Social Entrepreneurs and Lead Users: The Case of the Blue Lagoon, Iceland

Abstract

Social entrepreneurs innovate to solve social problems, often related to health. Lead users innovate if extreme needs call for a better solution that is not yet available in the market/society. There is an opportunity for expansion of concept, looking more closely at the impact and evolution of health and spa organizations that start with a community-based non-profit mission. This is a case study using historical data from Iceland and interviews with managers and network partners of a recent important geothermal destination, the Blue Lagoon spa. The case provides an interesting opportunity to apply social entrepreneurships and lead user lenses to explore the history of a health and spa destination. Initially, the idea came from trials of patients with psoriasis from the Spoex foundation, who used the silica- and mineral-enriched wastewater from a geothermal power plant. These treatments led to development of a world-famous health clinic over the course of 25 years. The healing effects of the water have been scientifically confirmed. Parallel to this innovation, the organization developed a mass tourism spa with 1 million visitors annually. Another increasing field for the Blue Lagoon has been skin care and anti-aging products using the water from the lagoon. The tourism spa and health destination history could benefit from being analyzed from the perspective of social entrepreneurs and lead users.