social innovation a brief history, current trends, and future … · 2019-11-26 ·...

SOCIAL INNOVATIONa brief history, current trends,

and future challenges

Andrea IannoneConsultant & Researcher

Corporate and Innovation PolicyDipartimento di Economia

2

AGENDA


1) Premise

2) History

3) The Western context today

4) Definitions

5) A guiding perspective

6) Example(s)

7) Future challenges

3

LET’S DISPELL A NOTION


There is no inherent goodness in social innovation.

Lindhult, 2008

“ ”

4

AGENDA


1) Premise

2) History


4) Definitions


6) Example(s)


5

A NEW BUZZWORD?


Number of publications on social innovation, 2006 – 2018

Source: Vision on EurLex data

6

WHEN DID IT ALL START, ANYWAY?


Merchants and serfs in Medieval cities in Europe

Robert Owen and the founding of New Harmony in 19th century Indiana

New Economic Policy (NEP) in Revolutionary Russia

By adhering for the moment to a general understanding of what social innovation may be, can we say that the historical cases below are not examples of it?

7

FOUR 20TH CENTURY STAGES


Goldsmith, S., 2010

1) 1900 – 1930 2) 1930 – 1980

3) 1980 – 2000s 4) 2000s – ???Dismantling of

the Welfare State

Charities Welfare State

Private-public partnerships

8

AGENDA


1) Premise

2) History

3) Some context today

4) Definitions


6) Example(s)


9

THE “INNOVATION PARADOX”...


Productivity growth rates, G7 members, 1971 – 2016

Source: OECD

2,41%

1,84%1,71%

1,37%

0,57%

1971-79 1980-89 1990-99 2000-07 2007-16

Not only has our productivity become less and less impressive...

10

... AND RISING INEQUALITY


Just a perception?

Source: Oxfam, 2017

... but its fruits have been distributed more unequally.

11

SOME MORE CONTEXT ( 1 )


10

13

12 12

17,2

3,1

10,67

13,07

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Italy

US

China

OECD

avg

% of population in relative poverty, 2005 – 2018

Sources: ISTAT, US Census Bureau, World Bank, OECD

12



Real GDP per capita, 2005 and 2018

Sources: World Bank, FRED St. Louis

$0

$10.000

$20.000

$30.000

$40.000

$50.000

Italy US China OECD avg

2005

2018

13



Employment rates, %, 2005 – 2018

Sources: World Bank, FRED St. Louis

53,00

57,00

61,00

65,00

69,00

73,00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Italy

US

OECD

avg

Euro1

9 avg

14



Median age, years, 2005 – 2018

Sources: EUROSTAT, US Census Bureau, United Nations Population Division

30

34

38

42

46

50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Italy

US

China

Euro19 avg

15



Life expectancy at birth, years, 2005 – 2018

Sources: ISTAT, World Bank

70,00

72,00

74,00

76,00

78,00

80,00

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Italy M

US M

China M

OECD

avg M

74,00

76,00

78,00

80,00

82,00

84,00

86,00

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Italy F

US F

China F

OECD

avg F

Males Females

16



Public social spending, % of GDP, 2005 – 2018

Sources: OECD, World Bank

15

18

21

24

27

30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Italy

US

OECD avg

GDP (constant 2010 USD), 2005 – 2018

$-

$10

$20

$30

$40

$50

$60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

trill

ion

of

$

Italy

OECDmembers

UnitedStates

17

AGENDA


1) Premise

2) History


4) Definitions


6) Example(s)


18

A COMPOUND CONCEPT


Social Innovation

Social Innovation

19

SOCIAL


an adjective used to describe the interaction amongst individuals and groups, each possessing different experiences, sets of beliefs, etc.

3 categories of social phenomenaaccording to how they favor the emergence of one or more solutions to social problems:• naturalistic• constructed• technological

McGowan & Westley, 2017

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INNOVATION ( 1 )


Creative destruction: a form or method ofeconomic change that not only never is, but nevercan be, stationary.

Schumpeter, 1942

Ten types of innovation

Keeley, Pikkel, Quinn & Walters, 2013

21

INNOVATION ( 2 )


22

SOCIAL INNOVATION (SI)


The process of developing and deploying effective solutions to challenging and often systemic social and environmental issues in support of social progress.

“

”Stanford Graduate School of Business

23

TWO MAIN OBJECTIVES OF SI


1) Satisfaction of human needs not currently satisfied

2) Increase the level of participation of all, but especially of deprived groups in society (empowerment)

Moulaert et al. 2005, p. 1976

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SI: A DESCRIPTIVE FRAMEWORK


Social Entrepreneurship

SocialIntrapreneurship

SocialExtrapreneurship

Approach to social change

Create a for- or non-profit venture

Leverage establishedorg’s resources and capabilities

Coordinate inter-organizational action to facilitatecombinations of ideas, people, places, and resources

Example

Tracey & Stott, 2019

25

AGENDA


1) Premise

2) History


4) Definitions


6) Example(s)


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COMMON ACTORSIn Italy, a few important actors are:

In general, social innovation requires many different

actors with different backgrounds. McGowan &

Westley (2017) found 3 distinct categories:

• Poet

• Designer

• Debater

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Failures underlying the need for social innovations

AState

BMarket

B1Traditional products/services not delivered to segments of the population who currently

need them

B2Innovative products

/services not delivered to current beneficiaries

A PRESCRIPTIVE FRAMEWORK ( 1 )

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Possible actors to involve in responses to failures

A

B1 B2Involve public administration in order to reduce

inefficiencies, maximize resource-sharing and

beneficiaries’ experiencesCompanies in the market;

Social Venture CapitalCrowd funding;Philanthropic foundations

A PRESCRIPTIVE FRAMEWORK ( 2 )

29

AGENDA


1) Premise

2) History


4) Definitions


6) Example(s)


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ALBURQUERQUE, NEW MEXICO

Problem Proposed Solution Results

Rising epidemic of homelessness in the city.

Give homeless people a paid dayjob so they could work themselves out of poverty.

350 individuals per year found permanent work. But as of Oct 2019 the program has been suspended for lack of funding.

Location of Albuquerque in the United States.

Homeless people and social workers gather around a service van.

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FROM MICROFINANCE TO FINTECH

Problem Proposed Solution Results

The poorest are unbanked.

Extend small business loans to the poorest at contained rates.

Microcredit access did not significantly increase loan access in India (Banerjee et al, 2010)

In 2018, there were still 1.7 billion “unbanked” adults in the world. (World Bank)

M. Yunus, microcredit pioneer

An affiliate company of the Chinese AlibabaGroup and the highest valued FinTech company

https://www.worldbank.org/en/news/press-release/2018/04/19/financial-inclusion-on-the-rise-but-gaps-remain-global-findex-database-shows

32

AGENDA


1) Premise

2) History


4) Definitions


6) Example(s)


33


FUTURE CHALLENGES: SCALECan private actors eradicate social problems in the long term efficiently and effectively without state intervention?

Innovation adoption curve

Frontispiece of T. Hobbes’ “The Leviathan”

In business, entrepreneurial firms that do well grow fast; but social entrepreneurship does not yet have a Microsoft or a Google.

“”The Economist (2010)

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FUTURE CHALLENGES: SUSTAINABILITY

Economic & financial Societal

Can social innovation projects wean themselves off dependence on public aid and develop a long-term business model able to fund the solution to the problem?

• Do social innovation projects truly have viability, given the perception of them as tools of impression management? (Dey and Teasdale, 2015)

• To what degree must we hold someone personally responsible and able to overcome a problem? Is there an inherent moral duty to exercise solidarity?

• Will all who need the service have equal access to it if it is privately funded?

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CONCLUSIONS

• Poverty, inequality, and aging: 3 big contemporary issues

• 21st century social innovation is a response that sees a plethora of actors strategically develop and deploy effective solutions to similar, systemic issues

• If actors are able to overcome the challenges of scale and sustainability, then social innovation has a rosy future. How?

36


CONCLUSIONS

New ways of interaction

amongst people

Looming societal crises

New market opportunities

Social priorities

Social innovation

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BIBLIOGRAPHY


• Banerjee, A., Breza, E., Duflo, E., Glennerster, R., Kinnan, C., Measuring the Impact of Microfinance in Hyderabad, Indiawww.povertyactionlab.org/evaluation/measuring-impact-microfinance-hyderabad-india

• Dey, P. and Teasdale, S. (2015), The tactical mimicry of social enterprise strategies: Acting ‘as if’ in the everyday life of third sector organizations in Organization 10(4), Sage, Thousand Oaks (USA)

• Goldsmith, S. (2010) The Power of Social Innovation, John Wiley & Sons, San Francisco• Grillo, F. (2018) Come rendere sostenibili i progetti di innovazione sociale, Vision, Rome• Grillo, F. and Nanetti, R. Y. (2019) Democracy and Growth in the 21st Century, Springer Nature, London• Howaldt, J. and Schwarz, M. (2010) Social Innovation: Concepts, Research Fields And International

Trends, Sozialforschungsstelle, Dortmund• Lindhult, E. (2008) Are Partnerships Innovative? in Svensson, L. & Nilsson, B. (eds.), Partnership – As a

Strategy for Social Innovation and Sustainable Change, Satéruns Academic Press, Stockholm• McGowan, K. and Westley, F. (2017) At the root of change: The history of social innovation, Edward Elgar

Publishing, Cheltenham (UK)• Moulert, F. et al (2005) Towards Alternative Models of Local Innovation in Urban Studies 42(11), Sage,

Thousand Oaks (USA)• Schumpeter, J. (1942) Capitalism, Socialism, and Democracy, Harper & Brothers, New York City• The Economist, Let's hear those ideas, Aug 12th 2010• Tracey, P. and Stott, N. (2017) Social Innovation: a window on alternative ways of organizing and

innovating in Innovation, 19:1, pp.51-60, Routledge, London

QUESTIONS?

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THANK YOU!

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BACKUP

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MEASURING AND SPREADINGSocial innovation is also a means of leveraging a territory’s resources to attract talent and investments through an EDP (Entrepreneurial Discovery Process) sponsored by local and national governments across one or more regions so that private, public, and social actors can converge their actions on specific targets. The example to the left is a Tableau dashboard of an EDP project developed in Poland by the World Bank in 2016. Similar practices can and should be exported to other regions, so that they can leverage and showcase their potential.

social innovation a brief history, current trends, and future … · 2019-11-26 ·...

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