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SOCIAL INNOVATION STRATEGY A window of opportunity for Euskadi February 2011
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Table of contents
Introduction
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1. Social Innovation, an opportunity to face up to current challenges
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2. What is Social Innovation? 2.1- Concept of Social Innovation 2.2- SI chain of value
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3. Innobasque strategy in Social Innovation 3.1- A systemic vision of Social Innovation 3.2- Key aspects of the transformation 3.3- Strategic fields of Social Innovation 3.4- Innobasque's contribution to the chain of value 3.5- Innobasque strategy in Social Innovation
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Appendices: I.- The Chain of Value in Social Transformation fields. Main initiatives. II.- Innobasque's contribution to Social Innovation
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Introduction
The work that we are presenting in this publication owes a great deal to contributions made by so many people and organisations enrolled in each of our i-Taldes that have participated altruistically and voluntarily over the last few years in the different reflection-action dynamics promoted by Innobasque.
February 2011 Social Innovation Strategy. A window of opportunity for Euskadi
It draws equally from different sources of thinkers that have generously expressed their vision of social innovation in articles and publications that we have been monitoring.
January 2011 "Euskadi's take on Bottom of Pyramid"
Nor would this have been possible without carrying out a critical reflection on innovation practices that Innobasque has modestly promoted and continues to promote over these last few years.
November 2010 "Discovering the brain for excellence in education"
Consequently, this work does not pretend to be any type of authority on illustrious thinkers but, founded in a particular conception and vision of Social Innovation, it aims to explain to the agents working for and concerned by the system Innobasque's positioning within this system and proposals for transforming actions that it is committing to from its position as an association aiming to “encourage and boost development of Innovation in Euskadi”. Luis María Ullíbarri Social Innovation Director for Innobasque
Junio2010 "CAPV Research Strategy into Social Innovation”
May 2010 "Green Paper: Towards a Basque society 2030 based on Innovative Values"
December 2009 “What is an innovating society like?”
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1.- Social Innovation, an opportunity to face up to current challenges
• Productivity: it has a well-developed production structure featuring industrial activities and high added value services.
Major global goals, such as progressive population ageing, globalisation, technology evolution, the digital world and the information society, commitment to clean technologies and sustainability set major challenges that Euskadi must tackle over the next few years.
• New forms of governance: there is a joint work commitment in Euskadi among all people and institutions to tackle creating an innovative society (public-private alliance, inter-institutional cooperation, citizen participation).
To meet these challenges, Euskadi has resources and capabilities to rely on: • People: its human development ratios rank highly within the European Union • Connectivity: it has cooperation networks that can access and combine disperse knowledge to detect opportunities and become more competitive. • I nnovation: The Basque Country is considered to be a hotspot for innovation and competitiveness in the South of Europe.
Change variables Ageing Globalisation Technology: Digital World Clean Technology Sustainability
ES ENG ADI L L CHA EUSK FOR
Within this framework, social innovation is approached in Euskadi as an opportunity to provide a complete and structured answer to these challenges, making use of its support levers to generate economic growth and jobs, and consolidating an avant-garde position allowing our area to maintain a high level of wellbeing in the future and deep social commitment to the world.
Our resources People (Education and Talent)
Aims Economic Growth
Connectivity
Generating Employment
Innovation
Social Wellbeing
Productivity New Ways of Governance
ES ENG ADI L L CHA EUSK FOR
ES ENG ADI L L CHA EUSK FOR
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Social innovation is approached as an opportunity to generate transverse value for Euskadi as a region that must tackle major current challenges in terms of Europe and also within its own region, in terms of Sustainability.
PRODUCTION/ CONSUMPTION FINANCES
ORGANISATION
• INNOVATION FINANCING MODELS • CSR • SOCIAL ENTREPRENEURIALISM • SOCIAL INCLUSION • ETHICAL BANKING
GOVERNANCE • • • •
NETWORK SOCIETY INTERNET GOVERNANCE E-ADMINISTRATION PUBLIC-PRIVATE PARTICIPATION • INTELLIGENT TERRITOR • SHARE CAPITAL • BUSINESS MODEL •...
FUTURE PROJECTIONS
SOCIETY DEMOGRAPHY
ENVIRONMENT CLIMATE • RENEWABLE ENERGIES • ECO-INNOVATION •GREEN ECONOMY • CLIMATE CHANGE • EFFICIENT USE OF RESOURCES
• AGEING • IMMIGRATION • HEALTH • SOCIAL SERVICES • SOCIAL TECHNOLOGY • GENDER EQUALITY • ...
PE
L OP
E:
V (C
)
S
L KI
LS
D AN
V
U AL
ES
S u s t a i n a b i l i t y CHALLENGES
I • Internationalisation of innovation (globalisation) • ndicators (measurement)
3 BOOSTERS
I
• ntra-entrepreneurialism (creation-commitment)
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BENCHMARK IN INNOVATION
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Europe 2020 In Europe’s current era of transformation, the Europe 2020 Strategy is presented aiming to turn the EU into an intelligent, sustainable and integrating economy that enjoys high levels of employment, productivity and social cohesion.
Key aspects in the Growth Model
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In addition, the Commission is proposing seven emblematic initiatives to catalyse progress in each priority topic: 1. Innovation Union 2. Youth on the move 3. A digital agenda for Europe 4. Resource-efficient Europe 5. An industrial policy for the globalisation era 6. Agenda for new skills and jobs
• Smart Growth: that demands an economy to be developed based on knowledge and innovation
7. European platform against poverty
• Sustainable growth: that promotes greener and more competitive economies making more efficient use of resources.
Innovation union
• An inclusive growth: that involves boosting an economy with a high level of employment that has social and territorial cohesion.
The aim here is to refocus the RTDI policy on challenges that our society is facing: climate change, energy and efficient use of resources, health, demographic evolution, etc. in order to improve the general conditions and access to financing for research and innovation and guarantee that innovating ideas can be turned into products and services that generate growth and employment.
Relating to the growth model proposed, the Commission is setting the following main EU objectives for 2020:
The guidelines laid down within the framework of this emblematic initiative include the following:
• 75% of the population between 20 and 64 years old must be employed.
• Continue investing in education, RTD, innovation and ICTs.
• 3% of EU GDP should be invested in RTD.
• Our educational systems need to be modernised at all levels. Excellence must become the main guiding force, more than ever before. We need more worldclass universities, increasing skills levels and attracting the best talents from outside.
• The “20/20/20” target must be met regarding climate and energy (including a 30% increase in emission reduction if the conditions are right). • The school drop-out rate should be under 10 % and at least 40% of the youngest generation must have completed tertiary education. • The risk of poverty should threaten 20 million people less.
• We must support social innovation. We must manage to raise awareness on innovation among the public sector, identity successful initiatives, give them visibility and make comparative evaluations of the progress made. 7
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Agenda for new qualifications and jobs
pulation adapts to the new conditions and to potential changes in career; reducing unemployment; and increasing work productivity.
The aim is to create conditions to modernise employment markets and thereby increase levels of employment and guarantee continuity for our social models. This means providing people with skills by gaining new qualifications so that the current and future active po-
Within the framework of this emblematic initiative, four key priorities are proposed to achieve the targets set for 2020: Social Innovation is configured as one of the basic elements of the European Strategy 2020:
1. Employment markets that work better. Reconsidering flexigurity policies as an instrument to modernise the job markets and adapt them to the context of post-recession Europe. 2. Better qualified workforce. Investment in education and training systems; anticipating qualifications that are going to be required; guidance services are the strands required to increase competitiveness, productivity and economic growth and finally, employment.
3. Better quality jobs and better working conditions, linked to higher work productivity and an equally high employment rate. 4. More robust policies to promote creating jobs and the demand for workforce. The conditions must be right to create more jobs, plus measures intended to exploit key resources for creating employment and promoting the business spirit and autonomous activities.
Social Innovation stands as one of the basic elements of the European Strategy 2020:
Europe 2020
Innovation union
Agenda for new qualifications and jobs
... in line with the movements and strategies in the European context that highlight Social Innovation... 8
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In addition, the current strategic framework in the field of the CAPV defines needs that require a Social Transformation to which Social Innovation can provide an answer.
Lehendakari* committee of experts
Euskadi OECD Report
The Lehendakari Consultancy Board is an independent, strategic consultancy group at the highest level that analyses key economic and social policies in sustained and sustainable economic development and constant social progress for Basque society.
The OECD, in its report on regional innovation policies, highlights the role of Innobasque in actively promoting a wider concept of innovation in Euskadi, including social innovation. A role in which it has assumed a leadership role by means of research, drawing up studies, distributing publications and running workshops.
Reflection within the heart of the Consultancy Board highlights the following considerations: • The government must lead a debate on the territorial and competence model in the Basque Country. • The need is approached to deploy a range of wide spectrum policies that act simultaneously on the demography -with integral family policies-, employment, competitiveness, public spending austerity and rational use of public services and taxation. • Increasing the available offer of qualified foreign employment to attract immigrants with wide ranging profiles.
In this respect, the need has been highlighted to respond to social needs, by means of mobilisation and collaboration from the different stakeholders to thereby turn community values into actions. It also highlights the importance of education to guarantee a qualified future workforce.
Competitiveness Plan 2010-2013 The Plan lays down the rules so that Euskadi can remain competitive in the short and medium term, which will mean:
• Promoting a labour relations model based on joint responsibility and tackling thoughts on internal flexibility in the working day. • Achieving a new focus for the concept of “retirement”, emphasising “senior talent”.
• Boosting the development of competences and values among students to act in a global economy. • Labour relations policy that boosts conciliation measures for work and family life, flexibility and stable, good quality contracts. • I ntroducing the “Health” strategy into all Basque public administration policies.
* President of the Basque Government.
Lehendakari committee of experts
• Proving skills and boosting competences, attitudes and values for a global economy.
Euskadi OECD Report
Competitiveness Plan 2010-2013 (Basque Government) 9
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The current situation in the field of the CAPV shows a reasonable margin of improvement on the major challenges that Euskadi must tackle in the next few years.
Ageing Euskadi demonstrates one of the oldest demographic profiles The proportion of the population aged 65 and over in Euskadi is one of the highest in the EU27 and the proportion of child population is one of the lowest. Also, the number of births for every 1000 inhabitants dropped drastically between 1975 and 2008.
Births per 1000 inhabitants Ireland France UK Estonia Sweden Denmark Belgium Cyprus Czech Republic Spain Luxemburg Finland Netherlands Poland EU-27 Slovenia Slovakia Latvia Lithuania Rumania Greece Bulgaria Malta Euskadi Hungary Portugal Italy Austria Germany
Percentage of people over 65 years old Italy Germany Euskadi Greece Sweden Portugal Bulgaria Latvia Estonia Belgium Austria EU-27 Spain Finland France Slovenia Hungary Lithuania Denmark Rumania Netherlands Czech Republic Luxemburg Malta Poland Cyprus Slovakia Ireland
Source: Eustat
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Despite this data, the total population in Euskadi has grown moderately and beyond the state average in recent years, although it has been estimated that it will contract 0.4% between now and 2030. Evolution of the population in Euskadi and Spain
Spain Eskadi
Source: Demography, Employment and Training report for Euskadi 2030
As a consequence of progressive population ageing, the Basque population in working age (between 15 and 64 years old) will drop and the economic dependency rate, currently above both the Spanish and EU-27 average, is expected to rise to 44.93%, or in other words, for every person over 65 there will be 2.2 people of working age compared to 3.5 in 2010.
Dependency ratio 2010 Euskadi
Spain
EU 27
Source: Demography, Employment and Training report for Euskadi 2030
According to demographic projections, Euskadi should be facing a demographic decline, scarce natural growth and ageing of part of the population and the foreseeable repercussions, both economic and social, laying down great challenges over the next few decades.
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Education
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Comparative results from the PISA report (2006 vs. 2009)
Euskadi is a long way off benchmark countries in education According to the International Programme for International Student Assesment (Pisa), Euskadi is above the OECD average in reading and mathematics although it is a long way off the results obtained by benchmark countries in education such as Finland. Science results put Euskadi under the OECD average. Finland
OECD READING
In 2007 the CAPV stood 5.1% under the OECD average, 68%, in relation to the percentage of the population between 25 and 64 years old that reached at least secondary education level. Czech Republic Slovakia Sweden Germany Greece Denmark Finland Austria Netherlands UK OECD average France Luxemburg Belgium Ireland Euskadi (2007) Hungary Poland Italy Spain Portugal
Source: CES Basque socioeconomic report 2009, according to data from the 2008 report. Educational targets and reference points 2010 published in 2009 by IE.
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Euskadi
Finland
OECD MATH
Euskadi
Finland
OECD
Euskadi
SCIENCE
There is still a long way to go in terms of lifelong learning. Bulgaria Rumania Greece Hungary Slovakia Poland Lithuania Portugal Malta Italy Belgium Latvia France Germany Cyprus Luxemburg EU-27 Estonia EU-25 Ireland Spain EU-15 Austria Euskadi Slovenia Netherlands UK Finland Denmark Sweden Source: ISEI - IVEI.
The percentage of population between 25 and 64 years old that participate in lifelong learning activities stands at 13.5% in the Basque Country behind countries such as Denmark, Finland or United Kingdom.
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Employment The evolution of unemployment over the last few years shows that whilst the collective of unemployed people over 45 years old has remained stable, the volume of unemployed people between 25 and 44 has dropped considerably despite rallying over the last few years. The evolution of unemployment by age range over the last 15 years shows that the volume of unemployed people between 25 and 44 has dropped relevantly despite rallying over the last two years. In addition, the volume of unemployed people aged over 45 has remained constant, whilst the 16-25 year old group has progressively dropped over the last few years. Evolution of the number of unemployed people by age range in the Basque Country
16-24 years
25-44 years
45 years or more
Source: Eco Euskadi 2020.
Social Entrepreneurialism Social entrepreneurialism, both at state and regional level, requires a greater boost to attain dynamism comparable to other neighbouring countries. In the current context, promoting this entrepreneurial spirit will become even more relevant, if possible, given that it not only affects a nation's economic development but it can also have an indirect effect on its social wellbeing. In accordance with the SEA index (Social Entrepreneurship Activity) measured for the first time in 2009, Spain presents one of the lowest rates in the GEM environment, with only 0.53% of the adult population involved in a social entrepreneurial initiative. Internationally, the average SEA rate seems slightly higher in more developed countries.
Source: GEM Study 2009 Spain.
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Governance Levels of social and political participation among the CAPV population are very low.
Interest in politics in the CAPV has dropped sharply in the last few years.
• 88.6% of the population of Euskadi state that they have a low level of social and political participation, whilst participation in associations is even lower; only 2.8% of the population state that they have medium or high participation in associations.
The percentage of the population that says they are very or reasonably interested in politics has dropped 22% in the last few years, whilst the population that is barely or not at all interested has risen from 71% in 2004 to 78% in 2010.
Social Participation and Politics Average: 9.90%
Interest in politics in the CAPV (vertical %)
High: 1.50%
Low: 88.60%
Participation in associations Average: 2.50%
High: 0.30%
Very or reasonably interested Barely or not at all interested
Low: 97.20%
Source: Basque Socio-meter 44.
Source: Eustat.
There is a significant lack of trust overall from the Basque population in institutions and organisations. • Out of a maximum of 10 points, least trust is awarded to political parties (3.1) and a maximum of 6.1 points goes to Non Governmental Organisations or charity organisations (5.5). • In the case of the Public Administration, the levels of trust stand as follows: Basque Government (5.4), Town Councils (5,1), UN (4,8), European Commission (4,7) and in last place the Government (4,2). 14
Source: Eustat. Registered Capital Survey.
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Values of Current Society
Values Individualism, the search for wellbeing, the importance of the family, youth or a more local and less universal focus are the values shared by all people in current society, regardless of their age group. However, there are relevant differences between age groups; whilst the youth group is characterised by the need to live in and for the present, the lack of assumption of responsibilities or greater tolerance or indifference than adults or older people, the competitive or functional aspect is a heavily weighted value among adults.
Ranking
Search for well-being, a good standard of living
Being competitive, functional
Individualism
Living in and for the present
Values
Not assuming responsibilities
Young Adults Old People
Tolerance or indifference
Young people
Adults
Old People
All
Importance of family/partner Search for wellbeing, good standard of living Individualism Work as a utilitarian value Tolerance of Indifference Life as a show Search for security (family, work, etc.) Working out Not assuming responsibilities Taking care of your body Living in and for the present Youth (being young) Being competitive, functional Concentrating on local, less universal issues Painless and distance humanitarianism Expecting loyalty Source: The adolescent in current society: a sociology view. Own source.
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Grade in accordance with the following phrase:
CSR To a greater or lesser extent, as can be appreciated in the graph attached, the majority of the collectives in the survey agree that the boost to promote corporate social responsibility in Spain has had a minimal impact on how the majority operate on a daily basis.
"In Spain, companies do not pay enough attention to their social responsibilities"
This opinion is backed by 91% of politicians, 70% of journalists, 67% of academics consulted and 60% of financial analysts and managers.
Politicians
Journalist
Academics
Analysts
Managers
Source: KAR study 2009 by IPSOS.
However, CSR is essential for building a company's reputation CSR has acquired growing importance over the last decade, becoming a key element in a company's reputation, outstripping aspects such as economic results and commercial quality.
Variables that influence a company's reputation
Economic results
Quality Sales
Reputation Internal
Ethics and CSR
Innovation
Dimension Global
Source: MERCO report 2010.
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CSR The markets start to create global indexes that evaluate monitoring of company performance, beyond financial performance, including social and environmental aspects. A company will be sustainable in the future if it is capable of accounting the ‘triple income statement’: economic, social and environmental.
Dow Jones Sustainability Index (DJSI) - 2008
Social aspects Environmental aspects Economic aspects
Social aspects (40.6%) Work practices (5.2%) Developing human capital (5.6%) Managing knowledge (0%) Suppliers (4.6%) Dialogues with interest groups (4.6%) Philanthropy (3%) Social complaint (3%) Digital inclusion (4.5%) Impact of communications services (4.5%)
Environmental aspects (17.8%) Environmental policies (4.6%) Eco-efficiency (5.7%) Environmental complaint (3%) Advanced environmental management system (0%) Climatic impact strategy (4.5%)
Economic aspects Corporate government (5.6%) Investor relations (0%) Strategic Planning (0%) Scorecards (0%) Risk and crisis management (6%) Codes of conduct (6%) Relations with customers (10.3%) Brand management (8%) Developing services (0%) Privacy Policy (5.7%)
Source: CSR 2.0. A competitiveness tool for the future.
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Bottom of Pyramid CAPV foreign investment is currently strategically focussed on developed economies leaving over 2/3 of humanity outside its focus representing an estimated market of 5 trillion dollars. Foreign investment is currently strategically focussed on Europe and the United States adding up to more than 95% of the volumes invested (2005-2009 period), leaving outside its focus more than 2/3 of humanity representing an estimated market of 5 trillion dollars.
Top 10 emerging economies by destination from the Basque Country IED in thousand Euros 2005-2009
% of top 10 in developing countries
Over total investments 2005-9
ARGENTINA
641.480
24%
1.63%
CHINA
536.076
20%
1.36%
TURKEY
319.221
12%
0.81%
MEXICO
311.721
11%
0.79%
BRAZIL
285.444
11%
0.73%
CHILE
220.733
8%
0.56%
PERU
169.876
6%
0.43%
MOROCCO
164.794
6%
0.42%
37.843
1%
0.10%
SOUTH AFRICA RUMANIA TOTAL TOP 10
27.854
1%
0.07%
2.715.043
100%
6.91%
Top 10 emerging economies according to value of exports from the Basque Country in thousand Euros 2005-2009
% of top 10 in developing countries
Over total exports 2005-9
Mexico
1.887.839
18%
2.22%
China
1.401.717
13%
1.65%
Turkey
1.326.822
13%
1.56%
Brazil
1.235.723
12%
1.45%
Morocco
1.137.543
11%
1.34%
Algeria
1.028.481
10%
1.21%
Cuba
698.723
7%
0.82%
India
659.129
6%
0.78%
Russia
619.032
6%
0.73%
Chile
552.926
5%
0.65%
10.547.936
100%
12.40%
TOTAL TOP 10
Source: Euskadi's take on Bottom of Pyramid. Innobasque..
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Despite representing the majority of the worldwide population (approximately 4000 million people) the poorest population cannot participate in the global economy. However, according to the World Bank's projections (2002) this collective will grow exponentially over the next 40 years so that by 2050 it is forecast that almost 85% of the worldwide population will live in developing countries.
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Sectors with the greatest potential for innovation in the BoP are those that focus on attending social needs and basic services, plus those producing the greatest innovations in their business models. Food, energy and construction are the sectors where the BoP has greatest market potential. Companies that work in these sectors could have significant opportunities for business growth and innovation, given that their products and services can generate more sustainable social and environmental development models.
Estimation of the worldwide BoP market by sector
HEALTH
ICT
TRANSPORT
OTHERS
ENERGY
FOOD
CONSTRUCTION
Estimated market: 5 trillion dollars Source: World Resources Institute - 2008.
Estimation of the market by sector (million dollars) Food
2,894,000
Energy
4,334,000
Construction Financial Services
3,318,00 not available
Transport
1,793,000
Health
1,584,000
ICT
514,000
Water
201,000
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2.- What is Social Innovation?
2.1- Concept of Social Innovation Social Innovation is a widely spread concept nowadays, present in many strategies and public/private fields of action internationally. However, there is no single commonly accepted definition, and nor has an Integrated Social Innovation System been set up among the different agents involved. Working from the conception of Social Innovation as key elements to innovate "in, with and for" society, Innobasque considers social innovations to be: • joint participation processes for people • in order to improve and/or transform social situations • through joint creation of solutions, • contributing proposals that frequently take a transverse view • not experienced before • earning citizen acceptance. These processes lead to learning, commitment and transformations that make a strong impact locally and must be built on three pillars: • participation of local agents, guided by the principle of subsidiarity, • empowerment and citizen commitment • the bottom-up process. (Focus presented by Innobasque in the European Week of Regions and Cities)
Within the European context, the relevance of Social Innovation is made visible through the "Innovation Union" initiative launched at the end of last year by the European Commission with the fundamental idea of promoting Research and Development from the eminently practical perspective including the "Commitment to Social Innovation" as one of its key elements. The definition of the concept of Social Innovation, promulgated from the European Commission, transfers the importance of the "what" and the "how" so that Social Innovation can emerge, a definition that matches the vision of Social Innovation that Innobasque has put across since the start.
WHAT? “Social Innovation consists of finding new forms of satisfying social needs that are not properly covered by the market or the public sector... or producing the changes in behaviour required to solve the great challenges in society." HOW? Providing citizens with skills and generating new social relations and new collaboration models. They are therefore both innovating in themselves and useful to provide skills to the society to innovate"... INNOVATION UNION: (European Commission, 6/10/2010).
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The concept of Social Innovation at a European level is found to be completely in line with Innobasque's view both in terms of its conception and the work process.
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2.2- SI chain of value Innobasque provides a view of Social Innovation as a process of interaction and flow of joint relations between multiple forces and agents expressing it in the Chain of Value for Social Innovation. Social innovation is not therefore a specific discipline but one that transcends the specific topics of social sciences and works from the transverse nature of both disciplines and society agents that provide and exercise catalysing forces towards resolving society's great challenges and the chosen Social Transformation.
The Chain of Value for Social Innovation aims to reflect the necessary interaction between agents and/or key activities to achieve the Social Transformation that will benefit the whole, as the ultimate aim of Social Innovation. Within this context, it is essential to have a space that facilitates interaction between the agents and the different stages considered; from analysing the social situation, the generation of knowledge, the later application aimed at securing Social Transformation and the diffusion or awareness raising resulting from the Social Transformation.
ANALYSIS OF SOCIAL SITUATION Identification of challenges/trends
Observatory
Framework standard
GENERATING KNOWLEDGE Prospective
Research
Social Transformation APPLICATION / EXPERIENCE
PRODUCT
TOOLS
LEVERS
Conceptualisation
Entrepreneurialism
Imposition (Standard) Inertia (unconscious) Management (conscious / voluntary)
AWARENESS-RAISING / DIFFUSION / TRAINING Awareness-raising
Diffusion
Training
The Chain of Value for Social Innovation, as a process of interaction and flow of joint relations between multiple forces aimed at social transformations that benefit the whole. 21
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The Chain of Value for Social Innovation aims to show a non linear focus, where social innovation can emerge spontaneously from any stage of the process and generate a real Social Transformation, without having to complete all the stages reflected in the Chain of Value. • Analysis of the social situation by identifying challenges / trends, the function of an observatory on real life, or development derived from the regulatory framework. Focussed from different social topics, the main agents currently developing this function are the Public Administrations plus the different Institutes, Observatories and forums for inter-relation and analysis of real life that already exist. • Generating knowledge through work on conceptualisation, prospective and generating research. The main agents that carry out this function are the Universities, the RTDI centres and the Advanced Knowledge Services. • The nucleus of the social transformation process is the connection between generating knowledge and applying it to determined pilot experiences and on products. • Awareness raising, diffusion and training as accelerating tools to socialise the social innovation culture. • Levers for enabling and working together that position the person, the values and the talent as a central element of the process, plus adopting and properly managing the tools catalysing generating dynamics for collaboration.
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However, although there are Social Innovation experiences that have emerged directly from application or experience or by developing a research project, it is considered possible and desirable to release all the phases of the Chain of Value, in order to offer incentives and enable actions and experiences from a systemic focus that makes it possible to develop a cultural and systemic experimentation model encouraging Social Innovation.
It turns out to be essential to offer incentives and systemise the process of Social Innovation from all the stages of the Chain of Value to create a model developing Social Innovation.
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The starting point where we find the development of Social Innovation in the CAPV is complex although it presents major opportunities for the future. The report on "Research Strategy in Social Innovation by the CAPV" that Innobasque provided in 2010 concluded that although it is true that, taking the Social Innovation Chain of Value as a reference there is a wide range of benchmark agents developing their work in fields that are susceptible to Social Innovation, some lack of coordination is perceived and a scarcity of elements that provide the real social transformation. • The main deficiency revolves around managing the levers and tools that bring about initiatives that bring together knowledge and application. • It is necessary to boost the existing flow between generating knowledge and its application towards certain pilot experiences and social transformation products. • The function of socialising the knowledge has not reached the optimum transmission stage, regarding diffusion of knowledge and collaboration. • The lack of collaboration between agents makes it difficult to act on transverse topics, with complementary foci, whose results generate a greater impact and social transformation. • Deficit relevant to transfer of results to society from Research work in Social Innovation fields. Recognising the undeniable work of awareness raising regarding Social Innovation carried out over the last few years, the current situation requires certain leadership to affect the inducing and catalysing elements of Social Transformation.
The challenge consists of identifying the strategic fields of transformation that position the person, the values and the talent as a central element of the process, plus adopting and correct management of the tools that catalyse the generation of collaboration dynamics that permit genuine Social Transformation.
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3.- Innobasque strategy in Social Innovation
In this context, Innobasque is proposing a strategy aimed at social transformation, where Social Innovation is tackled as an essential challenge for the country, based on the following pillars:
Social Innovation Strategy pillars
A systemic vision of Social Innovation
Requiring public-private collaboration In strategic fields of transformation
This is the proposal that Innobasque is making as a stable space for deliberation and integrating initiatives, endorsed by the OECD that in its last Report on Regional Innovation Policies, quotes Innobasque as a "model of regional innovation agency that facilitates the change of socio-economic model" and as "one of the leaders in the proposal for activity in Social Innovation in the Basque Country"
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3.1- A systemic vision of Social Innovation Within this context, Innobasque proposes developing a systemic view of Social Innovation, working from our society's social challenges and focussing on the work areas in related fields that can meet these challenges from Social Innovation.
The development of these strategic fields proposed will tackle • Promoting a governance model based on participation • Promoting public-private alliances, working with all the social and economic agents with shared targets, in accordance with the Innobasque work philosophy
In order to tackle, with some guarantees, medium and long term actions that meet the demographic challenges concerning sustainable growth and quality of life, it is necessary to found future bases in the field of values.
• and aiming to achieve commitment from citizens.
In this respect Innobasque’s strategic proposal in the field of Social Innovation commits to focussing on developing the values associated with an innovating Basque society, promoting the competences required to develop and boost organisations with management models based on people and values.
Strategic transformation fields Social challenges in our 21st century society
Demography: Ageing, Immigration Economic growth: sustainable, integrating Quality of life
What values?
Knowledge
What skills?
Education and Employability:
Cooperation Opening up to change Opening up to globalisation
Basic skills Professionalism Attitude Entrepreneurialism
What organisations?
Management models based on people and values;
How do we want to do it?
New Governance P-P alliance Subsidiarity
CSR 4th Sector
The Innobasque strategy in Social Innovation works from a systemic view of Social Innovation that focuses on the key elements for a transformation. 25
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3.2- Key aspects of Social Transformation The Social Innovation strategy proposed by Innobasque, on the basis of the conception of innovation as a social phenomenon that implicates people, organisations and society as a whole, is approached from a model that puts people in the centre of the strategy. A model centred on people that aims to act on the following elements: • Values of people, from the individual perspective and in relation to society. • People’s Skills that guarantee healthy personal and social development. • Organisations as systems in which all people participate and as subjects of a necessary transformation in their conception. This model is contributed to by all people taking part in the i-Taldes (workshops) defined in each field.
Organisations
Values
PEOPLE
i-Talde Values i-Talde Governance
ion cat ent Edu oym lde mpl i-Ta lde E geing i-Ta lde A i-Ta
i-Ta i-Ta lde V i-Ta lde E alues lde duc Age atio ing n
4th Sector i-Talde Social Entrepreneurialism i-Talde CSR i-Talde Internationalisation BoP
Skills
The Social Innovation strategy is approached from a model that revolves around people and three fundamental elements: values, skills and organisations. 26
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3.3- Strategic fields of Social Innovation In line with the European strategy 2020, the Social Innovation strategy proposed by Innobasque prioritises certain strategic fields of development from social innovation that will contribute to the aim of achieving intelligent and integrating growth.
Innobasque's strategy consists of the following fundamental strands: a new model of governance linked to participation and aimed at efficiency, development of new processes in the field of education, employment or ageing, and all based on values worthy of an innovating society.
SOCIAL INNOVATION (...new ways of satisfying needs ...or producing changes ...)
GOVERNANCE
New Governance: • Participation • Subsidiarity
EEA
With VALUES
1.Education 2. Employment 3. Ageing
Governance: Encouraging innovation when designing public policies, going from a mere participative process to a participative and more efficient government model. Education: Promoting lifelong learning, committing to more skilled and more committed citizens, by means of experiences involving interaction between schools and their environment. Employment: Encouraging the active population to gain basic and professional skills, supported by transverse guidance systems throughout the life cycle that favour their employability and also quality employment and improved working conditions.
• • • •
Knowledge Cooperation Change Globalisation
Ageing: Promoting changes in the social perception revolving around old age and ageing, through social cohesion and encouraging environments and places for different generations to meet that will bring us greater wellbeing, quality of life and opportunities for economic and social development. Values: Creating an innovating culture that strengthens the values of knowledge, cooperation, opening up to change and to globalisation, and transfers them to the business, social, media field, etc. to achieve a society promoting intelligent, integrating and sustainable development.
The proposed strategy prioritises strategic fields of Social Innovation that encourage intelligent or integrating growth.
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Developing strategic fields in Social Innovation will also be tackled from the transforming dynamic of the Fourth Sector that highlights a new model of sustainable and scalable organisations developing goods and services that are both accessible and critical to increase the standard of living for the least well-off.
The aim of this dynamic focuses on deploying the potential of Basque agents (particularly companies) currently working in this area, in the globalisation environment, generating new economic and development opportunities and promoting their internationalisation.
TRANSFORMING DYNAMIC 4th SECTOR (...new ways of satisfying needs ...or producing changes ...)
Consortium to GOVERN
New Governance: • Participation • Public-Private Cooperation • Committed action
The 3 FIELDS
1. Social Entrepreneurialism 2. CSR 3. Internationalisation – BoP Bottom of Pyramid
Social Entrepreneurialism: Promoting and supporting generating business initiatives founded in social values, enabling favourable environments and making them visible to all social entrepreneurs. CSR: Highlighting the intangible aspect of social, economic and environmental responsibility, both for companies and for territories, by setting up a favourable application framework. BoP: Promoting innovation, cooperation and internationalization when generating inclusive businesses at the Bottom of the Pyramid.
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With the WILL to change business models
Development Sustainability
The strategy proposed will also be developed in the transforming dynamic of the Fourth Sector that highlights a new model of organisations, supported by three strands: Social entrepreneurialism, CSR and Bottom of Pyramid.
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In this respect, the Social Innovation Strategy proposed by Innobasque will be supported in the public-private alliance, cooperating and building the basis for social commitment to meet the targets given in the strategic fields of Social Innovation.
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Public Institutions
PRIVATE COLLABORATION
The Public Private Alliance formula has played a fundamental role in boosting key initiatives over the last few years in the CAPV as a regular space for discussion and for proposing common actions. It also contributes Innobasque’s genuine value within the context of the Basque Innovation System.
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PUBLIC POLICIES
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Private Agents
The public-private alliance as support to develop the Social Innovation Strategy is specified in:
i-TALDE Over 250 partners on the Social Innovation Board PUBLIC 29% PRIVATE 71%
Interactive learning space where economic, social, scientific, technological and institutional agents can participate, learning to solve problems by providing innovating solutions, generating value not only in results but also in the interaction itself where they search for, exchange and generate new knowledge 9 i-Taldes created of which Education, Ageing, Governance, Values and Employment continue with an activity and excellent implication, tackling specific projects. Over 1800 hours of voluntary work to promote the social and economic transformation of Euskadi.
With wide ranging representation from all social agents in the public and private field. University 13% Basque Government 12% Parliament 2%
Trade Unions 2%
Third sector 23%
Town Councils 5% Provincial government 3% Company 40%
Support for Public Policies Promotion of active participation of the interest groups in the joint design of public policies in this strategic fields for the transformation of Euskadi, working jointly with the different Administrations. Strengthening the Public-Private alliance through participation in the following initiatives: Social Housing Agreement, Lifelong Learning Law, Subsidiarity and Innovation, Research Strategy in Social Innovation, Municipio XXI, Basque Employment Strategy, Demography, employment and training 2030.
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3.4- Innobasque's contribution to the Chain of Value Innobasque is already tackling these strategic Social Innovation fields in the different stages of the Chain of Value* transversely assuming its role as:
In order to meet the targets set in the proposed strategy, Innobasque commits to promoting the development of each strategic field transversely using the Social Innovation Chain of Value as a reference point.
• Integrating initiatives that emerge in the different strategic fields. • Mediator or coordinator in the field of research into Social Innovation. • Promoter in the recognition process in the European field as a leading region in strategic and practices for social innovation.
Strategic fields e
nc
e
a rn
v Go
Chain of Value
t
en
n
io at
m oy
c
u Ed
pl
Em
g
n ei
Ag
l Va
R
CS
P
Bo
En
Age
Analysis of the social situation
m
is al al ci uri So ne e pr tre
s ue
Gender
Origin
Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
Quality employment
Efficiency Participation
Lifelong learning
Quality of life Social Perception
Skills
Integrating, intelligent and sustainable growth
Employability
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*See details in the Appendices
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3.5- Innobasque strategy in Social Innovation The current trend both within the framework of the CAPV and internationally is to consider Social Innovation as a "niche" for growing activity due to its potential for generating the Social Transformation required to respond to current challenges and achieve intelligent, sustainable and integrating growth. Within this framework, Innobasque is opting for assuming the following role in the field of the Social Innovation strategy.
• Stable space for deliberation and proposing actions in line with the general objectives. • Integrator of initiatives, founded in the chain of value for Social Innovation and in the Country's priorities. • Booster of research in collaboration with other agents. • Promoter of Public – Private alliances. • Generator of dynamics for prospecting and citizen participation. • Booster-facilitator of social entrepreneurialism. • Reference point and facilitator for knowledge in Social Innovation.
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Appendix I The Chain of Value in Social Transformation fields
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Main initiatives in the chain of value The focus of the work proposed in the field of Governance aims to cover the Governance Chain of Value with a global focus; from observation and identification of successful practices in the CAPV to final application and practical experience of participative governance models.
Analysis of the social situation
Bo P
R CS
Va lu es
tre S pr oc en ia eu l ria lis m En
Chain of Value
Go ve rn an ce Ed uc at io n Em pl oy m en t Ag ei ng
Strategic fields
Observatory, challenges, trends
Identification and analysis of Best Practices for participation in the Basque Administration.
Generating Knowledge
Municipio XXI View. Identification of characteristics of the town of the future and action proposals so that town councils can satisfy future needs.
Conceptualisation, prospective, research
Diffusion
Definition of guidelines to following towards a participative government; from participation processes to participative government models.
Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
Three party collaboration alliance - Innobasque-Governance-EUDEL to promote and tackle joint projects, intended to boost innovation, efficiency in the public sector and real citizen participation in the design, development and implementation of public policies (empowerment)"
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The focus proposed in the field of Education transfers the need to work along two lines: • Promoting the concept of “Open School”, boosting the school's interaction with its environment from the perspective of responsibility. • Boosting lifelong training, with particular emphasis on society's basic skills.
P Bo
R CS
s ue Va l
ng ei Ag
tre S pr oc en ia eu l ria lis m En
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Looking in greater depth at the prospective study applying research in neurosciences and its results to gain excellence in education. Support in identifying strategies to develop society's basic skills based on the available research.
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
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Promoting practical experiences of open schools interacting with their environment in specific centres from the perspective of responsibility and through the diffusion of successful experiences.
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In the field of Employment, the Innobasque focus will be directed towards maintaining workers’ employability in the CAPV through alliances with any agents involved, providing tools and/or models in specific projects that bring this aim to life.
P Bo
CS
R
lis m En
tre S pr oc en ia eu l ria
ue Va l
Ag
ei
ng
s
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Design and identification of proposals for guidance tools and/or models for innovative mediation that make workers more employable.
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
Boost for projects that encourage employability based on the proposed "new life guidance system".
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The focus of the work in the field of Ageing will be guided by the need to achieve a change in the social perception around ageing (the process) and old age (the state), stripping both of negative connotations that are often associated with them. It will be necessary to provide an all-encompassing view, through the network of current participants, on the needs of a society that is getting older.
Bo
P
R CS
En
tre S pr oc en ia eu l ria lis m
ue Va l
Ag
ei
ng
s
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge
Contribution to the analysis of the needs and the incorporation of the viewpoint from all agents involved in the evolution of the service to create favourable environments providing greater quality of life to Old People.
Conceptualisation, prospective, research
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
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Social awareness-raising aimed at changing society's perception of the ageing phenomenon, through the network.
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In the field of Values, the focus of the fundamental work will be centred on proposing strategies aimed at introducing an Innovating Society’s values into the different areas of society.
P Bo
R CS
En
tre S pr oc en ia eu l ria lis m
ue Va l
Ag
ei
ng
s
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Diffusion
Design of the White Paper of Values for an Innovating Society 2030 determining the strategies to introduce values in the different areas of society (education, business, social agents, the media, etc.).
Awareness-raising, training
Social transformation
Implantation of the proposed strategies
Pilot experiments, Social Entrepreneurialism
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Social Entrepreneurialism will be promoted in the CAPV through a network support system with an Opentric philosophy, open to social entrepreneur networks and centred on promoting specific experiences.
P Bo
CS
R
lis m
s ue Va l
ng ei Ag
tre S pr oc en ia eu l ria En
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
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Promoting support for specific experiences from innovating social companies. Designing a network support system for social entrepreneurialism in the CAPV.
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The future focus in the field of CSR will be centred on highlighting the CSR intangible asset both in territories and in the business environment and creating a stable action framework for it.
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Diffusion Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
P Bo
R CS
s ue Va l
ng ei Ag
tre S pr oc en ia eu l ria lis m En
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Highlighting the CSR intangible asset and its impact on the income statement. Setting up a framework for applying CSR encompassing different methodologies that have already been developed. Promoting the Socially Responsible Territory, highlighting CSR in the field of the territories. Support for materialisation and promotion of the Innovalan initiative.
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Working from the diagnosis on the potential for innovation in the BoP in the Basque economy, future work will focus on drawing up BoP business models in the Basque economy that facilitate processes to enter this field that require a high degree of innovation and knowledge of the local context to generate sustainable projects with social, economic and environmental benefits.
P Bo
CS
R
ism
s ue Va l
ng ei Ag
tre S pr oc en ia eu l ria l En
en t m
Em
pl
oy
at uc Ed
Chain of Value
Go
ve
rn
an
io
n
ce
Strategic fields
Analysis of the social situation Observatory, challenges, trends
Generating Knowledge Conceptualisation, prospective, research
Diffusion
Training workshop on businesses included in the BoP for socioeconomic agents.
Awareness-raising, training
Social transformation Pilot experiments, Social Entrepreneurialism
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Promoting innovation in generating inclusive businesses with the BoP through setting up pilot projects.
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Appendix II Innobasque's contribution to Social Innovation
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In addition to the field of work developed by the Social Innovation Area, Innobasque is contributing to the development of Social Innovation from other areas and fields of activity, with a transverse perspective of Social Innovation as a way of achieving the objective of being "The Benchmark in Innovation" on sustainability criteria.
PRODUCTION/CONSUMPTION FINANCES
ORGANISATION • I-talde Ageing • Efi-healthy • Basque Community of Chronic Patients • Housing
FUTURE PROJECTIONS
• Ecoinnovation • Ecoeuskadi • ReRISK
• NETWORK SOCIETY • INTERNET GOVERNANCE • E-ADMINISTRATION • PUBLIC-PRIVATE PARTICIPATION • INTELLIGENT TERRITOR • SHARE CAPITAL • BUSINESS MODEL •...
DEMOGRAPHY • AGEING • IMMIGRATION • HEALTH • SOCIAL SERVICES • SOCIAL TECHNOLOGY • GENDER EQUALITY • ...
CLIMATE • RENEWABLE ENERGIES • ECOINNOVATION • GREEN ECONOMY • CLIMATE CHANGE • EFFICIENT USE OF RESOURCES
PE
L OP
E:
(C
V)
S
L KI
LS
D AN
V
U AL
• • • • • • • • • •
• • • •
I-talde Education I-talde Employment I-talde Values Lifelong Learning
ES
BENCHMARK IN INNOVATION
• Fourth Sector • Advanced Entrepreneurialism • Eipg • Taxation Rules Supporting innovation • Responsible Competition
Fourth Sector I-talde Governance Municipio XXI Openideiak People-based organisation models Consortium –cie Itaca Forum Case studies Espa Socially Responsible Territory
S u s t a i n a b i l i t y CHALLENGES
42
GOVERNANCE
SOCIETY
ENVIRONMENT
• INNOVATION FINANCING MODELS • CSR • SOCIAL ENTREPRENEURIALISM • SOCIAL INCLUSION • ETHICAL BANKING
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www.innobasque.com