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EQUIP SymposiumSustainable prosperity, well-being and innovation
ACADEMY OF FINLANDHelsinki, 9 – 10 June, 2016
Types of InnovationHow can Innovations be Embedded in our
Symposium Discussions?Josef Hochgerner
Zentrum für Soziale Innovation
www.equipproject.eu
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Overview
1. Innovation culture in the industrial society: The prevailingparadigm of innovation and innovation systems
2. Extending the paradigm(1) Industrial innovation (corporate sector)(2) The concept of social innovation: Definition and the 4-i process(3) Open innovation(4) Frugal innovation
3. Innovating innovation: New emerging patterns andresearch issues
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The
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ptim
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byJa
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ems–
20th
cent
ury
Innovations are embedded in social change
Acceleration, ‘speed kills‘
Pressures
„Work-Life Balance“
Work-load
Weak ties in social relations: Flexibility
Standardisation
1.In
nova
tion
cultu
re…
„ALL INNOVATIONS ARE SOCIALLY RELEVANT“Clic
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Not one big innovation, nor a series of innovations only!→ result of a powerful socio-technical system,
enabled by a particular innovation culture
Innovations expand the range of human action ...
Earth rise from moon orbit,December 24, 1968
A walk in the sunshine,July 21, 1969
Society generates innovation
... and facilitate sometimes veryspectacular achievements: The dominant innovation culture
mainly drives changes in „societalsediments“ by technology:(1) Technology made ‚skin‘ of society(2) The power structures in society(3) Modes of communication in
society, between individuals,organisations, organisms andartifacts
(4) Frames of reference, shapingmanners, mores, myths & rites
(5) The balance of emotions insociety (security / insecurity,hope / fear, empathy / hatred … )
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Comparison of the ‘new combinations’according to Schumpeter
with the ‘main types of innovations’according to the Oslo Manual
“New combinations ofproduction factors”
#
(SCHUMPETER 1911)
“Main types ofinnovations” inbusiness (OECD
2005, ‘Oslo Manual’)
New or better products Product innovations
New production methods Process innovation
Opening up new markets Marketing
Reorganization of themarket position Organizational
innovationsNew sources of raw
materials
100 YEARS OF INNOVATION THEORY
Major forms ofsocial innovations
“New combinations ofsocial practices”: socialinnovations, established
in the form of …
RolesRelations
NormsValues
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The classic and dominant business concept of innovation
„Innovation“ is the successful implementation of a new product or process(including organisational, marketing or service novelties) into a market:
„Commercialisation“ and diffusion.
From ideas to innovation:(b) The costs of success
ððð 100 € to market implementation
ðð 10 € for technology development
ð 1 € spent for research
From ideas to innovation:(a) The probability of success
ð 100 Research ideas
ðð 10 Trials / prototypes
ððððð 1 Innovation
<Thumb-rules> to assess the fundamental economics of innovation:
1.In
nova
tion
cultu
re…
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Social change, development,crisis and ‚Grand Challenges‘:
Resources and solutionsEvolutionof Brains
InnovativeTechnologies
WHY SOCIAL INNOVATION ?
Social Innovation for Social Action !>> Cultural EvolutionCollaborative intelligence & intelligent collaboration1.
Inno
vatio
ncu
lture
…
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“THE GREAT TRANSFORMATION”Karl Polanyi, 1944:
“Economic processes separate from society, dominatesocial relations instead of being regulated to benefit societal needs”
Economy
Will there be social innovations tocontain economy in society?
Society
Society
Economy
Society becomes anannex to the economyand „market forces“
Environ-ment
Humankind (the ‚KnowledgeSociety‘) owns affluent
knowledge & other resources.However, too little of existingcapacities is used in current
practises.
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Wealthier society provides less additional welfareGDP (‚BIP‘) compared to ISEW (Index of Sustainable Economic Welfare)in Austria, 1955 – 1992
Source: Stockhammer et al. 1995
The termination of the ‚golden age of capitalism‘ (1) *)
*) Eric Hobsbawm
Assess„Functionalities“instead of GDP(growth):
Heating, ShelterNourishment,Sanitation,Mobility andTransport,Health,Wellbeing
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Index of productivity1959 until 2005 (USA)(1959=100)
Index of hourly compensationof production workers andnon-supervisory workers
U.S. Data,Source:Economic Policy Institute
Wages remain static whilst productivity increases, USA 1959-2005
The termination of the ‚golden age of capitalism‘ (2)Clic
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“The tracks of international research on innovationdemonstrate that the technology-oriented paradigm –shaped by the industrial society – does not cover the broadrange of innovations indispensable in the transition from anindustrial to a knowledge and services-based society: Suchfundamental societal changes require the inclusion of socialinnovations in a paradigm shift of the innovation system.”Cf. the “Vienna Declaration: The most relevant topics in socialinnovation research”, 2011, adopted by the conference CSI.Information online: www.socialinnovation2011.eu
The first world-wide conference on social innovationresearch with 370 participants from 54 countriesaround the globe. * Vienna, 19-21 Sep. 2011
2.Ex
tend
ing
the
para
digm
…
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Areas relevantto social change
Examples of social innovationsOld / historic / previous New / current / future
Science, educationand training
Work, employmentand the economy
Technologies,machinery
Democracy, politicsand justice
Social and healthcare systems
ü Universities; compulsoryeducation; Kindergarden; pedagog.concepts e.g. Montessori ...
ü Trade unions; Chambers ofcommerce/labour; Taylorism;Fordism; self service
ü Norms and standardisation;mechanisation of house keeping;traffic rules; drivers licence
ü ‘Attic democracy’; the state as ajuristic person; general elections
ü Social security; retirementschemes, welfare state
ü Technology enhanced learning;‘micro-learning’, Web 2.0; Wikipedia;‘science mode 2’
ü Flextime wage records; CSR;social entrepreneurship; diversitymgmt.; collaborative consumption
ü Open source movement (com-munities); self constructed solarpanels; decentralized energy prod.
ü Citizens participation; 3rd sector;equal rights; gender mainstreaming
ü Reforms of financing and accessto welfare (e.g. ‘birth right portfolio’)
2.Ex
tend
ing
the
para
digm
…
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Social innovations are new practices of actionto modify living and working conditions
in parts or the whole of a society,if adopted, successfully implemented and utilized by
individuals, groups or organisations concerned.Analogy to the classic conception of innovation in technology and enterprises:
„Innovations are new products, processes, organisational or marketingmethods, which become successfully commercialised.“
(OECD/EUROSTAT, 2005, with reference to Schumpeter, 1911)
Analytic definition of social innovation:
Only in case of notable impact, according to the objective(s), an idea becomes an innovation.Success criteria of social innovations:
(1) Novelty or superiority.(2) Involvement of and benefit to the target group(s).
(3) Effectiveness and sustainability.(4) Replicability and scaling.
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AREAS AND OBJECTIVES OF SI
Three perspectives to analyse objectives and impact:
o the „social demand“ perspective,
o the „societal challenges“ perspective, and
o 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
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Ideation Intervention Implementation Impact
HOW TO CREATE SOCIAL INNOVATION ?
Idea
Idea
IdeaIdea
Intervention
Implementation
Impact
New/modified idea
Next intervention
Implementation, 2nd
Intervention, 3rd try
Persistent idea
The „4-i process“ of social innovation development:
o Idea >> What is the issue, objectives of change
o Intervention >> Conceptualisation, define approaches, methods
o Implementation >> Using resources, breaking deadlocks, cooperation
o Impact >> Measures of quality, range and scales, life cycle!
But: It‘s usually not an ideal linear process …
… often interrupted, back to field one, iterative ...
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Studying social innovation:Master of Arts in Social InnovationDanube University Krems, AustriaDepartment of Interactive Media and Technologies forEducation – Centre of Interactive MediaDuration: 5 Semester, 120 ECTS, extra-occupational,blended learning
Third launch of study:October 2016
Admission until end of 2016
Information:www.donau-uni.ac.at/masi www.essi-net.eu
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Some thoughts about approaches to social innovation
in Europe (“continental”) and America (“anglo-saxon world”)
Framing of mind-sets:Towards ensuring existing socialsystems and amend welfare
Policy mix connects thepublic, business and civilsociety sectors: Tripartitearrangements (where stillexistent – middle/north EU)
Favours a primarily complimentarynotion of social innovation
Framing of mind-sets:Business driven, entrepreneurialspirit, DIY individualism
Dominance of thebusiness sector createsneed for a multitude ofcivil society initiatives:
‚Lean Government – Big Society‘
Favours a primarily compensatorynotion of social innovation
Growing cleavages: urbanvs. rural regions, bubblingsocial classes, winners &loosers of globalization.
Key drivers: neoliberalism,austerity, financialization
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IS INNOVATION SPECTACULAR BY NATURE ?
Few innovations with basic and lasting impact, mostinnovations only improve what’s already functioning
Kind ofinnovation
Technologicalinnovation
Socialinnovation
Radicalinnovation
Incrementalinnovation
Few, with huge impacte.g. Telephone
Few, with huge impacte.g. Democracy
Many → cumulative impacte.g. stakeholder involvement
Many → cumulative impacte.g. additional features
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VARIETIES OF INNOVATION: SIGNS OF CHANGEClic
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Closed innovation modelClic
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Open Innovation: Definition by Henry Chesbrough
“Open innovation is theuse of purposive inflowsof knowledge toaccelerate internalinnovation, and expandthe markets for externaluse of innovation.”(Chesbrough 2006)
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Open innovation modelClic
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FRUGAL INNOVATIONOr, similar, definition of “Jugaad Innovation”
Jugaad (a word taken from Hindi which captures the meaning of finding a low-cost solution to any problem in an intelligent way) is a new way to thinkconstructively and differently about innovation and strategy.Jugaad innovation has a long-lasting tradition in India but is also widespread inthe rest of the so-called Bric countries (Brazil, Russia, India and China) andnumerous other emerging economies.Jugaad means thinking in a frugal way and being flexible, which, in turn, requiresthe innovator or entrepreneur to adapt quickly to often unforeseen situationsand uncertain circumstances in an intelligent way.
Variations of cost saving innovations for base-of-pyramid etc. markets:1. Cost Innovations: same functionality at lower cost2. Good-Enough Innovations: tailored functionality at lower costs3. Frugal Innovations: new functionality at low costs4. Reverse Innovations: selling low-cost innovations (developed for emerging markets) elsewhere
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Well-Being ?or, certainly,some stages
beforeWelfare …
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The case of Tata Nano examines the rise of idea of‘frugal innovation’, in India. Nowadays, the frugalinnovation is largely integrating itself into Indian andInternational manufacturing processes. Even thoughlow cost innovation has been very much prominentin India, the last few years have seen a jolt in thebelievers of this concept. From being instilled intothe very livelihood of village and rural areas, frugalinnovation has escaped and found its way into thelives of urban and metro dwellers as well. The worldwitnessed India‘s true potential at ‘frugalinnovation’after Tata Motor‘s development of $2000car, the Tata Nano. This case study has done in-depthanalysis of Tata Motors Ltd. dream project ‘TataNano’in terms of cost effective engineering anddesign and the other innovations made by the Tatagroup to incorporate their idea of ‘less is more’ intothe vehicle and the final output which went on tofulfill the dream of the ultimate ‘people’s car makingit one of the most discussed and appreciatedexamples of frugal innovation of the decade.
Frugal innovation in India: The case of Tata NanoArticle (PDF Available) in International Journal of AppliedEngineering Research 10(7):17411-17420 · January 2015with 4 Reads
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http://tnfis.org/
The Nordic FrugalInnovation SocietyryBetonimiehenkuja 302150 EspooFinland
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Eight dimensions of new emerging patterns of innovation:
1. Mediation, coordination, governance od innovation processes
2. Participation of customers and citizens
3. Motivation is changing
4. Automatization, software, complex data and risks
5. Infrastructures to enable community innovation
6. Perception of creativity and its meaning is shifting
7. Spatial shifts – more distributed innovation
8. Systemic sustainability innovation and societal transition
Extracted from the Final INFU Policy Brief (2012) of www.innovation-futures.org
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http://www.casi2020.eu/
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Prof. Dr. Josef Hochgerner
Centre for Social InnovationLinke Wienzeile 246
A - 1150 Vienna
Tel. ++43.1.4950442Fax. ++43.1.4950442-40
email: [email protected]://www.zsi.at
Thank you for your attention JClic
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