Responding to the Bioeconomy: Business Model Innovation in the Forest Sector

Abstract

Myriad forces are causing fundamental changes in the operating environment of the forest sector as well as in the individual firms striving to compete in twenty-first century, globalized markets. The growing bioeconomy presents a major opportunity for forest sector firms to develop new products, explore new markets, and develop new business models. Innovativeness differs across an industry’s life cycle. Product innovation is high at the beginning of an industry’s life cycle and diminishes over time. Process innovation is initially low, peaks later in the life cycle, and eventually tails off to a level similar to product innovation. Forest sector companies have a traditional business culture and operate in a highly mature industry where process innovation and high-volume production tend to be the focus. The resulting culture and context of the industry does not place it well for transition to the bioeconomy. This chapter explores these issues including consideration of pathways for forest sector firms to pursue in order to capitalize on the growing bioeconomy.