towards sustainable development of industry: networking, complexity and eco-clusters

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Journal of Cleaner Production 7 (1999) 49–58 Towards sustainable development of industry: networking, complexity and eco-clusters Heinz Peter Wallner 1 STENUM Environmental Consulting and Research Company GmbH, Geidorfguertel 21, A-8010 Graz, Austria Received 21 March 1998; accepted 27 July 1998 Abstract This paper is concerned with the sustainable development of society, its economy and in particular with the future industry– environment partnership. As a working hypothesis we interpret sustainable development as an evolutionary step taken by society and its economy. The path to be taken will be one of increasing complexity. Consequently, it is argued that efficiency improvements are the first step of development but will by far not be sufficient for a radical breakthrough toward sustainable development. Currently, the most appropriate guiding model for industrial development is assumed to be the industrial ecology model. Networks of industrial and various other activities comprising the three essential areas of effect, ecology, economy and sociology, are important components of the complex industrial systems under discussion. It is these comprehensive networks, intermeshed with society as a whole, that will encourage sustainable development. In conclusion, we will discuss alternative development possibilities available to cities and regions. New forms of Eco-Clusters (ECOFIT-Parks) shall become the germ cells of development for a sustainable industry. 1999 Elsevier Science Ltd. All rights reserved. Keywords: Sustainable development; Industrial ecology; Networking; Eco-cluster 1. Sustainable development—some global and local perspectives From our point of view sustainable development is seen as a holistic scenario of human development with a socio-cultural, ecological and economic dimension. This form of development is characterised by harmony in the way people treat people and how people treat the environment. Human activities are geared to available potentials and natural limits of the ecosystems. The scen- ario of sustainable development will not be characterised by simple, linear systems. On the contrary, it will be a development marked by a new kind of complexity. Local relationships based on mutual trust, complex networks and sophisticated systems of supply and utilization, both local and global, will become the new focal point of human activities. The concepts of sustainable develop- ment will require solutions to current global and local crises of society and the economy. 1 Tel.: 1 43-316-367156; Fax: 1 43-316-367156-13; E-mail: [email protected]; web site: www.stenum.at 0959-6526/99/$ - see front matter 1999 Elsevier Science Ltd. All rights reserved. PII:S0959-6526(98)00036-5 A well known definition of sustainable development is given in the report of the World Commission on Environment and Development [1]. In the so-called ‘Brundtland Report’ sustainable development is described in a comprehensive, albeit rather vague man- ner: “sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” [2]. The extensive ‘Agenda 21’ document that evolved from the UN Conference on Environment and Develop- ment (UNCED, in Rio de Janeiro, 1992) describes a possible development process. Particular attention should be given to Principle 25, “Environment, develop- ment and peace are interdependent and indivisible (UNCED principles of Sustainable Development).” This statement characterises sustainable development and underscores the significance of a simultaneous and com- prehensive examination of problems concerning the environment and development. Only a balanced devel- opment can safeguard peace. In Chapter 28 of Agenda 21 it is suggested that small units be formed, comprising local authorities, and that a process of public consultation be initiated. It is the citi-

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Page 1: Towards sustainable development of industry: networking, complexity and eco-clusters

Journal of Cleaner Production 7 (1999) 49–58

Towards sustainable development of industry: networking,complexity and eco-clusters

Heinz Peter Wallner1

STENUM Environmental Consulting and Research Company GmbH, Geidorfguertel 21, A-8010 Graz, Austria

Received 21 March 1998; accepted 27 July 1998

Abstract

This paper is concerned with the sustainable development of society, its economy and in particular with the future industry–environment partnership. As a working hypothesis we interpret sustainable development as an evolutionary step taken by societyand its economy. The path to be taken will be one of increasing complexity. Consequently, it is argued that efficiency improvementsare the first step of development but will by far not be sufficient for a radical breakthrough toward sustainable development.Currently, the most appropriate guiding model for industrial development is assumed to be the industrial ecology model. Networksof industrial and various other activities comprising the three essential areas of effect, ecology, economy and sociology, are importantcomponents of the complex industrial systems under discussion. It is these comprehensive networks, intermeshed with society asa whole, that will encourage sustainable development. In conclusion, we will discuss alternative development possibilities availableto cities and regions. New forms of Eco-Clusters (ECOFIT-Parks) shall become the germ cells of development for a sustainableindustry. 1999 Elsevier Science Ltd. All rights reserved.

Keywords:Sustainable development; Industrial ecology; Networking; Eco-cluster

1. Sustainable development—some global and localperspectives

From our point of view sustainable development isseen as a holistic scenario of human development with asocio-cultural, ecological and economic dimension. Thisform of development is characterised by harmony in theway people treat people and how people treat theenvironment. Human activities are geared to availablepotentials and natural limits of the ecosystems. The scen-ario of sustainable development will not be characterisedby simple, linear systems. On the contrary, it will be adevelopment marked by a new kind of complexity. Localrelationships based on mutual trust, complex networksand sophisticated systems of supply and utilization, bothlocal and global, will become the new focal point ofhuman activities. The concepts of sustainable develop-ment will require solutions to current global and localcrises of society and the economy.

1 Tel.: 1 43-316-367156; Fax:1 43-316-367156-13; E-mail:[email protected]; web site: www.stenum.at

0959-6526/99/$ - see front matter 1999 Elsevier Science Ltd. All rights reserved.PII: S0959-6526 (98)00036-5

A well known definition of sustainable developmentis given in the report of the World Commission onEnvironment and Development [1]. In the so-called‘Brundtland Report’ sustainable development isdescribed in a comprehensive, albeit rather vague man-ner: “sustainable development is development that meetsthe needs of the present without compromising theability of future generations to meet their own needs”[2]. The extensive ‘Agenda 21’ document that evolvedfrom the UN Conference on Environment and Develop-ment (UNCED, in Rio de Janeiro, 1992) describes apossible development process. Particular attentionshould be given to Principle 25,“Environment, develop-ment and peace are interdependent and indivisible(UNCED principles of Sustainable Development).” Thisstatement characterises sustainable development andunderscores the significance of a simultaneous and com-prehensive examination of problems concerning theenvironment and development. Only a balanced devel-opment can safeguard peace.

In Chapter 28 of Agenda 21 it is suggested that smallunits be formed, comprising local authorities, and that aprocess of public consultation be initiated. It is the citi-

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50 H.P. Wallner / Journal of Cleaner Production 7 (1999) 49–58

zens, initiatives, traders, local institutions and otheractors that have to collaborate to evolve and implementa concept for their future [3]. Hence, it will only be poss-ible to implement the basic ideas of sustainable develop-ment successfully by means of a concerted bottom-upapproach. Society must trust in the inherent principlesof self-organisation [4] and eliminate old methods of‘top-down programming’. Through self-organisation,society can become a responsible unit able to makedecisions that will, in the end, automatically adjust tothe criteria of sustainable development.

2. Sustainable development—an evolution of thehuman system

This paper is based on the hypothesis that the tran-sition from a non-sustainable to a sustainable social andeconomic form is an evolutionary step. Accordingly, itis not a further development of the current system bymeans of increasing efficiency and, at the same time,retaining old structures, but rather it is a transition to anew system state. One development model, describingthis transition towards sustainable development, is called‘islands of sustainability’. It is based on the assumptionof innovative disturbances—the islands of sus-tainability—that introduce new structures into the oldand non-sustainable system and that can thus questionits structural stability [5]. Furthermore, the process ofadaptation of a region to sustainable development isdescribed as a process towards increasing complexity ofthe regional system [6].

2.1. The industrial system as a complex system

Complex systems are found both in Nature and inanthropogenic systems. The human brain or immunesystem, a sophisticated ecosystem (e.g. a tropicalrainforest), and a major city such as Mexico City are allexamples of highly complex systems in the natural andanthropogenic environment. They are all based oncharacteristics that are features of complex systems [7].

If we pick a subsystem from a complex meta-systemof a city or region—e.g. the industrial system—it mustbe clear that this subsystem communicates with its hostsystem. The industrial system per se is, in turn, a com-plex system at a lower hierarchical level of aggregation.It consists of a network of interacting enterprises. Theseenterprises are the basic elements of the industrial sys-tem. We call them here theprocess units(PU). PUs arecharacterised by a number of important features. Theyare defined by a system boundary, they communicatewith their environment—by exchanging materials, com-modities, energy, information, culture, people, capital,etc.—that is to say with other PUs, with society and withthe ecosphere. PUs are subject to competition for avail-

able resources and a compulsion to act, i.e. actively totake part in economic activity. PUs communicate witheach other and their connections form a network struc-ture [8]. Table 1 attempts to compare the systems of abiological cell and an economic unit, the enterprise.

2.2. Complexity of human systems—far from maturity?

Against the hypothesis whereby the developmenttowards sustainability is one with increasing systemcomplexity it could be objected that even today atremendously complex system exists that is, however,acting in a non-sustainable manner. But if we pursue thisanalogy between natural and anthropogenic systems ina logically consistent way, we must also observe severalbasic principles of natural evolution. The most importantrule is that only solar energy sources may be used toconstruct the complexity of the system, as is the case inNature [10]. So if the industrial system is only able toconstruct and maintain its complexity with the aid offossil resources, this must be described assimulatedcomplexity. Despite the great diversity of enterprises—the PUs—and intensive interactions and networking itwill not be possible to achieve a sustainable state in thisway. It is rather a characteristic feature of non-sus-tainable society and economy that only a seemingly highlevel of complexity was achievable, usually at theexpense of the ecosphere and less developed countries.The real maturity of the anthropogenic system, and thusits sustainability, can be measured by how much of itsorganisation, structure and function can be upheld afterthe fossil resources have been excluded. There is cer-tainly a great need for development in this respect.

3. Sustainable development—a scenario forindustry?

3.1. Current trends and developments

It has been widely agreed that current developmentpaths of industrial systems cause negative environmentaland social impacts. Thus, innovative strategies have beendeveloped and implemented in order to overcome theproblems and to find a positive development scenario forindustry. Cleaner production as the forerunner and morerecently developed concepts such as eco-efficiency havecontributed to important improvements of industry froman environmental point of view. However, the potentialof these approaches to solve the problems of industryand to guide the way towards sustainable developmentmight remain limited. The newly appearing concept ofindustrial ecology is increasingly gaining attention fromcleaner production working groups and is innovating theongoing debate on industrial development thanks to thesystems oriented point of view of the concept. Based on

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Table 1System comparison and analogous relationships (the features of the biological cell were taken from a treatise on neuronal networks [9])

The biological cell as a system element The business enterprise as a system element

The cell is a thermodynamic open system The enterprise is also an open system (exchange of materials andresources, energy, people, capital, information, culture, etc.)

The cell communicates with its environment The enterprise also communicates with its environment (otherenterprises, society and ecosphere)

The cell competes for available resources Resources are also limited for the enterprise (also resources of space)The cell is under a compulsion to act The enterprise is also compelled to act and develop

the hypothesis that the industrial system can bedeveloped toward a sustainable system (here called anindustrial ecology system), taking selected natural eco-systems as guiding models, the concept intends todevelop new functions and structures for industry. Theindustrial ecology concept obviously offers a new poten-tial to reconstruct and to reorganize the industrial system.Nevertheless, it is important to mention that implemen-tation of the concept has not taken place beyond socalled eco-parks, consisting of simple waste exchangenetworks and energy cascades. For the proposed shifttoward sustainable development we have to consider theindustrial ecology concept as a whole.

The most critical innovation of the industrial ecologyconcept is the level of inter-enterprise co-operation. Itis not the single element of the production system, thecompany, that is the subject of analysis, but the networkof region-wide settled enterprises for which a spatialproximity can be defined. A broad variety of networkswith primarily ecological, economic and partly socio-cultural spheres of action and furthermore the frameworkto develop a culture of cooperation have become thefocus of action. It is the complexity of the industrial sys-tem and the new responsibilities in the social contextthat make the new challenge an interdisciplinaryapproach. Thus, the systemic network approach and theinterdisciplinary methodology give rise to high hopesthat industry can develop beyond the cleaner productionera and enter sustainable development.

Considering the new framework of industrial ecology,cleaner production itself will be given a new field ofaction and find a certain ‘freedom within the law’ of thesystemic networks of companies. From our point ofview, CP can only develop its full potential in the con-text of industrial networks. It is not the CP approachitself that lacks the potential to contribute to sustainabledevelopment, it is the developed methodology ofimplementation. Thus, it is just one side of the coin thatCP alone fails to produce sustainable improvements. Theother side is, however, that highly innovative networksapproaches and industrial ecosystems without eco-efficient companies will maintain insufficient for sus-tainable development.

3.2. Increasing complexity—the new objective?

If we see the transition of economy and society toa sustainable development as an evolutionary step, thisdevelopment will lead towards higher complexity on asolar basis. The same can be assumed for the industrialsubsystem. In order to develop sustainable structures inindustry we must thus increase the complexity of thesystem. There are several possibilities of doing so, whichwill be discussed below.

A basic feature of complex systems is the aggregationof process units (PUs) to form larger units [11]. In aggre-gating the basic elements to form larger units, new fea-tures, and thus new ‘meta-units’, are formed. On thebasis of individual industrial enterprises, the industrialsystem of a city or region is created by means of furtheraggregation (networking). The stages of aggregation canbe traced right up to the global level. The structure ofthe system formed in this process is depicted in simpli-fied terms in Fig. 1.

The complexity of the industrial system can beincreased at all levels of aggregation, at the local, urban,regional, national, international and global level. The fol-lowing system parameters are available for change inorder to increase the complexity of a system:

I the number of enterprises (PUs) in the systemI the diversity of the PUs (diversity of business types

and distribution of different-sized businesses)I the interactions, i.e. the degree of networking (first,

the density of interaction, i.e. networks per spatial unit(e.g. within a city), second the intensity of interaction,i.e. interactions per time unit and their intensity)

These parameters are varied for each level of aggre-gation and apply both between the individual PUs(enterprises) and between their aggregations. Within theboundaries of the system being observed, e.g. within thenetwork of enterprises in a particular city, these para-meters must thus be optimised so that an optimum sys-tem complexity can evolve. It must be emphasised thatsuch a system cannot be constructed from the ‘outside’,but rather that initial basic conditions must be predefined

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Fig. 1. Aggregation of process units (PUs). PUs (e.g. enterprises)group up to form larger units (industry parks, eco-clusters,urban/regional economies; up to global units). (A) Symbolic aggre-gations in a region (holons [12]). (B) Symbolic representation of net-work structures.

that permit the system to develop in this way. The sys-tem itself must develop through self-organisation.

But in order to achieve sustainable development,neither will all enterprise networks be equally signifi-cant, nor will all networks have a positive effect. So,there will no doubt be networks that are not desirablefrom the point of view of sustainable development.

3.3. Toward sustainable development by adaptationand adjustment

Even if sustainable development has an ecological,economic and social dimension, the ecological dimen-sion has been given clear priority. Indeed, it must bedemanded that the function of ecosystems as vehicles ofall human activity be maintained so as to preserve thebasis for human development in a natural environmentand to preserve the natural environment in all its beautyitself. The development of society and the economy musthence be geared to natural conditions—that is to say, toregional and global potentials.

In the industrial ecology discussion, comparisons aremade between the functions and structures of industryand trade and natural ecosystems [13]. Human activitiesand behaviour should be geared to ‘mature’ ecosystemsand should at least come closer to their flexibility, dyna-mism and creativity. Adjusted to local conditions, eco-

systems try to integrate existing raw materials into activecycles and to make good use of the available solarenergy [14]. The variety and redundancy of biologicalspecies, their networking and interactions, their syn-ergies and symbioses develop an optimized system state.The characteristics and behaviour of selected natural sys-tems include analogous characteristics and behaviour inindustrial systems. Table 2 lists selected examples ofsuch analogies.

If the industrial system is to be geared to natural eco-systems, this will necessitate extensive modifications.These modifications can be divided into two areas.

Area 1: Fitting in with Nature (interface betweenanthroposphere and ecosphere)Area 2: Adaptation to Nature (structures, functions,behaviour within the anthroposphere)

The first area includes the exchange activities—com-munication—of the industrial system with the ecosphere.Exchange activities are, on the one hand, raw materialextraction (also, in the broader sense, use of space) and,on the other, emissions. The second area is concentratedon the anthropogenic—here, specifically, the indus-trial—system itself. The focus is on the structures,organisational forms, activities and behaviour. By thiswe mean, for example, the distribution of enterprisesaccording to type and size, their spatial distribution, theirfunctions and activities in the system, their exchangeactivities with each other, and their organisational forms(networks, cooperations, clusters, etc.).

Many measures from the second area, i.e. measuresthat affect the industrial system itself, will also have adirect effect on communication with the ecosphere. Withthe example of regional recycling networks, first thestructures in the system are changed by cycle closureand utilization cascades. Second, these changes have adirect effect on the exchange processes of the industrialsystem with the ecosphere. Extraction of raw materialsand emissions are retarded and thus reduced in a givenperiod of time.

The attempted comparison of industrial systems withecosystems also reveals a crucial aspect of sustainabledevelopment. The optimum system can only be definedin connection with regional conditions. It is the basicregional conditions, the ecological potentials and thehuman potential—the capacity for development—thathave a decisive influence on sustainable development ofa region [15]. While a rainforest can develop in Naturein one particular region, the most durable system in dif-ferent conditions may be the tundra. Thus, for the indus-trial system, sustainable development may only bedefined by taking into account the specific features ofthe region. Hence, the types of enterprises and their opti-mum network structure—also the distribution of globaland local networks and cooperations—may not be speci-fied in general terms. Sustainable use of raw materials

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Table 2Selected analogous relationships between the natural and industrial ecosystem

Characteristic in Nature Analogy in the industrial ecosystem

Natural diversity of species and redundancy Types of industrial activities with possibilities of redundancyNetworks—e.g. neuronal networks Industrial networks—e.g. production-oriented networks or recycling

networksRaw material and energy requirements (cycles and cascades) Analogously, raw material and energy requirements (new cycles and

cascades)Regionally adapted (tropical rainforest, tundra) Regionally adapted to ecological potentials and human potentialFractal geometry of Nature Quasi-fractal network structure of PU’sCapable of learning—development from crises (resilience, i.e. self- Less technological progress but better problem and crisis solutionlearning)

and energy can also only be defined on the basis oflocal–regional potentials [16]

Nevertheless, the aim here is to formulate the generalhypothesis wherebyan intensification of networkingactivities and cooperations at the regional level is anecessary (but not a sufficient) prerequisite for sus-tainable development.

Following an equally simple analogy between Natureand the industrial system, a particular network structureis assumed to be most desirable for sustainable develop-ment (cf. Fig. 1). Networking activity is most intensive atthe local (regional, urban) level. The interaction density(number of enterprise networks in the system space) willbe highest at this level. At the following levels of aggre-gation, i.e. the meta-regions, interaction density declines.

The above mentioned network structure, supposedlycorresponding to sustainable development, differs gre-atly from the current structure. Although an increase ofnetwork density from the global to the regional level canbe noted even today, the current network density is gen-erally insufficient at the lower levels to reveal functionalunits (compare the formation ofholons, illustrated inFig. 1). If too many enterprises in a particular city orregion are internationally involved or globally inte-grated, the regional network will lack the context andthus ‘purpose’, for example mutual interest and identifi-cation. At the other extreme, i.e. of exclusivelylocal/regional networking, a strong network is createdthat is, however, not embedded in higher aggregationsand will be susceptible to crisis and unsustainable dueto the lack of feedback.

In a sustainable development great importance isattached to the regional context. First, it is the readinessto cooperate, the culture of collaboration that demandssustainable development at the local level. Secondly,only a regional network can guarantee embedding in thehost region. These regional roots (i.e. close connectionto regional potentials and talents) are the basis forexpanding networks ‘upwards’, i.e. towards global mar-kets. The current non-sustainable economy lacks the linkbetween local/regional enterprises and the international,global ‘elite’. This economy is thus comparable to a tree

that has lost contact with its roots. Although it is easierto attract attention (e.g. to make economic policy) withwhat is above the surface of the Earth, the existentialprocesses take place below. Although it is possible tolive quite acceptably without firm roots for a certaintime, maintaining stability with the aid of auxiliary con-structions (e.g. stock market prices), this behaviour willnot ensure any long-term viability.

4. Networks and cooperations

Below we will continue to discuss the subject of net-works, albeit shifting the focus of implementation to thelocal and regional level in accordance with the afore-mentioned argument.

4.1. The network paradigm

Cooke and Morgan introduced the concept of the ‘net-work paradigm’ [17]. Following the paradigm change ofsociety as described in many instances in the literature,from the mechanistic to the holistic paradigm [18], theyaim to describe an incipient radical change in the devel-opment towards cooperation and networks. In general,the change of the prevailing worldview can be seen asconcomitant to sustainable development. In the concretecase concerning the formation of networks andcooperations, a new systemic view of the world is beingoffered. Each system element finds a new function in thesystem. Characteristics are created in a network that arecaused by the interplay of the elements as opposed toindividual elements. In an industrial network, forinstance, an enterprise also assumes the role of ‘servantof the network’ in the sense that it performs certain func-tions for the benefit of the overall system. Being inte-grated into the network and submitting to certain individ-ual interests for the benefit of the entire system, however,does not imply that the enterprise must relinquish itsautonomy in the sense of self-determination and self-responsibility.

It is important to mention that the factors of success

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in networks are not perfection and methodical inflexi-bility, but rather creativity and flexibility. This can becompared with science, which is held to be characterisedby features such as exactness, consistence, maximizationof knowledge under given conditions and many more.Feyerabend argues that these virtues can actually impedethe knowledge gain and that consequently gaps and con-tradictions, ignorance and stubbornness, prejudice andlies are the real prerequisites that keep the knowledgegain from coming to a standstill [19]. A similar situationis assumed with regard to the dynamism of networks.

Every network participant must be aware of the factthat a network will not only entail advantages. In someareas, consideration must be shown for other equal parti-cipants in the network which—particularly in the caseof small and medium-sized enterprises that are accus-tomed to complete decision-making autonomy—caninitially be felt to be a limitation. Modern networks arevery often based on existing personal relationshipsbetween entrepreneurs and are thus more randomly dis-tributed than systemically developed. In order for newnetworks to develop in cities and regions, it is necessaryto first establish a foundation of trust that will allow areadiness to cooperate to evolve.

4.2. Network forms—a typology

There are many possibilities of forming networks ina new industrial ecology. One possible categorization ofnetworks is given below:

1. according to the functional area of effect and objec-tive of the networks (ecological/economical/social)

2. according to the actors involved (industry, trade,manual, institutions, farming, local authorities, indi-viduals, etc.)

3. according to the exchange variables (information,matter, energy, capital, people, culture, etc.)

4. according to the intensity of the connection (looseconnection to contractual arrangement, mobile meansof transport to pipelines, switched lines to dedicatedlines, etc.)

5. according to the temporal development (activity bydemand to permanently active networks)

6. according to structure and organisation (linear to frac-tal, hierarchical to equal, winners and/or losers, hori-zontal–complementary–vertical)

7. according to the spatial area of effect (local to global)

The functions that networks have to fulfil can varygreatly. The primary functional area of effect can be con-centrated on economic, ecological and socio-culturalaspects. Networks of enterprises designed to improve theeconomic situation in the broader sense can be listed ina broad variety. The objectives which can be pursuedwith these economically oriented networks can be givensuch as the creation of new markets and/or securing old

markets, and/or to the construction of innovation andtechnology networks [20].

Networks pursuing primarily regional economicobjectives are for example innovation networks aimedto create an ‘innovative milieu’ [21] or Local EconomicDevelopment Networks (LEDNs) [22]. When, forexample, an LEDN is established, the initiator of thenetwork will focus on consolidating the entire regionaleconomy, even at the stage of conception. The aboveexamples are, in contrast, focused on the business man-agement aspect with the regional economy as a sub-sequent factor.

The example of industrial recycling networks(generally in the form of substituting primary rawmaterials with external recycled material) shows a net-work with a primarily ecological area of effect, followedsecondarily by an economic effect. Schwarz describesnumerous examples of such industrial recycling net-works. Both the residue network of the coastal regionEmden/Dollart, the above-mentioned world-knownKalundborg Symbiosis Park, and in the furtherdeveloped recycling network of Upper Styria detailed bySchwarz, all combine the ecological and economicdimension in a very positive manner [23]. Saving pri-mary materials also brings ecological advantages due tothe reduced consumption of resources and decreasingwaste production as materials can be retained in theanthropogenic system for a longer time thanks to cyclicalprocessing and cascade systems. In the examples cited,these ecological advantages are almost exclusively con-nected with economic savings. Joergen Christensen [24],the initiator of the Kalundborg industry symbiosis, alsounderlines the economic advantages of networks as itwould not have been possible to implement a singlemeasure in Kalundborg if the economic benefits had notbeen clarified in advance.

The widespread Local Exchange Trading Systems(LETS) can be seen as one example of networks with aprimarily social area of effect [25]. These networks arebased on an exchange system of the human skills of aparticular area. Particularly such people excluded fromactive participation in business activities or who can onlyparticipate to a limited extent will find new support inthese networks that the state social system cannot ordoes not wish to offer any more. In this way a smallrevolutionary economic system is created within therecognised system (‘black economy’). These systems arecomparable to parallel introduction of new structures, forexample in the energy sector, that compete directly withtraditional economic sectors. These systems can be inter-preted as innovative disturbing germ cells based uponthe principle of self-help and self-determination and thuspromoting sustainable development.

The above examples of existing and developing net-works clearly illustrate their isolated existence in termsof their area of effect. In order to address the three

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dimensions of sustainable development, the ecological,the economic and the socio-cultural dimension, newforms of integrated networks must be created.

4.3. Adaptation and selective networking (eco-clusters)

Industrial ecology promotes formation of ecologicallycompatible industrial clusters as a measure of implemen-tation. A particular feature of these clusters is active net-working on the basis of material and energy flows. Cur-rently, the main focus is placed on ancillary flows of theindustrial metabolism. While the major raw material andproduct flows are more or less completely excluded fromobservations, great effort is being made to minimizeresiduals. Waste produced by a particular company is tobe the raw material for another. Although this approachwill undoubtedly help make substantial progress in termsof ecology, it will not be sufficient to pursue this strategyalone. Even if all ancillary and residual flows of a coal-fired power station can be used in other companies suchas low-temperature heat via a distant heating system formunicipal heating and industrial process heat, if plasterfrom the desulphuring plant is used as a raw materialfor plasterboard production, and if ash is used as an addi-tive in the building industry, this will not produce a sus-tainable production system. Although this clustering hasan important influence on carbon dioxide emissions(possible one-third reduction), the main raw material stillstems from fossil sources.

Material and energy networking of enterprises willthus generally make sense in terms of ecology but onlyin certain cases, i.e. depending on the process units tobe networked, will it contribute to achieving sustainabledevelopment. The company clustering strategy—i.e.eco-cluster formation—for the purpose of sustainabledevelopment should thus be pursued in a selective man-ner. The following procedure can be seen as beingexpedient:

I Construction of new structures, small sized, to com-pete with existing structures of the non-sustainableeconomy (example-energy system: not integratinglarge coal-fired and oil-based power stations into‘quasi eco-clusters’; rather, parallel construction ofcompletely new structures (e.g. biomass and biogasplants, solar facilities, wind turbine generators, etc.)must be promoted.

I Integration of available process units of the existingsystem into new eco-clusters of sustainable develop-ment if certain ( > AND, ) criteria are fulfilled inthe sense of sustainable development:the process unit has a high level of developmentpotential, i.e. efficiency increase, substitution of fos-sil raw materials, etc. is possible (or no longernecessary);the process unit plays an important role in the

urban/regional system, i.e. it is embedded in theregion (highly qualified jobs, tradition and regionalknow-how are preserved or introduced, a high levelof autonomy and regional self-determination exists,etc.);the process unit can adapt to the potentials of theregional ecosystems with its activities (at least par-tially, utilization of regional resources, aesthetic inte-gration, emissions can be assimilated, etc.);the process unit makes an important contribution tothe regional economy, as expressed in the close inter-weave with other economic units or its contributionto the regional supply system.

Both processes described above, construction of newstructures—as innovative disturbing germ cells of thesystem—and gradual adaptation of old system units tonew criteria and their integration into existing eco-clus-ters, should run parallel. Enterprise networking puts newstability into the system and facilitates economic exist-ence in times of restructuring. System units graduallyreplaced by innovators, i.e. units that do not conform tothe demands made on process units, should, if possible,be excluded from the eco-clusters. Integrating these clus-ters would consolidate their position and prolong thenatural ‘die-out’ to be expected; integrating them wouldthus perhaps make sense ecologically in the short term,but would be counterproductive from the point of viewof sustainable development. In principle, this negativedelimitation of process units during network formationapplies to all types of networks. The more actors partici-pate in the regional economy, i.e. not only commercialenterprises but also interest groups (business, farming,social partners), labour market service, planners, NGOs,initiatives, administration, etc., the more likely the net-work is to achieve regional significance and the morelikely it is to be sustainable.

4.4. Regional and local measures

Although the development to be pursued can not yetbe put into more concrete terms and despite the fact thatwe are still faced with many unresolved problems, thegeneral trend of this sustainable development can befairly clearly outlined. Whether along the lines ofAgenda 21 or industrial ecology etc., the models ofregional economy should take into account regionalpotentials and talents and should help create a culture oftrust and cooperation in the particular region. Regionson the road to sustainability—islands of sustainability—will simultaneously become islands of trust andcooperation. The prevailing structure of the economywill consist of small structures and will be largely basedon networks. Regional isolation would, however, defi-nitely not be the right way, i.e. integration into suprare-gional or global networks for mainly longer-lived goods

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will also be a central component of a sustainable econ-omy.

It is necessary to create the framework conditions forregional measures of model development of regions sothat networks and cooperations can evolve [26]. Morenetworks and cooperations necessitate more trust anddemand a new culture. Although blanket implementationof the aforementioned eco-clusters is not possible in theshort term, work can be done on this new culture ofcooperation. The economic units of the region and thepeople living there must build up a regional awarenessand must shape their future in a joint, autonomous man-ner. The model can include the vision of developmenttowards an ‘island of sustainability’ [27].

4.5. Eco-clusters (ECOFIT-parks) for sustainabledevelopment

At the local level, however, it is possible to plan initialconcrete projects whose implementation would appearto be fundable as ‘model projects’ of the region. Onesuggestion for a local project is to create an eco-clusterfor sustainable development (ECOFIT-Park project)[28]. Table 3 outlines the essential features of such anECOFIT-Park.

By example of the region Feldbach in Styria, a con-

Table 3Selected aspects of ECOFIT-Parks

Functions of the ECOFIT-Park‘Stay option’ for young people in their regionFocus not on foundation of an industrial park but rather an activitycentre for sustainable development of the region (ecological,economic and socio-cultural dimension)Selected existing enterprises are integrated into the network conceptand new, selected enterprises are located (new enterprise must FITinto the ECO-concept)Disadvantages for farming population should be cushioned (regionalmarketing and processing of agricultural produce)New standards must be set up with innovative integrated technology

Alternative sectors in the ECOFIT-ParkCentre of initiative (incubation and DIY centre)LETS—Local Exchange Trading SystemsCentre of regional services (limited-term social services and servicesin major regional projects)Quality centre—local supply marketCCRR (centre of creative reuse and recycling)Social and culture centre (childcare, cultural facilities, lesiurefacilities, etc.)

Work in the ECOFIT-ParkCulture of cooperation and trust within and between firmsTrust in workers and their skillsMan–machine relationship towards machine as a toolSafeguarding and expanding know-howActive involvement and workers in decision-making processesWorker motivation through further training

cept was elaborated for an ECOFIT-Park. Possibleimplementation is currently under discussion. The pro-ject is part of the development plan (vision) of theregion. The project ‘Eco-Park Hartberg’, also in Styria,has made more headway. This regional model projectcomprises many aspects of an ECOFIT-Park and willcome to be the new measure for innovative regional pro-jects [29]. The concept not only includes the idea ofrecycling and company networking, but is also designedto be a centre of activity and innovation for the region.Economic activities are linked in a creative manner withleisure activities of the local population.

5. Conclusions

In this article we have attempted to focus on sus-tainable development from a new angle. According tothis interpretation, sustainable development follows thelaws of evolution and thus self-organisation. Along thelines of this hypothesis, society and its economy aredeveloping towards increasing complexity. Regional andurban systems can increase their complexity if they pavethe way by creating a new culture of cooperation. Onthis basis, sophisticated networks will form, companieswill cooperate and construct supply and recycling net-works, they will make effective use of energy in cas-cades, and they will create networks with an ecological,economical and social area of effect in collaborationwith other actors. These networks will subsequentlyform the basis of new eco-clusters that will, on the onehand, introduce new structures into the system with theaid of innovative process units and, on the other, willselectively adapt and assume parts of the old system.

The concept of ECOFIT-Parks could show cities andregions a way of implementing approaches to sustainabledevelopment in the form of model projects. Of course,the concept presented here is only to be seen as one ofmany alternatives. A development as complex as that ofsociety and its economy cannot be predefined by con-cepts. However, the development models should pick upthese ideas and embed them firmly in public awareness.

Acknowledgements

Part of this paper was created as part of the EuropeanResearch Project ‘SUDECIR’ (Sustainable developmentof European cities and regions—A concept for regionaland local actors), funded by the European Com-mission—DG XII, Environment and Climate ResearchProgramme (1994–98), Research Area 4: HumanDimension of Environmental Change (contract number:ENV4-CT96-0271). The Austrian part of the SUDECIRproject is co-financed by the Federal Ministry of Scienceand Traffic (BM:WV), the Federal Ministry of Environ-

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57H.P. Wallner / Journal of Cleaner Production 7 (1999) 49–58

mental, Youth and Family Affairs (BMfUJF), and by theOffice of the Styrian Government, science and researchsection. Special thanks are due to all my partners of theSUDECIR project team, the Institute for EuropeanEnvironmental Policy (IEEP), Brussels, the Trier Work-ing Community for Environmental, Regional and Struc-tural Research (TAURUS e.V.), Trier, and the Mediter-ranean Information Office for Environment, Culture andSustainable Development (MIO/ECSDE), Athens.

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