Challenge Social Innovation, Vienna, 19-21 September 2011 Social Innovation and Service Innovation

1. Challenge Social Innovation, Vienna, 19-21 September 2011Social Innovation and Service Innovation Faridah Djellal and Faïz Gallouj Clersé, University Lille 1

2. 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.

3. Introduction • Outline: • Social innovation • Service innovation   • A dialogue between social innovation and service innovation.

4. 1. Social innovation: the desperate quest for a definition1.1. Social innovation in opposition to business innovation(After Hochgerner, 2009) * Innovation as defined by the Oslo Manual (OECD, 2005)

5. 1. Social innovation: the desperate quest for a definition1.1. Social innovation in opposition to business innovation (an amended typology)

6. 1. Social innovation: the desperate quest for a definition1.2. 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

7. 2. Service innovation: making “invisible innovation” visible2.1 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

8. 2. Service innovation: making invisible innovation visible2.2 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.

9. 2. Service innovation: making invisible innovation visible2.3 From a linear to an open innovation model Traditional linear model Idea Development Production Idea Interactivemodel Idea Development Production Idea Rapid application model Production Development Practice-based model Bricolage model Development Idea Production Production Ad hoc model Further Development Idea Development

10. 3. First elements of a dialogue between social innovation studies and services innovation studies3.1 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.

11. 3. First elements of a dialogue between social innovation studies and services innovation studies3.1 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

12. Provider’sdirect competences [C] [C’] Client’s competences [Y] Final or service characteristics [T’] [T] Provider’s material and immaterial technical characteristics 3. First elements of a dialogue between social innovation studies and services innovation studies3.1 What services studies tell us about social innovationThe characteristics-based representation of the product (after Gallouj and Weinstein, 1997) Client’s technical characteristics

13. 3. First elements of a dialogue between social innovation studies and services innovation studies3.2 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.

14. 3. First elements of a dialogue between social innovation studies and services innovation studies3.2 What social innovation studies tell us about service innovation • Social innovations are] “Innovative activities and servicesthat 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 servicesthat 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 servicesthat 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).

15. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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.

16. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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.

17. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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.

18. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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)

19. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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.

20. 3. First elements of a dialogue between social innovation studies and services innovation studies3.3 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).