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Rediscovering SocialInnovationJim PhillsThe Fieldstone FoundationSan Diego GrantmakersMay 7-8, 2009

Rediscovering Social Innovation

The Proliferation of “Social” Stuff Penetration of business ideas, managementpractices, and market principles into the worldof and nonprofits and government Juxtaposing private sector concepts with theword “social” as a modifier–––––social entrepreneurshipsocial enterprisesocial venturesocial capitalistsocial innovation

Limitations of Social Entrepreneurship The Parable of the three blind men andthe elephantThis Is Social Entrepreneurship

Limitations of Social Entrepreneurship Can the Nobel prize Committee be wrong?– Muhammad Yunus– Grameen Bank– Microfinance

Limitations of Social EntrepreneurshipThe Big PictureSocial EnterpriseSocial al CapitalMarket

Limitations of Social Entrepreneurship Focus on individual level attributes &traits– Boldness, accountability, and risk-taking Emphasizes the creation of neworganizations Typically limited to nonprofit entities

Limitations of Social Entrepreneurship But isn’t focus a good thing? In this instance, No! because – Underlying concern is the creation of socialvalue by solving social problems– Social entrepreneurship is not the only, andcertainly not always the best way to achievethese goals

The Meaning of Social Innovation “Innovation”– Novelty– Performance improvement– Magnitude– Implementation/Adoption

The Meaning of Social Innovation “Social”– Social needs or problems– Social value– Balance in creation and capture of valuefavors the public

The Meaning of Social Innovation Any novel and useful solution to a socialneed or problem, that is better thanexisting approaches (i.e., more effective,efficient, sustainable, or just) and forwhich the value created (benefits)accrues primarily to society as a wholerather than private individuals

Examples of Social Innovation Microfinance Fair Trade Products

Mechanisms of Social Innovation Exchange of ideas and values between public, private,and nonprofit sectors– Socially Responsible Investing Shifting roles and relationships between businessgovernment and nonprofits– Emissions Trading Blending of market-based principles and mechanismswith public and philanthropic support.– Affordable home ownership and secondary mortgage market“Dissolving Boundaries”

Implications For Thought Leaders Develop conceptions of the phenomenonthat are clear and precise Distinguishing the processes throughwhich social innovations emerge, diffuse,and succeed (or fail)– These need to be seen as distinct rather thanconflated with our definitions

Implications For Context Shapers Nurture and support policies andpractices that foster the flow of ideas,values, capital, and talent across sectorboundaries– “Dissolving boundaries”

Implications For Social Innovators Importance of understanding, embracing,and leveraging these cross-sectordynamics and interaction

Postscript: A Victory for SocialInnovation President Obama’s Office of SocialInnovation Congress’ Edward M. Kennedy ServeAmerica Act 31 March 2009– Social Innovation Funds Pilot Program

Congressional Social Innovation Fund Objectives– Leverag[ing] Federal investments to increase State,local, business, and philanthropic resources toreplicate and expand proven solutions.– Increas[ing] private and public investment [to] allow[effective] organizations to replicate and expandproven initiatives or support new initiatives;– Seeding experimental initiatives focused onimproving outcomes– Strengthen[ing] the infrastructure to identify, investin, replicate, and expand initiatives with effectivesolutions to national and local challenges.

Some Friendly Amendments Social innovation fund, explicitly limits itsscope to " social entrepreneurs and other[italics added] nonprofit communityorganizations” This constrains the sources and kinds ofinnovative solutions to social problemswe can produce

Some Friendly Amendments There are those who believe that socialentrepreneurs should by definition be nonprofit.I don’t share that view. Many people intraditional larger nonprofits have taken offenseat the notion that you are a social entrepreneuronly if you’re new. In truth, a lot of people havecommitted themselves to social change andhave done great work. They should all becelebrated and seen as partners in the largerstruggle.– David Gergen, in SSIR September 2009

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Penetration of business ideas, management practices, and market principles into the world of and nonprofits and government Juxtaposing private sector concepts with the word "social" as a modifier -social entrepreneurship - social enterprise -social venture -social capitalist -social innovation