ABSTRACT
The socio-economic challenges of contemporary society, such as inequalities, poverty, and insufficient access to affordable and effective healthcare, increasingly require from policymakers and economic actors the implementation of policies that can generate both economic and social value.
This context placed the foundation for the development of impact finance’s instruments and tools, specifically designed to simultaneously aim for economic and social objectives.
The chapter focuses on the analysis of an impact finance instrument, the Social Impact Incentives (SIINC), an innovative blended finance model co-developed by Roots of Impact and Swiss Agency for Development and Cooperation.
Moreover, the objective of the research is to formalise how the SIINC model can be applied to Officine Mezzogiorno, a project of urban regeneration and the construction of an innovative connection hub in Lecce, Italy. The feasibility study of the application of the SIINC to Officine Mezzogiorno outlines the structure both in economic, financial, and legal terms, with the aim of identifying the specific characteristics and advantages of the model.
The research and economic flow simulations’ results demonstrate that SIINC is a blended finance tool not only able to combine economic and social results, but also more efficient than traditional financial tools in the management of contractual relations of financial flows.
