Digitalized bioeconomy : Planned obsolescence-driven circular economy enabled by Co-Evolutionary coupling

Abstract

Driven by digital solutions, the bioeconomy is taking major steps forward in recent years toward achievement of the long-lasting goal of transition from a traditional fossil economy to a bioeconomy-based circular economy.

The coupling of digitalization and bioeconomy is leading towards a digitalized bioeconomy that can satisfy the shift in consumers’ preferences for eco-consciousness, which in turn induces coupling of up-down stream operation in the value chain.

Thus, the co-evolution of the coupling of digitalization and bioeconomy and of upstream and downstream operations is transforming the forest-based bioeconomy into a digital platform industry.

Aiming at addressing this transformation, a model was developed that explains above mentioned dynamism and demonstrated its reliability through an empirical analysis focusing on the development trajectory of UPM (forest-based ecosystem leader in Europe and a world pioneer in the circular economy) over the last quarter century, highlighting its efforts towards planned obsolescence-driven circular economy.

It was comprehended that with the advancement of digital innovations, UPM has incorporated a self-propagating function that accelerates digital solution. Furthermore, this self-propagating function was triggered by coupling with a downstream leader, Amazon, in the United States.

The dynamism in transforming a forest-based bioeconomy into a digital platform industry is thus clarified, and new insights common to all industries in the digital economy are provided.