm in the USA
 IOWH develops pharmaceuticals, which
are not financially profitable
 In large part the projects are financed
by the Gates foundation
www.oneworldhealth.org
http://1.bp.blogspot.com/_wuoU3fxG-Sc/RkE-tD2ltmI/AAAAAAAAACY/
3OACCwc4AMw/s320/sos_hale_225.jpg

20
Social Innovation – Carsharing
 Common use of cars through the
provision of vehicles in main areas
 Carsharing-organisation
professionalized the traditional
„driving communities“
 In Germany there are around
110 carsharing-organisations with
158.000 customers
http://www.carsharing-vergleich.de/wp-content/uploads/2009/12/carsharing-münchen.jpg

21
Social Innovation – Corporate Social Responsibilitiy (CSR)
 Responsible entrepeunerial activity
referering to the environment,
employees and other stakeholders
 Voluntary, ethical motivated acting
that exceeds the legal duties by far
 CSR influences economic success and
earns social and ecological benefit in
the long term
www.sierraexpressmedia.net/Home/wp-content/uploads/2010/11/
Corporate-Social-Responsibility.jpg

22
Social Innovation – Short-time work
 Reduction of working time instead of
dismissal
 Developed in collaboration between
economy and politics with the goal
of maintaining workplaces in times
of crises
 In 2009 over 1.4 million short-time
workers in Germany, which
prevented a drastic rise of
unemployment
http://www.bundesregierung.de/Content/DE/Artikel/2009/02/Bild/
diagramm-zur-konjunkturbedingten-kurzarbeit,property=poster.jpg

23
Social Innovation – Fair Trade
 Higher income for producers in
developing countries
 Prices over global market level
 1.6 million producers profit of fair
trade, which has an annually
revenue over 3.4 billion € worldwide
http://upload.wikimedia.org/wikipedia/de/8/8e/FairTrade-Logo.svg

24
Un techo para mi país
 TECHO is a youth led non-profit organization present
in Latin America & the Caribbean
 joint work of families living in extreme poverty with
youth volunteers with the goal of overcoming
poverty in slums
 Started in Chile in 1997 by building transitional
houses, has operated in 19 countries
 Three strategic objectives:
 The promotion of community development in
slums (community strengthening by promoting
leadership, participation)
 Fostering social awareness and action
(generating critical and determined volunteers
working next to the families living in slums)
 Political advocacy (promoting necessary
structural changes)
http://www.techo.org/wp-
content/uploads/2012/06/LOGOTECHO_RGB_claim-01.jpg
http://www.techo.org/

25
Liter of light
 “My shelter Foundation” began the
liter of light project lighting 10000
homes in San Pedro, Laguna
(Philippines)
 More than 15000 solar bulbs were
installed in 20 Philippine cities
 Also implemented in other countries
(Peru, Colombia)
 A very simple technology: an empty
plastic bottle, water and glue
http://riomatters.files.wordpress.com/2012/0
6/img_6348.jpg
http://aliteroflight.org/

26
Social Innovation – The welfare programme of Krupp
 Extensive social benefits for
employees, e.g. flats and medical
provision
 Not only monetary rewards for
employees
 Long-term, generation-spanning
attachment of the employees and
innovator for the social responsibility
of firms and corporations http://upload.wikimedia.org/wikipedia/commons/5/5e/Ehem._Konsumanstalt_Margarethenh%C
3%B6he.jpg

27
“There is nothing more difficult to plan, more doubtful of
success, nor more dangerous to manage than the creation of
a new order of things…Whenever his enemies have the
ability to attack the innovator, they do so with the passion of
partisans, while the others defend him sluggishly, so that the
innovator and his party alike are vulnerable.”
Niccolò Machiavelli, The Prince (1513)

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The Process of Social Innovation
The Open Book of Social Innovation

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Overall scientific advancement required to meet expectations and
developments in social innovation practices
 Elaboration on the particular features of the concept and clarification of
definitions
 Embedding the concept of social innovation in a comprehensive theory of
innovation
 Development of coherent methodologies to identify and measure social
innovations
Challenge 1:
We have to develop a clear concept of social innovation

30
Challenge 2:
„Redraw the boundaries”
“What is required here is to redraw boundaries (both in terms of
differences as well as overlaps and interactions) between business
innovations and new technologies on the one hand, and social
innovations on the other hand. Increasingly, innovation blossoms where
sectors, systems and concepts converge.”

31
Cross-sector collaborations
“Increasingly, innovation blossoms where the sectors converge. At
these intersections, the exchanges of ideas and values, shifts in
roles and relationships, and the integration of private capital with
public and philanthropic support generate new and better
approaches to creating social value. To support cross-sector
collaborations we have to examine policies and practices that
impede the flow of ideas, values, capital, and talent across sector
boundaries and constrain the roles and relationships among the
sectors.”
(Phills et al., 2008: 43)

32
 Combine the potential of social innovation in the social economy, civil society,
business firms and the state (Multi-level governance)
 Promote alliances between universities, companies and the state around social
innovation
 Opening the process of innovation to society including all stakeholders in the
development and diffusion of innovation
 Empowering people: Include citizens, clients, social movements, communities
in the process of social innovation
 Innovation „bottom up“: learning from experiences of innovation research and
business and public service innovation
 Ameliorate the conditions of participation and self-management in social
innovations aimed at overcoming poverty and pauperisation

33
Challenge 3:
Networks as Success Factor for Social Innovation
Networks can be described as one of the most important
features of the new innovation paradigm, a result of a
profound transformation of the innovation process.
(Howaldt and Schwarz, 2010)

34
“It was the time when talented and
energetic engineers could make
enormous contributions and, for a while,
they were the ‘superstars’ of their age.
Thereafter, mayor projects became
increasingly complex and grew beyond
the grasp of a single person.”
(London, Science Museum)
http://www.sciencemuseum.org.uk/visitmuseum.aspx

35
Social Innovators – Mohammad Yunus
“Most social businesses are likely to
originate with one person, or perhaps with a
small group of people - friends, work
colleagues, or people with a shared interest
in a particular social problem. Within such a
small group, you may not have all the
expertise, experience, ideas and resources
needed to make your social business idea
into a reality. Don’t let that stop you! Look
around for others you can partner with.”
http://www.br-
online.de/content/cms/Universalseite/8MIGRATION
/wissen-bildung/
thema/nobelpreis/struktur/cumulus/BR-online-
Publikation--51823.jpg

36
Challenge 4:
We have to find new ways of diffusion and scaling up
of social innovation
One critical question is “whether and how networks can help facilitate
innovations to bridge the seemingly insurmountable chasms that
separate local solutions from broad system transformation: that is, how
they help innovations to ’cross scales’”.
(Moore and Westley, 2011)

37
 Organise learning processes between social economy, civil society,
business firms and the state
 Share knowledge and promising practices
 Use opportunities of social media for enabling large scale and
systemic social innovations
 Develop a Knowledge Bank for social innovation
 Identify venture capital for social entrepreneurs

38
Institutional Entrepreneurs in Social Innovation Networks
 “One type of entrepreneurship may be the inventor of a novel norm,
idea, or product (sometimes called the social entrepreneur).”
 “A second type is the institutional entrepreneur, whose job it is to
manage the context, complex as it is, in such a way that the innovation
has a chance to flourish, widening the circle of its impact.”
 “An institutional entrepreneur, therefore, not only introduces a certain
innovation but also works to change the broader context so that the
innovation has widespread appeal and impact.”
(Moore and Westley, 2011)

39
Challenge 5:
Social Innovation must become a priority on the political agenda
 Multi-level governance and receptivity of governments to social
innovations
 Incentives from government to promote social innovation
 More resources (incl. research programmes) to foster/promote social
innovation
 Establish a multi-national evidence base of promising practices for
inclusion and integration

40
Social innovation moves from the margins to the mainstream
 1985: Institute for social Inventions, London
 1986: Centre de recherche sur les innovations sociales, (CRISIS), Montreal
 1990: Zentrum für Soziale Innovation (ZSI), Wien
 1995: Soziale Innovation GmbH, Dortmund
 2000: Stanford University – Center for Social Innovation
 2004: Centre for Social Innovation (CSI), Toronto
 2004: Institut für Sozialinnovation, Berlin
 2005: Institut für soziale Innovationen, Solingen
 2005: Young Foundation, London
 2005: Preis für soziale Innovation, Wien
 2006: Nederlands Centre for Social Innovation (NCSI), Utrecht
 2006: New Zealand Centre for Social Innovation (NZCSI), Auckland
 2008: „Management Sozialer Innovationen“; Hochschule München
 2009: The Australian Centre for Social Innovation (TACSI), Adelaide
 2010: Social Innovation and Social Entrepreneurship Centre, New Zealand

41
Centre for Social Innovation (Toronto)
 A social enterprise (founded 2004) with a
mission to catalyze social innovation in
Toronto and around the world is acting as
a venture capitalist for social change
 Is comprehending itself as “an engine for
impact”, which goes beyond the mere
functions of an incubator for projects
 Provides strategic advice, full-on
management and back-end administrative
services (“whatever it takes to help an
initiative find its feet and actualize its
potential”)
 Projects include: social entrepreneurship
among youth, artivism as a strategy to
engage citizens in the transformation of
their local environment while building a
strong community
 Models developed: shared spaces for
social innovation, community bonds,
constellation model of governance
http://www.citizencapitalism.com/wp-
content/uploads/2010/09/explosion-
squiggle-white-back.jpg
http://socialinnovation.ca

42
Tilburg Social Innovation Lab
 Four institutions for higher education join
forces to make a visible contribution to the
development of the region Brabant as the
Region for Social Innovation
 Involving regional stakeholders to (co-) create
innovative solutions for societal challenges
through creative knowledge, unexpected
inputs and daring experiments
 Providing suitable interdisciplinary knowledge
of the Social Sciences and Humanities in co-
creation with education, entrepreneurs and
other stakeholders
 Social Innovation Initiatives program: problem
finding, brainstorm forum “Blue Sky Session”,
explorer teams, test teams/living lab
 Social Innovation Dialogues: promoting a
continuous dialogue and interaction between
knowledge institutions and society
(entrepreneurs, administrators, the general
public)
http://behance.vo.llnwd.net/profiles5/157781
/projects/2031587/641c6a625419af174c6d6
fc696e147e7.jpg
http://www.tilburguniversity.edu/about-tilburg-university/partnerships/tilburg-social-innovation-
lab/

43
ANSPE - Colombia’s National Agency to Overcome Extreme Poverty
 A governmental institution to support and encourage Colombia’s
most vulnerable families to overcome poverty and exclusion, in
partnership with local authorities, government institutions, social
organizations, and private sector (strategy “Red Unidos”)
 ANSPE’s Center for Social Innovation articulates actors in order to
generate innovative, pertinent, sustainable and scalable solutions
to improve quality of life of the population living in extreme
poverty
 Criteria for social innovation projects: scalable, sustainable and
replicable
 Three strategic lines:
• Develop and finance social innovation projects using Public-
Private Partnerships
• Strengthen promotion, diffusion and Knowledge
Management of Social Innovation as a strategy to overcome
extreme poverty
• Generate a favorable environment for social innovation to
overcome extreme poverty
http://pueblonuevo-cordoba.gov.co/apc-aa-
files/366333663735306531323038323434
66/anspe.png
http://www.anspe.gov.co/

44
SI-DRIVE – Extending knowledge about
social innovation
 Integrating theories and research methodologies to advance
understanding of SI leading to a comprehensive new paradigm of
innovation.
 Undertaking European and global mapping of SI, thereby addressing
different social, economic, cultural, historical and religious contexts in
eight major world regions.
 Ensuring relevance for policy makers and practitioners through in-depth
analyses and case studies in seven policy fields, with cross European and
world region comparisons, foresight and policy round tables.

45
Social
innovation cycle
The key
dimensions of social
innovation
The Five Key Dimensions of Social Innovation

Howaldt Chile 2013
46
Key Dimensions Cross-cutting Themes
Concepts and understanding of social
innovation
Including the relationship to transformative social change and technology;
ICT (online networks, social media)
Objectives and social demands, societal
challenges and systemic change addressed
Related to policy fields, including general objectives regarding gender,
equality, diversity (re. EU2020 targets)
Social innovation cycle
(cf. ‘Open Book of Social Innovation’)
Role of innovation networks and drivers at each stage of the social
innovation cycle, cultures of innovation
Drivers, barriers and governance of social
change and development
Social entrepreneurship, networks, user involvement, demographic
change, human resources, policy instruments
Resources, capabilities and constraints
including finance and finance industries
Human resources, knowledge, scientific research, financial resources, legal
conditions, empowerment

47
European/International Networking of the SI-DRIVE Consortium

48

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“The world needs more social innovation - and so all who aspire to solve
the world’s most vexing problems - entrepreneurs, leaders, managers,
activists, and change agents - regardless of whether they come from the
world of business, government, or nonprofits, must shed old patterns of
isolation, paternalism, and antagonism and strive to understand,
embrace, and leverage cross-sector dynamics to find new ways of
creating social value.”
(Phills et al. 2008)

50
“You can resist an invading army; you
cannot resist an idea whose time has
come.”
Victor Hugo

51
www.sfs-dortmund.de
howaldt@sfs-dortmund.de
Social Innovation: Concepts,
Research Fields and International
Trends
Studies for Innovation in a
Modern Working Environment 5
Jürgen Howaldt/Michael Schwarz
Challenge Social Innovation
Potentials for Business, Social
Entrepreneurship, Welfare and
Civil Society
Franz, Hans Werner/ Hochgerner,
Josef/ Howaldt, Jürgen

52
Literature 2
Fagerberg, Jan/ Mowery, David C./ Nelson, Richard (2005) (Eds.): The Oxford
Handbook of Innovation. Oxford, New York: Oxford University Press
Franz, Hans Werner/ Hochgerner, Josef/ Howaldt, Jürgen (2012)(Eds.):
Challenge Social Innovation, Springer
FORA (2010). New Nature of Innovation. Report to the OECD. Download von:
New Nature of Innovation (http://www.newnatureofinnovation.org/, 13.02.2012)
Murray, Robin/ Caulier-Grice, Julie/ Mulgan, Geoff: The Open Book of Social
Innovation, 2010, Download von:
http://www.nesta.org.uk/publications/assets/features/the_open_book_of_social_i
nnovation. 23.06.2012)
Nowotny, Helga/ Scott, Peter/ Gibbons, Michael (2001). Re-Thinking Science.
Knowledge and the Public in an Age of Uncertainty. Cambridge: Polity Press.
Rogers, Everett M. (2003). Diffusion of Innovations. New York: Free Press

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