Starting, Scaling and Sustaining Social Innovation

3. Existing levers and policy orientations for future ESF support to social innovation

Abstract

This chapter introduces the “3S” framework—Start, Scale, Sustain—a tool to amplify the impact of the European Social Fund (ESF) on social innovation. Drawing on expert consultations and 16 case studies from the 2014–2020 period, it explores each phase in detail.  Start presents existing tools such as seed funding, innovation labs, awards, research and development initiatives, and collaborative platforms. It also proposes levers such as preparatory grants, multi-stakeholder engagement, tiered payment models, academic partnerships, and dedicated incubator networks. 

Scale focuses on mechanisms such as growth financing, capacity building, transnational cooperation, policy integration, and ecosystem strengthening. Recommendations include improved impact measurement, hybrid funding models, digital technology integration, and avenues for internationalisation.  Sustain addresses long-term viability through enabling policies, responsible procurement practices, institutional embedding, public recognition, and stable financing frameworks. The chapter examines the expansion of municipal roles, aligning social innovation with digital and green transitions, and using social innovation to foster social cohesion.

This chapter presents existing levers for social innovation in the EU and provides policy orientations to guide future support under the European Social Fund. The content is organised under three sections:

1. “Start” social innovation experiments

2. “Scale” successful social innovation

3. “Sustain” social innovation impact over time

Each section is divided into two sub-sections on existing levers and policy orientations. These orientations are based on insights from consultations and focus groups with ESF experts and other relevant stakeholders from EU countries. It also draws on the 16 case studies identified as good practices in social innovation during the 2014-20 ESF programming period, which are presented in detail in Annex A.

Start – Social innovation experiments in response to social challenges

Social innovation experimentation helps policy makers and practitioners test new solutions to social challenges on a small scale. By doing so, they can gather evidence on what works before implementing wider reforms. This section describes the existing levers for social innovation experimentation and outlines policy orientations to strengthen experimentation under future ESF support.

Existing levers

Funding for social experiments

Dedicated funding for experimentation, such as grants and seed capital, helps social innovations and social entrepreneurs test pilot projects. This funding is often implemented by EU institutions, national, regional, or local governments, philanthropic foundations, and non-governmental organisations. For example, the EU’s EaSI programme (2014-20) launched seven calls, financing more than 40 social experimentation projects to incubate innovative ideas (European Commission and Ledan, 2022[1]). They spanned across several themes from integrated delivery of social services to fast-track integration for third-country nationals into the labour market, with successful projects such as "PACT: ProActive Case-based Targeted for social inclusion” (Castilla y Leon, Spain) and “ALMIT: Acceleration of Labour Market Integration of Immigrants Through Mapping of Skills And Trainings” (Bulgaria).

Innovation labs and incubators

Innovation labs, hubs and incubators provide supportive environments for social innovators to design, prototype and refine ideas. This support includes mentorship programmes, co-creation workshops, networking opportunities and testing grounds, which can be provided by the public-sector innovation labs, universities, research centres, non-profit incubators and accelerators. For instance, Social Impact Lab is an innovation incubator in Germany that is fully dedicated to social innovation, providing an enabling environment for social entrepreneurs and innovators. Established in 2011, it remains active in 2025 as a multi-city network of innovation hubs focused on developing new solutions to societal challenges. Each lab offers comprehensive support to social innovation projects, serving as a hotspot for social innovation in the startup community. Key features of the lab’s supportive environment include mentorship and training, networking and testing grounds to give social startups a safe space to prototype solutions and iterate with feedback before scaling up (The Social Impact Lab, 2025[2]). Poland is another example of a country that has set up a network of social incubators to actively support innovators developing socially innovative ideas, such as the Ideas Incubator (Inkubator Pomysłów, 2025[3]).

Competitions and awards

Competitions and awards help to crowdsource innovative ideas and encourage entrepreneurship by rewarding best projects with funding and recognition. These contests can be hosted by EU agencies, national ministries, foundations and companies, with increased visibility for participating social innovators and entrepreneurs. For example, the annual EU Social Innovation Competition awards EUR 75 000, EUR 50 000 and EUR 25 000 in funding for the first, second, and third top social innovators, respectively, offering a space to showcase new ideas addressing unmet societal needs and encourage social experimentation. The competition is open to a variety of participants, including entrepreneurs, social enterprises, non-governmental organisations, civil society organisations, educational institutions, among others. It centres on a specific theme each year, with the most recent edition in 2024 focusing on social innovation in digital democracy (see Box 3.1) (European Innovation Council, 2025[4]).

Box 3.1. The 2024 European Social Innovation Competition

The theme of the 2024 edition of the European Social Innovation Competition was social innovation in digital democracy, with the following projects being awarded first, second, and third place:

“Cultivating Civic Habits” by Sabiedribas Lidzdalibas Fonds (Latvia): Aimed at enhancing civic skills among young people aged 14-18, this initiative empowers them to make informed decisions as responsible citizens in a diverse democratic society. The project offers an interactive app with daily civic activities based on real-life scenarios to foster engagement and competence.

“Live Agora” project by Stichting TAAT (Netherlands): Live Agora is a digital platform that fosters collaboration and co-creating among users, utilising a decentralised community-centred approach. The platform supports users retain full control over their data and interactions, promoting an innovative approach to digital democracy.

“The Newsroom” by Título Alternativo LDA (Portugal): Striving to advancing digital democracy, The Newsroom tackles disinformation, connects democratic actors, and empowers civil society using innovative and inclusive technology.

The three projects became part of the Network of Social Entrepreneurs and Innovators (NESEI) Group, a platform created by the European Innovation Council Community to provide business development and networking opportunities for EIC-funded organisations and other key stakeholders. Through NESEI, participants gain access to matchmaking events, training bootcamps, workshops, and a wider European innovation network.

Source: European Innovation Council (2025[5]).

R&D programmes

Integrating social innovation into R&D agendas enables funding for in-depth studies, pilots and data collection to understand and experiment with evidence-based solutions. This happens across European R&D programmes, national research councils, universities, think-tanks, social R&D labs, fostering collaboration between policy makers and practitioners on experimental projects on social innovation. For example, in Sweden, Vinnova, the Governmental Agency for Innovation Systems, funds research on social innovation models in multiple areas, such as digitalisation, climate resilience, social housing and sustainable cities. The agency also coordinates strategic initiatives, collaborating with actors across sectors to strengthen Sweden’s innovation capacity (Vinnova, 2025[6]).

Collaborative platforms

Collaborative platforms such as communities of practice and online hubs facilitate knowledge exchange, partnerships, and co-creation, ranging from EU-wide networks, national social innovation forums to online communities, social enterprise coalitions, and public agencies. The “Green At You” project exemplifies how collaborative platforms can drive social innovation by uniting diverse stakeholders to co-create inclusive solutions for the green and digital economy. Funded by the ESF+, this transnational initiative brings together NGOs, universities, social enterprises, and training providers across Europe to design and pilot micro-credential training modules tailored for women, migrants, and the long-term unemployed. By aligning with EU competence frameworks such as EntreComp, GreenComp, and DigComp, the project fosters mutual learning and capacity building among partners, ensuring that the developed solutions are both innovative and scalable. Through its emphasis on networking and shared expertise, “Green At You” demonstrates the pivotal role of collaborative platforms in advancing social innovation within emerging sectors (EU Funding & Tenders Portal, 2025[7]).

Policy orientations

Identifying “blind spots”

Including “blind spots” criteria in future ESF programming and monitoring could help widen the scope of and track progress in social innovation experimentation in underserved regions. “Blind spots” refer to areas where social innovations do not occur, due to multiple factors such as limited awareness, lack of funding, regulatory constraints, or weak civil society structures. Identifying these areas can help social innovation reach communities most in need. Mapping social challenges through both quantitative data (e.g. demographic trends, employment statistics) and qualitative information (e.g. community consultations), can help policy makers and Managing Authorities pinpoint these gaps and target interventions.

Member States could report on ways by which they address gaps in social innovation support. Incorporating indicators for coverage (e.g. number of new social experimentations in previously unsupported regions or sectors) could create incentives to focus on blind spots. Monitoring the geographic and thematic scope of ESF-funded social innovations can encourage knowledge transfer to lagging regions.

In Czechia, the Pilot Micro-Nurseries project provides a good example of a targeted approach in underserved regions to address critical gaps in early childhood education and care (see Annex A. Pilot micro-nurseries in Czechia). The project responded to the significant decline in public childcare facilities since 1989, which left some regions, such as the Liberec region, with no accessible services. By prioritising the establishment of micro-nurseries in underserved areas, the project identified and addressed unmet social needs, facilitating families' access to affordable and professional childcare in these regions.

Involving many stakeholders from the experimentation phase

Encouraging and incentivising multi-stakeholder social innovation consortia to co-design solutions could enhance the likelihood of replication. Broad partnerships, including socially driven entities, local governments, businesses, and community groups, can help generate innovative and practical solutions. Collaborations between grassroots initiatives, which provide local insights, and larger organisations, which offer resources, can create a strong foundation for social innovation. Early cooperation with Managing Authorities is also particularly beneficial, as it increases the potential for social innovation projects to be successful. This collaborative approach involves consulting target groups to identify issues and pilot testing solutions, thereby ensuring that innovations are both locally relevant and scalable.

For example, an ESF project seeking to enhance skills training for the long-term unemployed could gather inputs from unemployed individuals and their representative organisations. Engaging them early fosters buy-in and results in user-centred interventions that are more likely to succeed. Co-design can also be achieved through steering committees or “living labs” during ESF projects, where partners review progress, adjust experiments, and address barriers. Such multi-stakeholder engagement from the start facilitates smoother mainstream adoption, as partners are already aligned and committed to the innovation's success.

Portugal Social Innovation initiative (PSI) highlights the importance of involving diverse stakeholders such as public authorities, social economy entities, and private investors, in the experimentation phase (see Annex A. Portugal’s Social Innovation Initiative). Partnerships for Impact (PFI) by PSI initiative promotes private co-funding for social innovation projects, showcasing collective efforts to address social issues. Portugal’s Social Innovation Mission Unit (EMPIS) supports these initiatives by fostering cross-sector collaboration, enhancing the continuity and impact of the projects through diverse expertise and resources.

Securing greater recognition from public authorities

Social innovations could be recognised as services contributing to the general interest. This could help unlock access to public funding typically reserved for traditional public services. By broadening this definition, public authorities could provide support for innovative solutions to scale and sustain their impact. The ESF could establish guidelines to classify eligible social innovations and introduce dedicated funding streams to enable tailored support for initiatives addressing pressing societal challenges. Regular dialogues, joint workshops, and collaborative platforms can foster understanding and incorporate innovative ideas into public policies. The ESF could also support capacity-building programmes that equip both social innovators and public officials with skills for effective collaboration, enhancing innovation integration into policy frameworks.

Demystifying social innovation can further enhance its acceptance. Social innovation is often perceived as very theoretical, which deters public authorities from engaging in it and providing support. A “learning by doing” approach, where policy makers participate directly in the innovation process, can make it more accessible. The ESF could further support this by funding pilot projects that involve public authorities in design and implementation, allowing them to experience the process firsthand. Additionally, creating peer-learning networks within the ESF can help public officials share experiences and best practices, fostering a practical understanding of social innovation across Member States.

Improving ESF payment timeliness

Small entities engaged in social innovation often face significant cash flow constraints. Lengthy disbursement processes for ESF grants can hinder innovative projects. The ESF could consider adopting a tiered funding release system to align disbursement speed with the size and capacity of recipient organisations. This would facilitate that smaller entities receive funds promptly, reducing financial barriers and fostering an inclusive innovation ecosystem.

The ESF could provide advance payments for micro and small organisations to support experimentation initiatives, allowing them to start projects without securing interim financing. This would reflect the ESF's commitment to grassroots innovation and diversifying solutions to social challenges. By tailoring funding procedures to the needs of smaller entities, the ESF could create a more equitable support system, reducing financial barriers and enriching the social innovation landscape.

In the Netherlands, the Sustainable Employability Regions and Sectors project linked ESF disbursement to the size of social innovation structures (see Annex A. Sustainable employability in regions and sectors in the Netherlands). The project effectively tailored ESF support to organisations of different sizes, allowing smaller entities to receive timely resources and address employability challenges. Its focus on workshops, campaigns, and coaching offered accessible solutions for improving HR practices. The project aligned funding procedures with the capacities of participating companies and reduced financial barriers for active engagement from smaller firms.

Introducing preparatory grants

Introducing preparatory grants within the ESF framework could significantly enhance the capacity of small organisations to engage in social innovation. These grants would provide resources for the design and planning phases of innovative projects, helping organisations with limited personnel and funding to analyse societal challenges and develop solutions. By covering costs for research, stakeholder engagement, and preliminary testing, preparatory grants would enable smaller entities to engage more actively in social innovation initiatives.

The ESF could also envisage implementing regranting application rounds. In this model, experienced organisations with a successful track of ESF funding would apply for larger grants and distribute portions to smaller entities. This would reduce the administrative burden on small organisations, enabling easier access to funding. Additionally, it would encourage mentorship and capacity building, as established organisations provide guidance to new innovators. These initiatives would diversify the pool of social innovations addressing societal challenges, while aligning with the ESF's objectives of reaching organisations engaged in social innovation, regardless of size.

The Portugal Social Innovation initiative (PSI) offers an example of preparatory grants for small social economy organisations to engage in innovative projects (see Annex A. Portugal’s Social Innovation Initiative). The PSI initiative enhanced small social economy organisations' capacity to tackle social challenges through capacity-building programmes and financial tools. However, issues like administrative delays and limited financial instrument uptake highlighted the need for preparatory grants for initial research and testing. These grants enable broader participation in social innovation. Similarly, the Netherlands' Sustainable Employability Regions and Sectors scheme supports preparatory grants to strengthen project development and impact measurement (see Annex A. Sustainable employability in regions and sectors in the Netherlands).

Collaborating with academia

Integrating academic institutions into ESF-funded projects helps connect research with practical application, allowing students and researchers to engage with real-world problems and promoting experiential learning. The master's degree in “Social Innovation and Entrepreneurship” at the Catholic University of Portugal is an example that links academia with social entrepreneurship (see Box 3.2).

Establishing structured pipelines from academia to the social innovation sector could facilitate the transition from research to implementation. Developing communication kits and resources tailored for academic institutions could raise awareness about social innovation opportunities and encourage participation.

In Mexico, the Social Innovation Hub Anáhuac (SIHA) is an initiative of the Faculty of Social Responsibility at Anáhuac University that addresses specific societal challenges through collaboration between academia, government, and the private sector. SIHA focuses on transferring academic knowledge to society, thereby enhancing economic and social conditions within communities. The Hub operates without dedicated physical infrastructure in its initial phase, using existing university space for project development. Future plans include establishing a dedicated facility to further support social entrepreneurship and innovation (Commission for Environmental Cooperation, 2021[8]).

Box 3.2. A master’s degree in “Social Innovation and Entrepreneurship” at the Catholic University of Portugal

The Catholic University of Portugal offers a specialisation in Social Innovation and Entrepreneurship within the Social Work Master’s programme. The specialisation provides advanced and targeted training to equip students with the skills to address social challenges. It includes a laboratory component and is complemented through partnerships with public and private third-sector organisations engaged in innovation processes in the social sector.

The specialisation opens up professional opportunities in numerous diverse areas such as service coordination departments, social intervention programmes and projects, social organisations, and research projects, particularly in the fields of social work and innovation.

Source: Catholic University of Portugal (2025[9]).

Connecting social incubators

Connecting social incubators can help to build strong social innovation ecosystems. These incubators support emerging social enterprises by providing resources, mentorship, and a collaborative environment. However, many small entities hesitate to engage in social innovation funded by ESF, perceived as complex. To overcome these challenges, the ESF could support "micro-innovation" that reduces the fear of failure among social innovators. By promoting flexible support for small-scale projects, social incubators can empower innovators to take calculated risks, encouraging an experimental mindset for developing innovative solutions to social issues.

Establishing networks of social incubators can enhance social innovation experimentation. In Poland, a structured system of incubators has been developed to support individuals and small entities with promising ideas for addressing social challenges. These incubators employ a multi-stage process involving pre-incubation and incubation phases to identify, develop, and test micro-innovations on a small scale. Each innovator receives tailored support and funding to refine their solutions. Successful innovations are then selected for broader application based on criteria such as effectiveness and cost-efficiency. Furthermore, an acceleration stage has been introduced to enhance innovations with significant potential for wider dissemination. Since 2015, this collaborative approach, coordinated by the Ministry of Development Funds and Regional Policy, has led to the development of over 1 200 micro-innovations across various sectors. This demonstrates the effectiveness of interconnected incubator networks in fostering social innovation (European Commission, 2024[10]).

In the Slovak Republic, the Human Resources Operational Programme highlighted the importance of connecting social incubators through dedicated training (see Annex A. Human Resources Operational Programme in the Slovak Republic). By establishing stronger links between social incubators, the initiative promotes cooperation and knowledge exchange, thereby improving the quality of self-employment programmes that offer business development training. These interconnected incubators are better equipped to help young people acquire the skills and knowledge needed to create sustainable enterprises. Moreover, this networked approach fosters local innovation by enabling participants to develop solutions tailored to their communities’ needs, while the involvement of various stakeholders, such as municipalities and civil society organisations, further strengthens support structures for emerging social innovators.

Table 3.1 summarises the existing levers and policy orientations for future ESF support to social innovation experiments discussed in this section.

Table 3.1. Start – Existing levers and policy orientations for future ESF support to social innovation experiments

Start
Existing levers
Funding for social experiments	Dedicated funding (grants, seed capital) for pilot projects to test new solutions on a small scale, evaluate results, and gather evidence for what works.
Innovation labs and incubators	Labs, hubs or incubators where social innovators design, prototype, and refine ideas in a supportive environment (mentorship, co-creation workshops, testing grounds).
Competitions and awards	Competitions crowdsource ideas, reward the best projects with funding or recognition, and encourage entrepreneurship through public contests.
R&D programmes	Integrates social innovation in R&D agendas. Funds studies, pilots, data collection to understand challenges and experiment with evidence-based solutions.
Collaborative platforms	Knowledge exchange, partnerships, co-creation, communities of practice and online hubs where social innovators, experts, and funders share best practices.
Policy orientations for future ESF support
Identifying “blind spots”	Introducing “blind spots” criteria in ESF programming to identify regions lacking social innovation initiatives, requiring Member States to report on how they are addressing gaps in social innovation support, establishing specific funding incentives for projects targeting underserved regions.
Involving many stakeholders from the experimentation phase	Incentivising multi-stakeholder consortia in ESF social innovation calls, promoting co-creation with target groups by mandating their involvement in problem definition and pilot testing, establishing steering committees or “living labs” to enable inclusive governance and long-term adoption.
Securing greater recognition from public authorities	Expanding the ESF definition of ‘services of general interest’ to include social innovation initiatives, introducing new funding streams specifically targeted at social innovations, contributing to the development of structured capacity-building programmes for public authorities to integrate social innovation into policymaking.
Improving ESF payment timeliness	Implementing a tiered funding release mechanism based on organisation size and financial capacity, offering advance payments for small organisations to ease cash flow constraints and enable timely project implementation, establishing a ‘fast-track’ ESF disbursement procedure for micro and small social innovation projects.
Introducing preparatory grants	Creating a new ESF funding category for preparatory grants (allowing small entities to cover early-stage research, stakeholder engagement, and initial testing), introducing a regranting mechanism where experienced ESF beneficiaries distribute portions of funds to smaller organisations, reducing administrative barriers for preparatory grants.
Collaborating with academia	Developing structured pipelines connecting academia with social innovation (including student-led pilot projects), expanding ESF-supported research grants that encourage practical applications of social innovation in master’s and PhD theses, funding ‘field immersion’ programmes where students and researchers directly engage in solving social challenges.
Connecting social incubators	Linking social incubators can strengthen social innovation ecosystems by providing resources, mentorship and collaboration, but many small organisations are put off by the perceived complexity of ESF funding, which could be addressed by supporting 'micro-innovation', which encourages small-scale projects and an experimental approach to tackling social problems.

Source: Authors’ own elaboration.

Scale – Replication of successful social innovation

Scaling social innovation enables proven solutions to expand their reach and impact. This section describes the mechanisms supporting scaling and presents policy orientations to enhance scaling processes under future ESF support.

Existing levers

Scaling up programmes

The European Commission, national governments, local authorities, accelerators and impact investors support scaling-up projects by offering advanced mentorship, growth financing and partnership. An example of scaling up programmes is Poland’s community-based mental health centres which were introduced in 2018 as a pilot initiative under the National Mental Health Protection Programme for 2017-22. Following the pilot’s success, the number of operating mental health centres has grown to 100, with plans to expand to 300 and integrate the model into the national healthcare system by 2027. The initiative receives national funding in the form of lump-sum financing, providing flexibility in spending and allowing services to be tailored to local needs (Sagan et al., 2022[11]; Ujazdowski, 2024[12]).

Growth finance

Growth finance requires attracting investors and funds such as government-supported social finance funds, loans, equity and hybrid finance. These are often offered by EU financial instruments, social investment intermediaries, banks, impact investors, and foundations. For example, Portugal established a EUR 150 million Social Innovation Fund (SIF) in 2018, which blends EU and national resources to offer loans and equity to scale social sector organisations and small and medium enterprises (SMEs) in the country (Portugal Inovação Social, n.d.[13]).

The Social Finance Fund (SFF) is a cornerstone of Canada's Social Innovation and Social Finance Strategy, designed to accelerate the growth of the country's social finance market. Launched in 2023 with a commitment of CAD 755 million over ten years, the SFF aims to enhance access to affordable capital for social purpose organisations (SPOs), including charities, non-profits, co-operatives, and social enterprises. These organisations are instrumental in developing and scaling innovative solutions to complex social and environmental challenges, such as poverty alleviation, climate change, and social inclusion. By providing repayable contributions to selected investment fund managers, the SFF facilitates investment in social finance intermediaries. These intermediaries, in turn, offer flexible financing opportunities to SPOs, enabling them to grow, innovate, and enhance their social and environmental impacts, while promoting more inclusive economic development for communities in Canada.

Capacity building

Capacity building allows social entrepreneurs to improve project management, conduct impact measurements, and improve the scalability of their ideas. Training or mentorship programmes, workshops, technical assistance, coaching, and competence centres are among some approaches to do so, often provided by EU-level competence centres, national training programmes, incubators, accelerators, universities and relevant social innovation networks. Under the ESF+, there are six National Competence Centres for Social Innovation which cover 25 EU Member States with objectives to train and advise social project leaders on various themes (see Figure 2.5).

Transnational cooperation

Leveraging EU’s diverse experiences to replicate projects at the transnational level helps entrepreneurs expand and strengthen their innovations. Peer learning forums, as well as city networks, non-governmental organisations and local authorities partnering across borders help clarify how social innovations could adapt to new contexts beyond national borders. Dedicated funding is also effective for transnational cooperation, such as the ESF or Interreg projects, as well as financing mechanisms like the European Social Innovation Catalyst Fund which replicates successful innovative projects at the national and transnational level. The Nordic Council is an example of transnational cooperation, as its members jointly developed social innovation approaches that allowed for solutions proven successful in one country to be adapted in others (Nordic Council of Ministers, 2015[14]).

Policy mainstreaming

Translating pilot projects into new laws, reforms or budgeted programmes, helps embed social innovation into mainstream policy and standard service delivery. For example, France’s Zero Long-Term Unemployment Territories experiment – which tackles unemployment by creating jobs that address community needs through redirecting cash benefits otherwise paid to unemployed individuals – was extended by law. A similar project is underway in the region of Wallonia (Belgium), where 17 zero long-term unemployment territories are scheduled to be launched with support from the ESF+ (European Commission, 2024[15]).

Policy orientations

Developing knowledge sharing on scaling up social innovation

Knowledge sharing on scaling social innovations enables stakeholders to learn from successful interventions and adapt them to their contexts. By identifying context-specific factors and common transferable elements, innovations can be tailored for different regions. Involving the private sector can further enhance this process by demonstrating how innovative ideas can be scaled in the market. The Euclid Network provides a good example of this approach, connecting nearly 100 000 organisations across Europe through a Knowledge Centre that promotes peer-to-peer sharing on topics like impact-driven leadership and social finance, inspiring similar social innovations. (Euclid Network, 2024[16]).

In Austria, tackling gender inequalities in the labour market required scaling up social innovation through a structured pilot-to-national-rollout approach (see Annex A. Addressing structural inequalities in the labour market in Austria). Between 2017 and 2019, seven pilot projects tested innovative practices that gathered insights on promoting gender equality, improving qualifications for marginalised groups, and fostering inclusive HR practices. This knowledge informed the national rollout from 2020 to 2023, allowing effective strategies like targeted consulting and tailored workplace inclusion to be scaled up for wider reach.

The role of Managing Authorities could be further strengthened through targeted training and international benchmarks. National Competence Centres, particularly the one focused on Social Innovation Ecosystem Development (SEED), plays a critical role in helping them effectively implement ESF funding and mainstream social innovation (see Figure 2.5). Communities of Practice can also facilitate peer learning and lectures on social innovation, equipping Managing Authorities with essential skills.

Strengthening impact measurement

Measuring impact of social innovations can help convince private funders and governments to finance projects. For example, Impact Track offers user-friendly platforms tailored to specific projects, aiding in securing funding (see Box 3.3). In France, Avise’s Social Innovation Characterisation Grid (Grille de caractérisation de l'innovation sociale) is another tool that evaluates social innovations, with 20 criteria across three categories: social needs and stakeholder involvement, positive effects, and experimentation. The Grid helps entrepreneurs assess and showcase their impact while facilitating access to support and funding (Avise, 2024[17]). The European Commission’s Joint Research Centre (JRC) also offers free support and training on methodologies for social innovation project evaluations. The JRC could mobilise its expertise to produce guidelines for Managing Authorities.

In Portugal, the Social Innovation Initiative demonstrates how capacity building and outcome-based funding can strengthen impact measurement in social innovation (see Annex A. Portugal’s Social Innovation Initiative). The project introduced Social Impact Bonds (SIBs) and Partnerships for Impact, linking funding to measurable social outcomes in sectors such as health and education. Alongside a dedicated capacity-building programme, the initiative helped social economy organisations to improve their management and impact assessment skills, achieving a 76% success rate. These tools enabled organisations to demonstrate their effectiveness to funders more clearly, thereby encouraging both public and private investment in social innovation.

Box 3.3. Impact Track: Democratising social impact measurement

Founded in 2019 in Nantes, France, Impact Track is a social enterprise that aims to democratise social impact measurement. The company’s platform provides social entrepreneurs with tools to manage and communicate their social and environmental impacts transparently and effectively, while also connecting them with social investors looking to optimise their investments. It facilitates the implementation of impact measurements by offering pragmatic and personalised support, as well as a turnkey platform adapted to each project’s area of activity.

Since its establishment, Impact Track has supported almost 600 projects, 359 of which are currently active, as well as 15 portfolio managers. Its primary users include associations and co-operatives seeking to measure, manage and communicate their impact to improve its services and secure adequate funding from investors. Given that most of their beneficiaries are new to impact measurement or face financial difficulties due to the lack of resources, Impact Track strives to make its impact measurement tools accessible to everyone, enhancing continued growth for the social and solidarity economy.

Source: Impact Track (n.d.[18]).

Building and strengthening ecosystems

A social economy ecosystem is a network of organisations – including co-operatives, mutual societies, associations, foundations, and social enterprises – that prioritise social and environmental goals over profit, operate with democratic governance and reinvest profits to serve their members or society at large. Building and strengthening social economy ecosystems can effectively scale social innovation projects by creating networks, identifying target groups, and expanding project reach. In Spain, a strong social innovation ecosystem exists, with NGOs leading the way and minimal public authority involvement. The recent establishment of the Social Economy Hub highlights this, aiming to connect companies, research institutions, international organisations and social entrepreneurs to boost the sector (Fundacion Espriu, 2024[19]).

In Estonia, the Adaptation and Integration Measure project also succeeded by mobilising a network of stakeholders across the public, private, and third sectors, in the fields of migration and integration (see Annex A. The Adaptation and Integration Measure in Estonia). Networking seminars and collaboration as well as digital platforms have helped centralise resources, enhance information flow and connections between providers and beneficiaries. This interconnected ecosystem addresses fragmented services and boosts participant engagement, demonstrating how strong ecosystems can enhance social innovation initiatives.

Addressing territorial disparities in social innovation

Urban areas often become focal points for social innovation projects due to their higher population density, better access to resources, and more robust infrastructure. This concentration can lead to a proliferation of initiatives aimed at addressing social challenges in cities. In contrast, rural areas often face greater unmet social needs due to factors such as limited access to healthcare, education, and economic opportunities. This disparity is exacerbated by challenges such as inadequate infrastructure, lower population densities, and reduced funding, which can hinder the implementation of social innovation initiatives in these regions (OECD, 2024[20]). For example, rural communities often struggle with limited access to public health services, which are underfunded and lack the necessary physical and human infrastructure. In addition, the shortage of healthcare in rural areas leaves many with unmet medical needs.

Portugal addresses regional disparities through the Portugal Social Innovation (PSI) initiative, which finances and promotes social innovation ecosystems, while keeping a national approach (see Annex A. Portugal’s Social Innovation Initiative). This includes technical activation teams in various regions to help raise awareness and support with ESF funding. These teams foster collaboration among local actors and engage relevant stakeholders in regional ecosystems (European Commission, 2022[21]).

In Italy, the Active Labour Market Policies for Women project demonstrates the importance of coordinating regional initiatives to address gender disparities in the labour market (see Annex A. Active labour market policies for women in Italy). The project took a region-specific approach, with tailored pilot programmes focusing on training, work-life balance seminars, and flexible work arrangements, catering to the needs of women in different regions.

Supporting internationalisation

Countries and ESF can help social innovations scale up beyond national borders, through transnational programmes. To support this, National Competence Centres (NCCs) – already established in many Member States – are well-positioned to serve as dedicated contact points for internationalisation efforts. These centres are designed to connect national initiatives, foster cross-border collaboration, and provide guidance on accessing EU funding opportunities, including ESF+ and EaSI programmes. By leveraging the existing infrastructure and expertise of NCCs, a cohesive European ecosystem can be developed to promote the internationalisation and scaling up of social innovation projects (OECD, 2023[22]).

The 2013-16 Building a European Network of Incubators for Social Innovation (BENISI) project created a trans-European consortium that supports the scale-up of projects at both national and transnational levels. This action-driven research programme on social innovation incubation brought together 300 social innovations across Europe that held high potential for scaling up and provided them with services for scaling (Hirsch, 2024[23]).

The Interreg Alpine Space Programme supported cross-border collaboration and scaling up of social innovation projects across the Alpine region (see Annex A. Interreg Alpine Space Programme). The programme connects diverse actors, including SMEs, NGOs, and public authorities, to address common regional challenges such as climate change, demographic shifts, and economic disparities. By promoting transnational cooperation and integration with intergovernmental strategies like the EU Strategy for the Alpine Region (EUSALP), the initiative strengthened social economy networks and facilitated the implementation of innovative solutions at a broader scale.

Linking social and technological innovation

Digital tools and platforms could be strategically leveraged to maximise the impacts of social innovation. Connecting technological innovators with social entrepreneurs could enhance collaboration and integrate social innovation with digital solutions, especially in rural areas where social and technological innovations can benefit communities (OECD, 2023[24]).

The Adaptation and Integration Measure in Estonia aims to reduce the digital divide by strategically combining digital tools and social services to support the integration of immigrants (see Annex A. The Adaptation and Integration Measure in Estonia). A key part of this initiative is the multilingual settleinestonia.ee platform, which provides essential information and access to services for newly arrived immigrants and less-integrated residents in Estonian, English and Russian. The project’s modular approach integrates digital registration systems, language e-learning modules, and regionalised content, as well as in-person support such as language clubs and cultural immersion activities. Consequently, the initiative has improved language acquisition and cultural understanding. It has also informed national integration policies, demonstrating the transformative potential of tech-enabled social innovation in addressing inclusion challenges.

Providing follow-up funding from multiple sources

The ESF could promote hybrid funding models that blend public and private investments. Encouraging collaborations between social innovators, philanthropic organisations, venture capital, and traditional financial institutions could diversify funding streams and enhance financial resilience. This strategy reduces risks from depending on one funding source and uses diverse sector strengths to enhance social innovation. The ESF could also help establish partnerships with impact investors and venture philanthropy networks to provide patient capital to social innovators looking to scale their solutions. Patient capital, which tolerates longer return horizons and higher risks, is well-suited for social innovation initiatives that need time to create impact.

The ESF could also support capacity-building programmes focused on financial literacy and strategic funding acquisition, to enhance the financial acumen of social innovators. Equipping social entrepreneurs with knowledge about various financing instruments – such as mezzanine funding, venture capital, and hybrid funding models – can help them make informed decisions about sustainability plans. Additionally, implementing transaction cost support schemes can alleviate the financial burden associated with securing diverse funding, making it more feasible for social innovators to pursue multiple funding avenues.

Co-funding mechanisms that involve multiple stakeholders, including public entities, private investors, and philanthropic organisations, could also be explored by ESF. Such collaborative funding approaches not only distribute financial risk but also foster a shared commitment to the projects’ successes. By facilitating partnerships among diverse funders, the ESF could create a more cohesive and supportive ecosystem for social innovation, enhancing the potential for projects to achieve long-term impact.

Lastly, the ESF could help attract private investment into the social innovation sector by introducing measures to reduce investment risk for private funders. For example, it could offer guarantees or first-loss capital to cover potential early-stage losses, making social innovation projects more attractive to private investors. Similar approaches have been used successfully, such as the ERDF-backed venture capital funds supporting innovative start-ups in Berlin (see Box 3.4). By lowering the perceived risk, the ESF could unlock additional private capital and contribute to a more resilient and diverse funding landscape for social innovation.

Table 3.2 summarises the existing levers and policy orientations for future ESF support for the replication of successful social innovation discussed in this section.

Box 3.4. Fuelling Berlin’s socially innovative start-ups with ERDF VC funds

Berlin's European Regional Development Fund (ERDF) leadership in equity financing instruments has been crucial in supporting the expansion of its venture capital (VC) ecosystem. Berlin introduced ERDF-funded equity instruments to the VC market between 2004 and 2007. The city established two significant venture capital funds with the ERDF funding: VC Fund Technology and VC Fund Creative Industry, which received EUR 77 million and EUR 49 million, respectively, during the 2014-20 programming period. Their goal was to assist creative, scalable and growth-oriented companies in their early stages.

The funds have been essential to expand the venture capital sector in Berlin. The funds are managed by IBB Ventures (IBB Beteiligungsgesellschaft), a division of the Investitionsbank Berlin (IBB). IBB Ventures applies strict selection procedures, including environmental and climate considerations to guarantee that business models with significant negative effects are excluded from the funding. Therefore, ERDF-funded venture companies align with sustainable and socially responsible innovation, fostering innovation-driven entrepreneurship. The ERDF co-financed VC funds have achieved notable outcomes, including the growth of various enterprises, solidifying Berlin as an innovation hub in Europe.

Source: European Investment Bank (2023[25]).

Table 3.2. Scale – Existing levers and policy orientations to support the replication of successful social innovation

Scale
Existing levers
Scaling programmes	Advanced mentorship, growth financing, and partnerships so that proven pilots can replicate in new regions or serve more people.
Access to growth finance	Social investment funds, loans, equity, hybrid financing to bridge the gap from grant dependency to sustainable financing (attracting investors or funds for social impact).
Capacity building	Training programmes, technical assistance, coaching, and Competence Centres to improve project management, impact measurement, and scalability.
Transnational cooperation	Transnational projects, peer learning forums, and adaptation of innovations to new contexts, leveraging the EU’s diverse experiences.
Policy mainstreaming	Translate successful pilot projects into new laws, reforms or budgeted programmes so that the innovation becomes part of standard service delivery.
Policy orientations for future ESF support
Developing knowledge sharing on scaling up social innovation	Facilitating knowledge exchange through national and international learning platforms, strengthening the role of ESF Managing Authorities in supporting scaling strategies, promoting a dedicated annual ESF Social Innovation Summit to bring together policy makers, researchers, and practitioners.
Strengthening impact measurement	Developing and funding open-source impact measurement tools accessible to all ESF social innovation beneficiaries, supporting sector-specific impact assessment frameworks to standardise evaluation across Member States, providing capacity building and technical assistance to help social innovators measure and communicate their impact effectively.
Building and strengthening ecosystems	Expanding ESF funding to support the creation of multi-stakeholder networks connecting social economy actors, academia, and businesses, incentivising public-private partnerships that integrate social innovation into broader innovation ecosystems, establishing a dedicated ESF funding stream for ecosystem-building initiatives that enhance knowledge exchange and collaboration.
Addressing territorial disparities in social innovation	Improving coordination between regional ESF-funded initiatives to enable successful projects can be replicated in other areas, creating structured mechanisms to facilitate knowledge-sharing across municipalities and regions, developing ESF-supported technical activation teams to help local actors better access social innovation funding.
Supporting internationalisation	Introducing dedicated ESF contact points for social innovation internationalisation within national agencies, establishing transnational ESF funding mechanisms that allow cross-border scaling of successful social innovations, developing EU-wide platforms for social innovation actors to connect with international networks and investors.
Linking social and technological innovation	Encouraging ESF-funded partnerships between social innovators and tech developers to drive digital transformation, addressing digital inclusion gaps through specific ESF-supported initiatives targeting rural and underserved areas, expanding funding opportunities for social innovation projects integrating artificial intelligence, blockchain, and digital platforms.
Securing follow-up funding from multiple sources	Promoting hybrid funding models in the ESF framework, blending public subsidies with venture philanthropy and impact investment, establishing an ESF-backed financial de-risking mechanism to attract private investment into social innovation, supporting capacity-building initiatives on financial literacy and innovative funding strategies for social innovators.

Source: Authors’ own elaboration.

Sustain – Continuity of social innovation over time

Facilitating the continuity of social innovation over time is essential for lasting impact. This section identifies existing levers supporting impact over time and provides policy orientations to strengthen these efforts under future ESF support.

Existing levers

Policy frameworks

Supportive policy frameworks lay the foundations for social innovation by defining the rules, goals and recognition needed for it to thrive. Governments foster social innovation by establishing enabling laws, strategies and definitions that provide clarity and legitimacy to social enterprises and initiatives (e.g. Germany) (OECD, 2021[26]). Well-crafted frameworks also recognise new social enterprise forms, ease regulatory burdens, and coordinate support across agencies, creating an ecosystem where innovative solutions to social challenges can emerge and scale (Hubert, 2010[27]). This lever mainly involves national governments and legislatures, working with social economy entities and networks to set clear operating principles (e.g. social purpose, profit reinvestment) and assign roles (ministries, agencies, networks) to implement and monitor progress.

Socially responsible public procurement

The use of social criteria in public procurement helps direct shares of public spending towards social innovation and impact. Socially responsible public procurement requires public buyers to look beyond price and consider social outcomes of how goods and services are produced and delivered. EU procurement directives and national strategies help enable the inclusion of social clauses, making socially responsible public procurement a practical mechanism to fuel social innovation while meeting community needs (European Commission, 2020[28]). By integrating requirements or criteria related to the employment of disadvantaged groups, fair trade, accessibility or social enterprise involvement, public contracts become a tool to advance social goals while still obtaining quality services (European Commission, 2025[29]). Socially responsible public procurement involves public authorities – from national ministries to local governments and procurement agencies – adjusting their tender processes and involving stakeholders like social innovators and end-beneficiaries (OECD, 2023[30]).

Long-term financing

Governments and the EU are important players in earmarking funds, creating financial instruments and incentivising private investment in social projects. The diversity of funding usually involves blending public funds with private or philanthropic capital (through match funding, social impact bonds etc.) to multiply resources and impose outcome discipline. Diversifying funding sources helps social innovation move from pilot to long-term self-sufficiency. It also builds the capacity of social innovators to engage with investors and measure impact, making the social innovation ecosystem more resilient (European Innovation Council, 2021[31]).

Public awareness and recognition

This lever focuses on highlighting success stories, promoting an understanding of social innovation’s value, and engaging the public and media so that innovative solutions gain traction and support. Public awareness campaigns, awards, labels, and educational initiatives help shift mindsets. They make the concept of social innovation more mainstream and reputable, encouraging citizens, investors, and policy makers to get involved. Recognition rewards social innovators for their impact and provides role models and learning examples that can be emulated elsewhere (European Commission, 2021[32]).

Institutional frameworks refer to creating dedicated bodies, strategies, or permanent processes within the public sector that sustainably promote and mainstream social innovation. This includes national strategies, inter-ministerial committees, regional competence centres, or legal entities that anchor social innovation in the policy system. The goal is to move beyond isolated experiments towards continued consideration of social innovation in policymaking, service design, and education. High-level political support and formal mandates (e.g. a unit within a Ministry or a cross-sector council) help coordinate stakeholders and align resources over time (Bonno, 2023[33]). Effective institutionalisation involves multi-level governance to adapt and carry forward social innovation in communities (Bonno, 2023[33]).

Institutionalisation

Institutionalisation enables social innovation to move beyond isolated projects to become a core part of public governance and service design. Governments establish dedicated units, inter-ministerial strategies, or public-private partnerships to provide long-term coordination and support for social innovation. By embedding social innovation in policy frameworks, institutionalisation secures political commitment, aligns resources, and facilitates knowledge sharing. Permanent structures, such as specialised agencies or cross-sector councils, help mainstream social innovation and support consistency across policy areas. Multi-level governance approaches enable adaptation to local needs while maintaining national strategic direction. This lever strengthens resilience and fosters sustained impact by integrating social innovation into decision-making and implementation processes (Mehmood, 2016[34]). For example, Portugal Social Innovation (PSI) is a government initiative coordinated by a specific mission unit (see Box 3.5 and Annex A. Portugal’s Social Innovation Initiative). It promotes social innovation through the use of four instruments designed to finance projects that offer alternative and innovative solutions to social problems (Portugal Social Innovation, 2025[35]).

Box 3.5. Portugal Social Innovation: Embedding social innovation in policy frameworks

Portugal Social Innovation is managed by an independent mission unit under the Agency for Development and Cohesion (Ministry of Territorial Cohesion). It oversees four financial instruments, namely Capacity Building for Social Innovation, Partnerships for Impact, Social Impact Bonds and the Social Innovation Fund. The unit consists of a multidisciplinary and experienced team committed to advancing social innovation and fostering Portugal’s social investment market. Portugal Social Innovation is also a member of FUSE (Facilitating United Approaches to Social Innovations in Europe), a consortium of National Competence Centres for Social Innovation, alongside Bulgaria, Cyprus, and Ireland. This initiative aims to strengthen and expand social innovation ecosystems across Europe.

The initiative has launched 18 calls, resulting in the creation of more than 600 projects under the Portugal 2020 framework. These projects address key societal challenges, including citizenship and community, education, employment, digital inclusion, social inclusion, social innovation incubators, justice, and health. To date, EUR 90 million of funding has been approved, benefiting more than 500 entrepreneurial entities. This investment has catalysed EUR 42 million in social investment to 824 social investors (see Annex A. Portugal’s Social Innovation Initiative).

Source: Portugal Social Innovation (2025[35]) (2025[36]) (2025[37]).

Policy orientations

Involving municipalities in the management of social innovation

Empowering municipalities to manage socially innovative projects that are relevant to addressing social needs and have proven successful elsewhere can help to allocate local resources more effectively. It can also help to make innovations sustainable and adaptable to changing community needs (see Box 3.6). By providing training and resources, the ESF could equip local authorities with the necessary skills to manage and sustain social innovation projects. To facilitate the widespread adoption of successful social innovations, the ESF could also set up networks to enable municipalities to share best practices and resources. These networks would promote the replication of successful projects across different regions within countries and across Europe, fostering a culture of learning and adaptation.

Box 3.6. MyPolis: Alternative forms of democratic participation for young people in Portuguese municipalities

Starting as a social innovation project in 2017, MyPolis is a digital platform that empowers and connects the youth with politicians to drive social change within local municipalities in Portugal. The initiative was born from the desire to create alternative forms of democratic and civic participation for younger generations and has served more than 30 000 young individuals since its establishment, operating in 31 territories across the nation. Following its success as a pilot project, municipalities are now implementing the programme themselves to support its long-term viability, reducing reliance on social innovators.

MyPolis also works in schools, where they transform classrooms into participation academies to promote a more participatory citizenship education. They have also created educational games that allow children to learn about civic participation in a creative manner, with high levels of satisfaction among both students and teachers. Moreover, MyPolis has hosted over 100 participatory social transformers assemblies, which facilitates the direct line of communication between the youth and political representatives, further promoting active citizenship among young people.

Source: MyPolis (2025[38]).

In France, municipalities play a major role in managing social innovation to strengthen employment and social inclusion (see Annex A. Strengthening employment and social inclusion in France). One example is the project “Espaces Métiers Aquitaine”, a network of career guidance centres spread across the Nouvelle-Aquitaine region. These centres provide free, anonymous career support services to young adults, jobseekers, and employees. Each centre operates under a local coordinator, allowing that career guidance resources are tailored to the specific employment landscape and socio-economic conditions of the area. This initiative involves local coordinators who collaborate with local stakeholders, including social innovators to respond to regional challenges, facilitating that solutions are adapted to local realities and are sustained over time.

Building stronger links between social innovation and the twin transition

Social innovation could be further used to support the twin transition, i.e. the simultaneous pursuit of environmental sustainability (green transition) and digital progress (digital transition) to achieve a climate-neutral, resource-efficient, and technologically advanced economy. The ESF could align funding priorities to support projects that address social challenges while promoting environmental sustainability and digital advancement. By incentivising initiatives that use digital tools to enhance social outcomes and foster community engagement in environmental efforts, the ESF can drive innovative solutions that address complex societal issues through a blend of technology and sustainability.

Collaborative networks could bring together stakeholders from the social innovation sector, digital industry, and environmental organisations to support the twin transition. The ESF could facilitate the creation of such networks, fostering knowledge exchange and collaborative project development. These partnerships can lead to the co-creation of solutions that are socially inclusive, technologically advanced, and environmentally sustainable.

The Interreg Alpine Space Programme was a prime example of how social innovation contributed to the twin transition under the 2014-20 ESF (see Annex A. Interreg Alpine Space Programme). The programme’s focus on low-carbon initiatives, sustainable energy practices, and climate resilience demonstrated a strong alignment with the EU’s green transition goals, as 54.5% of funded projects directly contributed to climate and energy objectives. The integration of principles such as sustainability and equal opportunities further strengthened the programme’s impact, enabling the twin transition to benefit all sectors. The programme also promoted the use of digital tools, such as social media, to enhance communication and network building.

Making social innovation an effective tool for cohesion

Social innovation could be further positioned as an important support for cohesion across Member States to enhance the EU's capacity to jointly address common challenges. This can be achieved by integrating social innovation into the core objectives of future ESF programming periods, and by adjusting funding schemes to prioritise cross-border collaborations in social innovation that address shared challenges, such as social inclusion, environmental challenges or public health.

Incorporating social innovation into these cross-border collaborations can lead to more effective and sustainable solutions by fostering a sense of shared purpose and mutual support among participating communities. The ESF could establish platforms for dialogue among social innovators, policy makers, and community leaders, which could serve as incubators for ideas that address both local and pan-European issues.

Table 3.3 summarises the existing levers and policy orientations for future ESF support for the sustainability of social innovation over time discussed in this section.

Table 3.3. Sustain – Existing levers and policy orientations to support social innovation over time

Sustain
Existing levers
Enabling policy frameworks	National strategies, laws defining new social enterprise status, tax incentives, regulations that support social innovators (e.g. simplified legal forms, incubator policies).
Socially responsible procurement	Include social criteria in procurement tenders (set-asides for social enterprises, award criteria for social value) so that public contracts scale innovative providers.
Long-term financing	Outcomes-based financing (e.g. social impact bonds), multi-year funding commitments, blending public and private funds.
Public awareness and recognition	By shining a spotlight on success stories (via media, award ceremonies, high-profile events, or school curricula), this lever builds public support and legitimises social innovation as an important driver of change.
Institutionalisation	Rather than one-off projects, governments create dedicated units, inter-ministerial strategies, or public-private partnerships to continually drive and coordinate social innovation.
Policy orientations for future ESF support
Involving municipalities in the management of social innovation	Empowering municipalities to manage socially innovative projects by providing training, resources and networks through the ESF can improve local resource allocation, promote sustainability and facilitate the replication of successful innovations across regions and countries, fostering a culture of learning and adaptation.
Building stronger links between social innovation and the twin transition	Expanding ESF funding to support social innovation initiatives contributing to both digital and green transitions, funding training programmes for social innovators to develop expertise in digital tools and environmental sustainability, establishing ESF-funded partnerships connecting social entrepreneurs with actors in the green and digital economy.
Making social innovation an effective tool for cohesion	Social innovation can support cohesion by being integrated into future ESF programming periods and funding schemes that prioritise cross-border cooperation to address common challenges such as social inclusion, environmental issues and public health, while promoting effective and sustainable solutions through dialogue platforms between social innovators, policy makers and community leaders.

Source: Authors’ own elaboration.

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