Social Innovation and Service Innovation

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					 Challenge Social Innovation, Vienna, 19-21 September 2011




Social Innovation and Service
         Innovation

    Faridah Djellal and Faïz Gallouj
       Clersé, University Lille 1
                             Introduction


• Social innovation and service innovation: separate
  developments, limited intersections.

• Some explanations for this “mutual ignorance”.
   – Initial focus of the service literature on technology, while
     social innovation refers to non-technological dimensions.
   – Initial focus of the service literature on KIBS rather than
     personal and public services.
   – Disciplinary division of labour.

• However, many points in common.
• Purpose: establish a dialogue.
                      Introduction



• Outline:

  1. Social innovation
  2. Service innovation
  3. A dialogue between social innovation and service
     innovation.
                   1. Social innovation: the desperate quest for a definition
                  1.1. Social innovation in opposition to business innovation
                                   (After Hochgerner, 2009)




              Business Innovation                                 Social innovation


     Technological            Non-technological           Social innovations in business, civil
innovations in economic     innovation on company                    society, state
      production                     levels

Product*      Process*    Organisation* Marketing*      Participatio   Procedures    Behaviours
                                                             n


* Innovation as defined by the Oslo Manual (OECD, 2005)
                      1. Social innovation: the desperate quest for a definition
        1.1. Social innovation in opposition to business innovation (an amended typology)


       Business innovation                               Social innovation

                    Innovation in firms                         Innovation in civil society, state
Technological         Non-           Social innovations in         Social innovations in civil
innovations in    technological            business                       society, state
  economic        innovation on
  production     company levels

Prod     Proc     Org        Mark    Part     Proced Beha       Part    Proced     Beha


                 ntProd    ntProc    Prod      Proc     Org     Prod     Proc      Org      ntProd


                                     Mark     ntProd
              1. Social innovation: the desperate quest for a definition
                 1.2. General characteristics of social innovation


• The targets of social innovation
   – the individuals
   – the environment or territory
   – the firm or organisation
• Form and nature
   – an intangible entity?
• Process and stakeholders
   – local or grass-root nature
   – participation of users
        • co-production
        • empowerment
• Purposes
   – not (directly) economic.
   – social problems
         2. Service innovation: making “invisible innovation” visible
                 2.1 Taking into account invisible innovation



• A shift from assimilation to demarcation.
     • From technical systems to specific forms of
       innovation
     • From visible to invisible innovation

• Innovation gap has narrowed. But more
  improvement needed:
     •   non-technological product and process innovations,
     •   ad hoc and custom-made innovations,
     •   innovation in public services,
     •   innovation in complex packages
          2. Service innovation: making invisible innovation visible
                    2.2 Sectoral shift in empirical surveys


• 1. KIS (consulting, banking and insurance…)

• 2. Less “noble” or less knowledge intensive services
  (transport, cleaning and care services for the elderly…).

• 3. Public services.

• This sectoral shift ==> more links between the fields
  of social innovation and service innovation.
                     2. Service innovation: making invisible innovation visible
                           2.3 From a linear to an open innovation model
Traditional linear
     model                      Idea            Development            Production


                                                     Idea

    Interactive
      model                     Idea            Development            Production


 Rapid application              Idea              Production          Development
      model

Practice-based model
                             Production              Idea             Development
   Bricolage model


   Ad hoc model              Production
                                                                       Further
                                Idea                                 Development
                            Development
    3. First elements of a dialogue between social innovation studies and services
                                  innovation studies
                3.1 What services studies tell us about social innovation


• Gershuny’s vision of social innovation
• Gershuny, the promoter of the self-service theory.

• The advent of the SSS explained by social innovation

• Social innovation = a change in the way a need is satisfied by the
  consumer.

• Social innovation = transition from formal to informal satisfaction.
    – Formal satisfaction: acquiring services from a service provider
    – Informal satisfaction: combination of a purchased good and household
      work.

• Social innovation: dual technological and social component.
      3. First elements of a dialogue between social innovation studies and services
                                    innovation studies
                  3.1 What services studies tell us about social innovation

• Beyond technological conceptions of social innovation
• Social innovation not limited to the way the customer participates or
  makes a choice.

• It also includes other modalities: (Norman and Crozier, 1984):

    – Using technical or human production capacities which are unused.
       • IT service firms set up to use the overcapacity of IT departments of
         large firms.

    – Introducing new functions leading to new roles or sets of roles.
        • Club Med’s “nice organisers” (or G.O.s).

    – Linking up contexts and stakeholders with complementary needs.
       • J.C. Decaux
3. First elements of a dialogue between social innovation studies and services innovation studies
                     3.1 What services studies tell us about social innovation
   The characteristics-based representation of the product (after Gallouj and Weinstein, 1997)



                                Provider’s direct
                                  competences

                                       [C]

    Client’s         [C’]
  competences
                                                                   [Y]      Final or service
                                                                            characteristics

   Client’s         [T’]
  technical
characteristics
                                       [T]
                             Provider’s material and
                              immaterial technical
                                 characteristics
 3. First elements of a dialogue between social innovation studies and services innovation
                                          studies
             3.2 What social innovation studies tell us about service innovation



• Bridges more fragile.

• Social innovation more concerned with forging links with the theory
  of (industrial) innovation

• Many works devoted to social innovation in particular service
  activities, with limited links with socio-economics of innovation in
  services.

• From a theoretical point of view, social innovation tells us not much
  about service innovation. However services often mentioned in
  definitions of social innovation.
    3. First elements of a dialogue between social innovation studies and services innovation
                                             studies
                3.2 What social innovation studies tell us about service innovation



• Social innovations are] “Innovative activities and services that are motivated
  by the goal of meeting a social need and that are predominantly developed
  and diffused through organisations whose primary purposes are social”
  (Mulgan et al., 2007, p. 8).
• “Social innovators identify and deliver new services that improve the quality
  of life of individuals and communities using innovative processes aiming for
  instance at new labour market integration, social inclusion, finding new ways
  to address health care, education delivery, resource efficiency and
  environmental challenges”. (European Commission, 2011).
• “Social innovation’ seeks new answers to social problems by: identifying and
  delivering new services that improve the quality of life of individuals and
  communities; identifying and implementing new labour market integration
  processes, new competencies, new jobs, and new forms of participation, as
  diverse elements that each contribute to improving the position of individuals
  in the workforce.” (OECD Forum on Social Innovation, 2000).
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 1st point: Social innovation as innovation in services and as service
  innovation
• Sectoral vs functional perspective

• Social innovation often a service innovation (the provision of a new
  service), whatever the sector.

• Tertiary sector a particularly fertile environment for social
  innovation (innovation in services).
    – mechanical explanation: the growing share of services.
    – nature of service activities: intensive social interactions
    – nature of the values (fairness and solidarity) in the public and third
      sectors.
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 2nd point: Theoretical perspectives
• Innovation in services, like social innovation seek for theoretical
  frameworks.

• Different paths to arrive at the same result:
    – taking into account both the technological and non-technological
      dimensions.

• In the services field, shift from assimilation to demarcation and
  integration.

• In the social innovation field, demarcation have immediately
  dominated.
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 3rd point: The nature and measurement of innovation
• Intangibility: a point debated by both the social
  innovation and service innovation literature.

• Service innovation, social innovation difficult to
  measure.
    – wide variety of forms of innovation and combinations
    – actors involved: citizens or heterogeneous groups

• Efforts to develop indicators of innovation in services
  (Oslo Manual). Social innovation excluded.
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 4th point: The issue of appropriation

• Service innovation: appropriation issue is legitimate. Focus on the
  implementation difficulties.

• Social innovation: protection issue rarely raised. Illegitimate.
    – A social innovation is a success when it is imitated.
    – Ex microcredit, the Restos du cœur.

• Appropriation source of conflict when (social) innovation is
  delivered by hybrid networks
    – Different appropriation philosophies (market/non-market)
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 5th point: Organisational modes for innovation

• Customer participation (coproduction) fundamental in both service
  and social innovation.

• The essential nature of social innovation is coproduction
  (involvement)

• Linear innovation model conceivable in both fields of research.

• However, pre-eminence of openness and interaction, and informal
  and unplanned activities.
 3. First elements of a dialogue between social innovation studies and services innovation
                                            studies
             3.3 Putting social innovation and service innovation into perspective


• 6th point: Performance measurement issues

• Multi-criteria assessment framework that can be
  applied to social innovation.
    – industrial and technical performance (volume and
      traffic evaluations),
    – market and financial performance (monetary and
      financial operations),
    – relational performance (interpersonal links),
    – civic performance (equality, fairness and justice),
    – reputational performance (relating to brand image).

				
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