Institutional governance of social innovation in the digital economy

Abstract

The article examines the institutional environment of social innovations that is one of the most significant factors of social innovations' governance in the digital economy. Nowadays, researches of social innovations do not reveal the institutional aspects of social innovations' governance in the digital economy. This gap does not allow the wide use of theoretical findings in order to effective implementation in practice. The authors have proposed the principle of limited action of social innovation institutions, which demonstrates the features of the institutional governance of social innovations with different levels of budgets in the digital economy. In order to achieve the aim of our research, it has been developed special institutional development aspects for small, medium and large budget social innovations, combined with a list of exogenous and endogenous factors as indicators of the institutional environment that influence to socio-innovative development. The authors obtained endogenous and exogenous linear models with two or three independent variables that demonstrate whether institutional developmental features of national and regional economies influence results of social innovation activities. In addition, it has been made recommendations on how to improve the effectiveness of institutional governance in order to increase the effectiveness of social innovations in the emerging conditions of the digital economy.