A conceptual approach to the relationships between the social economy, social welfare, and social innovation

Abstract

Purpose With the aim of finding a balance between social and economic benefits, the social economy has reemerged in the crisis of the welfare state. The Fordist welfare state can be characterized by state-provided welfare, the mediation of paid work and welfare by the labor market and redistributive policies. Globally, neoliberalism and the market have given rise to social exclusion; in this context, the social economy is emerging as an alternative to the market domination of societies. This paper aims to construct a conceptual framework of welfare provision in an open innovation era. Design/methodology/approach The welfare state system between the Fordist welfare state and post-Fordist welfare state is different on provision and delivery of welfare service. To construct the conceptual relation among the social economy, the state and the market and welfare provision in the social economy, this study mainly used the literature review. Findings Attention should be paid to civil society at the local level to ignite social economy through open social innovation. Various social actors in the local community need to change and develop the social economy with collaborative entrepreneurship and collaborative economic mindsets. Research limitation/implications This paper presents the welfare service model led by social economy and open innovation, as well as social change. To fill the shortage of welfare provision caused by crisis of the welfare state, social economy is considered as an alternative for neo-liberalism. This study emphasizes that endogenous local development is a prerequisite for social economy as a welfare supplier. Practical implications In the social economy, reciprocity, democracy, self-help and social capital at the local level are emphasized. Also, open innovation put emphasis on collaboration economy among the local community, firms and the public sector: this emphasis can be expected to affect the welfare provision system and the social relations surrounding welfare. To address social problem and social needs, the social economy can adapt and apply the open innovation model. Originality/value The previous researches on open innovation mainly deal with the business sector and the public sector, but this paper has a focus on the relation between provision of social welfare and social innovation. The social economy is likely to function properly on the foundation of open social innovation.