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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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Social challenges have a public-good nature. Market processes and the “invisible hand” are, even more than in other innovation activities, inefficient to coordinate these activities that directly address social challenges. Prospects of large profits in the social area are limited, which hinders incentives to invest and commit resources to these activities. As a consequence, specific processes and mechanisms should be specifically established to support innovation activities that aim to address social challenges.

The need for new modes of collective actions

These barriers result in governance and coordination inefficiency, lack of incentives to invest in social innovations, uncertainty, which hinder the development and dissemination of social innovation.

As social challenges are growing, the cost for failing to solve them is increasing dramatically. Innovative solutions to address these social challenges are clearly not adequately exploited. New solutions, new collective initiatives, new instruments as well as new modes of public supports and management are required to allow STI to address social challenges.

Although this trend is still nascent wealth of initiatives have already been experimented. A number of public agencies, research organisations and political institutions at all levels have carried out dedicated projects to promote STI to solve social problems. These pioneered experiences are still isolated and no coordinated efforts have been endeavoured to confront results and draw lessons from them.


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Social innovation Social Innovation refers to traditional innovation in terms of ‘VALUE CREATION’.

Its ultimate goal is: not only create economic value but also enhance social institution.

Therefore. NPO, civil society are to be involved, which are rather low key in field of traditional innovation as ‘Actor’ in charge of leading innovation.

To this end, the rise of Social Entrepreneur who plays a role of leading to explosive diffusion is notable.

Social Innovation refers to new strategies, concepts, ideas and organizations that meet social needs of all kinds- from working conditions and education to community development and health- and that extend and strengthen civil society.

Alternatively, it refers to innovations which have a social purpose- like microcredit and distant leaning. The concept can also be a means of innovation and it also overlaps with innovation in public policy and governance.

Social innovation can take place within the government, within companies, or within the non-profit sector between the three sectors.

The different types of platforms need to facilitate such cross-sector collaborative social innovation.

Ministry and small public sectors will be asked to follow the road map;

How to survive and in this globalized society?

The prevailing of new concepts and new ideas plus new technology methods seeds for new values, which steers the change of whole society.

In this globalized age, we really have to compete and deliver the seeds of things to the marketplace. That requires social encouragement of entrepreneurial activities.

The essence of those entrepreneurs who changed the system of society that they are completely passionate to make society, world better.

How to provide stuff and service in what vision, what concept is crucial.

Normally, the economic meltdown is supposed to trigger the demand of radical change and it attributes the economy recovery. This wave contributes to the economic growth.

A proliferation of organizations working on the boundaries of research and practical action. Such currents have converged in this area including Social Innovation refers to various waves of change which triggers the ripple effect as output of innovation.


Social challenges The fact is that the environment surrounding our society is rapidly changing, not to mention the climate change, aging population, energy problems, or food crisis, and due to the evolution of our lifestyle, social structure and institutions are evolving.

Question is imposed. Is this adaptation moving towards “right” direction? What social value are we seeking today? How to balance these different pressures and constraints? Should our society seek for a new sustainability for its development?

Thus we face to social challenges ever more urgent and complex.

Given the limited resources and increasing pressure on cost control, it is crucial that new knowledge and talent be deployed and developed as efficiently as possible.

We need to contemplate how to overcome Social Challenges by using knowledge and skills wisely.

We should also invest in research and development in a wide range of target areas. We should also exploit and promote innovative social entrepreneurship.

Also, we need to keep the quality of public services for citizens and entrepreneurs at a high level, in the light of the new environment, such as ageing population. The government needs to provide this quality by putting the needs of citizens and entrepreneurs first, by seeking effective collaboration with semi-public bodies and private parties and by allowing space for renewal and entrepreneurship.

Our most significant social challenges are resisting conventional approaches to solve them. We need to search for innovative measures of tackling these challenges.

Social entrepreneur A social entrepreneur is someone who seeks to create systemic changes and sustainable improvements thinking about sustaining the impact, assesses success in terms of the impact s/he has on society.

Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents for society, seizing opportunities others miss and improving systems, inventing new approaches, and creating solutions to change society for the better. While a business entrepreneur might create entirely new industries, a social entrepreneur comes up with new solutions to social problems and then implements them on a large scale. A social entrepreneur identifies a social challenge and has stepped up to make social change with social mission, to find innovative, immediate, small-scale and large-scale solutions that produce sweeping and long-term change, changing the system, spreading the solution and persuading entire societies to take new leaps He is being driven to produce social impact while employing a selfless, entrepreneurial intelligence and innovative drive, simply involving applying an existing idea in a new way or to a new situation, simply need to be creative in applying what others have invented. On the funding side, social entrepreneurs look for ways to assure that their ventures will have access to resources as long as they are creating social value. They seek to provide real social improvements to their beneficiaries and their communities, as well as attractive (social and/or financial) return to their investors.


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Introduction This chapter presents the OECD Forum on Social Innovations (FSI), an innovative platform created by the OECD LEED Programme a decade ago, and highlights its main features, objectives and achievements, together with the definition of social innovation provided by the Forum. Some quick hints on the main purposes and impact of social innovation will pave the way for further discussions and analysis.

The OECD Forum on Social Innovations: a pioneering achievement

In 2000, the OECD LEED Programme 1 created a multi-stakeholder Forum - the Forum on Social Innovations (FSI) - the main objective of which was to identify the most successful social innovations, facilitate international dissemination and transfer best policies and practices in social innovation.

Built around this principal objective, the FSI has more specific ones: the identification of key, locally-led social innovations; the review of available evaluation, evidence, and research studies to explore their strengths and

1. LEED’s mission is to contribute to the creation of more and better jobs through effective policy implementation, innovative practices, stronger capacities and integrated strategies at a local level. Since 1982, LEED has advised governments and communities on how to adapt to global trends and tackle complex problems in a fast-changing world. It was created precisely to complement national responses to local economic crises. LEED leverages expertise from America, Australasia and Europe in expert task forces to provide rapid responses and targeted advice on specific economic and social issues. It draws on best policy and practices from more than 50 countries around the world.


2. For detailed information see www.oecd.org/cfe/leed/forum/socialinnovations


weaknesses and transfer potential; the increase in external awareness and understanding of transferable policies and the promotion of their take-up, in a way which takes account of differing local contexts; and the reinforcement of international networks of policy makers and experts in this field.

Some eleven organisations from six countries signed the Charter of its establishment and agreed on a definition of social innovation which was then endorsed by the Directing Committee of the OECD Local Economic and Employment Development (LEED) Programme. This definition provides support for the Committee work of the Committee in this field.

This Forum, the first of its kind ever created inside an international organisation, has several interesting features: its multi-stakeholder nature; its balanced approach between a theoretical and practical dimension; and its international scope.

LEED’s mission is to contribute to the creation of more and better jobs through effective policy implementation, innovative practices, stronger capacities and integrated strategies at a local level. Since 1982, LEED has advised governments and communities on how to adapt to global trends and tackle complex problem in a fast-changing world. It was created precisely to complement national responses to local economic crises. LEED leverages expertise from America, Australasia and Europe into expert task forces to provide rapid responses and targeted advice on specific economic and social issues. It draws on best policy and practices from more than 50 countries around the world. 3 The first interesting feature of the FSI is undoubtedly the wide variety of actors who created it: public (at national and sub-national levels), private and also non-profit entities, who agreed to establish the Forum as a multistakeholder platform to share knowledge and to shape the policy agenda around social innovation. This bears witness to the fact that social innovation is a common concern for different actors and therefore not a “special mission” for one rather than another of them.

The second feature of the FSI is its twofold approach towards social innovation: it has been able to put together “the theory and the practice” and, in combining these two dimensions, has set social innovation in motion. In fact, while providing a working definition of social innovation (see below), it has, over the years, explored a wide set of social innovations (identified according to certain criteria ) in different geographical contexts. Social

3. www.oecd.org/department/0,3355,en_2649_34417_1_1_1_1_1,00.html

4. Local development activities which meet five main criteria: New actors, products, services, processes, Social impact, Territorial impact, Replication potential, Sustainability


innovation is, in fact, not only a relatively new concept which really needed to be defined when the FSI was created ten years ago, but also an evolving one, which must be explored and captured on the ground through the analysis of the many local initiatives which keep appearing.

The third feature of the FSI is its international scope, which has increased since its creation: originally conceived to facilitate the transatlantic exchange of social innovation, it later expanded to the South Pacific area and is currently targeting the BRICs. Some of these countries are, in fact, very interesting social innovation laboratories.

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