Challenge social innovation. Innovating innovation by research years after Schumpeter September 2011 Tech Gate Vienna / Vienna Austria Ms Antonella Noya Senior Policy Analyst LEED Division OECD Center for entrepreneurship, SMEs and Local Development

Societal challenges of the 21st century: developing a research agenda Plenary panel discussion among: Liesbet de Letter, European Commission DG Regional Policy, Brussels, Belgium David Lane, University of Modena, Italy Geoff Mulgan, National Endowment for Science, Technology and the Arts (NESTA), London, United Kingdom Antonella Noya, OECD Forum on Social Innovations, Paris, France Stephan Schulmeister, Economic Research Institute (WIFO), Vienna, Austria Moderation: Hans-Werner Franz, Social Research Centre (sfs) of Dortmund University of Technology, Germany 2

The OECD LEED Forum on Social Innovations (FSI) A multi- stakeholder Forum, with an international scope, putting together theory ( social innovation) and practices ( social innovations). Created in 2000 by 11 organisations from 6 countries to : facilitate exchanges of best practice and policies in social innovation. provide a framework for a comparative assessment of social innovations. reinforce international networks of policy-makers in this field. 3

The OECD LEED Forum on Social Innovations 2 The FSI provided in 2000 a working definition of social innovation, the very first one by an international organisation, agreed by the founders of the FSI and endorsed by the OECD/Local Economic and Employment (LEED) Directing Committee The definition linked social innovation to the improvement of individual and collective well - being and quality of life. 4

Definition of social innovation Social innovation can concern conceptual, process or product change, organisational change and changes in financing, and new relationships with stakeholders and territories.” It seeks new answers to social problems by: –identifying and delivering new services that improve the quality of life of individuals and communities; –identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation, as diverse elements that each contribute to improving the position of individuals in the workforce both as producers and consumers. (OECD, 2000) 5

Definition of social innovation 2 In a nutshell, social innovations are processes and outcomes which transform practices and policies of local and global economic and social development. Whenever social innovations appear they always bring about new references and processes. Social innovation aims at improving people’s live by promoting social change 6

Key elements of social innovation Individual, collective and institutional creativity Capacity to « think out of the box » and to walk off the beaten tracks Ability to mobilise different human and financial ressources and to work in partnership Ability to make a social impact and to change the society Enabling environment with the adequate incentives, finances, structures and drivers. 7

Why social innovation is coming to the fore now? 10 years ago, when the OECD FSI was created, several reasons already explained the emergence of social innovation, now urged by the financial and economic crisis and the public budget constraints: 1.Rise of civile society and social economy: not residual actors. Willingness to transform the society 2.Failure of market and State to adress social challenges using conventional wisdom and traditional approaches 3.Emergence of social challenges ( poverty, social exclusion, ageing population, rising inequalities, demographic change, ) which are threats but also opportunities 8

Why social innovation is coming to the fore now? 2 4. Need of the traditional business to reconnect with the society ( ex CSR, social audits, etc) 5. Emergence of new investors attracted by social return on investments 6. Emergence of social venture philantrophy 7. Increasing importance of intangible assetts (creativity, social capital) 8. Need to modernise the public sector and to increase its efficiency 9

The FSIthematic areas Main thematic areas: –Access to capital and changes in financing –Employment, targeted insertion, delivery of social and community services –Balanced growth approaches to development –Social cohesion in the “New Economy” –Social enterprises and social entrepreneurship –Corporate social responsibility –Community capacity building 10

The FSI publications Antonella Noya (ed.) (2009) The Changing Boundaries of Social Enterprises, Paris: OECD Antonella Noya, Emma Clarence, Gary Craig, (eds.) (2009) Community Capacity Building: Creating a Better Future Together, Paris: OECD Antonella Noya and Emma Clarence (eds.) (2007) Social Economy: Building Inclusive Economies, Paris: OECD (available in French in 2009, published by Economica, France) OECD (2004) Entrepreneurship: A Catalyst for Urban Regeneration, Paris: OECD 11

The FSI publications 2 OECD (2003) The Non-Profit Sector in a Changing Economy, Paris: OECD (also available in French and in Spanish) OECD (2003) Asset Building and the Escape from Poverty: A New Welfare Policy Debate, (on-line booklet also available in French, Spanish and Italian) OECD (2001) Corporate Social Responsibility: Partners for Progress, Paris, OECD OECD (1999) Social Enterprises, Paris: OECD (also available in French and Spanish) 12

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