Using the social return on investment (SROI) as a measure of the effectiveness of social innovation projects implemented under public policies

Purpose: This paper aims to contribute to the on-going debate about the best way to measure the economic effectiveness of public policies, as well to explore the possibility of using the social return on investment (SROI) method as one of the indicators. Design/methodology/approach: This study combines the SROI method with the case study analysis and comparative study. The paper presents the process of economic evaluation with the use of the SROI methodology and its results, along with methodological and evaluation observations. Findings: This study confirms some assumptions based both on the subject literature, as well as, on own experience related to the implementation of the evaluation, the author also points out dilemmas related to the use of SROI analysis and the possibility of using it to measure the effectiveness of social innovation projects. Research limitations/implications: The study contains several practical suggestions on the advantages and disadvantages of the SROI method in the evaluation of particular public policy intervention. Practical implications: The paper includes implications for the use of SROI analysis of social innovation projects implemented in the frames of public policies. Originality/value: The authors’ ambition is to provide practical suggestions on the advantages and disadvantages of the SROI method in the evaluation of particular public policy intervention and to contribute to the discussion about the possible space for comparing the results of economic evaluation based on the SROI method. Furthermore, it is different than most approaches to SROI analysis as the authors combine this method with the case study analysis and comparative study.