System Innovation and a New ‘Great Transformation’: Re-embedding Economic Life in the Context of ‘De-Growth’

<title>Abstract</title> The political-economic limits to system innovation are explored through the Polanyian concepts of disembedding and the ‘double movement’. The Keynesian Welfare State (KWS) is examined as an aspect of the ‘counter movement for societal protection’ and the outcome of selection from a much broader array of institutional and cultural responses to crisis. With the KWS, the principles of reciprocity and autarchy (the re-embedding of subsistence and provisioning activity in a modern Gemeinschaft) give way to the establishment of new, top-down circuits of redistribution, designed to facilitate continuing processes of capitalist modernization. Where social innovation is directed at the broad dynamics of marketization and the commodification of goods and services, this growth imperative continues to present an insuperable obstacle to system-level change. But as ecological capital at the level of the biosphere becomes a critical focus for a new protective ‘counter-movement’ and ‘degrowth’ becomes the de facto context for social innovation, systemic transformation becomes more thinkable. Hodgson's ‘evotopia’ is recommended as a heuristic for a provisional, experimental and incremental exploration of the ‘adjacent possible’.