Economic foundations of social innovation
Europe is confronted with many complex and interrelated socioeconomic challenges that have clearly been intensified by the economic crisis. These challenges include youth unemployment, migration, ageing population, poverty and gender inequalities. While research on regional innovation systems is well established in economics and innovation research, the idea of regional SI is rather new. The EU-funded project SIMPACT (Boosting the impact of social innovation in Europe through economic underpinnings) highlighted the potential for the empowerment and (re)inclusion of marginalised and vulnerable groups in society. SIMPACT recognised that several key issues need to be addressed to fully integrate SI in the European economic sphere and its policy environment. It thus sought to gain a better understanding of the components, objectives and principles of SI, as well as its underlying processes and contexts. The research discussion was built on a multidisciplinary middle-range theory that explores the economic dimensions of SI. Each case was embedded in a specific context involving the welfare regime. In addition to selection criteria, a solution/initiative had to comply with the project’s definition of SI and have some type of organisational structure (e.g. NGO, association, enterprise, cooperative, initiative) to qualify as a SIMPACT case. Researchers applied meta-analysis to systematically summarise and integrate findings from existing SI case studies and analyse differences in the results. This added value to existing knowledge while avoiding duplication of research efforts. The empirical findings were then incorporated into an SI simulation model in order to elaborate different behaviour scenarios. A gap was found that reveals how large-scale societal challenges and small-scale SI activities can be reduced. SIMPACT designed an SI Business Toolbox to facilitate developing and/or improving SI business models. The Toolbox was designed within the framework of an SI business model canvas. This involved the preliminary phase of idea drafting as well as the development and start-up phase. These tools can support policymakers, innovators, investors, intermediaries and other stakeholders to accelerate the social and economic impact of SI targeting the most vulnerable in society.
Keywords
Economic foundations, social innovation, SIMPACT, vulnerable groups, welfare
