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«OECD Innovation Strategy ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies ...»

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Fostering Innovation to

Address Social Challenges

WORKSHOP PROCEEDINGS

OECD Innovation Strategy

ORGANISATION FOR ECONOMIC CO-OPERATION

AND DEVELOPMENT

The OECD is a unique forum where the governments of 30 democracies work together to address

the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.

The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

The Commission of the European Communities takes part in the work of the OECD.

This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries.

© OECD 2011 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to rights@oecd.org Foreword Innovation has long driven advances in productivity and economic growth. And while it is true that the contributions of innovation have not only been economic – innovations in industry have liberated workers from difficult and dangerous tasks through automation – it is also true that much of the thrust and focus of efforts to mobilise innovation have focused on economic objectives. However, this is changing as entrepreneurs, firms and public research actors recognise that modern economic growth must go hand in hand with societal progress.

Today’s global challenges – from climate change to unemployment and poverty - are both economic and social. The recent economic crisis, which finds part of its roots in financial innovation, reminds us of the importance of mobilising science, technology and innovation (STI) not solely for generating economic benefits, but also for anticipating and responding to social problems.

This report – the result of two international workshops held under the auspices of the the OECD’s Committee for Scientific and Technological Policy (CSTP) as part of the OECD Innovation Strategy – makes the case that the social-dimension is no longer peripheral to science, technology and innovation (STI), but a central factor for driving research funding decisions and shaping outcomes. Indeed, this is illustrated by the emergence of new actors who seek to mobilise STI to meet social demands in areas such as health, energy or the environment. The presentations by experts from a range of fields illustrate the potential to unleash innovation to address social challenges through new entrepreneurial and policy experiments. These examples highlight some of the implications for policy makers and make the case for new policies to enable innovation to support the creation of shared social and economic value.

The CSTP workshops and this publication would not have been possible without the support of leading institutions, namely the Japan Research Institute of Science and Technology for Society (RISTEX) part of the Japan Science and Technology Agency, Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT), the Research Council of Norway, the Interministerial Knowledge and Innovation Programme-Directorate in

FOSTERING INNOVATION TO ADDRESS SOCIAL CHALLENGES

The Netherlands, and the Centre for Technology and Society in Germany.

Special mention should be made of the members of the CSTP Steering Group that organised the workshop, namely Yoko Nitta of the Japan Society for Technology, Research Institute of Science and Technology for Society (RISTEX); Yuko Harayama, Graduate School of Tohoku University and now Deputy Director, DSTI at the OECD, Elisabeth Gulbrandsen of the Research Council of Norway, Karen De Ruijter, Ministry of Economic Affairs in the Netherlands, Hans-Liudger Dienel of the Centre for Technology and Society in Germany as well as Jean-Claude Burgelman of the European Commission.

–  –  –

EXECUTIVE SUMMARY

INTRODUCTION: TRANSFORMING INNOVATION TO ADDRESS

SOCIAL CHALLENGES

CHAPTER 1. THE ESSENTIAL PERSPECTIVES OF INNOVATION:

THE OECD LEED FORUM ON SOCIAL INNOVATIONS.................. 18 CHAPTER 2. FOUNDING “ELTERN-AG”- OUR EXPERIENCES AS SOCIAL ENTREPRENEURS

CHAPTER 3. OECD WORKSHOP ON INNOVATION FOR SOCIAL

CHALLENGES: LESSONS FROM THE UNITED KINGDOM............. 33 CHAPTER 4. STAKEHOLDER’S INVOLVEMENT





CHAPTER 5. A METHOD THAT GOES BEYOND “GOOD

PRACTICES”: A CASE STUDY OF RISTEX

CHAPTER 6.ADDRESSING SOCIAL CHALLENGES THROUGH

INNOVATION: THE CASE OF FINLAND

CHAPTER 7. SPANNING BOUNDARIES: SOCIAL INNOVATION

IN A COMPLEX WORLD

CHAPTER 8. THE ROLE OF BUSINESS ACTORS FOR SOCIAL

INNOVATION FROM THE CSR PERSPECTIVE

CHAPTER 9. COUNTRY APPROAHCES AND INNOVATION

POLICIES TO ADDRESS SOCIAL CHALLENGES:

OPPORTUNITIES AND BARRIERS

CHAPTER 10. PUBLIC PARTICIPATION PROCEDURES IN GERMAN

INNOVATION POLICY: AN OVERVIEW

CHAPTER 11. POLICY IMPLICATIONS

FOSTERING INNOVATION TO ADDRESS SOCIAL CHALLENGES

–  –  –

Innovation in the 21st century differs from the model embraced in the last century which was characterised as profit-oriented and nationally targeted. The underlying motive of innovation has been generating economic value. However, looking ahead to the society in the future, it is crucial to construct a new system that enables us to address social challenges through innovation by collaborating and acting globally. Thus there is a need to find ways to foster innovation which generates social and public value.

That innovation is already important to growth is highlighted by the

conclusions of the 2010 OECD Ministerial Meeting below:

11.1 Innovation is a key source of long-term growth, both in traditional and high-growth, high-value added sectors. It can provide crucial contributions to higher productivity and confront global and social challenges. Therefore, we welcome the final report of the Innovation Strategy.

11.2 In recognizing that innovation is a broad phenomenon covering a wide range of activities… How should policy makers and other societal stakeholders act in this context? The challenges faced by modern economies urgently call for new forms of collective action between public and private stakeholders in order to better integrate social challenges into research and innovation. A new approach is necessary to solve problems where social and technological progress co-evolves in order to generate social and public value. Most societal challenges are multidisciplinary in nature, thus dialogue between the natural sciences and the social sciences is fundamental in this process.

Today’s social challenges are numerous, complex, and urgent, from ageing societies, climate change, to energy efficiency and security. There is a wide consensus that the disconnection between economic growth and wellbeing is increasing. At the same time research and innovation have become one of the main engines of growth. However, these two overarching trends

FOSTERING INNOVATION TO ADDRESS SOCIAL CHALLENGES

have not yet been reconciled: there is a clear lack of exploitation of innovative solutions to address these social challenges. Failing to mobilise innovation to address some of the issues that affect populations at the global and local level has very high opportunity costs. Social innovation can be away to reconcile these two forces, bringing growth and social value at the same time.

To address these social challenges, the role of science and technology is critical as is taking a multidisciplinary approach that is dynamic and involves multilateral collaboration among different stakeholders. The presence of social entrepreneurs, new actors on the innovation scene are necessary to bring forth the social dimension.

This trend has been spreading globally and rapidly, which shifts our understanding of innovation, leading to a more balanced development path for growth and welfare. The recent economic crisis has made the need for innovation to address social challenges even more apparent and acute. It has

raised debate and concern for a different approach towards achieving wellbeing. These trends cans be summarised as follows:

Innovation must be unleashed

A new code of conduct is emerging, based on collaboration, tolerance and respect of diversity, which ascertains the limits of market mechanisms based on free competition. It calls for an evolutionary approach to solve problems by applying science and technology while attaching importance to social and public value.

There are business opportunities and synergies to be exploited by better integrating social challenges at the core of innovation activities. Social challenges have a strong mobilising effect, which would allow unprecedented gathering of competences and resources, beyond institutions, sectors and disciplines boundaries.

Case-studies presented in the workshops highlight the following:

• Awareness of the scope of the social challenges and the background.

• Involvement of various stakeholders.

• Learning spaces where good future dialogues are held for stakeholders to interact and liaise

• Initial funding, maintenance of the research system and liking together the natural sciences and the social science.

• Citizen involvement and buy-in.

FOSTERING INNOVATION TO ADDRESS SOCIAL CHALLENGES

• The system of co-operation with local public entities and NGOs, etc.

• Applying systems and mechanisms from other areas and communities.

• Extracting good practice from model cases.

• Maintaining the research support system and building networks to address social challenges.

To this end, better linking science and technology policy together with other policies should be encouraged. The role of government is to act as a catalyst and enable change.

New forms of innovation

Innovation that aims directly to address social challenges must cope with specific barriers that cause under-investment and hinder their development and diffusion. Most of these barriers relate to the multidimensional and multistakeholder nature of social challenges.

• The traditional concepts and models of innovation are not adequate to understand socially-driven innovation. Social challenges address a variety of intertrelated issues, which are built upon yet unco-ordinated and dispersed bodies of knowledge.

− Current indicators, such as GDP, do not reflect the growing importance of new social values such as well-being and sustainability and are unable to monitor and raise awareness on innovation to address social challenges. New indicators are needed to account for social values.

− Innovation to address social challenges has a public good nature.



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