Can a Focus on Co-Created, Strengths-Based Services Facilitate Early-Stage Innovation within Social Impact Bonds?
Abstract
While many commentators recognize the potential for Social Impact Bonds (SIBs) to encourage innovation, empirical evidence is less clear cut. We argue that for SIBs to realize their full potential as incubators of innovation, they need to incorporate a stronger element of co-creation and strengths-based working. We analyze four UK SIBs as case studies and find that strengths-based service delivery models and co-production helped catalyze early-stage innovation, although evidence of co-creation was limited. Our findings suggest that SIBs can support innovation by providing greater autonomy for service providers, shifting risk to investors, and offering long-term, flexible funding.