The biorefinery, reads a succinct presentation, offers “opportunities
for synergies between stakeholders at the site” with “flows and
interconnections made possible through locations upstream or downstream
of existing facilities”.36 In reality, this is
exactly what the petrochemical industry does: integrating “upstream”
oil and natural gas extraction with “downstream” refining and
production of oil-derived and natural gas-derived “feedstocks”,
basically ethylene, propylene, butadiene, aromatics, and synthesis gas
(CO + H2), from which virtually all petrochemicals are
derived, including ammonia and methanol.37
This industry, and the closely related but largely different fine
chemical industry,38 are the main competitors of the
emerging bioeconomy industry. Hence, the managers of successful
bioeconomy companies will first study the nature (and the history) of
the aforementioned branches of the chemical industry. Willing to enter
the chemicals markets with biobased alternatives, the same managers
should be aware that customers will buy their products driven only by
higher product performance (quality), lower prices and reliable (stable
and smooth) supply; and not by “green” or “bio” allures of their
company’s productions.
This, in turn, requires to systematically adopting the model of lean
production in small, flexible plants, which is the only model capable of
producing low amounts of high value products at low production cost,
following the highly variable customer demand.
3 Conclusions and perspectives
Starting from the need to transfer a closer understanding of the nature
of bioeconomy companies and their competitive landscape, this study
identifies the guiding principles for managing said companies. These
include the key enabling technologies of the bioeconomy, the factors
affecting the management of innovation in bioeconomy companies, the need
to turn suppliers into real business partners, and to focus on low
volume, high-margin bioproducts with the final aim to evolve from
suppliers of biobased ingredients to producers of the final formulations
reaching the retail marketplace.
Referring to tannin and pectin, we illustrated a unique trait of
bioeconomy productions, namely the virtually unlimited market for many
bioproductions once an economically viable production process has been
identified and industrialized. This is due to the unique versatility of
many small and large biomolecules, which creates room for diverse
potentially large-scale applications. In an opposite fashion to the
“blatant lack of reflexivity” that “characterizes the bioeconomy
discourse”,39 these newly shaped managers will manage
their company’s bioproductions measuring and achieving reduced
exploitation of natural resources, aware that rebound effects are
possible,40 and can be avoided. Decoupling of
biological material resource use and economic growth is possible both at
the level of resource stocks, and at the level of biological
renewability.
A single example suffices to render the idea. Recently demonstrated in
the case of the most fished species across the seas (the anchovy),
concomitant production of both fish oil41 rich in
omega-3 lipids and high performance organic
fertilizer42 can now rely on fish processing waste
rather than fish itself. This closes the material cycle through a green
chemistry technology (extraction with biobased and antimicrobial solvent
limonene) and converts anchovy waste into a highly valued resource.
Clearly, this discovery should not lead to increase pressure on the
anchovy stocks, but rather to diminish it by finally valorising the
biowaste amounting to >50% in weight of the fish catched
and so far landfilled or, at best, used for the production of compost.
The same holds for the high energy efficient continuous flow productions
that will be used by successful bioeconomy companies, avoiding the
Jevons’ paradox for which, since machines were more productive and
economical, this led to increased use and increased consumption of
energy (coal).43 Aware that the economies of flow,
rather than economies of scale, maximize value and minimize
waste,44 managers of such successful organizations
will be trained in energy management too. The reason is that energy is
no longer a technical issue left unmanaged, but a central one to be
taken in charge by fully trained Energy managers working in the top
management of the company to effectively achieve higher levels of energy
efficiency and renewable energy penetration.45
Energy, indeed, plays a significantly more important role in driving
economic growth than is conventionally assumed.43
Again, one example suffices to provide evidence supporting this claim.
From Clermont-Ferrand hospital parking through Algeria’s coastal roads
using each hundreds of off-grid solar lighting systems based on
energy-efficient light emitting diodes, photovoltaic modules and Li-ion
batteries, thousands of roads, parks, parking areas and squares today
are lit thanks to solar lighting.46 Owners of the
lighting systems receive no electricity or maintenance bills, while
light is supplied every year’s night to citizens in both economically
developed and developing regions. There is no rebound or “backfire”
effect. The white light supplied is generally of much higher quality
(devoid of UV and IR radiation, with the right colour temperature and
with minimal light pollution thanks to advanced optics) than
conventional lighting systems using older technology with electricity
supplied from the grid.
In conclusion, from India47 through
Germany48 and the USA,49 everywhere
from across the world a critical analysis of research in management
education and Masters in business administration suggest to re-design
management education curricula to make education more practice-oriented,
and based on theory tested and tried in the field. Educating the
managers of the bioeconomy is no exception. This study suggests avenues
to plan and develop such a practice-oriented course developed in accord
to sound guiding management principles originating from a careful
analysis of successful and unsuccessful bioproductions in the first two
decades (2000-2020) of the bioeconomy. Eventually, as put it by Raelin,
this and related courses will be able to educate and develop managers
“who understand the meaning inherent in the current organizational
context rather than exporting young visionaries from the
outside”.49
Conflicts of interest
There are no conflicts to declare.
Acknowledgements
This study is dedicated to the memory of solar energy pioneer Hermann
Scheer (1944-2010), who reminded throughout his entire professional life
the importance of practice-oriented education.