Understanding Business Environments and Success Factors for Emerging Bioeconomy Enterprises through a Comprehensive Analytical Framework

Abstract

The development toward the bioeconomy requires, among others, generating and institutionalizing knowledge that contributes to technical and nontechnical inventions and innovations. Efforts to support innovation are often linked with the development of business models that facilitate the development in bioeconomy. However, the interdependences between the business models and their business environments are not sufficiently well understood in a way where misalignments that can obstruct the development can be dealt with adequately. Given this lacuna, this research aims to contribute to the development of a comprehensive analytical framework for better understanding the conditions of business environment as well as empirically apply the framework in an empirical study on cases of bioeconomy enterprises in Europe. In this paper, a comprehensive business environment framework is developed and applied for analyzing over 80 cases, thereby allowing for critical action arenas and crucial success factors to be identified. The findings are derived from a systematic application of the framework to relevant action arenas for business development: institutional development, technology and knowledge, consumers’ agency, market structure, funding, resource and infrastructure, and training and education. The results show that businesses in the bioeconomy, unlike other businesses, have to deal with more and very specific constraining legislative issues, infant and non-adapted technology and knowledge, as well as unclear values and perceptions of consumers. Due to this, businesses have to develop new forms of cooperation with different stakeholders. Successful businesses are characterized by the fact that they develop specific strategies, steering structures, and processes with a particular focus on learning and innovation to overcome misalignments between the business environment and their business models. Focusing efforts on learning and innovation in institutional development, technology and knowledge, consumers’ agency, and funding are especially promising as these turned out to be particularly critical and in particular need of institutional alignment for reducing different kinds of transaction costs in the development of bioeconomy.