Transition to a Bio-economy: A Community Development Strategy Discussion

Abstract

Many jurisdictions are questioning existing practices in making effective use of forest resources. Even in Europe, considered one of the more advanced in value-added production, Engelbrecht (2006) identified that European companies by and large produce low value-added products and that innovation could help them to make more of their environmental advantages. Schaan and Anderson (2002) categorized the forest sector system opportunities into innovations around forest management, harvesting, primary manufacturing, services, and manufacturing suppliers. They found, as did Wagner and Hansen (2005) that firms in forest harvesting and primary manufacturing tend to concentrate on process innovation rather than the development of new products. As a result, forestry industry cutbacks in employment are hardly surprising. Clearly, future job growth will need to come from elsewhere, and many from the forest, which is still considered as holding a wealth of resources and opportunities. Ontario (Canada) and perhaps other similar jurisdictions have a number of communities reliant on the forest economy, most of which suffered severe cutbacks. These communities are beginning to feel the need to diversify and encourage innovation. Although not a panacea to their problems, the bio-economy provides some opportunities worth investigating including a more thorough use of forest products. This article adopts an economic development approach and explores the challenges in getting involved in the bio-economy, it offers a list of opportunities, and a framework to analyze challenges.