Making Social Innovation Happen EWMD European Women s

Making Social Innovation Happen EWMD – European Women‘s Management Development International Conference 2012 in Austria Mayrhofen, 10 November 2012 Social Innovation The concept, its emergence and potential Josef Hochgerner Zentrum für Soziale Innovation

When the tide of innovation comes in. . . Neither one big innovation, nor a series of innovations only. Innovations expand the range of human action. . . » » » We observe manifestations of powerful socio-technical systems, enabled by a particular culture of innovation . . . yet side-effects as well, e. g. climate change: . . . create spectacular achievements: Earth rise from moon orbit, December 24, 1968 aft here ion t ho → U. S. he “ in t ck „ s utnik Sp er vis the and A walk in the sunshine, July 21, 1969

Why SOCIAL Innovation ? Evolution of Brains Social change, development, crisis and ‚Grand Challenges‘: Resources and solutions Innovative Technologies Social Innovations Collaborative intelligence & intelligent collaboration >> Cultural Evolution

„Humans by Design“: Optimisation in the 21 st c. ? The most famous steam engine - Optimised by James watt, 1776 Standardisation Weak ties in social relations: ‚Flexibility‘ Acceleration ‚speed kills‘ Pressures Work-load „Work-Life Balance“ „Brave New World“: Optimisation of human bevaiour in social systems – 20 th century WHY SOCIAL INNOVATION NOW ? Innovations embedded in social change

St re ss in so cia ls ys tem s UNBALANCED GLOBALISATION Growth of the world population: . . . global economy, ‚world society‘ ?

“THE GREAT TRANSFORMATION” s l S ss e tr in so a ci m te ys s Karl Polanyi, 1944: Economic processes separate from society, dominate social relations instead of being regulated to benefit societal needs Economy Society becomes an annex to the economy and „market forces“ Society Humankind owns affluent knowledge & other resources! However, too little of existing capacities are used in current practises. Will there be social innovations to integrate economy in society? Society Economy

The termination of the ‚golden age of capitalism‘ (1) S Development of labour income share of national income, Austria 1960 -2007 s m e st y ls cia so n si s re t Share of national income accounted for by wages (unadjusted) Share of national income accounted for by wages (adjusted)

The termination of the ‚golden age of capitalism‘ (2) Wages remain static whilst productivity increases, USA 1959 -2005 Index of productivity 1959 until 2005 (USA) (1959=100) Index of hourly compensation of production workers and non-supervisory workers U. S. Data, Source: Economic Policy Institute

The termination of the ‚golden age of capitalism‘ (3) Wealthier society provides less additional welfare GDP (‚BIP‘) compared to ISEW (Index of Sustainable Economic Welfare) in Austria, 1955 – 1992 Source: Stockhammer et al. 1995

„The Problem behind the Challenges“ *) *) F. -J. Radermacher Making money without real value added: Depletion of productive economic resources due to financialisation Cf. T. I. Palley, 2007: Financialisation. What it is and why it matters. www. levyinstitute. org/pubs/wp_525. pdf „Financialization“ is defined as a „pattern of accumulation in which profit making occurs increasingly through financial channels rather than through trade and commodity production“ Krippner, Greta R. , 2004: ‘What is Financialization? ’; mimeo, UCLA Department of Sociology, p. 14.

ALL INNOVATIONS ARE SOCIALLY RELEVANT Approaching the social dimensions of innovation Innovations are ‚changes or novelties of rites, techniques, customs, manners and mores. ‘ Horace Kallen, 1949: Innovation, in: Encyklopedia of the Social Sciences; Vol. 8; pp. 58 ff. **** ‘Innovation is not just an economic mechanism or a technical process. It is above all a social phenomenon. Through it, individuals and societies express their creativity, needs and desires. By its purpose, its effects or its methods, innovation is thus intimately involved in the social conditions in which it is produced. ’ European Commission, 1995: Green Paper on Innovation http: //europa. eu/documents/comm/green_papers/pdf/com 95_688_en. pdf

al l eve ls The emergence of social innovation in science, politics, business and civil society Th eo re ti c al p Stuart Conger, 1974 ‚Social Invention‘ Horace Kallen, 1949 William Ogburn, 1922 ‚Cultural lag‘ Schumpeter, 1912 &n EU on ort olic ys upp al / p Ins ti tu ) re cu rs or s( ng gi er m Centre for Social Innovation E Vienna, 1990 ‚CRISES‘, Canada U. Of Quebec, 1988 Institute of Social Invention London, 1985 ti o n Center for Social Innovation Stanford U. , 2000 Social Innovation Ltd. Dortmund, 1994 e. g. an rg o ti o sa i Asian SI Award s xi Office of Social Innovation Hong Kong 2011 a pr White House 2009 d an Sozial. Marie, AT e UN: EC·LAC: Award nc Award f SI - 2005 f Soc. Exp. , 2004 ie sc. . . more CSI‘s: 2004 onwards in s e. g. Canada, NL, AUS, NZ, COL. . . n atio n UN Off. of Partnerships: Global Summit-2012 Research: FP 7 EC, 2011 ► Horizon 2020 >Social Innovation Europe< EC, 2011 National policies and strategy RTDI-Programmes 2010 ff Flagship Innovation Union EC, 2010 BEPA Report EC, 2010 Business Panel: Future of Innov. EC, 2009 European Social Agenda EC, 2008

Theoretical considerations (1) An analytical definition of „Social Innovation“ *) ‚Social innovations are new practices for resolving societal challenges, which are adopted and utilized by the individuals, social groups and organizations concerned. ‘ Distinction between idea and implementation: an idea becomes an innovation in the process of social implementation – it changes and improves social practices *) Zentrum für Soziale Innovation, 2012: „All innovations are socially relevant“ ZSI-Discussion Paper 13, p. 2, » New c ations ombin o are s « actice pr social f p um to Sch e renc e ith ref. . . w ey ter: Th e

Theoretical considerations (2) Comparison of the ‘new combinations’ according to Schumpeter with the ‘main types of innovations’ according to the Oslo Manual New combinations of production factors Innovations in the corporate sector # (SCHUMPETER 1912) (OECD/EUROSTAT 2005, ‘Oslo Manual’) New or better products Product innovations New production methods Process innovation Opening up new markets Marketing Reorganization of the market position New sources of raw materials Organizational innovations … and the main types of social innovations New combinations of social practices: social innovations, established in the form of … Roles Relations Norms Frames of reference

Social innovations in real life (1) Area of societal development Science, education and training Work, employment and the economy Technologies, machinery Democracy, politics and justice Social and health care systems Examples of social innovations Old / historic / previous ü Universities; compulsory education; Kindergarden; pedagog. concepts e. g. Montessori. . . New / current / future ü Technology enhanced learning; ‘micro-learning’, Web 2. 0; Wikipedia; ‘science mode 2’ ü Trade unions; Chambers of ü Flextime wage records; commerce/labour; Taylorism; CSR; social entrepreneurship; Fordism; self service diversity mgmt. ; collaborative consumption ü Norms and standardisation; ü Open source movement mechanisation of house (com-munities); self keeping; traffic rules; drivers constructed solar panels; licence decentralized energy prod. ü ‘Attic democracy’; the state ü Citizens participation; 3 rd as a juristic person; general sector; equal rights; gender elections mainstreaming ü Social security; retirement ü Reforms of financing and schemes, welfare state

SI in real life (2): The making of social innovation The „ 4 -i process“: – – Idea Intervention Implementation Impact Idea >> >> What‘s the issue, what could be the solution? Conceptualisation, find methods and allies Overcoming resistance, stakeholders, life cycle! Not necessarily ‚good‘, nor for the whole of society Intervention Implementation Impact Three perspectives to analyse objectives and impact: Ø the „social demand“ perspective, Ø the „societal challenges“ perspective, and Ø the „systemic change“ perspective. Agnès Hubert et al. (BEPA – Bureau of European Policy Advisors) „Empowering people – driving change. Social Innovation in the European Union. “ http: //ec. europa. eu/bepa/pdf/publications_pdf/social_innovation. pdf

Social innovations in real life (3) Sozial. Marie > Austrian Award for Social Innovation: Eligibility Eligible for submission are projects of the: Ø social economy (civil society initiatives, NPOs/ NGOs, associations) Ø public sector, administrations Ø private sector, businesses Applications since 2004: 2000 plus Total prize money awarded (to a number of 120 awardees): € 336, 000. -- ca.

Social innovations in real life (4) Success criteria as applied by the Sozial. Marie – Award for SI – Idea >> Novelty in absolute terms or in new environs – Intervention >> Involvement of the target group & stakeholders – Implementation >> Acceptance and effectiveness – Impact >> Replicable model for serving as a standard

Social innovations in real life (5 a) Public body: Municipality of Kapfenberg (AT) – „Future for all“ – – Idea Intervention Implementation Impact >> Issue poverty – social assistance without stigmatisation >> „Activity Card“ >> Transport, Caritas, Supermarket, Cafe, Sports. . . >> Participation, elevating quality of life and cohesion Civil society: Nagykaniza (HU) – „Social housing reconstruction camp“ – – Idea Intervention Implementation Impact >> >> Issue social exclusion, treat of expulsion from homes Negotiating rent arrears compensation by labour spent Contracts, camp and co-ordination of students, roma, professionals Better houses, cost/energy reduction, empowerment, replication

Social innovations in real life (5 b) Private business: Corporate theatre (AT) – „Diversity managment“ – – Idea Intervention Implementation Impact >> >> Issue deficient communication, avaoidance of conflicts Survey and representation of results by artists (actors) Pantomimic plays in company departments of situations at work Mutual respect, improved communication, less troubles Private business: Bank (AT) – „ 2 nd Savings Bank“ – – Idea Intervention Implementation Impact >> >> Issue private persons excluded from finacial services, re-inclusion Collaboration with insolvency advisers and social care NGO Access to bank account, guidance by the NGO and bank volunteers Learning, inclusions, empowerment, scaling Civil society: Vienna (AT) – „Children‘s Hospiz Net“ – – Idea Intervention Implementation Impact >> >> Issue terminally ill children, supporting families Networking of families concerned, professionals and institutions Medical and pychological assistance, taking care of procedures Emotional and factual easement, model for public service

More information – papers on social innovation: www. zsi. at/dp Results of the conference „Challenge Social Innovation“, Sep. 19 -21, 2011, Vienna: „Vienna Declaration on the Most Relevant Topics in Social Innovation Research“ - and the Video „Schumpeter Adopts Social Innovation“: www. socialinnovation 2011. eu Academic course of study „M. A. in Social Innovation“ Danube University Krems (Austria), in collaboration with ZSI www. donau-uni. ac. at/masi -2013 arting 2012 NEW – st ucation c ed rst academi » The fi ors « cial innovat of so

Thank you for your attention Prof. Dr. Josef Hochgerner Centre for Social Innovation Linke Wienzeile 246 A - 1150 Vienna Tel. ++43. 1. 4950442 Fax. ++43. 1. 4950442 -40 email: hochgerner@zsi. at http: //www. zsi. at