Social investment in the knowledge-based economy: new politics and policies

Abstract

This themed issue entitled Social Investment in the Knowledge-Based Economy aims to investigate desirable policy packages of social investment for the knowledge-based economy, the interactions between policy and economic inequality, and political and institutional configurations that shape policies. This introduction to our themed issue situates the contribution of the volume in the literature, summarizes the main findings and their implications, and identifies core issues for a future research agenda. We trace the development of the social investment approach over time and across regions, and we explain its logic and the accumulated evidence supporting its importance. We then link our contributions squarely to the transition to the knowledge economy and the concern with innovation, growth, and inequality. We summarize the policy lessons emerging from the individual articles which emphasize specifically the need to treat social investment as complementary to social protection. We also summarize the insights into the politics of generating support coalitions for the introduction of effective social investment policies, emphasizing the leadership role of political parties in shaping both public preferences and legislation. Finally, we outline some key unanswered questions, among them questions regarding the obstacles to major progress in social investment so far and the impact of immigration and party system fragmentation on future progress.

Keywords

• social investment
• knowledge economy
• social protection
• inequality
• welfare state
• innovation