Social Innovation Weaving Together Montréal
Action Plan forSocial InnovationWeavingTogetherMontréal
ContentsIntroduction.3Vision.5The 2018–2022 Economic Development Strategy in Brief.7Action Plan for Social Innovation .14Social Innovation in Montréal .15Areas of Action.22Conclusion.31Glossary of Terms.322 Action Plan for Social Innovation Weaving Together Montréal
IntroductionMontréal is internationally recognized as an exemplarycity for social-economy initiatives, and we haveproved in recent years that, in addition to effectivelyaddressing major socio-economic challenges, socialinnovation is a driver of sustainable collective wealth.In our day and age, with economic models undergoingprofound transformations all over the world, it isessential for Montréal to assert its vision of being acity of inclusiveness and prosperity.This Action Plan for Social Innovation contributesfully to achievement of that objective. It aims to givenew impetus to social innovation through initiativesrecognizing economic stakeholders who are capable ofbringing about change, providing support and guidancefor community initiatives, and funding projects.In this way, our city willgive itself the tools tobuild a sustainable futurearound community projectsthat foster social ties andeconomic prosperity.Valérie PlanteMayor of MontréalRobert BeaudryExecutive Committee Member responsiblefor Economic and Commercial Developmentand Government RelationsAction Plan for Social Innovation Weaving Together Montréal 3
Vision
Montréal, a hub ofinnovation, talent,and economic,entrepreneurial,international,sustainable andsocial development.
The 2018–2022 EconomicDevelopment Strategy in BriefThis strategy coincideswith a promising economicclimate for the cityMontréal’s economy has never been so vibrant,dynamic and progressive. Employment has reachedrecord levels, and the city is attracting more and moretalent, investment and innovative businesses.The city has unmistakable assets when it comesto quality of life, innovation, talent, in an array ofpromising sectors. This economic development strategybuilds on Montréal’s strengths to fully take advantageof the opportunities afforded by environmental, social,and economic trends such as changing demographicsand climate change.Moreover, with its newly recognized status as themetropolis of Québec, Montréal has been grantednew powers enabling it to better fulfil its role asan economic driver and integrate more economicdevelopment initiatives locally.Montréal faces a number of economic challenges,however, which it must overcome in order to keep upits momentum: Access to and matching of the available labour forcewith companies’ current and future requirements; Strengthening entrepreneurship to support businesscreation, growth, and succession planning; Commercialization of discoveries and innovation; Improving the economic reach and influence ofMontréal and the international developmentof its businesses; Stimulation of economic centres and support forthe integrated approach to territorial economicdevelopment; Consistency and co-ordination of all economicdevelopment initiatives; Increasing the client focus as part of the city’seconomic development.Action Plan for Social Innovation Weaving Together Montréal 7
Five Guidelines to AccelerateMontréal’s EconomicDevelopmentFocus on know-howand talentObjectives:Boost Montréal’sinternational reputationObjectives: Reinforce work skills to improve economicproductivity; Reinforce the City of Montréal’s reputation as a placeof business; Ensure the attraction and retention of talent; Ensure the development of Montréal businesses oninternational markets; Improve the match between the needs of businessesand available workers.Stimulate entrepreneurshipObjectives: Stimulate business creation; Support the growth of small and medium-sizedbusinesses; Increase the rate of survival among businessesand support succession planning.Rejuvenate economiccentres Draw foreign investment to the city.Ensure a powerfuleconomic developmentnetworkObjectives: Ensure a client-focused approach; Enhance the City of Montréal’s internal processesto boost the productivity of economic developmentprograms and services; Reinforce Montréal’s economic developmentecosystem.Objectives: Transform and densify industrial zones by favouringquality amenities and attractive settings; Improve the accessibility and the mobility of peopleand goods to centres of employment; Ensure industrial complementarity and synergy, andhighlight the territory’s economic advantages; Boost retail and local business.8 Action Plan for Social Innovation Weaving Together Montréal
Five High-Potential Sectors toUphold the Guidelines of theEconomic Development StrategyThe aim of the economic development strategy is to ensure ideal conditions for growth across all sectors ofMontréal’s economy. It prioritizes five high-potential sectors that will allow Montréal’s economy to be more forwardlooking and competitive, and make more productive use of city resources.Because these five sectors are cross-cutting, supporting them will strengthen other sectors as well as future niches.Cultural and CreativeIndustriesDigital IndustryAs a mainstay of Montréal’s distinctive identity andcharacter, the cultural and creative industries are ameeting point for creativity, culture, technology,and innovation. These industries include architectureand design, fashion, multimedia and video games,digital arts as well as traditional visual and live arts: Close to 92,000 jobs and 8.6 billion in annualeconomic benefits to the Greater Montréal Area.1Life Sciences andHealth TechnologiesThe life sciences and health technology sectorencompasses activities ranging from research toproduct and service development, including medicalequipment manufacturing, research and development(R&D) services, and pharmaceutical distribution.The digital industry, at the root of innovation sectors,provides leverage for attracting both domestic andforeign investment. Increasingly widespread, it hasproliferated through all other activity sectors, allowingnew business models to emerge. Its primary sub-sectorsare artificial intelligence and deep learning, virtualaugmented reality, big data, advanced manufacturing,software and IT services, as well as telecommunicationsservices: More than 100,000 jobs in the city, or 8%of Montréal jobs overall, and 72% of jobs ininformation and communication technologies (ICT)across Québec3; 12 billion of Québec’s GDP is generatedby the ICT sector.4 In Montréal, this sector represents 40,000 jobs, or80% of direct jobs in life sciences, along with 65%of Québec GDP in the sector.21 Chamber of Commerce of Metropolitan Montréal (CCMM), The creative industries: Catalysts of wealth and influence for Metropolitan Montréal, 2013.2 Montréal InVivo, Window on the life sciences in Greater Montréal, 2013.3 Techno Montréal, Profil des TIC, 2014.4 Ibid.Action Plan for Social Innovation Weaving Together Montréal 9
Mobility and TransportCleantech SectorServing most economic sectors, including publictransport, manufactured goods, distribution centres,wholesale and retail trade, e-commerce, and lastmile delivery, this key industry combines all modes oftransport and their disparate logistics. The developmentof new sustainable and intelligent transport systems isan opportunity to strengthen Montréal’s place withinthe industry:An emerging and fast-growing sector, cleantechreconciles economic growth with environmentalperformance. Ensuring the transition to a low-carboneconomy, this sector promotes innovation throughthe creation of products and services that impactother sectors of economic activity, while fosteringthe creation of innovative companies. The cleantechsector consists primarily of green chemistry, energyefficiency, renewable energy, sustainable mobility,waste management, water management, remediationof contaminated sites, treatment of ambient air, etc.: 63,000 jobs in the Montréal agglomeration in 20155 ; 6.1 billion of the agglomeration’s GDP in 2014. 120 foreign subsidiaries employing more than15,300 people; 60% of jobs in the cleantech sector are basedin Montréal.5 Montréal en statistiques, Profil sectoriel : Transport et entreposage (SCIAN 48-49), juillet 2017.10 Action Plan for Social Innovation Weaving Together Montréal
Five Overall Indicators targetedby the Economic DevelopmentStrategy for 2018–2022:Achieve an employmentrate in the Montréalagglomeration of 65%of the population aged 15and over by 2022(2017: 61%)Achieve a universitygraduation rate amongthe population aged 15and over in the CMA ofat least 32% by 2022(2017: 29%)Increase the share offull-time employment intotal employment for theagglomeration to 82%(2017: 81%)Increase the employmentrate of immigrants aged 25to 54 in the agglomerationto at least 80%, therebyreducing the gap betweenthe employment rate ofimmigrant populations andthose born in Canada(2017: 78%)Reduce the share of thepopulation aged 15 andover without a high schooldiploma in the Montréalcensus metropolitan area(CMA) to no more than12% by 2022(2017: 15%)Action Plan for Social Innovation Weaving Together Montréal 11
8 Action Plans to Achieve theVision and Objectives of theEconomic Development StrategyDevelopment StrategyAction Plan for EntrepreneurshipAction Plan for an Efficient NetworkAction Plan for DesignAction Plan for Knowledge and TalentAction Plan for International Economic AffairsAction Plan for Social InnovationAction Plan for CommerceAction Plan for the Economic Development of the TerritoryThe role of socialinnovation in theEconomic DevelopmentStrategy Social innovation and the social economyare stated priorities for stimulatingentrepreneurship. Social innovation intersects with thepriority directions and sectors identified inthe Strategy. Montréal has the potential to become aninternational reference in social innovation.
FPOAction Planfor SocialInnovation
Summary of the action planAreas12345StrategiesCreate conditions conducive toemergence of social innovations Strengthen the social-innovation support ecosystemin Montréal; Facilitate conversations around socio-economicchallenges that bring about social innovation; Support social-innovation zones as fertile groundfor novel solutions.Promote social innovation and thesocial economy Recognize the contributions of the social economy andsocial innovation to Montréal’s development; Support enhancement of the international reputationand influence of Montréal’s social economy and socialinnovation; Ensure the positioning of Montréal, a university city,as a catalyst for development of social innovation.Boost municipal procurements fromsocial economy providers Follow up on diversification of contract awardingmethods; Promote the social economy to purchasers; Value purchaser-supplier best practices; Conduct periodic evaluations of practices establishedwith stakeholders.Strengthen provision of supportand guidance to socialentrepreneurs and innovators Support and emphasize initiatives that provideinnovative responses to the needs and challengesof entrepreneurs.Stimulate priority targets Increase direct aid to social economy businesses, via thePME MTL network; Increase human resources in support of the socialeconomy within the PME MTL network; Support promotion and consensus-building within thesocial economy; Innovate in support of promising solutions.14 Action Plan for Social Innovation Weaving Together Montréal
Social Innovation in MontréalSocial innovation, defined“A social innovation is an idea, approach, initiative,service, product, law, or type of organization thatoffers something new and provides a better and moresustainable solution to a well-defined social need thanthose already in place. It can also be a solution adoptedwithin an institution, organization, or community andthat generates a measurable benefit for the community,not just for certain individuals.“The scope of social innovation is transformative andsystemic. Social innovation is a complete departurefrom everything that came before.”6Social innovation exists both within the private andpublic sectors, as well as in the non-profit/voluntarysector (social economy, community action). If oneconsiders social innovations from an entrepreneurialperspective, however, they are most often driven bytwo types of economic actor, between which it isimportant to distinguish: the social economy andsocial entrepreneurship.Social economyQuébec is an international reference in social economy.The term was defined in 2013 in a law adoptedunanimously by Québec’s National Assembly.“Social economy means all the economic activitieswith a social purpose carried out by enterprises whoseactivities consist, in particular, in the sale or exchangeof goods or services [. . .],”7 that embody the principlesof collective ownership, democratic governance, andthe primacy of people and work over capital in thedistribution of surpluses and revenues, and that aimto meet the needs of members or the community.The social economy is a type of economy distinct fromthe for-profit private- and public-sector economies.“Social economy enterprises provide products andservices in innovative sectors that are as diverse asthose of traditional companies”8 with the aim ofsimultaneously meeting social needs. They may benon-profit organizations, mutuals or co-operatives.Social entrepreneurshipRecent years have seen the rise of private-sectorcompanies (Inc.) whose founders espouse socialobjectives. The terms “social enterprise,” “socialentrepreneurship” and “social entrepreneur” areused to define this type of venture, which as yet is notsubject to any specific legal framework in Québec.6 Québec Research and Innovation Strategy, 2017.7 Social Economy Act, c. E-1.1.1.8 Source: Ministère de l'Économie, de la Science et de l'Innovation.Action Plan for Social Innovation Weaving Together Montréal 15
Collective initiative:At the core of socialinnovationSocial-innovation initiatives are generated by diverseexperimentation and practices, and contribute toboosting the vitality of territories with distinguishingcharacteristics based on grassroots initiatives. Socialinnovation therefore proceeds most often fromcollective initiative: its hallmarks include the sharingof perspectives, collaborative approaches to work,and hybridization of resources. In all cases, the ideais to give voice to the communities and stakeholdersconcerned, support them, and equip them to bringtheir projects to fruition. These projects create jobs,are sources of enhanced quality of life, and hold thepromise of a better future for large segments of thepopulation. In its ability to bring people together andidentify novel solutions and intent to fulfil aspirationsand needs, social innovation is therefore an avenue fortrue social R&D and an engine of inclusive growth.Collective initiative is thus at the coreof the processes of social innovationand comes into play in each phase of itsexpansion: emergence, experimentationand assimilation.The evolution of socialinnovationSocial innovations in Québec have been the subject ofstudy and research for several decades. Developmentof social innovations intersects to a great degree withdevelopment of the social economy: take, for example,the emergence of childcare centres and their eventualexpansion across the province.As a statistical object, however, social innovationremains difficult to identify. As such entities are neithercorporations nor organizations, it is hard to evaluatethe number of social innovations emerging in Montréal.Available statistics therefore concern the socialeconomy. A statistical survey conducted on the territoryof Montréal in 2008 revealed the following9: 3,590 establishments, including 2,360 withemployees, excluding the two major employersDesjardins and Coop fédérée; 61,500 paid jobs; Annual revenue of some 2 billion; A wide variety of activities, with health, arts, cultureand entertainment, and tourism prominent; Social economy enterprises are particularly longlasting, averaging 19 years.For several years now, social innovation has been anincreasingly large part of the public conversation.Initiatives aimed at cataloguing social innovations aremultiplying, a sign of the growing interest in the topic.Venues as well as support and guidance programsdedicated to social-innovation projects continue to beestablished, and social innovation is increasingly beingcovered in the media.Lastly, governments are taking growing interest insocial innovation. In 2008, the Government of Québecmade social innovation part of its Action Plan forthe Social Economy and, subsequently, its Researchand Innovation Strategy, while in 2017 the federalgovernment began developing its Social Innovation andSocial Finance Strategy.9 Marie J. Bouchard, ed., Portrait statistique de l'économie sociale de la région de Montréal (statistical portrait of the social economy in the Greater Montréal Region),Université du Québec à Montréal School of Management, Canada Research Chair on the Social Economy, 2008.16 Action Plan for Social Innovation Weaving Together Montréal
Social innovationat the heart of inclusive,sustainable economicdevelopmentThe 2018–2022 Economic Development Strategy aimsto make Montréal a hub for innovation, talent anddevelopment, and this Action Plan for Social Innovationcomprises one thrust of the strategy.The City’s action is based on a fundamental trendobserved among entrepreneurs. According to the2017 Québec Entrepreneurship Index, “a shift towardthe social economy appears to be a popular choice.Among individuals intending to start a business, onerespondent in five (19.9%) stated that their eventualbusiness would be active within this framework.”10Today, with the focus on social innovation,the Economic Development department’saction plan has incorporated a newdimension. It recognizes that the socialeconomy remains at the core of theCity’s actions, but also welcomes socialinnovation initiatives stemming fromprivate enterprise. In linking togetherthe social economy and social innovation,the challenge for the City of Montréal istherefore to strengthen the many socialinnovations emerging on its territoryand to assert its own vision, rooted incollective initiative and with the powerto transform.In adopting this plan, the City recognizes the key roleof social innovation in its development and assertsits place at the heart of solutions to our changingeconomy. Social innovation cuts across the fivehigh-potential economic sectors identified for theterritory (mobility and transport, the digital industry,life sciences and health technologies, the cultural andcreative industries, and the cleantech sector) and playsa role in Montréal’s appeal in terms of quality of life,development and talent retention. Social innovationpositioned in this manner emerges as a lever forinternational reach and influence.The Action Plan for Social Innovation is also in keepingwith the City of Montréal’s Social Economy Partnershipfor Community-Based Sustainable Development.Adopted in 2009, it recognized the social economyas integral to the city’s economic development.The Action Plan for Social Innovation has beendeveloped taking into consideration the 2017–2022Cultural Development Pol
Action Plan for Social Innovation Weaving Together Montréal 3 Introduction Montréal is internationally recognized as an exemplary city for social-economy initiatives, and we have proved in recent years that, in addition to effectively addressing major socio-economic challenges, social
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