GIA Singapore - Financing social innovation (Mulgan)
-
Upload
global-innovation-academy -
Category
Economy & Finance
-
view
424 -
download
1
Transcript of GIA Singapore - Financing social innovation (Mulgan)
![Page 1: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/1.jpg)
FINANCING SOCIAL INNOVATION
Geoff Mulgan
![Page 2: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/2.jpg)
1 Prompts
2 Proposals
3 Prototypes
4 Sustaining
5 Scaling
6 Systemic change
WHAT KIND OF MONEY?
![Page 3: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/3.jpg)
Most money, fewest
constraints
Least money, most
outcomes
![Page 4: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/4.jpg)
Low Impact High
High
Risk
Low
![Page 5: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/5.jpg)
MONEY AND VALUE
![Page 6: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/6.jpg)
EARLY STAGE – speculative, open, stage-gate … for individuals, teams, organisations
![Page 7: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/7.jpg)
decentralised
centralised
internal external
Open Source
Open Innovation
Skunkworks
Innovation lab
Movements,
campaigns
Corporate
Venturing
![Page 8: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/8.jpg)
decentralised
centralised
internal external
![Page 10: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/10.jpg)
SUSTAINING AND SCALING
![Page 11: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/11.jpg)
Analysing ventures from a commercial lens
![Page 12: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/12.jpg)
Business planning
Charities Shareholders agreements
Non-executive Directors
Independent evaluation and benchmarking
Advertising
Sales and business development
Banking and working capital
PR
Pricing
Purchasing
Leasing
xxxx
Money and business model
Know-how
People and governance
Reputation
and effectiveness
Physical Resources
INNOVATION
Developing strategy
Industrial and Provident
Society
Partnerships
Supply chain management
Distribution channels and systems
Management information
systems
Intellectual property
protection
Community Interest Company
Co-operatives
•Developing a business model •Securing initial funds – customers and investment
•Acquiring the premises and equipment to deliver the innovation •Accessing the raw materials the innovation requires
•Evaluating effectiveness •Building brand, profile,
reputation •Switching from previous
solutions
•Setup up governance •Recruit leadership and team
Building operational systems and processes to deliver for users
![Page 13: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/13.jpg)
Impact vs financial return
![Page 14: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/14.jpg)
Low Impact High
High
Risk
Low
X Commercial
funding
Social investors
![Page 15: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/15.jpg)
Foundations
Government
Crowdfunding
![Page 16: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/16.jpg)
EXAMPLES OF SOCIAL FINANCE
• Banca Etica and Banca Prossima in Italy
• Big Society Capital in the UK
• Acumen in the US
![Page 17: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/17.jpg)
MOBILISING PROCURMENT AND PRIZES
Procure outcomes & solutions, not products and services
Articulate need and send clear signals to the market
Widen the pool of suppliers and innovators
Variable tariffs
![Page 18: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/18.jpg)
Competition is
good for
innovation…
up to a point
How open to
make public
markets?
WHAT DEGREE OF COMPETITION?
![Page 19: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/19.jpg)
Co
st e
ffic
ien
cies
Size of organisation/unit
Very efficient
Less efficient
Small Large
MOBILISING PROCURMENT AND PRIZES
![Page 20: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/20.jpg)
Co
st e
ffic
ien
cies
Size of organisation/unit
Very efficient
Less efficient
Small Large
The pattern for public services, and national governments:
replication is not always best served by organisational
growth
![Page 21: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/21.jpg)
FUTURE VALUE
From ‘we need more money’ to ‘how do we create
future value and turn it into present money’. This
is where social finance overlaps with public funding
and pressures.
![Page 22: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/22.jpg)
![Page 23: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/23.jpg)
A long history of tools ....
• Commissioning for outcomes
• Payment by results
• PPPs
• Shared savings models
• Publicly created markets (carbon, housing)
![Page 24: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/24.jpg)
Cost-benefit analysis
stated preference methods
revealed preference
Social Impact Assessment
Social Return on Investment
Best Available Charitable Option (BACO) Blended value
QALYS
DALYs
PROMs
Education value added
Life satisfaction
bilan societal bilancio sociale
WARM
Index of Civic Health
public value
Social value
i5 National time accounts
Satellite environment accounts
![Page 25: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/25.jpg)
FINANCING SOCIAL INNOVATION – two examples
![Page 26: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/26.jpg)
1. Social Impact Bonds
![Page 27: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/27.jpg)
• Finance from Foundations, or Commercial investors
Raising a sum for investment
• Implemented by a range of providers, coordinated by a lead organisation, intermediary or an SPV
A programme of actions
• Commitment to pay on achieving outcomes
• Benchmarked against control group, and separated from "environmental" risk factors
A commitment to repay
Social Impact Bonds
![Page 28: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/28.jpg)
Peterborough SIB •First SIB contract signed with the Ministry of Justice in
March 2010. Social Finance raised £5m to fund work with
3,000 male, short-sentence prisoners.
• Nationally, 60% of such prisoners re-offend within 1
year.
• Social sector organisations provide intensive support to
prisoners and their families.
•Investors will receive a return if re-offending among the
prison leavers falls by 7.5% or more
• If there is a drop in re-offending beyond 7.5%,
maximum is capped at 13% over eight years.
![Page 29: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/29.jpg)
Australia: New South Wales
(Social Benefit Bonds)
US Federal Government
(Pay for Success Bonds)
![Page 30: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/30.jpg)
2. Preventive investment at the level of a city: Greater
Manchester
![Page 31: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/31.jpg)
Elements • collaboration of municipalities and national
government combining:
• evidenced actions to reduce costs (in this case
mainly on prisons and courts)
• a Financial Incentive for reductions in prison
numbers
• a range of commissions to NGOs and others
![Page 32: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/32.jpg)
Young People at
risk of conviction
1 Young
People at risk of
reoffending 2
Young Adults at
risk of reoffending
3 Adults at
risk of short custodial sentences
4 Adults at
risk of reoffending 5
Police-led Restorative Disposals
Multisystemic Therapy
Restorative Youth Conferencing
Choose Change
Intensive Alternative to Custody
Grounded in analysis of where crime could be
de-escalated with savings
![Page 33: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/33.jpg)
Combined with options for greater integration
1. A single assessment process
2. A single plan for offenders
3. A single leader of each plan
4. Shared outcomes
5. Shape the pattern of resource allocation
6. Shared savings
![Page 34: GIA Singapore - Financing social innovation (Mulgan)](https://reader033.fdocuments.us/reader033/viewer/2022060107/554ad1afb4c905b5238b50a0/html5/thumbnails/34.jpg)
Questions
• how to align interests of payers, funders,
delivery agencies, beneficiaries?
• will this spur or hinder innovation?
• is it worth the transaction costs?
• what are the political risks?