Social innovation is becoming a core value of the EU flagship initiative Innovation Union, but it is not clearly demarcated as it covers a wide field of topics. To understand social innovation within European policymaking a brief outline is given of EC policy developments on innovation and on workplace innovation. Definitions of social innovation formulated at the societal level and the organizational or workplace level are discussed. Empirical research findings of workplace innovation in the Netherlands are presented as examples showing that workplace innovation activities boost organizational performance. The article explores the relation between workplace innovation and social innovation, and concludes that policy developments in the EU can be studied with the theory of social quality, provided that the latter in its empirical approach focuses on how individuals together constitute innovations.