Putting social innovation in the spotlight: European Social Innovators' Insight Report (2021)

Brussels, September 15th 2021

Summary

›The European Social Innovators' Insight Report 2021 maps social innovation ecosystems across selected European and Horizon Europe countries.
›Desk research and interviews with alumni of the European Social Innovation Competition underpin the report and identify trends, gaps and inspiring examples.
›Key barriers include access to finance and nascent ecosystems in some countries while others show strong institutionalisation and collaborative networks.
›The report is intended as a practical reference for social innovators, funders and policy-makers and connects to EU policy and funding strands such as Horizon Europe and ESF+.
›The European Social Innovation Competition continues as a platform for early stage social innovation with mentoring, coaching and three annual €50,000 prizes.

Why the report matters

The European Social Innovators' Insight Report 2021 is a targeted review of social innovation across a set of European countries and Horizon Europe associated states. Published by the European Innovation Council and the SMEs Executive Agency, the document aims to build a conceptual understanding of social innovation, detail national support structures and stakeholders, and surface practical resources for organisations working in this space. The report is framed as a resource for early stage social innovators and for policy-makers seeking to design more effective support instruments.

Scope, method and limits

The report combines desk research with interviews drawn from alumni of the European Social Innovation Competition. That approach offers practical, first-hand perspectives on opportunities and constraints in the target countries. At the same time the methodology narrows the evidence base. Alumni are a self-selected group and may not represent the full population of social innovators. The report does not appear to include systematic quantitative impact measurement across countries, which leaves questions about scale and comparative effectiveness that require further study.

Social innovation:Social innovation refers to new ideas, services, models or approaches that address societal challenges and improve the well-being of people and communities. It is distinct from purely commercial innovation because its primary value proposition is social impact, though it often intersects with market mechanisms, public services and policy reforms.

Social entrepreneurship:Social entrepreneurship describes organisations or ventures that pursue a social mission while using business techniques to generate income and sustain activity. These actors sit between civil society, public services and private enterprise and often face hybrid regulatory and financing environments.

Trends, highlights and gaps identified

The report highlights several cross-cutting themes. It points to inspiring examples of social innovation across Europe and to areas where research and policy support remain limited. The report emphasises the capacity of social innovation to contribute to job creation, inclusion and environmental goals. It also documents structural barriers such as limited access to finance for social ventures and underdeveloped ecosystems in some countries.

Country	Snapshot finding	Implication for innovators
France	Well established investment community but access to finance remains a key challenge for social innovators.	National investors exist but social ventures must still bridge gaps to secure sustainable funding and scale.
Latvia	A growing but still nascent social innovation ecosystem.	Early-stage support and capacity building are priorities to help ideas move beyond pilot stage.
Norway	Political visibility and awareness of social innovation has increased with consensus about potential for welfare system reform.	Stronger political recognition can facilitate public sector partnerships but sustained financing and scaling mechanisms are needed.
Romania	Main public support mechanisms for social enterprises come via EU funds, notably ESF+.	Dependence on EU channels underlines the need for local funding instruments and capacity to absorb funds effectively.
Spain	The social economy appears institutionalised and diverse due to multiple administrative layers at national and local levels.	Institutionalisation creates opportunities for partnerships but can add complexity for small innovators navigating supports.
Sweden	The social innovation network is perceived as open and collaborative with regular high level events.	An active network helps match innovators with political leaders and resources but continued monitoring of outcomes is required.

European policy and funding context

The European Commission positions social innovation as a source of growth, jobs and social inclusion. The report situates itself within a landscape shaped by long running EU initiatives and instruments. These include the Innovation Union, the Social Business Initiative, Start-Up and Scale-Up actions, successive research frameworks such as Horizon 2020 and Horizon Europe, and the Employment and Social Innovation strand of the European Social Fund Plus (ESF+). The Commission argues that these policy strands have helped create conditions for the development and scaling of socially innovative solutions, though practical gaps in funding and ecosystem maturity persist in places.

Instrument / Initiative	Role for social innovation	Characteristic
Horizon 2020 / Horizon Europe	Research and innovation funding including EIC instruments	Supports prototyping, R&D and market readiness for breakthrough ideas
ESF+ - EaSI strand	Social policy and social entrepreneurship support	Targets inclusion, capacity building and local delivery mechanisms
Innovation Union / Social Business Initiative	Policy frameworks to stimulate social entrepreneurship	Sets strategic goals and removes regulatory barriers
Start-Up and Scale-Up Initiative	Measures to improve scaling conditions for innovative firms	Focus on financing, regulation and market access

Access to finance - what the report highlights:A persistent theme is that many social innovators struggle to secure adequate financing. Even in countries with active investment communities, social ventures often face challenges converting social impact into bankable financial metrics. The report underscores the need for blended finance models, patient capital, and intermediaries that can translate social outcomes into investment-ready propositions.

The European Social Innovation Competition

The European Social Innovation Competition was launched in memory of Diogo Vasconcelos. It is run by the European Commission with support from the European Innovation Council across EU Member States and Horizon Europe associated countries. In 2021 the Competition was in its ninth year and used a methodology designed to support early-stage ideas through mentoring, coaching and peer networking. Each year the Competition awards three prizes of €50,000 to leading socially innovative projects and provides business accelerator support for shortlisted participants. The 2021 theme was 'Skills for tomorrow - Shaping a green and digital future'.

Competition support model:The Competition offers early-stage innovators access to mentoring, coaching and a peer network. It also channels visibility and modest prize funding to winners. The model aims to combine financial support with practical capacity building and connections to national actors that can support scaling.

Practical utility and caveats

The report serves as a practical first reference for social innovators, funders and policy-makers in the target countries. It aggregates national snapshots, points to stakeholders, and highlights resources. Those seeking to rely on the report should note the limits of desk research and interview samples. The absence of comparable quantitative impact measures across regions means the report is better at flagging themes and examples than at proving which policies or instruments are most effective at scale.

Implications for innovators and policy-makers

For innovators the report offers a map of where to look for support and which structural barriers to expect. For policy-makers it provides an evidence base for targeted investments in ecosystem development such as capacity building, blended finance instruments, and streamlined administrative pathways. The report implies that national differences in institutionalisation matter for scaling social innovation. Where ecosystems are nascent, priorities should include building investor literacy on social returns and developing tailored financing instruments.

Measuring success:A recurring challenge for social innovation is credible measurement of social impact that is both rigorous and usable by investors. The report flags the need for frameworks that allow comparability while remaining sensitive to diverse missions and local contexts. Without better measurement, attracting sustained investment and public procurement contracts will remain difficult for many social ventures.

What to read next and contacts

The full European Social Innovators' Insight Report 2021 is available for download from the European Innovation Council resources. For enquiries about the European Social Innovation Competition and the Challenge Prize, the contact email provided is info@socialinnovationprize.eu. The report was published by the European Innovation Council and SMEs Executive Agency on 15 September 2021.

The report is a useful policy and practice brief. Readers should treat it as a descriptive and directional resource rather than as definitive evidence of which interventions most reliably deliver scaled social impact. Further, independent evaluations and longitudinal studies would be valuable to validate the promising directions the report highlights.

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