Social innovation

From CEOpedia | Management online

In consideration of growing social problems and the fact that resources are diminishing, policymakers are searching for new resolutions. An approach that has become popular is social innovation.

It is important to remember that social innovation is not a new concept. The first research on this term was done towards the end of the 1980s. Nevertheless, its popularity has grown recently, which is shown by the establishment of research facilities specialized in the topic. Still, there is a leading problem with the concept of social innovation. This is namely that there is nearly no transparency as to how social innovation actually is defined. A wide variety of organizations and initiatives are described as social innovations without there being a general agreement of what the term really includes (Borzaga & Bodini, 2014)

Definition

The definition for social innovation should comply with a major criterion: it should adequately separate social innovation from other forms of innovation. Since the "Theory of Economic Development" was published by Schumpeter in 1912, a lot of literature concerned with the topic of innovation circulated. As a consequence, the definition should usefully distinguish social innovation from other types and practices and it should motivate the demand for such innovations (Borzaga & Bodini, 2014)

  • The Bureau of European Policy Advisors (BEPA) published a fitting explanation, defining the term as "new ideas (products, services and models) that simultaneously meet social needs (more effectively than alternatives) and create new social relationships or collaborations". (Borzaga & Bodini, 2014)
  • In a different approach to defining social innovation Howaldt and Schwarz (2010) propose to distinguish between "normative" and "analytic" definitions of the concept. While in normative definitions "a social innovation can be any type of innovation that contributes to addressing social needs or problems" the analytic definition draws a clear line between social and technical innovations. The former includes immaterial elements such as "social behavioural patterns, routines, practices and settings" the latter clearly refers to innovations in the production of materials (Borzaga & Bodini, 2014)
  • Lastly, a third definition proposed by Franz, Hochgerner and Howaldt describes social innovation as "new, more effective and/or more efficient social practices with social ends and social means." (Franz, Hochgerner, & Howaldt, 2012)

Main purpose

The main purpose of social innovation is "to develop solutions to better answer the growing social demands which are further exacerbated by the crisis." In addition, it would challenge the classic methods the public sector and markets have answered social demands, since it facilitates engagement of the society to create social value (Franz, Hochgerner, & Howaldt, 2012)

Three different approaches

It is possible to distinguish between three complementary concepts to social innovation.

  1. First, the social approach refers to "grassroots social innovations which respond to pressing social demands which are nor addressed by the market and are directed towards vulnerable groups in society." (Franz, Hochgerner, & Howaldt, 2012)
  2. Secondly, societal social innovations concern societal developments aimed at society all together, which mix social and economic approaches (Franz, Hochgerner, & Howaldt, 2012)
  3. Thirdly, systemic innovations refer to "fundamental changes in attitudes and values, strategies and policies, organisational structures and processes, delivery systems and services". (Franz, Hochgerner, & Howaldt, 2012)

Scaling social innovations

When considering scaling social innovations, it is possible to differentiate between three modes. While certain social innovations publicize in the form of an organizational mode, which means a main structure to gather people and resources to distribute to a shared purpose, others take the form of programs. A program refers to an assortment of actions that support a specific aim. The last possible mode is a principle, which includes "general guidelines and values about how to serve a given purpose." (Beugré, 2017)

Example

One of the most popular and fastest to generalize social innovation is the internet. With among other things changing the way people communicate and work together the internet "has radically changed the most essential features of mankind". While the ends of developing the internet were rather social, since the original purpose was to simplify scientific collaboration, the means were clearly technical. This, as stated by the authors, would make the internet a social innovation with technical means which would open the discussion about to what extend it is truly social and if technological, cultural and economic components are involved (Franz, Hochgerner, & Howaldt, 2012)

Conclusion

The growing popularity of social innovation in politics was shown by the 2011 launch of the "Social Innovation Europe Initiative (SIE)" by the European Commission in Brussels. One purpose of this initiative is to provide an "overview and review on assessment approaches", including "a roadmap to improve the metrics and assessments needed for policy-making as well as for performance management of social innovation". (Franz, Hochgerner, & Howaldt, 2012)

Finally, according to the authors, it is to hope that when social innovation is developing to a broader extend, value creation will be its foundation. Another way to put it is that "social innovation will only make a difference where risk taking for the creation of social value by those most concerned becomes a respected activity." (Franz, Hochgerner, & Howaldt, 2012)

Advantages of Social innovation

Social innovation is a form of problem-solving that focuses on creating social value in society. It is a rapidly growing field that has become widely accepted as a powerful tool for resolving social issues and creating lasting solutions. Here are some of the advantages of social innovation:

  • It can be used to create solutions that are tailored to a specific problem, taking into account the local context and the needs of the community. This means that solutions are more likely to be effective and long-lasting than when using a generic approach.
  • It encourages stakeholders to be creative and think outside the box, leading to new perspectives and ideas that can be used to tackle the problem.
  • It involves collaboration between multiple sectors of society, including government, businesses, and non-profits, which can help to increase efficiency, reduce costs, and create more impactful solutions.
  • It can be a cost-effective approach to solving problems, as it can often leverage existing resources and build on existing solutions.
  • It can help to create a more equitable and sustainable society by focusing on solutions that benefit everyone, rather than just a select few.

Limitations of Social innovation

Social innovation is an approach that has become popular in recent years to tackle growing social problems and diminishing resources, but it is not without its limitations. These include:

  • Limited resources: Social innovation often relies on limited resources, such as funding, personnel, and infrastructure. This can make it difficult to implement widespread solutions that are meaningful and effective.
  • Lack of public understanding: Social innovation involves a shift in thinking and behavior, which can be difficult for people to understand and embrace. Without public understanding and buy-in, it can be difficult to enact meaningful changes.
  • Time constraints: Social innovation is often a process that takes time, which can be difficult in an environment that demands quick results. This can lead to a lack of patience and frustration with the process, which can limit its effectiveness.
  • Organizational challenges: Social innovation requires collaboration and cooperation between multiple stakeholders, which can be a challenge to achieve in a large organization. This can lead to a lack of buy-in from stakeholders, which can limit the success of the innovation.
  • Political obstacles: Social innovation can be hindered by political obstacles, such as a lack of political will or opposition from certain groups. This can lead to resistance and roadblocks that can make it difficult to enact meaningful changes.

Other approaches related to Social innovation

One approach to social problems is social innovation, however there are other approaches that can be used as well. These include:

  • Participatory governance, which encourages citizens to take an active role in civic life. This can be done through public meetings, voting, and community forums.
  • Community-led development, which encourages the people in a community to take the initiative and create solutions to their problems.
  • Collaborative initiatives, which bring together different stakeholders to work together to solve social problems. This can include public-private partnerships, community-led initiatives, and multi-stakeholder collaborations.
  • Social enterprise, which uses business strategies to tackle social issues. This includes creating businesses that are dedicated to solving social problems, such as providing affordable housing or healthcare.
  • Inclusive market solutions, which seeks to bring marginalized populations into the formal economy. This can be done through job training, access to credit, and other initiatives.

In summary, there are various approaches to social problems beyond social innovation, such as participatory governance, community-led development, collaborative initiatives, social enterprise, and inclusive market solutions.


Social innovation — recommended articles
Innovative systems — Third sector — Educational innovations — Sustainable innovation — World Packaging Organisation — Organizational knowledge — Innovative thinking — Types of change agents — Mary Parker Follett

References

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