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The Process of Social Innovation
Every truth passes through three stages. Erste, it is ridiculed. Zweite, es ist
violently opposed. Dritte, it is accepted as being self-evident.
—Arthur Schopenhauer
Much of what we now take for granted in social life began as radical innovation. A
century ago, few believed that ordinary people could be trusted to drive cars at
high speed, the idea of a national health service freely available was seen as absurd-
ly utopian, the concept of “kindergarten” was still considered revolutionary, Und
only one country had given women the vote. Yet in the interim, these and many
other social innovations have progressed from the margins to the mainstream.
During some periods in recent history, civil society provided most of the impe-
tus for social innovation (see box, gegenüberliegende Seite). The great wave of industrialization
and urbanization in the nineteenth century was accompanied by an extraordinary
upsurge of social enterprise and innovation: mutual self-help, microcredit, build-
ing societies, cooperatives, trade unions, reading clubs, and philanthropic business
leaders creating model towns and model schools. In nineteenth and early twenti-
eth century Britain, civil society pioneered the most influential new models of
childcare, housing, community development and social care. At other times gov-
ernments have taken the lead in social innovation—for example, in the years after
1945 democratic governments built welfare states, schooling systems, and institu-
tions using methods such as credit banks for farmers and networks of adult edu-
cation colleges. (This was a period when many came to see civic and charitable
organizations as too parochial, paternalist, and inefficient to meet social needs on
any scale.)
There is every reason to believe that the pace of social innovation will, wenn überhaupt-
thing, accelerate in the coming century. There is certainly more money flowing
into NGOs and civil society than ever before. Economies in both developed and (Zu
Geoff Mulgan is director of the Young Foundation based in London (VEREINIGTES KÖNIGREICH). He previ-
ously worked in the U.K. government as director of the Strategy Unit and head of pol-
icy in the Prime Minister’s office, and before that was founder and director of the
thinktank Demos. He is a visiting professor at London School of Economics,
University College London and Melbourne University.
This paper draws on a report titled “Social Silicon Valleys: A manifesto for social
Innovation,” available for download from
© 2006 Tagore LLC
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Geoff Mulgan
What Is Social Innovation?
Social innovation refers to innovative activities and services that are motivated
by the goal of meeting a social need and that are predominantly diffused
through organizations whose primary purposes are social. Business innovation
is generally motivated by profit maximization and diffused through
organizations that are primarily motivated by profit maximization. Es gibt
of course very many borderline cases, for example models of distance learning
that were pioneered in social organizations but then adopted by businesses, oder
for-profit businesses innovating new approaches to helping disabled people
into work. But these definitions provide a reasonable starting point.
A good example of a socially innovative activity in this sense is the spread
of cognitive behavioral therapy, proposed in the 1960s by Aaron Beck, tested
empirically in the 1970s, and then spread through professional and policy
networks in the subsequent decades. A good example of socially innovative
new organizations is the Big Issue, which publishes Big Issue Magazine, and its
international successor network of magazines sold by homeless people.
a lesser extent) developing countries are increasingly dominated by services rather
than manufacturing. Over the next 20 Jahre, the biggest growth for national
economies is likely to come in health, Ausbildung, whose shares of GDP are already
much greater than are cars, telecommunications, or steel. These growing social sec-
tors are all fields in which commercial, voluntary, and public organizations deliv-
er services, in which public policy plays a key role, and in which consumers co-cre-
ate value alongside producers (no teacher can force students to learn if they don’t
want to). For all of these reasons, traditional business models of innovation are
only of limited use—and much of the most important innovation of the next few
decades is set to follow patterns of social innovation rather than innovation pat-
terns developed in sectors such as information technology or insurance.
Thousands of recent examples of successful social innovations have moved
from the margins to the mainstream. They include neighborhood nurseries and
neighborhood wardens; Wikipedia and the Open University; holistic health care,
and hospices; microcredit and consumer cooperatives; the fair trade movement;
zero-carbon housing developments and community wind farms; restorative justice
and community courts; and online self-help health groups.
Yet despite these trends, the process of social innovation remains understud-
ied. While processes of commercial innovation have been the subject of consider-
able academic research, the parallel field of social innovation has received little
attention and rarely goes beyond anecdotes and vague generalizations.1 This neg-
lect is mirrored by the lack of practical attention paid to social innovation. As com-
pared with the funds spend on commercial and military innovation, the amount
spent by governments, nongovernmental organizations, and foundations to devel-
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The Process of Social Innovation
Where Severe Innovation Deficits Exist
(cid:121) Ageing populations that require, Zum Beispiel, new ways of organizing pen-
sionen, care, mutual support, housing, urban design, mobility, and new
methods of countering isolation.
(cid:121) The growing diversity of countries and cities, which demands innovative
ways of organizing schooling, language training, and housing, to avoid the
risks of conflict and mutual resentment.
(cid:121) The rising incidence of chronic diseases such as arthritis, depression, Und
diabetes. Some historically acute diseases (such as cancers and heart dis-
ease) are becoming chronic. It is widely acknowledged that the key solu-
tions will have as much to do with social organization as with medical pro-
vision.
(cid:121) Many of the behavioral problems that partly result from affluence are wors-
ening, including obesity, bad diet, and inactivity, as well as addictions to
Alkohol, drugs, and gambling. None of these is easily addressed by tradi-
tional models.
(cid:121) Difficult transitions to adulthood—there is a great need to help teenagers
successfully navigate their way into more stable careers, Beziehungen, Und
lifestyles.
(cid:121) Crime and punishment in some countries (including the United Kingdom)
show a new trend in which a majority of convicted criminals re-offend
within two years of leaving prison—a striking pattern of failure.
(cid:121) The mismatch between growing GDP and stagnating happiness (Und
declining real welfare according to some measures).
(cid:121) The glaring challenges that surround climate change—how to reorganize
cities, transport systems, and housing to dramatically reduce carbon emis-
sionen, and how to adapt to climate change that may already be irreversible.
op innovative solutions to common needs is small. While national strategies
abound to support innovation in business and technology, no comparable strate-
gies at the national level exist to understand and support social innovation.
The Young Foundation’s precursors were among the world’s most important
centers for understanding social enterprise and innovation and for doing it. Under
Michael Young, widely seen from the 1960s to the 1990s as one of the world’s most
effective social entrepreneurs, they helped create dozens of new institutions,
including the Open University and its parallels around the world, Which?, Die
School for Social Entrepreneurs, and the Economic and Social Research Council.
The institutions pioneered new social models such as phone-based health diag-
noses, extended schooling, and patient-led health care.2 This tradition of practical
social innovation is now being energetically revived from the Young Foundation’s
base in east London, where we are working with cities, governments, Firmen,
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Geoff Mulgan
and NGOs to accelerate their capacity to innovate and launching new organiza-
tions and models that can better meet people’s needs for care, jobs, and homes.
The combination of our institutional heritage and current activities prompted
us to seek a better understanding of social innovation—and particularly innova-
tions that take the form of replicable programs or organizations. We are particu-
larly interested in fields where there is the greatest gap between needs and current
provision, which can often be gauged by how angry or dissatisfied people are (sehen
Kasten 2). As the great Victorian historian Lord Macauley wrote: “There is constant
improvement precisely because there is constant discontent.”
This article provides a summary of our findings about the processes of social
innovation and it outlines the frameworks we have developed for understanding
how to accelerate social innovation and how to improve the chances of new ideas
succeeding.
WHO DOES SOCIAL INNOVATION
There are many lenses through which to understand social innovation. Today most
discussion of social innovation tends to adopt one of two main lenses for under-
standing how change happens. In the first, social change is portrayed as having
been driven by a very small number of heroic, energetic, and impatient individu-
als. History is told as the story of how they remade the world, persuading and
cajoling the lazy and timid majority into change. Robert Owen (founded cooper-
atively run factories), Octavia Hill (inventor of many ideas of housing manage-
ment, heritage protection, and community housing) and Michael Young are three
exemplars drawn from British history who combined an ability to communicate
complex ideas in compelling ways with a practical ability to make things happen.
Countless other similar social innovators can be cited from around the world—
and the leaders of social innovation have included politicians, bureaucrats, intel-
lectuals, business people, as well as NGO activists. Some are widely celebrated—
Muhammad Yunnus (the founder of Grameen Bank and other microcredit enter-
prises), Kenyan Nobel Prize winner Wangari Maathai, and Saul Alinsky, the evan-
gelist of community organizing in the United States.
There are also many less well-known but deeply impressive figures, such as
Jeroo Billimoria who founded the India-wide Childline, a 24-hour help line and
emergency response system for children in distress;3 Vera Cordeiro who founded
Associacao Saude Crianca Rensacer in Brazi;l4 and Taddy Blecher who founded the
Community and Individual Development Association (CIDA) City Campus, Die
first private higher education institution in South Africa to offer a virtually free
business degree to students from disadvantaged backgrounds.5 These individual
stories are always inspiring, energizing, and impressive. They show just how much
persistent, dedicated people can achieve against the odds; and they serve as
reminders of the courage that always accompanies radical social change.
The second lens is a very different lens through which to understand the ques-
tion of who drives social innovation. Seen through this lens, individuals are the
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The Process of Social Innovation
carriers of ideas rather than originators. If we ask which innovations had the most
impact over the past half century, the role of individuals quickly fades into the
background. The far-reaching movements of change, such as feminism or environ-
mentalism, have involved millions of people and dozens of intellectual and orga-
nizational leaders, many of whom have had the humility to realize that they were
often as much following as directing changes in public consciousness. As with indi-
vidual innovators, these movements are rooted in ideas grown from discontent.
But their histories look very different. Environmentalism, Zum Beispiel, grew from
many different sources. Precursors in the nineteenth century include movements
for protecting forests and landscapes. In the twentieth century environmentalism
spawned scientifically inspired movements to protect biodiversity, movements to
counter the pollution of big companies or gain redress for their victims, move-
ments of direct action such as Greenpeace (which itself drew on much older
Quaker traditions), and Green Parties around the world. Environmentalism has
also spawned a huge range of social innovations, from urban recycling to commu-
nity-owned wind farms.
Whether focusing on individuals or on broader movements, both of these lens
with which to view social innovation bring with them useful insights. Both call
attention to the cultural basis for social innovation—the combination of exclu-
sion, resentment, passion, and commitment that make social change possible. Beide
also confirm that social innovations spread in an “S curve,” with an early phase of
slow growth among a small group of committed supporters, followed by a phase
of rapid take-off, and then a slowing down as saturation and maturity are
achieved. Both accounts also rightly emphasize the importance of ideas—visions
of how things could be different and better. Every successful social innovator or
movement has succeeded because it has planted the seeds of an idea into many
minds. In the long run, ideas are more powerful than individuals or institutions;
In der Tat, as John Maynard Keynes noted, “the world is ruled by little else.”
But neither story adequately explains the complexities of social change.
Change rarely happens without some brave people willing to take risks and take a
stand. Leadership matters even in the most egalitarian and democratic movement.
Equally important is that social change depends on many people being persuaded
to abandon old habits. The great religious prophets spawned great religions
because they were followed by great organizers, evangelists, and military con-
querors who were able to focus their energies and create great organizations.6
Generating Ideas by Understanding Needs and Identifying Potential
Solutions
The starting point for innovation is an idea of a need that isn’t being met, coupled
with an idea of how it could be met. Sometimes needs are glaringly obvious, solch
as like hunger, homelessness, or disease. But sometimes needs are less obvious or
not recognized—for example, racism or the need for protection from domestic
violence—and it takes campaigners and movements to name and describe these.
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Needs come to the fore in many ways—through angry individuals and groups,
campaigns, and political movements as well as through careful observation. Sie
may come from informal social movements (such as online self-help groups); reli-
gious movements (instrumental, Zum Beispiel, in the global campaign for debt
relief in Africa); existing voluntary organizations (like the organizations for the
deaf which led the development of digital hearing aids). Some of the best innova-
tors spot needs which aren’t being adequately met by the market or the state. Sie
are often good at talking and listening, digging below the surface to understand
peoples’ needs and dislocations, dissatisfactions, and blockages (Michael Young got
many of his best ideas from random
conversations on street corners, Busse,
and even in cemeteries). Empathy is
the starting point, and ethnography is
usually a more relevant formal tool
than statistical analysis. Personal moti-
vations also play a critical role: Menschen
may want to solve their own problems,
and they may be motivated by the suf-
fering of their friends or family.
Some of the most effective
methods for cultivating
social innovation start from
the presumption that
people are competent
interpreters of their own
lives and competent solvers
of their own problems.
Some of the most effective meth-
ods for cultivating social innovation
start from the presumption that peo-
ple are competent interpreters of their
own lives and competent solvers of
their own problems. An individual or
an institution seeking to find answers
to the management of chronic diseases or to the problem of alienation amongst
teenagers may do best to find how people are themselves solving their problems.
Another method is to find the people who are solving their problems against the
odds—the ex-prisoners who do not re-offend or the 18-year-old without any qual-
ifications who nevertheless finds a job. Looking for the “positive deviants” gives
insights into what might be possible, and usually at much lower cost than top-
down solutions.
Needs then have to be tied to new possibilities. New possibilities may be tech-
nological—for example, using the mobile telephones to support frontline workers
or using cable television or the Internet to strengthen local communities. In der Tat,
the Internet is now generating a host of new business models that are set to have
enormous impact in the social field.7 Other possibilities may derive from new
organizational forms, like the Community Interest Company recently launched in
the U.K., or the special purpose organizations increasingly used in global develop-
ment (for example in developing new drugs for HIV/AIDS). Or possibilities may
derive from new knowledge. Zum Beispiel, we now understand the importance of
early childhood development in shaping future life chances. Innovators generally
have a wide peripheral vision, and they are good at spotting how apparently unre-
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The Process of Social Innovation
lated methods and ideas can be used together.
Few ideas emerge fully formed. Stattdessen, innovators often try things out and
then quickly adjust them in the light of experience. Tinkering seems to play a vital
role in all kinds of innovation, involving trial and error, hunches, and experiments
that only in retrospect look rational and planned.
New social ideas are also rarely inherently new in themselves. More often they
combine ideas that had previously been separate. Examples of creative combina-
tions include diagnostic health lines (which combined the telephone, nurses, Und
diagnostic software); magazines sold by homeless people; the linkage of gay rights
to marriage; applying the idea of rights to animals; and the use of swipe cards for
hiring bicycles in transit stations. Many of the most important ideas straddle the
boundaries between sectors and disciplines.
Some organizations use formal creativity methods to generate possibilities, wie
Die 6 hats method devised by Edward de Bono and now used worldwide,8 the var-
ious methods involving users used by the design company Ideo, and the consultan-
cy What If?, all of which aim to free groups to think more laterally and to spot new
patterns. Some of these methods force creativity. Zum Beispiel, they encourage
developers and designers to engage with the toughest customers or those facing the
most serious problems, and they may force more lateral solutions.
Creativity can be stimulated by other peoples’ ideas, which are increasingly
being collected and banked. Nicholas Albery, a regular collaborator with Michael
Jung, founded the Institute for Social Inventions in 1985, which produced regu-
lar editions of the Book of Social Inventions and the Book of Visions. In 1995, Albery
helped launch the Global Ideas Bank, a rich online source of ideas and experiences
(it also produces regular editions of the Global Ideas Book).9
In manchen Fällen, ideas can be bought on the open market. The web-based com-
pany Innocentive, Zum Beispiel, offers cash rewards for innovators who have work-
able solutions to problems they solve, based on an assumption that often in a
neighboring sector a similar structure of problem may already have been solved.
There are also now many innovation laboratories, some linked to universities,
some linked to companies, and some focused on particular problems, einschließlich
the MIT Community Innovation Lab, the Social Action Laboratory at Melbourne,
and the Affirmative Action Laboratory in South Africa.10
All societies come up with many possible social innovations. Some never get
beyond a conversation in a kitchen or a bar. Many briefly take organizational form
but then fade as enthusiasm dims or as it becomes obvious that the idea isn’t so
good after all. But the key to success is to ensure that there is as wide as possible a
range of choices to draw on. As Nobel Laureate Linus Pauling observed, “the way
to get good ideas is to get lots of ideas and throw the bad ones away.”
Developing, Prototyping, and Piloting Ideas
The second phase of any innovation process involves taking a promising idea and
testing it in practice. Few plans survive their first encounter with reality. It is
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through action that they evolve and improve. Social innovations may be helped by
formal market research or desk analysis, but progress is often achieved more quick-
ly through turning the idea into a prototype or pilot and then galvanizing enthu-
siasm for it.
Social innovations are often implemented early. Because those involved are
usually highly motivated, they are too impatient to wait for governments or big
Fundamente. The experience of trying to make them work speeds up their evolu-
tion, and the power of example then turns out to be as persuasive as written argu-
ment or advocacy. Zum Beispiel, Michael Young usually moved very quickly to set
up an embryonic organization, rather than waiting for detailed business plans and
Analysen. The Language Line
organization, a case in point,
began as two people with tele-
phones and a tiny contract
with the neighboring police
station.
In business, people talk of the
“chasm” that innovations have to
cross as they pass from being
promising pilot ideas to
becoming mainstream products
or services… Exactly the same
challenge faces social innovation.
A key virtue of quick pro-
totyping is that innovations
often require several goes
before they work. The first
outings are invariably flawed.
The U.K. National Health
Service took 40 years to move
from impossible dream to
Wirklichkeit; the radio took a decade
to find its form (its early pio-
neers wrongly assumed that members of the public would purchase airtime to
send messages to their friends and families, as with the telephone); what became
Wikipedia was a failure in its first outing.
In business, people talk of the “chasm” that innovations have to cross as they
pass from being promising pilot ideas to becoming mainstream products or serv-
ices. There are likely to be quite long phases when revenues are negative and when
investors have to hold their nerve. Exactly the same challenge faces social innova-
tion. Several methods have been designed to speed up this period, including faster
prototyping, intensive handholding by venture capital companies, and the use of
rigorous milestones against which funds are released. A period of uncertainty,
Jedoch, is unavoidable.
There is now a much richer range of methods available for prototyping, pilot-
ing, and testing new ideas—either in real environments or in protected conditions
halfway between the real world and the laboratory. The relatively free money of
foundations and philanthropists can be decisive in helping ideas through this
Phase. Governments have also become more sophisticated in their use of evidence
and knowledge,11 with a proliferation of pilots, pathfinders, and experiments.
Incubators, which have long been widespread in business, have started to take off
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The Process of Social Innovation
in the public sector and among NGOs, although practice and understanding
remains very patchy. Businesses have adopted new devices like 3-dimensional
printers, which have made it easier to turn ideas quickly into prototypes; parallel
methods are being developed in the social fields to crystallize promising ideas so
that they can be quickly tested.
Some ideas that seemed good on paper fall at this stage. Michael Young, für
Beispiel, launched a do-it-yourself garage because he was convinced that most
motorists would prefer to invest some of their time building the garage in
exchange for lower costs of production. They didn’t. But even failed ideas often
point the way to related ideas that will succeed. As Samuel Beckett put it: “Try
Wieder. Fail again. Fail better.”
Assessing, Scaling Up, and Diffusing Good Ideas
The third stage of the social innovation process comes when an idea proves itself
in practice and can then be grown, replicated, adapted, or franchised. Taking a
good idea to scale requires skilful strategy and coherent vision, combined with the
ability to marshal resources and support and identify the key points of leverage, Die
weak chinks in opponents’ walls. Often the innovative and creative ‘bees’ (sozial
entreprneuers or inventors) need to find supportive “trees” (big organizations with
the machineries to make things happen on a big scale). That in turn may demand
formal methods to persuade potential backers, including investment appraisals,
impact assessments, and newer devices to judge success, such as “social returns on
investment” or “blended value.”
Communication is essential at this stage. Social innovators need to capture the
imagination of a community of supporters through the combination of conta-
gious courage and pragmatic persistence. Good names, along with brands, identi-
Krawatten, and stories play a critical role. Some social innovations then spread through
the organic growth of the organizations that conceived them. Some have grown
through federations—including many NGOs like Age Concern or the Citizens
Advice Bureau. Governments have often played the critical role in scaling up social
Innovationen. They have unique capacities to do this by passing laws; allocating
public expenditure; and conferring authority on public agencies.” Businesses grow
ideas through a well-established range of methods, some of which are becoming
more commonly used in the social sector, including organic growth of an originat-
ing organization; franchising and licensing; and takeover of similar but less effec-
tive organizations.
This growth phase is potentially becoming much faster. With the help of the
Internet, innovations can spread very quickly, and indeed there can be little point
in doing local pilots because the economics of web-based pilots may make it as
inexpensive to launch on a national or continental scale. Marginal costs close to
zero accelerate the growth phase—but also the phase of decline and disappearance.
Our recent work on scaling up has shown why it is so hard for social innova-
tion to replicate, and it has pointed to more effective strategies for handling scale.
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Geoff Mulgan
Two necessary conditions are a propitious environment and organizational capac-
ity to grow. These are rare with social innovations. It may take decades to create the
environmental conditions for growth—persuading consumers and public agencies
to pay for something new. The organizational challenges are no less severe. In char-
ities and social enterprises, the founders who were just right for the organization
during its early years are unlikely to have the right mix of skills and attitudes for a
period of growth and consolidation. Often founders cling on too long, Und
trustees, funders and stakeholders do not impose necessary changes. By compari-
Sohn, in business the early phases of fast-growing enterprises often involve ruthless
turnover of managers and executives. In der Tat, growth in all sectors nearly always
involves outgrowing founders. Wise founders therefore put in place robust succes-
sion plans, and very few successfully remain in executive roles for much more than
a decade. Similar considerations apply to organizations that create other organiza-
tionen. Christian Aid, Catholic Agency for Overseas Development, and Tearfund, für
Beispiel, are all social innovations with global reach today that outgrew their
founders and founding institutions (the British Council of Churches, the Catholic
Womens’ League, and the Evangelical Alliance, jeweils).
In business, the experiences of companies such as Microsoft, Procter &
Gamble, and Amazon suggests that pioneers that create markets through radical
innovation are almost never the companies that go on to scale up and dominate
ihnen. The skills and mind-sets required for creating a radically new market not
only differ from, but actively conflict with, those needed to grow and consolidate.
Big companies are often better placed to move new ideas from niche markets to
mass markets, and many have concluded that they should subcontract the creation
of new and radical products to start-up firms, thus concentrating their own efforts
on consolidating markets and buying up companies or licenses that they see as
promising.12
Learning and Evolving
In a fourth stage, innovations continue to change: learning and adaptation turns
the ideas into forms that may be very different from the expectations of the pio-
neers. Experience may show unintended consequences or unexpected applications.
In professions, in competitive markets, and in the public sector, there is an increas-
ingly sophisticated understanding of how learning takes place. New models such
as the collaboratives in health (used by the U.K. National Health Service to
improve innovation and practice in fields such as cancer and primary care) Und
closed research groups (gebraucht, Zum Beispiel, by a number of major cities to analyze
their transport strategies) have helped to embed innovation and improvement into
fairly conservative professions.
These examples highlight innovation as a learning curve, rather than as the
“eureka” moment of a lone genius. Ideas start off as possibilities that are only
incompletely understood by their inventors. They evolve by becoming more
explicit and more formalized, as best practice is worked out, and as organizations
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The Process of Social Innovation
develop experience about how to make them work. This phase involves consolida-
tion around a few core principles that can be easily communicated. Then as the
idea is implemented in new contexts, it evolves further. It forms new combinations,
learning once again becomes more tacit, until another set of simpler syntheses
emerge.
Some organizations appear particularly good at maintaining the momentum
from innovation rather than being stuck in a particular form or market. For exam-
Bitte, the Samaritans in Australia have become a provider of welfare services rather
than just a telephone counseling service; the ECT Group in the U.K. started as a
community transport organization and evolved into a major supplier of curbside
recycling services, and it is now moving into providing primary health care servic-
es. Generally, bigger organizations have more “absorptive capacity” to learn and
evolve—but small ones can gain some of this ability through the skills of their staff
and through taking part in the right kind of networks.
This linear account of innovation provides a useful framework for thinking
about change, but the stages are not always consecutive. Sometimes action pre-
cedes understanding. Sometimes doing things catalyses new ideas. Feedback loops
also exist between every stage, which make real innovations more like multiple spi-
rals than straight lines. These patterns also manifest themselves differently in dif-
ferent sectors. Real-life innovation is a discovery process that often leaves ideas
transformed and mutated, and it sometimes sees them jump from one sector to
another. Zum Beispiel, innovations to reduce obesity can be found in public health
Programme, in self-help groups, and in large commercial organizations such as
Weight Watchers.
COMMON PATTERNS OF SUCCESS AND FAILURE
Social innovation doesn’t always happen easily, even though people are naturally
inventive and curious. In some societies, social innovations are strangled at birth.
This is particularly true for societies where power is tightly monopolized, Wo
free communication is inhibited, or where there are no independent sources of
money. Generally, social innovation is much more likely to happen when the right
background conditions are present. For social movements, basic legal protections
and status, plus open media are key. In business, social innovation can be driven
by competition, open cultures, and accessible capital, and it will be impeded where
capital is monopolized by urban elites or government. In politics and government,
the conditions are likely to include competing parties, think tanks, Innovation
funds, contestable markets, and plentiful pilots, as well as creative leaders like
Jaime Lerner in Curitiba or Lee Myung-bak in Seoul. In social organizations, Die
acceleration of social innovation is aided by practitioner networks, allies in poli-
Tics, strong civic organizations (from trade unions to hospitals) and the support of
progressive foundations and philanthropists. And in all of these fields, global links
make it much easier to learn lessons and share ideas at an early stage, with ideas
moving in every direction (Zum Beispiel, the movement of restorative justice from
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Geoff Mulgan
Maori culture in New Zealand to mainstream practice around the world).
Most innovations in business and technology fail. So do most social innova-
tionen. Sometimes there are good reasons for failure. An idea may be too expensive;
not wanted; insufficiently useful; not good enough relative to the alternatives; oder
flawed by unforeseen side effects. But many ideas fail not because of inherent flaws
but because of the lack of adequate mechanisms to promote them, adapt them,
and then scale them up. In business, there is a reasonable flow of good innovations
in part because of the pull of competitive markets, but also because of public sub-
sidy of technology and private investment in incubators, venture capital, and start-
ups. The equivalent potential supports for
social innovation—foundations and pub-
lic
agencies—are much weaker.
Governments typically provide 30–40
percent of NGO finance in countries like
the U.S., Deutschland, the U.K., Frankreich, Und
Japan, but these governments are general-
ly poor at recognizing and replicating
good innovations, particularly when these
come from other sectors. It is notoriously
difficult for government to close even fail-
ing programs and services, and there are
few incentives for either politicians or
officials to take up new ideas. Failure to
adapt is rarely career threatening, Und
anyone who does promote innovations risks upsetting powerful vested interests.
It’s all too easy to conclude that the apparently promising new idea depends too
heavily on particular circumstances such as a charismatic individual, or that the
evidence just is not strong enough.
Innovation is … easier
where the risks are
contained; where there is
evident failure; Wo
users have choice; Und
where expectations are
carefully managed.
Social innovators generally find governments unresponsive. But there are also
good reasons for public sectors to be cautious about innovation. Innovation must
involve failure, and the appetite for failure is bound to be limited in very account-
able organizations or where peoples’ lives depend on reliability (Zum Beispiel,
around traffic light systems, or delivery of welfare payments). In part for this rea-
Sohn, improved service delivery from public institutions and NGOs usually occurs
via incremental improvements to existing models rather than via the invention of
entirely new ones.
Innovation is therefore easier where the risks are contained; where there is evi-
dent failure; where users have choice (so that they can choose a radically different
model of school or doctor rather than having it forced on them); and where expec-
tations are carefully managed. More generally, innovation is likely to be easier
when contracts for services reward outcomes achieved rather than outputs or
Aktivitäten, or when there is some competition or contestability rather than monop-
oly provision by the state. How public sectors “dock” with the social or non-profit
sector is also important, particularly given that public funding tends to overshad-
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The Process of Social Innovation
ow other revenue sources for many innovations. Funding outcomes rather than
activities helps; so too does funding directed to genuinely risk-taking ideas, exper-
iments, and trials. Yet we are not aware of a single government that has developed
a fully fledged machinery for accelerating social innovation in a major sector.
Public bodies usually move too slowly for impatient entrepreneurs and
Aktivisten. But in one important respect they typically move too fast: far-reaching
restructurings tend to be driven through much too quickly, ignoring the long time
it takes to establish new cultures, Verfahren, and skills, let alone new patterns of
trust.
WHY WE NEED TO KNOW MORE ABOUT SOCIAL INNOVATION
The expanding field of research on business innovation has obvious relevance to
social innovation. Some of the distinctions are relevant between total, expansion-
Und, or evolutionary innovations;13 or incremental, radical, or systematic ones.14 So
is the research on competing models,15 the sociological work on the role of inter-
mediaries who help make markets work more efficiently, spotting connections and
Gelegenheiten,16 the analyses of how much innovation is best understood as cre-
ative reinterpretation,17 and the work pioneered by Everett Rogers on diffusion.
Often the insights from business pose important challenges to social innova-
tors. We know, Zum Beispiel, that in some sectors the best market structure for
innovation seems to be a combination of oligopolistic competition between a few
big companies and a much larger penumbra of smaller firms (the model that exists
in sectors such as microchips, Software, cars, and retailing). Yet in most social
fields, monopolistic governments sit alongside small units that are usually too
small to innovate radically (Schulen, doctors surgeries, police stations), which may
be one reason why far-reaching innovations are so rare.
We know that disaggregated industries tend to adapt better to volatility, Und
that big structures are better under stable conditions. We know that innovation is
often serendipitous—seeking one solution, firms stumble on another, quite differ-
ent one. The organizational choices faced by social and commercial organizations
also run in parallel. Some companies organize innovation largely in-house as part
of their mainstream business (like 3M); some create semi-autonomous corporate
venture units (like Nokia); some grow through acquisition of other innovative
companies as well as their own innovation (Cisco for example); others use wide-
spread networks (like the Original Design Manufacturing companies in China).
Wieder, in the social field there are similar advantages and disadvantages in keeping
innovation in-house (als, for example in the U.K. National Health Service in the
Vergangenheit); integrating innovative NGOs into big public systems (as has often happened
in housing); or using networks (the traditional method of innovation in fields as
diverse as public health and urban planning).
In other fields, social organizations have been ahead of business. The fashion
for user networks in business innovation is emulating longstanding practices in
NGOs (Michael Young pioneered patient-led health innovations a generation ago,
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Geoff Mulgan
including what became the Expert Patients Programme in the U.K. National
Health Service); similarly the open-source methods have taken models from aca-
demia and civic organizations directly into the heart of business.18
Important differences also separate social innovation from innovation in busi-
ness. There are likely to be very different motives, which may include material
incentives but will almost certainly go far wider to include motives of recognition,
compassion, Identität, Autonomie, and care. The critical resources are likely to be dif-
ferent: in businesses money provides the bottom line, but social innovations usu-
ally seek out a different mix of resources including political recognition and sup-
port, voluntary labor, and philanthropic commitment. Social organizations tend to
have different patterns of growth: as a rule they don’t grow as fast as private ones,
but they also tend to be more resilient. Judging success is also bound to be very dif-
ferent. Scale or market share may matter little for a social innovation concerned
with a very intense but contained need. In some of the most radical social innova-
tionen, participants’ lives are dramatically improved by the act of collaboration,
such as in is the reorganization of social care as self-directed support.19 These are
all reasons to call for more rigor, sharper concepts, and clearer metrics in under-
standing social innovation.
Existing Research on Social Innovation and Related Fields
Fortunately our understanding of social innovation is not a completely barren ter-
ritory. There have been many case studies of social innovations within different
fields (including health, Ausbildung, and criminal policy), and useful attempts have
been made to understand social innovation in some universities,
einschließlich
Stanford, Duke, and Harvard. Jedoch, these endeavors have focused on individ-
ual case studies rather than investigating common patterns or aggregating learn-
ing.20 As such, they have not yet provided widely acknowledged models or suffi-
cient practical insights for practitioners: often rich accounts of individual social
innovations do not add up to a clear picture of patterns (and generally the quality
of theoretical work in this field has been low, with little progress since the pioneer-
ing work in the 1980s at Manchester and Sussex Universities linking social innova-
tion to broader patterns of technological change). Nor has much use been made of
the advances made in parallel disciplines.
As well as the study of innovation in economics and science, there is a small
emerging body of research into the capacity of formally constituted social organi-
zations (non-profits, NGOs, charities, and voluntary and community organiza-
tionen) to innovate in the delivery of public services and, to build up innovative
capacity more widely.21 However, such research (while extremely valuable) tests
one sector’s putative innovative capacity, not the wider territory of social innova-
tion. The only (and excellent) piece of original research we found into the U.K. An
the voluntary sector’s innovative capacity concluded that voluntary organizations
are “better at believing they are innovative than being innovative.”22 There is also
some limited emerging work on the replication of successful voluntary sector ini-
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The Process of Social Innovation
tiatives23—which, though valuable, investigates one aspect of the process of inno-
vation in isolation from its wider and precursory elements.
Considerable work is now under way on measuring the outputs and outcomes
of public and social organizations, including the fascinating work led by Dale
Jorgensen at Harvard on valuing the informal economy and family work, und das
recent work led by Tony Atkinson at Oxford University on the value of public serv-
ices. These go far beyond the rather crude claims that are sometimes made for the
productivity and efficacy of social organizations. Yet the truth is that very little is
known about productivity in the civic sector—and although in mature fields it is
possible to compare similar public, private, and non-profit organizations, es gibt
few general patterns. The serious work on understanding social value and produc-
tivity is still at a very early stage, without much in the way of theoretical founda-
tions or practical applications.
Why What We Don’t Know Matters
The absence of sustained and systematic analysis is holding back the practice of
social innovation. Speziell, a lack of knowledge makes it harder to see the main
gaps in current provision of funding, advice, and support. This is likely to result in
fewer potential innovations being initiated. A lack of knowledge about common
patterns is almost certain to make it harder for innovators themselves to be effec-
tive and for ideas to be improved into a sustainable form.
The practice of social innovation remains roughly at the point where science
was more than a century ago, when invention and innovation were left to the
enthusiasm and energy of determined individuals like Thomas Edison and
Alexander Graham Bell, who beavered away in their laboratories until the occa-
sional “Eureka!” moment gave the world a new invention. As it came to be under-
stood just how important science was to the economy (and to warfare), invention
and innovation were taken out of the attics and garden sheds. Ideas were backed
with large scale public funding, R&D departments in big companies and universi-
ty departments, and the systematic testing of new ideas became the norm. We live
today with the results of that revolution, along with a stream of new products that
come onto the market every year.
Social innovation has yet to pass through a similar revolution. But many are
beginning to recognize that more systematic approaches pay dividends by speed-
ing up the spread of effective solutions and reducing social costs. It is also becom-
ing apparent to many that the key industries of the twenty-first century—health,
Ausbildung, and childcare and eldercare, each of which will be a far larger share of
GDP than information technology or cars—will require very different approach-
es, partly because they are so deeply shaped by public policy, and partly because
they depend so much on co-production by the user, patient, or learner.
We have proposed some of the new mechanisms and methods that may be
erforderlich. In fields where governments are the main purchasers, the more deliberate
funding of outcomes rather than outputs, and the encouragement of genuine con-
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Geoff Mulgan
testability, can help. But these are unlikely to be sufficient. We therefore advocate
what we call “innovation accelerators”: funds for seeding ideas supported by teams
that combine understanding of policy contexts with understanding of business
Design, Wachstum, and management (the Young Foundation’s Launchpad team
demonstrates how these can work in practice). We also have advocated more delib-
erately designed spaces in public services that encourage experimentation (wie zum Beispiel
the U.K.’s public service zones that allowed national rules to be broken, Und
rewarded results rather than compliance) and incubators that deliberately focus on
mining new technologies for social applications.
In all of these, social innovation is likely to be most successful when there is
close involvement of people with the strongest understanding of needs and where
there are sophisticated metrics of success that can reward rapid learning and evolv-
ing end goals.
The good news is that this field is advancing rapidly, moving beyond the phase
of anecdotes and enthusiasms, and beyond the twin vices of excessive faith in gov-
ernment action on the one hand and excessive faith in heroic individuals on the
andere. Instead it is addressing in a more systematic way some of the barriers that
stand in the way of change. Through our work at the Young Foundation, we have
found that there is growing interest in this field around the world—from China,
whose leaders recognize the need to speed up solutions to their profound social
Herausforderungen, to the Scandinavian countries which have led the world in social inno-
vation over the past two decades and are keen to preserve their position. It is still
an emerging field,with much to learn as well as much to achieve.
Wir laden Leser zu Kommentaren ein. Email
1. Rare exceptions include Tudor Rickards, Stimulating Innovation: A Systems Approach (London:
F. Pinter, 1985); J. Gerhuny, Social Innovation and the Division of Labour (London: Oxford
Universitätsverlag, 1983); M. Njihoff, The Political Economy of Innovation (Den Haag: Kingston,
1984).
2. Michael Young, inspiration for the Young Foundation, was judged by Harvard University’s
Daniel Bell the world’s “most successful entrepreneur of social enterprises,” and in his work and
his writings he anticipated today’s interest in social enterprise and the broader question of how
societies innovate. Zum Beispiel, see M. Jung, The Social Scientist as Innovator (Cambridge, Mass:
Abt Books, 1983).
3. Childline was founded in Bombay in 1996; von 2002 the organization was working in 30 cities.
For a full account, see D. Bornstein, How To Change the World: Social Entrepreneurs and the Power
of New Ideas (Oxford, VEREINIGTES KÖNIGREICH.: Oxford University Press, 2004).
4. Renascer provides care to poor children after they are discharged from hospital. Von 2002,
Renascer had assisted 6,000 Kinder, and successor organizations assisted a further 10,000 Menschen.
Now the challenge is to transform Renascer into a reference and training center spawning and
supporting cells across Brazil. For a full account, see Bornstein, How To Change the World (Neu
York: Oxford University Press, 2004).
160
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5. CIDA believes itself to be the world’s only “free,” open-access, holistic, higher educational facili-
ty operated and managed by its students. Students perform all functions, from administrative
duties to facilities management. Two key features of the university are (1) its partnerships with a
great number of businesses in the design and delivery of all programs, Und (2) the requirement of
all students to return to their rural schools and communities during holidays to teach what they
have learned. For a full account, see Bornstein, How To Change the World. Siehe auch
http://www.cida.co.za (accessed May 24, 2006); Lucille Davie, “Jo’Burg’s Best Kept Secret” April 8,
2002,
goes to a generic page, not Lucille Davie; delete, or point reader to a specific set of writings]; Und
Andrea Vinassa writing on
24, 2006).
6. For comparisons between business and the social sector in making organizations great, sehen
7. For details about the open-source business model, see the Economist, “Open, but not as Usual,”
2006).
8. Zum Beispiel, see de E. Bono, Lateral Thinking—Creativity Step by Step, (London, VEREINIGTES KÖNIGREICH.: Perennial
Library, 1970).
9. See Global Ideas Bank,
will change the world are at http://www.globalideasbank.org/site/store/detail.php?articleId=178.
For a list of similar organizations, see Stuart C. Dodd Institute for Social Innovation,
http://www.stuartcdoddinstitute.org/innovationlinks.shtml (accessed May 26, 2006).
10. See generally: Poverty Action Lab
Laboratory
Action Laboratory
Copenhagen
tionlab/; MIT Community Innovation Lab
http://www.etsu.edu/innovationlab/.
11. G. Mulgan, “Government and Knowledge,” Evidence and Policy Journal, Bd. 1, NEIN. 2 (Mai
2005) 215-226.
12. C. Markides and P. Geroski, Fast Second: How Smart Companies Bypass Radical Innovation To
Enter and Dominate New Markets (San Franscisco, Jossey-Bass, 2005).
13. R.M. Walker, E. Jeanes, and R.O. Rowlands, “Measuring Innovation—Applying the Literature-
Based Innovation Output Indicator to Public Services,” Public Administration, Bd. 80 (2002),
201–214.
14. D. Albury and G. Mulgan, Innovation in the Public Sector (London: Strategy Unit, Cabinet
Office, 2003).
15. Two good general sources are the Stanford Project on Emerging Companies,
http://www.gsb.stanford.edu/SPEC/index.html (accessed May 25, 2006); and the Wharton School’s
Innovation and Entrepreneurship,
http://knowledge.wharton.upenn.edu/index.cfm?fa=viewCat&CID=12.
16. J.P. Murmann, Knowledge and Competitive Advantage: The Coevolution of Firms, Technologie &
National Institutions (London: Cambridge University Press, 2004); E. von Hippel, Democratising
Innovation (Cambridge, Masse.: MIT Press, 2005); R. Baumol, The Free-Market Innovation Machine:
Analyzing the Growth of Miracle Capitalism, (Princeton, N.J.: Princeton University Press 2003).
17. R. Lester and M. Piore, Innovation—The Missing Dimension (Cambridge, Masse.: Harvard
Universitätsverlag, 2004).
18. For a thorough analysis of open source methods and their great potential, see G. Mulgan and
T. Steinberg, Wide Open: The Potential of Open Source Methods (London, VEREINIGTES KÖNIGREICH.: Demos and the
Young Foundation, 2005).
19. In the U.K., the In Control pilots delivered under the government’s policy Valuing People and
now recommended for wider adoption are a good examples of innovation in the a new relation-
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ship between user and suppliers. Prime Minister’s Strategy Unit, Improving the Life Chances of
Disabled People, Januar 2005, p.93; David Brindle, “Controlling interest,” Society Guardian, Marsch
2, 2005; Siehe auch
20. Sehen, Zum Beispiel, Stanford Social Innovation Review,
Mai 25, 2006); The Social Innovation Forum,
25, 2006); Government Innovators Network,
Mai 25, 2006); Changemakers,
to Leader Institute,
21. For innovations in the delivery of public services, sehen, Zum Beispiel: P. Alcock, T. Barnwell, Und
L. Ross, Formality or Flexibility? Voluntary Sector Contracting, (London, VEREINIGTES KÖNIGREICH.: National Council for
Voluntary Organizations, 2004); S. Osborne, Voluntary Organizations and Innovation in Public
services, (London, VEREINIGTES KÖNIGREICH.: Routledge, 1998). For general capacity building, see E. Evans and J.
Saxton, Innovation rules! A Roadmap to Creativity and Innovation for Not-For-Profit Organizations
(London, VEREINIGTES KÖNIGREICH.: NFP Synergy, 2004).
22. Evans and Saxton, Innovation Rules!
23. D. Leat, Replicating Successful Voluntary Sector Projects, (London, VEREINIGTES KÖNIGREICH.: Association of
Charitable Foundations, 2003); Community Action Network’s beanstalk programme –
162
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