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Full Description
Functional Economy is a concept that is often associated with ecological transition and sustainable development. It prioritizes the use of a service or good rather than its sale, and tends to encourage cooperation. This model supports the transition to a more ecological and equitable economic and social environment.
This book presents the different approaches to the Functional Economy and the ways in which the various players (companies, public institutions and citizens) are adopting and adapting them through innovation. Depending on their degree of sustainability and their scope, these innovations can have major economic, social and environmental impacts.
Particularly at the local territorial level, those involved in innovation need to be supported as closely as possible if they are to overcome the hurdles they face and reap the rewards of the transformations brought about by this socio economic model, which is built around functionality.
Contents
Foreword vii
Acknowledgments xi
Introduction xiii
Chapter 1 The Emergence of the Functional Economy: Context and Approaches 1
1.1 Towards a service and environmental model 4
1.1.1 New production dynamics 4
1.1.2 The Functional Economy in political decisions 18
1.2 The Functional Economy approaches 24
1.2.1 The origins 25
1.2.2 "Product-service systems" 30
1.2.3 Functional and cooperative economy 38
1.2.4 The Functional Economy 42
1.2.5 Synopsis 51
1.3 The Functional Economy and its applications 52
1.3.1 The Functional Economy and the circular economy 52
1.3.2 The Functional Economy and industrial ecology 59
Chapter 2 Economic Model and Innovation Dynamics 65
2.1 The Functional Economy as an economic model 68
2.1.1 The value proposal 70
2.1.2 New cost and income structure 82
2.1.3 A supply co-produced with the customer 85
2.1.4 An economic model based on cooperation 89
2.1.5 Environmental performance 92
2.1.6 Territorial ecosystem and collective heritage 101
2.2 Innovation dynamics 105
2.2.1 The application of an analytical division 107
2.2.2 A complex dynamic 112
Chapter 3 Functional Economy Challenges and Difficulties 137
3.1 The Functional Economy challenges 138
3.1.1 The evolution of the organizations' trajectory 139
3.1.2 The territory, the commons and the ecosystem of territorial actors 148
3.1.3 The difficult assessment of value 158
3.2 From traditional difficulties to great obstacles 161
3.2.1 Difficulties encountered at a micro-economic scale 163
3.2.2 Difficulties encountered at a meso-economic scale 167
3.2.3 Difficulties encountered at a macro-economic scale 175
Conclusion 187
References 195
Index 213
