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Chapter 13
Going Beyond GDP:
The Role of Social Innovation
in Building a Welfare State
Seyithan Ahmet Ates
Ankara University of Social Sciences, Turkey
Muradiye Ateş
Konya Necmettin Erbakan University, Turkey
Murat Ali Yülek
Istanbul Commerce University, Turkey
ABSTRACT
A redirection towards wellbeing with a view to produce lasting social and economic vitality for the
global civilization necessitates moving from conventional economic methods towards innovative solutions, which are necessary to face challenges of today and the future to foster sustainable growth. Social
innovation and its agents can be considered as a toolbox which may facilitate a transition by positively
influencing wellbeing, developing ways of integrating it into policy, and promoting it as an alternative
measure of progress. Social innovation may increase the role of civil society in solving social problems,
while sustaining and improving people’s wellbeing beyond increasing their welfare in monetary term.
By providing up-to-date solutions to challenges ranging from global warming to fair income distribution, and from social innovative entrepreneurs to grass-rooted innovation, social innovation seems to
be capable of transforming the society in a way to tackle with a new kind of societal problems, and of
exploring new ways to create added value for the economy.
DOI: 10.4018/978-1-5225-8939-6.ch013
Copyright © 2019, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Going Beyond GDP
INTRODUCTION1
A growing number of economists are realizing that simple economic activity measured by the GDP
is, alone, not enough to represent the well-being of citizens. In recent years, some scholars and some
politicians have embarked on efforts to conceptualize and theorize new economic paradigms. Former
president of the European Commission, Manuel Barroso, once featured that “Despite being an invaluable
tool for economic policy, Gross Domestic Product (GDP) is unfit to reflect many of today’s challenges,
such as climate change, public health, and the environment. We cannot face the challenges of the future
with the tools of the past” (European Parliament, 2009, p.24)). Innovative solutions are necessary to face
the challenges of the future and foster sustainable growth. Measuring a prosperous society as a whole is
more complex and necessitates considering several other elements besides robust GDP growth, such as
peace and happiness, economic and financial well-being, and individual freedoms and liberties (Urama
& Acheampong, 2013). A redirection towards sustainability and well-being, which produces lasting
social and economic vitality for global civilization as a whole may be the most viable option for further
development (Rogers et al., 2012)(Fullerton, 2015).
There are numerous economic, social and technical developments which led governments and societies to seek new approaches to overcome related contemporary challenges and provide sustainable
well-being. Shifting focus of economies to a greener form of production, engagement of cities throughout
the world in the promotion and pursuit of mitigating climate activities, growing attention on ecological
developments are some of the illustrative cases of big shifts.
We argue that social innovation is capable of providing new means to overcome today’s challenging
problems, ranging from zero-carbon housing to fair economic system by providing social capital needed
for the improvement of the human well-being and social progress. In this process, social innovation is
expected to change beliefs, basic practices, resources and social power structures profoundly by providing a unique opportunity to step back from a narrow way of thinking about social enterprises, business
engagement, and philanthropy and to recognize instead the interconnectedness of various factors and
stakeholders (Urama & Acheampong, 2013).
The main objective of this chapter is to highlight the shifting dynamics by elaborating the drivers of
the change and shedding light on the potential role of social innovations praxis in improving the welfare of
the people. After the introduction, the second section of the chapter addresses the beyond GDP approach
from various aspects with a particular focus on the “new economy” discussion. In the third section, by
following conceptual heuristic, foundational drivers of new economic paradigms, namely exogenous
developments, socio-technical transformation, socio-ecological transformation, economic crisis and the
shifting the role of government and society are elaborated as the drivers of the “new economy.” In the
fourth section, we analyze the role of social innovation from various aspects as a facilitator in building
the welfare state. Possible contributions of social innovations have been highlighted in four illustrative
cases. In this context, the role of social innovation is investigated in four categories including creating a
fair economic system, facilitating the social transition, providing sustainable added value, empowering
the community to adapt itself to socio-ecological transition and building a “competitive advantage” in
the applied country.
242
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