SOCIAL INNOVATIONSTRATEGY

SOCIAL INNOVATIONSTRATEGY

A window of opportunity

for EuskadiFebruary 2011

Estrategia Innovacion Social ING:Maquetación 1 16/3/11 09:54 Página 1

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Introduction

1. Social Innovation, an opportunity to face up to current cha-llenges

2. What is Social Innovation?2.1- Concept of Social Innovation 2.2- SI chain of value

3. Innobasque strategy in Social Innovation3.1- A systemic vision of Social Innovation 3.2- Key aspects of the transformation3.3- Strategic fields of Social Innovation 3.4- Innobasque's contribution to the chain of value3.5- Innobasque strategy in Social Innovation

Appendices:I.- The Chain of Value in Social Transformation fields.

Main initiatives.II.- Innobasque's contribution to Social Innovation

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32

Table of contents


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Introduction

The work that we are presenting in this pu-blication owes a great deal to contributionsmade by so many people and organisationsenrolled in each of our i-Taldes that have par-ticipated altruistically and voluntarily over thelast few years in the different reflection-ac-tion dynamics promoted by Innobasque.

It draws equally from different sources ofthinkers that have generously expressed theirvision of social innovation in articles and pu-blications that we have been monitoring.

Nor would this have been possible withoutcarrying out a critical reflection on innovationpractices that Innobasque has modestly pro-moted and continues to promote over theselast few years.

Consequently, this work does not pretend tobe any type of authority on illustrious thin-kers but, founded in a particular conceptionand vision of Social Innovation, it aims to ex-plain to the agents working for and concer-ned by the system Innobasque's positioningwithin this system and proposals for trans-forming actions that it is committing to fromits position as an association aiming to “en-courage and boost development of Innovationin Euskadi”.

Luis María UllíbarriSocial Innovation Director for Innobasque

February 2011

Social Innovation Strategy.

A window of opportunity for

Euskadi

January 2011"Euskadi's take on Bottomof Pyramid"

November 2010"Discovering the brain for ex-cellence in education"

Junio2010"CAPV Research Strategy intoSocial Innovation”

May 2010"Green Paper: Towards aBasque society 2030 basedon Innovative Values"

December 2009“What is an innovatingsociety like?”


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1.- Social Innovation, an opportunity toface up to current challenges

Major global goals, such as progressive po-pulation ageing, globalisation, technologyevolution, the digital world and the informa-tion society, commitment to clean technolo-gies and sustainability set major challengesthat Euskadi must tackle over the next fewyears.

To meet these challenges, Euskadi has re-sources and capabilities to rely on:

• People: its human development ratiosrank highly within the European Union

• Connectivity: it has cooperation networks that can access and combinedisperse knowledge to detect opportu-nities and become more competitive.

• Innovation: The Basque Country is con-sidered to be a hotspot for innovationand competitiveness in the South ofEurope.

• Productivity: it has a well-developedproduction structure featuring indus-trial activities and high added valueservices.

• New forms of governance: there is ajoint work commitment in Euskadiamong all people and institutions totackle creating an innovative society(public-private alliance, inter-institutio-nal cooperation, citizen participation).

Within this framework, social innovation isapproached in Euskadi as an opportunity toprovide a complete and structured answer tothese challenges, making use of its supportlevers to generate economic growth and jobs,and consolidating an avant-garde positionallowing our area to maintain a high level ofwellbeing in the future and deep social com-mitment to the world.

Change variables

CHALLENGES

FOR EUSKADICHALLENGES

FOR EUSKADICHALLENGES

FOR EUSKADI

Ageing

Globalisation

Technology:

Digital World

Clean Technology

Sustainability

People (Educationand Talent)

Connectivity

Innovation

Productivity

New Ways ofGovernance

Economic Growth

GeneratingEmployment

Social Wellbeing

Our resources Aims


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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.

ENVIRONMENT

SOCIETY

ORGANISATION

CHALLENGES

S u s t a i n a b i l i t y

FU

TU

RE

PR

OJE

CTIO

NS

PRODUCTION/

CONSUMPTION

BENCHMARK

IN INNOVATION

P E OP L E :

( CV )

S KI L

L S AN

D V

A L UE S

P E OP L E :

( CV )

S KI L

L S AN

D V

A L UE S

CLIMATE

• RENEWABLE ENERGIES• ECO-INNOVATION•GREEN ECONOMY• CLIMATE CHANGE• EFFICIENT USE OF

RESOURCES

DEMOGRAPHY

• AGEING• IMMIGRATION• HEALTH• SOCIAL SERVICES• SOCIALTECHNOLOGY• GENDER EQUALITY• ...

GOVERNANCE

• NETWORK SOCIETY• INTERNET GOVERNANCE• E-ADMINISTRATION• PUBLIC-PRIVATE

PARTICIPATION• INTELLIGENT TERRITOR• SHARE CAPITAL• BUSINESS MODEL•...

FINANCES

• INNOVATION FINANCINGMODELS

• CSR• SOCIAL

ENTREPRENEURIALISM• SOCIAL INCLUSION• ETHICAL BANKING

3 BOOSTERS

• Indicators (measurement)

• Internationalisation of innovation (globalisation)

• Intra-entrepreneurialism (creation-commitment)


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Europe 2020

In Europe’s current era of transformation, theEurope 2020 Strategy is presented aiming toturn the EU into an intelligent, sustainableand integrating economy that enjoys high le-vels of employment, productivity and socialcohesion.

Key aspects in the Growth Model

Relating to the growth model proposed, theCommission is setting the following main EUobjectives for 2020:

• 75% of the population between 20 and64 years old must be employed.

• 3% of EU GDP should be invested inRTD.

• The “20/20/20” target must be met re-garding climate and energy (includinga 30% increase in emission reduction ifthe conditions are right).

• The school drop-out rate should beunder 10 % and at least 40% of theyoungest generation must have com-pleted tertiary education.

• The risk of poverty should threaten 20million people less.

In addition, the Commission is proposingseven emblematic initiatives to catalyse pro-gress 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

7. European platform against poverty

Innovation union

The aim here is to refocus the RTDI policy onchallenges that our society is facing: climatechange, energy and efficient use of resources,health, demographic evolution, etc. in order toimprove the general conditions and access tofinancing for research and innovation and gua-rantee that innovating ideas can be turned intoproducts and services that generate growth andemployment.

The guidelines laid down within the frame-work of this emblematic initiative include thefollowing:

• Continue investing in education, RTD,innovation and ICTs.

• Our educational systems need to be mo-dernised at all levels. Excellence mustbecome the main guiding force, morethan ever before. We need more world-class universities, increasing skills levelsand attracting the best talents from out-side.

• We must support social innovation.

We must manage to raise awareness on inno-vation among the public sector, identity suc-cessful initiatives, give them visibility andmake comparative evaluations of the progressmade.

• Smart Growth: that demands aneconomy to be developed based onknowledge and innovation

• Sustainable growth: that promotesgreener and more competitive eco-nomies making more efficient use ofresources.

• An inclusive growth: that involvesboosting an economy with a highlevel of employment that has socialand territorial cohesion.


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Agenda for new qualifications and jobs

The aim is to create conditions to moderniseemployment markets and thereby increase le-vels of employment and guarantee continuityfor our social models. This means providingpeople with skills by gaining new qualifica-tions so that the current and future active po-

1. Employment markets that work better.Reconsidering flexigurity policies asan instrument to modernise the jobmarkets and adapt them to the con-text of post-recession Europe.

2. Better qualified workforce. Investmentin education and training systems; an-ticipating qualifications that are goingto be required; guidance services arethe strands required to increase com-petitiveness, productivity and econo-mic growth and finally, employment.

3. Better quality jobs and better workingconditions, linked to higher work pro-ductivity and an equally high employ-ment rate.

4. More robust policies to promote crea-ting jobs and the demand for work-force. The conditions must be right tocreate more jobs, plus measures in-tended to exploit key resources forcreating employment and promotingthe business spirit and autonomousactivities.

pulation adapts to the new conditions and topotential changes in career; reducing unem-ployment; and increasing work productivity.

Within the framework of this emblematic in-itiative, four key priorities are proposed toachieve the targets set for 2020: Social In-novation is configured as one of the basic ele-ments of the European Strategy 2020:

Social Innovation stands as one of the basic elements of the European Strategy 2020:

... in line with the movements and strategies in

the European context that highlight Social Innovation...

Europe 2020 Innovation

union

Agenda for new

qualifications

and jobs


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In addition, the current strategic framework in the field of the CAPV defines needs that requirea Social Transformation to which Social Innovation can provide an answer.

* President of the Basque Government.

Lehendakari* committee of experts

The Lehendakari Consultancy Board is an in-dependent, strategic consultancy group atthe highest level that analyses key economicand social policies in sustained and sustai-nable economic development and constantsocial progress for Basque society.

Reflection within the heart of the Consul-tancy Board highlights the following conside-rations:

• The government must lead a debate onthe territorial and competence model inthe Basque Country.

• The need is approached to deploy arange of wide spectrum policies thatact simultaneously on the demography-with integral family policies-, emplo -yment, competitiveness, public spen-ding austerity and rational use of publicservices and taxation.

• Increasing the available offer of quali-fied foreign employment to attract immigrants with wide ranging profiles.

• Promoting a labour relations modelbased on joint responsibility and tac-kling thoughts on internal flexibility inthe working day.

• Achieving a new focus for the conceptof “retirement”, emphasising “seniortalent”.

Euskadi OECD Report

The OECD, in its report on regional innova-tion policies, highlights the role of Innobas-que in actively promoting a wider concept ofinnovation in Euskadi, including social inno-vation. A role in which it has assumed a lea-dership role by means of research, drawingup studies, distributing publications and run-ning workshops.

In this respect, the need has been highligh-ted to respond to social needs, by means ofmobilisation and collaboration from the dif-ferent stakeholders to thereby turn commu-nity values into actions. It also highlights theimportance of education to guarantee a qua-lified future workforce.

Competitiveness Plan 2010-2013

The Plan lays down the rules so that Euskadican remain competitive in the short and me-dium term, which will mean:

• Proving skills and boosting competences,attitudes and values for a global eco-nomy.

• Boosting the development of competen-ces and values among students to act ina global economy.

• Labour relations policy that boosts con-ciliation measures for work and family life,flexibility and stable, good quality con-tracts.

• Introducing the “Health” strategy into allBasque public administration policies.

Lehendakari

committee of

experts

Euskadi

OECD

Report

Competitiveness

Plan 2010-2013

(Basque

Government)


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The current situation in the field of the CAPV shows a reasonable margin of improvement on themajor 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 EU-27 and the proportion of child population is one of the lowest. Also, the number of births forevery 1000 inhabitants dropped drastically between 1975 and 2008.

Births per 1000 inhabitants Percentage of people over 65 years old

Source: Eustat

IrelandFrance

UKEstoniaSweden

Denmark Belgium

Cyprus Czech Republic

SpainLuxemburg

Finland Netherlands

PolandEU-27

SloveniaSlovakia

LatviaLithuaniaRumania

GreeceBulgaria

MaltaEuskadiHungaryPortugal

ItalyAustria

Germany

ItalyGermanyEuskadiGreece

SwedenPortugalBulgaria

LatviaEstonia

BelgiumAustriaEU-27Spain

FinlandFrance

SloveniaHungary

LithuaniaDenmark Rumania

NetherlandsCzech Republic

LuxemburgMalta

PolandCyprus

SlovakiaIreland


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Despite this data, the total population in Euskadi has grown moderately and beyond the stateaverage in recent years, although it has been estimated that it will contract 0.4% between nowand 2030.

According to demographic projections, Euskadi should be facing a demographic decline, scarcenatural growth and ageing of part of the population and the foreseeable repercussions, both eco-nomic and social, laying down great challenges over the next few decades.

As a consequence of progressive population ageing, the Basque population in working age (bet-ween 15 and 64 years old) will drop and the economic dependency rate, currently above boththe Spanish and EU-27 average, is expected to rise to 44.93%, or in other words, for every per-son over 65 there will be 2.2 people of working age compared to 3.5 in 2010.

Evolution of the population in Euskadi and Spain

Dependency ratio 2010

Source: Demography, Employment and Training report for Euskadi 2030

Source: Demography, Employment and Training report for Euskadi 2030

Spain

Eskadi

SpainEuskadi EU 27


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Education

Euskadi is a long way off benchmark countries in education

According to the International Programme forInternational Student Assesment (Pisa), Eus-kadi is above the OECD average in readingand mathematics although it is a long way offthe results obtained by benchmark countriesin education such as Finland. Science resultsput Euskadi under the OECD average.

In 2007 the CAPV stood 5.1% under theOECD average, 68%, in relation to the per-centage of the population between 25 and64 years old that reached at least secondaryeducation level.

Comparative results from the PISA report (2006 vs. 2009)

Source: CES Basque socioeconomic report2009, according to data from the 2008report. Educational targets and referencepoints 2010 published in 2009 by IE.

There is still a long way to go in terms of lifelong learning.

The percentage ofpopulation between25 and 64 years oldthat participate inlifelong learningactivities stands at13.5% in theBasque Countrybehind countriessuch as Denmark,Finland or UnitedKingdom.

Source: ISEI - IVEI.

Czech RepublicSlovakiaSweden

GermanyGreece

Denmark FinlandAustria

NetherlandsUK

OECD averageFrance

LuxemburgBelgium

IrelandEuskadi (2007)

HungaryPoland

ItalySpain

Portugal

BulgariaRumania

GreeceHungarySlovakia

PolandLithuania Portugal

MaltaItaly

Belgium LatviaFrance

GermanyCyprus

LuxemburgEU-27

EstoniaEU-25

IrelandSpainEU-15

AustriaEuskadiSlovenia

NetherlandsUK

FinlandDenmark

Sweden

Finland EuskadiOECD Finland EuskadiOECD Finland EuskadiOECD

READING MATH SCIENCE


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Employment

The evolution of unemployment over the last few years shows that whilst the collective of unem-ployed people over 45 years old has remained stable, the volume of unemployed people between25 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 ofunemployed people between 25 and 44 has dropped relevantly despite rallying over the last twoyears. 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.

Social Entrepreneurialism

Social entrepreneurialism, both at state and regional level, requires a greater boost to attaindynamism comparable to other neighbouring countries. In the current context, promoting thisentrepreneurial spirit will become even more relevant, if possible, given that it not only affectsa 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 timein 2009, Spain presents one of the lowest rates in the GEM environment, with only 0.53% ofthe adult population involved in a social entrepreneurial initiative. Internationally, the averageSEA rate seems slightly higher in more developed countries.

Evolution of the number of unemployed people by age range in the Basque Country

Source: Eco Euskadi 2020.

Source: GEM Study 2009 Spain.

16-24 years 25-44 years 45 years or more


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Governance

Levels of social and political participationamong the CAPV population are very low.

• 88.6% of the population of Euskadistate that they have a low level of so-cial and political participation, whilstparticipation in associations is evenlower; only 2.8% of the populationstate that they have medium or highparticipation in associations.

Interest in politics in the CAPV has droppedsharply in the last few years.

The percentage of the population that saysthey are very or reasonably interested in poli-tics has dropped 22% in the last few years,whilst the population that is barely or not atall interested has risen from 71% in 2004 to78% in 2010.

There is a significant lack of trust overall from the Basque population in institutions and orga-nisations.

• Out of a maximum of 10 points, least trust is awarded to political parties (3.1) and a ma-ximum 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 Go-vernment (5.4), Town Councils (5,1), UN (4,8), European Commission (4,7) and in lastplace the Government (4,2).

Source: Eustat.

Source: Eustat. Registered Capital Survey.

Source: Basque Socio-meter 44.

Social Participation and PoliticsInterest in politics in the CAPV

(vertical %)

Participation in associations

Average:9.90%

Average:2.50%

High: 1.50%

High: 0.30% Very or reasonably interested

Barely or not at all interested

Low:88.60%

Low:97.20%


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Values

Individualism, the search forwellbeing, the importance of thefamily, youth or a more local andless universal focus are the va-lues shared by all people in cu-rrent society, regardless of theirage group.

However, there are relevant diffe-rences between age groups;whilst the youth group is charac-terised by the need to live in andfor the present, the lack of as-sumption of responsibilities orgreater tolerance or indifferencethan adults or older people, thecompetitive or functional aspectis a heavily weighted valueamong adults.

Source: The adolescent in current society: a sociology view. Own source.

Values of Current Society

Search for well-being,a good standard of

living

Being competitive,functional Individualism

Not assumingresponsibilities

YoungAdultsOld People

Tolerance orindifference

Living in and forthe present

ValuesRanking 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


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CSR

To a greater or lesser extent,as can be appreciated in thegraph attached, the majorityof the collectives in the surveyagree that the boost to pro-mote corporate social respon-sibility in Spain has had aminimal impact on how themajority operate on a dailybasis.

This opinion is backed by91% of politicians, 70% ofjournalists, 67% of acade-mics consulted and 60% of fi-nancial analysts andmanagers.

However, CSR is essential for building a company's reputation

CSR has acquired growing importance over the last decade, becoming a key element in acompany's reputation, outstripping aspects such as economic results and commercial quality.

Grade in accordance with the following phrase:

"In Spain, companies do not pay enough attention to their social responsibilities"

Variables that influence a company's reputation

Source: KAR study 2009 by IPSOS.

Source: MERCO report 2010.

Politicians

Economicresults

QualitySales

ReputationInternal

Ethics and CSR Innovation DimensionGlobal

Journalist Academics Analysts Managers


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CSR

The markets start to create global indexes that evaluate monitoring of company performance, be-yond financial performance, including social and environmental aspects.

A company will be sustainable in the future if it is capable of accounting the ‘triple income sta-tement’: economic, social and environmental.

Dow Jones Sustainability Index (DJSI) - 2008

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.

Social aspects

Environmental aspects

Economic aspects


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Bottom of Pyramid

CAPV foreign investment is currently strategically focussed on developed economies leaving over2/3 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 addingup to more than 95% of the volumes invested (2005-2009 period), leaving outside its focusmore than 2/3 of humanity representing an estimated market of 5 trillion dollars.

Despite representing the majority of the worldwide population (approximately 4000 million pe-ople) the poorest population cannot participate in the global economy. However, according to theWorld Bank's projections (2002) this collective will grow exponentially over the next 40 years sothat by 2050 it is forecast that almost 85% of the worldwide population will live in developingcountries.

Top 10 emerging economies by destination from the Basque Country IED in thousand Euros

Top 10 emerging economies according to value of exports from the Basque Country in thousand Euros

Source: Euskadi's take on Bottom of Pyramid. Innobasque..

% of top 10 indevelopingcountries

Over totalinvestments

2005-92005-2009

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%

SOUTH AFRICA 37.843 1% 0.10%

RUMANIA 27.854 1% 0.07%

TOTAL TOP 10 2.715.043 100% 6.91%

% of top 10 indevelopingcountries

Over totalexports2005-9

2005-2009

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%

TOTAL TOP 10 10.547.936 100% 12.40%


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Sectors with the greatest potential for innovation in the BoP are those that focus on attendingsocial needs and basic services, plus those producing the greatest innovations in their businessmodels.

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 growthand innovation, given that their products and services can generate more sustainable social andenvironmental development models.

Estimation of the worldwide BoP market by sector

Estimation of the market by sector (million dollars)

Source: World Resources Institute - 2008.

Food 2,894,000

Energy 4,334,000

Construction 3,318,00

Financial Services not available

Transport 1,793,000

Health 1,584,000

ICT 514,000

Water 201,000

Estimated market: 5 trillion dollars

FOOD

CONSTRUCTION

ENERGY

OTHERS

TRANSPORTICTHEALTH


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2.- What is Social Innovation?

Social Innovation is a widely spread conceptnowadays, present in many strategies and pu-blic/private fields of action internationally.

However, there is no single commonly accep-ted definition, and nor has an Integrated So-cial Innovation System been set up amongthe different agents involved.

Working from the conception of Social Inno-vation as key elements to innovate "in, withand for" society, Innobasque considers socialinnovations to be:

• joint participation processes for people

• in order to improve and/or transform so-cial situations

• through joint creation of solutions,

• contributing proposals that frequentlytake a transverse view

• not experienced before

• earning citizen acceptance.

These processes lead to learning, commit-ment and transformations that make a strongimpact locally and must be built on three pi-llars:

• participation of local agents, guided by theprinciple 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 relevanceof Social Innovation is made visible throughthe "Innovation Union" initiative launched atthe end of last year by the European Com-mission with the fundamental idea of promo-ting Research and Development from theeminently practical perspective including the"Commitment to Social Innovation" as one ofits key elements.

The definition of the concept of Social Inno-vation, promulgated from the European Com-mission, transfers the importance of the"what" and the "how" so that Social Innova-tion can emerge, a definition that matchesthe vision of Social Innovation that Innobas-que has put across since the start.

WHAT?

“Social Innovation consists of findingnew forms of satisfying social needsthat are not properly covered by themarket or the public sector... or pro-ducing the changes in behaviour re-quired to solve the great challenges insociety."

HOW?

Providing citizens with skills and ge-nerating new social relations and newcollaboration models. They are there-fore both innovating in themselvesand useful to provide skills to the so-ciety to innovate"...

INNOVATION UNION:(European Commission, 6/10/2010).

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.

2.1- Concept of Social Innovation


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Innobasque provides a view of Social Innova-tion as a process of interaction and flow ofjoint relations between multiple forces andagents expressing it in the Chain of Value forSocial Innovation.

Social innovation is not therefore a specificdiscipline but one that transcends the spe-cific topics of social sciences and worksfrom the transverse nature of both discipli-nes and society agents that provide andexercise catalysing forces towards resolvingsociety's great challenges and the chosenSocial Transformation.

The Chain of Value for Social Innovation aimsto reflect the necessary interaction betweenagents and/or key activities to achieve the So-cial Transformation that will benefit thewhole, as the ultimate aim of Social Innova-tion.

Within this context, it is essential to have aspace that facilitates interaction between theagents and the different stages considered;from analysing the social situation, the gene-ration of knowledge, the later applicationaimed at securing Social Transformation andthe diffusion or awareness raising resultingfrom the Social Transformation.

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.

2.2- SI chain of value

Observatory

LE

VE

RS

TO

OLS

Conceptualisation Prospective Research

Entrepreneurialism

Awareness-raising

Imposition (Standard)

Inertia (unconscious)

Management (conscious /voluntary)

Diffusion Training

AWARENESS-RAISING / DIFFUSION / TRAINING

GENERATING KNOWLEDGE

ANALYSIS OF SOCIAL SITUATION

Social

Transformation

PRODUCTAPPLICATION /

EXPERIENCE

Framework standardIdentification of

challenges/trends


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The Chain of Value for Social Innovation aimsto show a non linear focus, where social in-novation can emerge spontaneously from anystage of the process and generate a real So-cial Transformation, without having to com-plete all the stages reflected in the Chain ofValue.

• Analysis of the social situation by iden-tifying challenges / trends, the functionof an observatory on real life, or deve-lopment derived from the regulatoryframework.

Focussed from different social topics,the main agents currently developingthis function are the Public Adminis-trations plus the different Institutes,Observatories and forums for inter-re-lation and analysis of real life that al-ready exist.

• Generating knowledge through work onconceptualisation, prospective and ge-nerating research.

The main agents that carry out thisfunction are the Universities, the RTDIcentres and the Advanced KnowledgeServices.

• The nucleus of the social transforma-tion process is the connection betweengenerating knowledge and applying itto determined pilot experiences and onproducts.

• Awareness raising, diffusion and trai-ning as accelerating tools to socialisethe social innovation culture.

• Levers for enabling and working toge-ther that position the person, the va-lues and the talent as a centralelement of the process, plus adoptingand properly managing the tools ca-talysing generating dynamics for colla-boration.

However, although there are Social Innova-tion experiences that have emerged directlyfrom application or experience or by develo-ping a research project, it is considered pos-sible and desirable to release all the phasesof the Chain of Value, in order to offer incen-tives and enable actions and experiencesfrom a systemic focus that makes it possibleto develop a cultural and systemic experi-mentation model encouraging Social Innova-tion.

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 deve-lopment of Social Innovation in the CAPV iscomplex although it presents major opportu-nities for the future.

The report on "Research Strategy in Social In-novation by the CAPV" that Innobasque pro-vided in 2010 concluded that although it istrue that, taking the Social Innovation Chainof Value as a reference there is a wide rangeof benchmark agents developing their work infields that are susceptible to Social Innova-tion, some lack of coordination is perceivedand a scarcity of elements that provide thereal social transformation.

• The main deficiency revolves aroundmanaging the levers and tools thatbring about initiatives that bring toge-ther knowledge and application.

• It is necessary to boost the existingflow between generating knowledgeand its application towards certainpilot experiences and social transfor-mation products.

• The function of socialising the kno-wledge has not reached the optimumtransmission stage, regarding diffusionof knowledge and collaboration.

• The lack of collaboration betweenagents makes it difficult to act ontransverse topics, with complementaryfoci, whose results generate a greaterimpact and social transformation.

• Deficit relevant to transfer of results tosociety from Research work in SocialInnovation fields.

Recognising the undeniable work of aware-ness raising regarding Social Innovation ca-rried out over the last few years, the currentsituation requires certain leadership to affectthe inducing and catalysing elements of So-cial 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.


24

3.- Innobasque strategy in Social Innovation

In this context, Innobasque is proposing a strategy aimed at social transformation, where So-cial Innovation is tackled as an essential challenge for the country, based on the followingpillars:

This is the proposal that Innobasque is making as a stable space for deliberation and integra-ting initiatives, endorsed by the OECD that in its last Report on Regional Innovation Policies, quo-tes Innobasque as a "model of regional innovation agency that facilitates the change ofsocio-economic model" and as "one of the leaders in the proposal for activity in Social Innova-tion in the Basque Country"

Social Innovation Strategy pillars

A systemic vision of Social

Innovation

In strategic fieldsof transformation

Requiring public-privatecollaboration


25

3.1- A systemic vision of Social Innovation

Within this context, Innobasque proposesdeveloping a systemic view of Social Inno-vation, working from our society's socialchallenges and focussing on the work areasin related fields that can meet these cha-llenges from Social Innovation.

In order to tackle, with some guarantees,medium and long term actions that meetthe demographic challenges concerningsustainable growth and quality of life, it isnecessary to found future bases in the fieldof values.

In this respect Innobasque’s strategic pro-posal in the field of Social Innovation com-mits to focussing on developing the valuesassociated with an innovating Basque so-ciety, promoting the competences requiredto develop and boost organisations with ma-nagement models based on people and va-lues.

The development of these strategic fieldsproposed will tackle

• Promoting a governance model basedon participation

• Promoting public-private alliances,working with all the social and econo-mic agents with shared targets, in ac-cordance with the Innobasque workphilosophy

• and aiming to achieve commitmentfrom citizens.

The Innobasque strategy in Social Innovation works from a

systemic view of Social Innovation that focuses on the key

elements for a transformation.

Social challengesin our 21stcentury society

Demography:

Ageing,

Immigration

Economic

growth:

sustainable,

integrating

Quality of life

Opening up to

change

Opening up to

globalisation

Education and

Employability:

Basic skills

Professionalism

Attitude

Entrepreneurialism

Management

models based

on people

and values;

CSR

4th Sector

New

Governance

P-P alliance

Subsidiarity

Cooperation

Knowledge

Whatvalues?

Whatskills?

Whatorganisations?

How dowe wantto do it?

Strategic transformation fields


26

3.2- Key aspects of Social Transformation

The Social Innovation strategy proposed by Innobasque, on the basis of the conception of in-novation 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 necessarytransformation in their conception.

This model is contributed to by all people taking part in the i-Taldes (workshops) defined ineach field.

The Social Innovation strategy is approached from a model that

revolves around people and three fundamental elements: values,

skills and organisations.

Organisations

PEOPLE

Values Skills

4th Sectori-Talde Social Entrepreneurialismi-Talde CSRi-Talde Internationalisation BoP

i-Talde Valuesi-Talde Governance

i-Tald

e Valu

esi-T

alde E

duca

tion

i-Tald

e Age

ing

i-Talde Education

i-Talde Employment

i-Talde Ageing


27

3.3- Strategic fields of Social Innovation

SOCIAL INNOVATION

(...new ways of satisfying needs ...or producing changes ...)

In line with the European strategy 2020,the Social Innovation strategy proposed byInnobasque prioritises certain strategicfields of development from social innova-tion that will contribute to the aim of achie-ving intelligent and integrating growth.

Governance: Encouraging innovation whendesigning public policies, going from amere participative process to a participativeand more efficient government model.

Education: Promoting lifelong learning,committing to more skilled and more com-mitted citizens, by means of experiences in-volving interaction between schools andtheir environment.

Employment: Encouraging the active popu-lation to gain basic and professional skills,supported by transverse guidance systemsthroughout the life cycle that favour theiremployability and also quality employmentand improved working conditions.

Ageing: Promoting changes in the socialperception revolving around old age andageing, through social cohesion and encou-raging environments and places for diffe-rent generations to meet that will bring usgreater wellbeing, quality of life and oppor-tunities for economic and social develop-ment.

Values: Creating an innovating culture thatstrengthens the values of knowledge, coo-peration, opening up to change and to glo-balisation, and transfers them to thebusiness, social, media field, etc. toachieve a society promoting intelligent, in-tegrating and sustainable development.

Innobasque's strategy consists of the follo-wing fundamental strands: a new model ofgovernance linked to participation andaimed at efficiency, development of newprocesses in the field of education, em-ployment or ageing, and all based on valuesworthy of an innovating society.

The proposed strategy prioritises

strategic fields of Social Innovation

that encourage intelligent or

integrating growth.

GOVERNANCE

New Governance:• Participation• Subsidiarity

1.Education2. Employment3. Ageing

• Knowledge• Cooperation• Change• Globalisation

EEA WithVALUES


28

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.

Developing strategic fields in Social Inno-vation will also be tackled from the trans-forming dynamic of the Fourth Sector thathighlights a new model of sustainable andscalable organisations developing goodsand services that are both accessible andcritical to increase the standard of living forthe least well-off.

Social Entrepreneurialism: Promoting andsupporting generating business initiativesfounded in social values, enabling favoura-ble environments and making them visibleto all social entrepreneurs.

CSR: Highlighting the intangible aspect ofsocial, economic and environmental res-ponsibility, both for companies and for te-rritories, by setting up a favourableapplication framework.

BoP: Promoting innovation, cooperation andinternationalization when generating inclu-sive businesses at the Bottom of the Pyra-mid.

The aim of this dynamic focuses on deplo-ying the potential of Basque agents (parti-cularly companies) currently working in thisarea, in the globalisation environment, ge-nerating new economic and developmentopportunities and promoting their interna-tionalisation.

TRANSFORMING DYNAMIC 4th SECTOR

(...new ways of satisfying needs ...or producing changes ...)

Consortiumto GOVERN

New Governance:• Participation• Public-Private

Cooperation• Committed

action

1. SocialEntrepreneurialism

2. CSR3. Internationalisation

– BoP Bottom ofPyramid

DevelopmentSustainability

The 3FIELDS

With the WILLto change businessmodels


29

The public-private alliance as support to develop the Social

Innovation Strategy is specified in:

The Public Private Alliance formulahas played a fundamental role in bo-osting key initiatives over the last fewyears in the CAPV as a regular spacefor discussion and for proposing com-mon actions. It also contributes In-nobasque’s genuine value within thecontext of the Basque InnovationSystem.

In this respect, the Social InnovationStrategy proposed by Innobasque willbe supported in the public-privatealliance, cooperating and buildingthe basis for social commitment tomeet the targets given in the strate-gic fields of Social Innovation.

Interactive learning space where economic, social, scientific,technological and institutional agents can participate, lear-ning to solve problems by providing innovating solutions, ge-nerating value not only in results but also in the interactionitself where they search for, exchange and generate new kno-wledge

9 i-Taldes created of which Education, Ageing, Governance, Valuesand Employment continue with an activity and excellent implication,tackling specific projects.

Over 1800 hours of voluntary work to promote the social and econo-mic transformation of Euskadi.

Strengthening the Public-Private alliance through participation in thefollowing initiatives: Social Housing Agreement, Lifelong Learning Law,Subsidiarity and Innovation, Research Strategy in Social Innovation,Municipio XXI, Basque Employment Strategy, Demography, employ-ment and training 2030.

Promotion of active participation of the interest groups inthe joint design of public policies in this strategic fields forthe transformation of Euskadi, working jointly with the dif-ferent Administrations.

i-TALDE

Support for Public Policies

Over 250 partners on the SocialInnovation Board

With wide ranging representationfrom all social agents in the

public and private field.

Public Institutions

PU

BLIC

PO

LIC

IES

PR

IVATE

CO

LLA

BO

RATIO

N

Private Agents

PUBLIC29%

PRIVATE71%

University13%

BasqueGovernment

12%Parliament

2%

Trade Unions2%

Town Councils5% Provincial

government3%

Third sector23%

Company40%


30

3.4- Innobasque's contribution to the Chain of Value

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.

Innobasque is already tackling these strate-gic Social Innovation fields in the differentstages of the Chain of Value* transverselyassuming its role as:

• Integrating initiatives that emerge inthe different strategic fields.

• Mediator or coordinator in the field ofresearch into Social Innovation.

• Promoter in the recognition process inthe European field as a leading regionin strategic and practices for socialinnovation.

*See details in the Appendices

Strategic fields

Chain ofValue

Age Gender OriginAnalysis of thesocial situation

GeneratingKnowledge

Diffusion

Socialtransformation

Efficiency Quality employment

Quality of life

Social Perception

Employability

Skills

Lifelong learningIntegrating,

intelligent andsustainable

growth

Participation

Observatory,

challenges, trends

Conceptualisation,

prospective, research

Awareness-raising,

training

Pilot experiments, Social

Entrepreneurialism

Govern

ance

Educ

ation

Emplo

ymen

t

Agein

g

Value

sCS

RBoPSo

cial

Entre

prene

uriali

sm


31

3.5- Innobasque strategy in Social Innovation

The current trend both within the framework of the CAPV and internationally is to considerSocial Innovation as a "niche" for growing activity due to its potential for generating the So-cial Transformation required to respond to current challenges and achieve intelligent, sus-tainable and integrating growth.

Within this framework, Innobasque is opting for assuming the following role in the field of theSocial 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.


32

Appendix IThe Chain of Value in Social

Transformation fields


33

Main initiatives in the chain of value

The focus of the work proposed in the field of Governance aims to cover the GovernanceChain of Value with a global focus; from observation and identification of successful practi-ces in the CAPV to final application and practical experience of participative governance mo-dels.

Identification and analysis of Best Practices for participation inthe Basque Administration.

Municipio XXI View. Identification of characteristics of the town of thefuture and action proposals so that town councils can satisfy futureneeds.

Definition of guidelines to following towards a participativegovernment; from participation processes to participativegovernment models.

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 thedesign, development and implementation of public policies(empowerment)"

Strategic fields

Chain ofValue

Analysis of thesocial situation

GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

BoPSoc

ial

Ent

repr

eneu

rialism


34

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 en-vironment from the perspective of responsibility.

• Boosting lifelong training, with particular emphasis on society's basic skills.

Looking in greater depth at the prospective study applyingresearch in neurosciences and its results to gain excellence ineducation.

Support in identifying strategies to develop society's basic skillsbased on the available research.

Promoting practical experiences of open schools interactingwith their environment in specific centres from the perspectiveof responsibility and through the diffusion of successfulexperiences.

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


35

In the field of Employment, the Innobasque focus will be directed towards maintaining wor-kers’ employability in the CAPV through alliances with any agents involved, providing toolsand/or models in specific projects that bring this aim to life.

Design and identification of proposals for guidancetools and/or models for innovative mediation thatmake workers more employable.

Boost for projects that encourage employabilitybased on the proposed "new life guidancesystem".

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


36

The focus of the work in the field of Ageing will be guided by the need to achieve a changein the social perception around ageing (the process) and old age (the state), stripping bothof negative connotations that are often associated with them. It will be necessary to providean all-encompassing view, through the network of current participants, on the needs of a so-ciety that is getting older.

Contribution to the analysis of the needs andthe incorporation of the viewpoint from allagents involved in the evolution of theservice to create favourable environmentsproviding greater quality of life to OldPeople.

Social awareness-raising aimed atchanging society's perception of theageing phenomenon, through thenetwork.

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


37

In the field of Values, the focus of the fundamental work will be centred on proposing stra-tegies aimed at introducing an Innovating Society’s values into the different areas of society.

Design of the White Paper ofValues for an Innovating Society2030 determining the strategiesto introduce values in thedifferent areas of society(education, business, socialagents, the media, etc.).

Implantation of the proposedstrategies

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


38

Social Entrepreneurialism will be promoted in the CAPV through a network support systemwith an Opentric philosophy, open to social entrepreneur networks and centred on promotingspecific experiences.

Promoting support forspecific experiences frominnovating social companies.

Designing a network supportsystem for socialentrepreneurialism in theCAPV.

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


39

The future focus in the field of CSR will be centred on highlighting the CSR intangible asset bothin territories and in the business environment and creating a stable action framework for it.

Highlighting the CSRintangible asset andits impact on theincome statement.

Setting up a frameworkfor applying CSRencompassing differentmethodologies thathave already beendeveloped.

Promoting the SociallyResponsible Territory,highlighting CSR inthe field of theterritories.

Support formaterialisation andpromotion of theInnovalan initiative.

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


40

Working from the diagnosis on the potential for innovation in the BoP in the Basque eco-nomy, future work will focus on drawing up BoP business models in the Basque economythat facilitate processes to enter this field that require a high degree of innovation and kno-wledge of the local context to generate sustainable projects with social, economic and envi-ronmental benefits.

Trainingworkshop onbusinessesincluded in theBoP for socio-economicagents.

Promotinginnovation ingeneratinginclusivebusinesses withthe BoP throughsetting up pilotprojects.

Strategic fields

Chain ofValue


GeneratingKnowledge

Diffusion


Observatory,

challenges, trends

Conceptualisation,


Awareness-raising,

training


Entrepreneurialism

Gov

erna

nce

Edu

cation

Em

ploy

men

t Age

ing

Valu

es

CSR

Soc

ial

Ent

repr

eneu

rialism

BoP


41

Appendix IIInnobasque's contribution

to Social Innovation


42

In addition to the field of work developed by the Social Innovation Area, Innobasque is con-tributing to the development of Social Innovation from other areas and fields of activity, witha transverse perspective of Social Innovation as a way of achieving the objective of being"The Benchmark in Innovation" on sustainability criteria.

ENVIRONMENT

CLIMATE

• RENEWABLE ENERGIES• ECOINNOVATION• GREEN ECONOMY• CLIMATE CHANGE• EFFICIENT USE OF

RESOURCES

DEMOGRAPHY

• AGEING• IMMIGRATION• HEALTH• SOCIAL SERVICES• SOCIAL TECHNOLOGY• GENDER EQUALITY• ...

• Fourth Sector

• I-talde Governance

• Municipio XXI

• Openideiak

• People-based organisation models

• Consortium –cie

• Itaca Forum

• Case studies

• Espa

• Socially Responsible Territory

• Fourth Sector

• AdvancedEntrepreneurialism

• Eipg

• Taxation RulesSupporting innovation

• Responsible Competition

• I-talde Education

• I-talde Employment

• I-talde Values

• Lifelong Learning

• Ecoinnovation

• Ecoeuskadi

• ReRISK

• I-talde Ageing

• Efi-healthy

• Basque Communityof Chronic Patients

• Housing

GOVERNANCE

• NETWORK SOCIETY• INTERNET GOVERNANCE• E-ADMINISTRATION• PUBLIC-PRIVATE

PARTICIPATION• INTELLIGENT TERRITOR• SHARE CAPITAL• BUSINESS MODEL•...

FINANCES

• INNOVATION FINANCINGMODELS

• CSR• SOCIAL

ENTREPRENEURIALISM• SOCIAL INCLUSION• ETHICAL BANKING

SOCIETY

ORGANISATION

CHALLENGES

P E OP L E :

( CV )

S KI L

L S AN

D V

A L UE S

P E OP L E :

( CV )

S KI L

L S AN

D V

A L UE S

S u s t a i n a b i l i t yFU

TU

RE

PR

OJE

CTIO

NS

PRODUCTION/CONSUMPTION

BENCHMARK

IN INNOVATION


43


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