Social Impact Investment in the EU. Financing strategies and outcome oriented approaches for social policy innovation: narratives, experiences, and recommendations

Abstract

This report presents the results of an exploratory research jointly conducted by the European Commission's Joint Research Centre - Directorate for Growth and Innovation, Human Capital & Employment Unit, and a team of external experts from the European University Institute, School of Transnational Governance. The aim of the study is to review social impact investing strategies being proposed in EU Member States and assess what their impact is or can be in view of possible reforms to be introduced in the European Structural and Investment Funds (ESIF), including how to combine them with the European Fund for Strategic Investments (EFSI). In particular, through insights from a comprehensive review of the landscape on social impact investment across Europe, and the analysis of a case study and a prospective scenario of use, the study represents a first attempt to assess what are the opportunities offered by this growing phenomenon, drawing recommendations in light of the proposal for the new Multi Annual Financial Framework (MFF) for the next programming period. In view of the changes in the structure, governance and modes of implementation of EU investment programmes, and with the purpose of supporting the further development of a social impact investment market, conclusions of the analysis also set the ground for future research directions on how to finance strategies and outcomes oriented approaches for a new generation of innovative social policies, including the need to define a research agenda for developing a monitoring tool and an observatory of the use and impact of social innovation and social impact investment in the EU.