Despite the recession, charities, social enterprises & voluntary organisations (the third sector) are still innovating, according to a publication from the Economic and Social Research Council (ESRC).

The report - The third sector – discussions around key public policy issues - is the result of presentations & debates at a series of public policy seminars organised by the ESRC in collaboration with the Scottish Council for Voluntary Organisations (SCVO) and with support from the Scottish Government.

The report was launched at the Scottish Third Sector Research Conference, organised by SCVO and the University of Edinburgh on the 26th of October 2009.

With the UK in recession the third sector is facing increasingly tough economic times. Charities and voluntary organisations are seeing their income drop and demand rise, whilst competition between organisations to deliver high quality public services is growing. In such an environment, continuing to innovate is becoming more of a challenge.

Ruchir Shah, Head of Policy and Research at SCVO welcomed the report’s findings, especially in the current climate; “It’s encouraging to see that despite these turbulent economic times, the third sector is still an innovative force, particularly in public service delivery. This report, the result of collaboration between academics, practitioners and third sector policy makers, demonstrates the resilience of our sector, even in the toughest of circumstances.”

John Swinney, Cabinet Secretary for Finance and Sustainable Growth, said: “This report underlines the real strengths of Scotland’s enterprising Third Sector and its ability to help position Scotland’s economy for recovery. The Scottish Government fully recognises the Third Sector’s potential, which is why we have put in place initiatives like the Scottish Investment Fund and Third Sector Enterprise Fund. More recently, we launched the Third Sector Resilience Fund to help organisations withstand the pressures of recession. Through an enterprising approach, Scotland’s Third Sector can continue to help create the wealthier and fairer Scotland we all seek.”

Professor Ian Diamond, Chief Executive of the ESRC says: “The third sector is seen as having an increasing significant role in the delivery of services and providing a voice for under represented groups. A lot of faith is placed in the ability of the third sector to innovate, particularly when it comes to delivering services to hard-to-reach groups. This booklet demonstrates ESRC's strategic commitment to maximising the impact of its research through engaging and developing partnerships with users of research. We see this as an opportunity to establish further dialogue with the third sector.’