DOI: 10.29141/2658-5081-2024-25-1-5
Lyudmila A. Mochalova Olga S. Eremeeva Vladimir N. Podkorytov
EDN:TXQLKO
JEL classification: M11, L6, Q57
Ural State Mining University, Ekaterinburg, Russia Ural State Mining University, Ekaterinburg, Russia Ural State Mining University, Ekaterinburg, Russia
Circular economy ideas in the practice of industrial ecosystems in Russia
Abstract. The arrival of the new phenomenon "industrial ecosystem" to the field of production organisation makes investigating it particularly relevant. The paper focuses on describing its essence, indispensable structural elements, as well as delves into the practical significance allowing for the trends in Russia's technological and ecological development. Methodologically, the paper is based on the concepts of industrial revolution, circular and digital economies. Methods of desk research and systematisation are used. According to the findings, the concept "industrial ecosystem" appeared within industrial ecology and represents a kind of a business ecosystem. In Kleiner's systems concept, this type of ecosystem is considered as a total of an industrial cluster, a platform, a network, and an incubator. Comparative analysis of various forms of production organisation allows identifying industrial cluster as the most appropriate basis of the ecosystem. It is proved that the digital platform, the communication and logistics network, and the business incubator (technology park) are important for ensuring efficient operation of an industrial cluster. The paper validates the treatment of industrial ecosystems as a transitional form between natural (biological) and non-natural (business) ecosystems. The goal orientation of industrial ecosystem is handling both socioeconomic and environmental problems due to setting up closed-loop industrial cycles. The paper presents an original scheme of an ecosystem taking into account the principles of circular economy: industrial enterprise - circular industrial cluster - industrial ecosystem.
Keywords: industrial ecosystem; circular economy; circular industrial cluster; digital economy; closed-loop cycles.
For citation: Mochalova L. A., Eremeeva O. S., Podkorytov V. N. (2024). Circular economy ideas in the practice of industrial ecosystems in Russia. Journal of New Economy, vol. 25, no. 1, pp. 87-109. DOI: 10.29141/2658-5081-2024-25-1-5. EDN: TXQLKO.
Article info: received August 14, 2023; received in revised form October 9, 2023; accepted November 23, 2023
Introduction
Despite an increase in the share of services, industry still plays a special role in the Russian economy. It aims at civilisational goals associated with the transition to the industrial and information age, as well as the goals of ensuring the country's economic and environmental security and reorienting the current industrial model (export of raw materials, resource intensity) to an innovative model (import substitution, resource saving, high-tech).
Scientists propose and justify various ways to transform the manufacturing sector, strengthen the competitive position of Russian companies, and promote sustainable industrial growth in the country. These proposals are dominated by institutional ones, including the implementation and development of new (especially interfirm) organisational forms.
For example, a form of interfirm interaction is cluster described by Akinfeeva [2008] as a tool that accelerates the improvements in companies' competitiveness.
Aleksandrova focuses on the description of clusters in the post-industrial era, which act as multi-activity structures "with diversified technological chains, end-to-end competencies and cross-industry innovations" and compete with holdings, a classical form of industrial enterprises integration [Aleksandrova, 2014, p. 25].
Kasyanenko and Tarasova argue that "a cluster is a network form of organisation of modern companies (a type of interorganisational networks)" [Kasyanenko, Tarasova, 2015, p. 2927].
Comparing industrial clusters and industrial ecosystems, Titova and Ziglina note that the latter "are an evolutionarily more advanced form of organising the interaction system of industrial organisations" [Titova, Ziglina, 2021, p. 7].
Tolstykh and Krasnobaeva [2023] argue that the integration of industrial enterprises within clusters, industrial symbioses, eco-technology parks and ecosystems is one of the conditions for implementing the principles of sustainable development and increasing the efficiency of green projects. They believe clusters to be "the interactive cooperation in different phases of value chains and product life cycles" that maintains a territory's interests and ensures maximum innovation and flexibility of all actors; consider eco-technology parks as an industrial integration of companies "covering the entire life cycle of products in accordance with the principles of a closed-loop economy"; define industrial symbioses as "enterprise integration, when waste from one enterprise becomes resources or energy for another enterprise"; and ecosystem as integration, "within which different systems interact with each other and create value from different data streams" [Ibid., pp. 425-426].
The well-known Russian economist Kleiner [2018a] develops a concept of Russia's "industrial future" and proposes assigning a leading role to industrial ecosystems, which represent socioeconomic ecosystems with characteristics of ecological,
economic and natural biological systems. They are stable and organically combine the features of clusters, holdings, financial and industrial groups, technology parks and business incubators.
A review of scientific literature reveals different approaches to justifying the most efficient organisational form of integration of industrial enterprises in Russian economic conditions. The will to innovate and the consideration of modern economic, technological and ecological conditions connect all of these approaches.
From our perspective, an industrial ecosystem is such an integral and multicom-ponent form of industrial production organisation that allows implementing the principles of the industrial revolution, circular and digital economies in the country. This is expressed in national development goals such as "a comfortable and safe living environment" and "digital transformation"1. This form of integration does not contradict the cluster model advocated by many experts, as this can be the basis of an ecosystem. In addition, the organisations that form the cluster's infrastructure and make it efficient are necessary components (along with cluster) of the industrial ecosystem.
The purpose of the study is to investigate industrial ecosystem as a new organisational form of production integration against the backdrop of implementing the concepts of the industrial revolution, circular and digital economies. Accordingly, the objectives are:
- to define an industrial ecosystem;
- to validate the structure of industrial ecosystem;
- to create a scheme for organising an industrial ecosystem.
Literature review
The seminal works containing the description of the nature and structure of ecosystems are devoted to biological ecosystems, which consist of a community of living organisms (biocenosis), their habitat (biotope), a communication system that allows the exchange of matter and energy between them2.
Business analysts adopted the term "ecosystem" in the early 1990s because they believed that, similar to a number of other biological concepts, it best captured the essence of the processes in a market driven by the mechanism of self-organisation created by nature.
To distinguish the non-natural type of ecosystems, scientists began to use the term "business ecosystem". It was first used by Moore [1993, p. 75] who wrote that
1 Decree of the President of the Russian Federation as of July 21, 2020 no. 474 "On national development goals of the Russian Federation for the period up to 2030". http://publication.pravo.gov.ru/Document/ View/0001202007210012.
2 The English ecologist Tansley [1935] was the first to introduce the term "ecosystem", which later became a key term in the field of ecology.
"a company should be viewed not as a member of a single industry but as part of a business ecosystem that crosses a variety of industries". A more detailed description of this phenomenon appeared later in the book The death of competition: Leadership and strategy in the age of business ecosystems [Moore, 1996]. Thus, Moore is considered the founder of the ecological competition approach: it consists in considering cooperation with partners-consumers and partners-suppliers and the ability to manage large-scale cooperation as the main condition for the companies' competitiveness [Vartaev, Bystrov, 2019].
Moore's theory of non-natural ecosystems began to develop actively. Jacobides, Sennamo and Gawer identified a number of important characteristics of non-natural ecosystems. They are modular, contribute to the coordination of the activities of interconnected and interdependent organisations with significant autonomy, and also can be considered as a method of coordination that represents a symbiosis of the market and hierarchy replacing traditional market mechanisms and vertically integrated supply chains. The researchers explained the efficiency and attractiveness of business ecosystems by the fact that they "allow managers to coordinate their multilateral dependence through sets of roles that face similar rules, thus obviating the need to enter into customised contractual agreements with each partner" [Jacobides, Cennamo, Gawer, 2018, p. 2255].
The concepts of the industrial revolution, circular and digital economies have a significant impact on various subjects and objects of the economy and determine the criteria for their efficiency [Houshyar, Sulaiman, 2014; De Sousa Jabbour et al., 2018; Dovgal et al., 2020; Granstrand, Holgersson, 2020].
Particularly, the concept of the industrial revolution illustrates the possibilities of interaction between industrial facilities, information systems and the external environment without human intervention.
The concept of a circular economy supports the implementation of nature-like technologies and closed-loop business models that allow industrial production to become sustainable and resource-saving.
The concept of the digital economy reveals to industry the numerous advantages of using information technology.
In addition to describing business ecosystems that focus on the enterprise and its environment, the prior research considers the following [Isenberg, 2014; Jacobides, Cennamo, Gawer, 2018; Ramenskaya, 2020]:
- innovation ecosystems focused on uniting companies to introduce a specific innovation;
- entrepreneurial systems with elements of innovation ecosystems taking into account a territorial component;
- platform ecosystems based on the interdependence between platform sponsors;
- other ecosystems (knowledge ecosystems, service ecosystems, industrial ecosystems).
Kleiner summarised all the above types of ecosystems and applied the term "socioeconomic ecosystem", considering it as an intermediate concept between "economic agent" and "market". He characterised it as "a localised complex of organisations, business processes, innovative projects and infrastructure entities capable of long-term independent functioning due to the circulation of resources, products and systems", approximating the description of a socioeconomic ecosystem to a natural ecosystem capable of self-sufficiency, regeneration and self-healing [Kleiner, 2019, p. 40].
The scientist identified four subsystems as internal components of the ecosystem:
- organisational (structural) subsystem - cluster;
- infrastructural (environmental) subsystem - platform;
- business process (process) subsystem - network;
- innovation (project) subsystem - business incubator.
When describing the ecosystem, Kleiner, on the one hand, presented it as a natural structure for the interaction of clusters, platforms, networks and incubators in order to meet the socioeconomic needs of market entities, on the other hand, he noted that the combination of various organisational forms of business under the ecosystems' 'umbrella' demonstrates the implementation of the principles of circular economy, since the activity results of one subsystem are the initial components for functioning of another subsystem. Kleiner presented industrial ecosystems as peculiar prototypes of various socioeconomic ecosystems and the most likely candidates to be the main structures in industry and the economy [Kleiner, 2010; 2018a].
Using Kleiner's four-link system language, another scientist Yerznkyan analysed business ecosystems from an institutional perspective and concluded that enterprises strive to "adapt to new management systems" and this "is expressed in their participation in various types of ecosystems: object (clusters), environmental (technological platforms), process (network structures) and project (business incubators)" [Yerznkyan, 2020, p. 52]. Thus, he showed that the elements of an ecosystem can exist separately from each other and interact with each other with varying degrees of intensity.
Thus, in contrast to Kleiner's perception of ecosystem, which takes into account its integral multicomponent composition, Yerznkyan and a number of other scientists [Geliskhanov, Yudina, Babkin, 2018] consider parts of ecosystems (clusters, platforms, networks, incubators) as ecosystems. In the meantime, they do not focus on the existence and features of industrial ecosystems.
So, even when presenting the nature and general mechanism of business ecosystems, there is not provided a complete picture of the essence and structure of industrial ecosystem and its role in organising the efficient activities of industrial enterprises and ensuring sustainable industrial growth in the country.
Industrial ecosystems in the context of a circular economy
The concept "industrial ecosystem" was first considered in the field of industrial ecology and was understood as "a model of industrial activity in which individual manufacturing processes take in raw materials and generate products to be sold plus waste to be disposed of" [Frosch, Gallopoulos, 1989, p. 144]. Afterwards, the economists stopped associating the term only with the material balance in the "industry - natural environment" system, as well as rational production and consumption models, and began to understand it as a set of interacting economic entities [Popov, Simonova, Tikhonova, 2019], similar to natural ecosystems [Lowe, Evans, 1995; Granstrand, Holgersson, 2020].
Recent studies in economics and management show that scientists consider industrial systems as a type of business ecosystems that have a non-natural character. In economic and management studies, the term "industrial" is only used to indicate the relationship between enterprises present in the ecosystem and industrial production.
We believe that considering the principles of the circular economy is a distinctive feature of the industrial ecosystem. This is necessary in connection with the urgent need for waste management, the use of secondary raw materials and the organisation of waste-free, cleaner production. In the context of the fourth industrial revolution, the formation of industrial ecosystems means the association of companies to exchange products and waste among themselves and is facilitated by numerous technologies of the digital economy that allow zero-waste work thanks to the use of databases, digital twins, machine learning and artificial intelligence.
We argue that the industrial ecosystem occupies an intermediate position between natural (biological) and non-natural (business) ecosystems, since its functioning is based, on the one hand, on the nature-like processes of organising a closed-loop production cycle and, on the other hand, on the cooperation of business partners. As Ramenskaya [2020] writes, the frequent artificial bio- and eco-mimicry is excluded from economic and management concepts. In this case, the prefix "eco-" is very logical in connection with the goal orientation of the industrial ecosystem to solve environmental problems simultaneously with socioeconomic ones.
An industrial ecosystem is therefore an association of industrial enterprises (organisations) and their suppliers of raw materials, materials and services. The enterprises
(organisations) and their suppliers are autonomous but interconnected and interdependent as they organise closed-loop industrial cycles and share digital technologies that allow them to achieve competitive advantages in the face of high environmental uncertainty.
In the article, we adhere to Kleiner's concept, based on the role of the industrial ecosystem as a natural shell for the interaction of clusters, platforms, networks and incubators, while focusing on its target, which is to integrate various organisational forms in order to create a closed-loop, waste-free production cycle. We examine clusters, platforms, networks and incubators in the context of circular economy principles.
An industrial cluster is the organisational basis of an industrial ecosystem. In recent decades, scholarly publications paid much attention to clusters. Porter [1993] introduced this concept and further elaborated on it: "a cluster is a group of geographically adjacent interconnected companies (suppliers, manufacturers, etc.) and related organizations (educational institutions, government, infrastructure companies) operating in a certain area, and complementary to each other" [Porter, 1998, p. 77]. The Federal law "On industrial policy" no. 488 of December 31, 20141, Chapter 1, Article 3, Paragraph 13 defines the term "industrial cluster" as a set of subjects of activity in the industrial sphere connected by relationships in this sphere due to territorial proximity and functional dependence and located on the territory of one subject of the Russian Federation or on the territories of several subjects of the Russian Federation.
Depending on the type of organisational structure, clusters can be horizontal -when there is the integration of enterprises producing the same type of products in order to exclude intra-industry competition and create strong market positions in relation to enterprises outside the cluster; vertical - when there is the integration of enterprises engaged in different stages of production and sale of products, to operate on the principle of a closed-loop technological chain, when the products of one enterprise in this chain are a means of production or an object of labour for another; combined - there is the integration of enterprises producing homogeneous and heterogeneous products [Akinfeeva, 2008; Altukhova, 2015]. The existence of clusters is accompanied by "a synergistic effect generated due to mutual cooperation and competition, as well as a high degree of innovation activity" [Bakhshyan, 2019, p. 72].
When exploring clusters (including industrial clusters), scientists often emphasise the territorial proximity and functional dependence of the enterprises in a cluster as a characteristic of this form of interfirm organisation. To some extent, this
1 Federal law no. 488-FZ of December 31, 2014 "On industrial policy in the Russian Federation". ConsultantPlus. https://www.consultant.ru/document/cons_doc_LAW_173119/. (In Russ.)
converges the concept "cluster" and the concept "territorial production complex (TPC)", which was introduced in the 1940s by Kolosovsky, a specialist in economic geography [Drozdova, 2011]. From our standpoint, their difference lies in the fact that the functioning of the TPC is aimed at interaction between enterprises without competition, which is possible only in the conditions of a planned economy. Clusters are formed in a market economy based on competition, thereby motivating enterprises to reduce the risk of uncertainty when looking for a form of cooperation with other organisations. In addition to clusters, in the current market conditions in our country, there are such similar forms of business integrations as holdings, associations (unions), etc. Let us look at how they differ from each other and why the cluster should be part of the industrial ecosystem.
Holdings are commercial associations of organisations, one of which is a parent company (holding company), the rest are subsidiaries controlled by it. At the same time, the parent company owns a majority stake in the subsidiaries and the subsidiaries own non-controlling shares in the parent company. In complex holding structures, there may be sub-subsidiaries whose majority shares are owned by subsidiaries. Holdings successfully dominate the Russian industry, although according to the Civil Code of the Russian Federation they are not a separate organisational and legal form of entrepreneurial activity. They form both vertical and horizontal integration of enterprises and ensure an increase in the profitability of enterprises and a reduction in the number of unprofitable enterprises through efficient management technologies, the inflow of long-term investments, the growth of human capital and the modernisation of industrial production. However, in addition to the positive aspects, the clear dominance of holdings over other integration structures leads to a number of problems related to the lack of transparency of ownership relationships, the forced integration of enterprises, the monopolisation of regional markets for goods and services, and the withdrawal of added value from the territory of enterprises and the destruction of their social partnership [Aleksandrova, 2014].
Associations (unions) have the status of a legal entity and are non-profit organisations. According to paragraph 1 of Article 123.8 of the Civil Code of the Russian Federation1, an association (union) is an association of legal entities and (or) citizens, based on voluntary or, in cases prescribed by law, compulsory membership, created to represent and protect general, also professional interests, to achieve socially useful goals and other non-illegal and non-commercial purposes. Subtypes of associations (unions) are non-profit partnerships, self-regulatory organisations, etc.
1 The Civil Code of the Russian Federation (Part one) of November 30, 1994 no. 51-FZ on the main provisions of the association (union). ConsultantPlus. https://www.consultant.ru/document/cons_doc_LAW_5142/43f28edb cacaba2031f8afcb8782e2404cca5cf0/ (In Russ.)
Associations are characterised by the homogeneity of participants, trade unions by the possibility of joining any subjects. Relations between the members of the association (union) are formalised and regulated by agreements. According to analysts, associations (unions) often differ from clusters in that they have a limited number of participants, whose cooperation covers a narrow area, for example, related to lobbying for a law beneficial to the participants. As practice shows, the association is frequently a member of the cluster and acts as a central (unifying) company in it.
Having examined different organisational forms of industrial integration of enterprises (also in comparison to a cluster) we can conclude the following.
First, in market conditions, in order to achieve significant competitive advantages, industrial enterprises tend to integrate within a territory (through the creation of a regional association of enterprises), an industry (through an industry association of enterprises), a technological chain (through a technological association of enterprises), etc., and replacing competitive relations with relations of varying degrees of cooperation with other business entities.
Second, an important distinguishing feature of organisational forms of integration is the degree of economic and legal control over the assets of the merged industrial enterprises. Holdings are a form of integration (often forced), that involves full or significant economic and legal control over organisations' assets. Clusters and associations (unions) tend to exhibit softer integration, which is the voluntary association of business units that have long-term relationships and can delegate economic control to each other (for example, through joint activities).
Third, for industrial clusters, the main competing form of integration is holdings that are closer to each other in terms of the functions performed and effects achieved and are the most common in the territory of the Russian Federation.
We agree with scholars who argue that despite the dominance of holdings as a form of association of industrial organisations, the development of the information and industrial economy should currently be linked with clusters, which are integration structures with soft (voluntary, contractual, equal) association mechanisms, diversified technology chains, common paths to obtaining the necessary skills and implementation of business, technological, socio-ecological and economic innovations. In addition, it is likely that the holdings will eventually transform into industrial clusters under the pressure of the new economic and socio-environmental situation. According to statistics, clustering today covers about half of the economies of the leading countries worldwide1. Cluster data has also been included in the Global Innovation Index (GII)2 in recent years.
1 Lavnikevich D. (2015). Holding and cluster: Find 10 differences. Delovaya Gazeta. http://bdg.by/news/au-thors/holding-i-klaster-naydite-10-otlichiy. (In Russ.)
2 Global Innovation Index (GII). https://www.wipo.int/global_innovation_index/en/.
It should be noted that when forming integration formations similar to an industrial cluster, the term "industrial symbiosis' is regularly used [Yeo et al., 2019; Schlüter, Mortensen, K0rn0v, 2020; Henriques et. al, 2021; Oughton et al., 2022]. It means a mutually beneficial partnership of industrial enterprises, "when the synergistic effect is achieved through the exchange and sharing of resources, innovative technologies, knowledge and skills" [Preobrazhenskiy, Tolstykh, Shmeleva, 2020, p. 39]. Comparing the two forms of integration, the authors note, on the one hand, their significant similarity and, on the other hand, the greater acceptance of using the term "industrial cluster", which is enshrined in Russian legislation. In addition, due to the goal orientation of the industrial ecosystem towards the formation of a closed-loop, waste-free production cycle based on the integration of enterprises, it is more appropriate to use the term "circular industrial cluster".
Judging by the characteristics of industrial clusters, their internal structure should assume not only the presence of a unified organisation, but also an infrastructure corresponding to the type of cluster. Scientists name communicative, research, advisory, educational, innovative, etc. types of cluster infrastructure [Kudryashov, Bar-sukov, 2014; Bakhshyan, 2019; Trachenko, Gaysha, 2019]. This entire cluster design is very similar to the internal structure of Kleiner's industrial ecosystem, which includes: an industrial cluster (organisational / structural component), a platform (infrastructure / environmental component), a network (business process component), and a business incubator (innovation / project component). The scientist highlights that these components of the ecosystem are its integral parts and therefore, their successful functioning is possible only with simultaneous existence, mutual support, interaction and reproduction. We share this opinion, as complementing industrial clusters with a platform, network and incubator is logical to organise an effective industrial ecosystem.
According to Kleiner, the platform is an infrastructural component of an ecosystem that is intended to create opportunities for unhindered (direct) interaction between its participants, especially between elements of a cluster that are included in the ecosystem for its effective functioning [Kleiner, 2018b]. Considering Gabov's remark that the platform as a polysemantic term has many meanings and is used to denote completely different objects and phenomena in different fields [Gabov, 2021], it should be noted that with regard to the component of the industrial ecosystem, we are talking about a digital platform.
Numerous definitions of the terms "platform" and "digital platform" are presented in the academic literature [Koskinen, Bonina, Eaton, 2019; Popov, Veretennikova, Mukhamedyanova, 2021; Repyeva et al., 2021; Isaeva, 2022; Babkin, Mikhaylov, 2023]. We believe the definition of Geliskhanov, Yudina and Babkin to be the most complete: "Digital platforms (DP) are a type of multilateral platforms and represent hybrid
structures (hybrids of markets, firms, communities and technological systems) aimed at creating value by providing direct interaction and transactions between multiple groups of third-party users" [Geliskhanov, Yudina, Babkin, 2018, p. 23]. They stress that internal digital platforms can be used within individual enterprises, including vertically integrated companies, while external digital platforms can be used within an industry, region or cluster.
The platform's advantages enjoyed by its users include the next ones [Gawer, Cu-sumano, 2014; De Reuver, Sorensen, Basole, 2018; Pauli, Fielt, Matzner, 2021; Krom, Piscicelli, Frenken, 2022]:
- easy control and analysis of economic and production processes;
- reduced transaction, operational and time costs;
- improved the efficiency of product and service supply chains;
- comprehensive automation and optimisation of business processes, etc.
The following risks associated with their existence are mentioned as the platforms' disadvantages:
- problems of unfair use of confidential personal data;
- possible manipulation of the platform participants;
- problem of ensuring the security of transactions;
- monopolisation of the market, etc.
Despite the multitude of risks, the effects of using platforms outweigh the risks. Therefore, if an industrial cluster is not a user of a digital platform, it loses its competitive advantages over the clusters that are among its users. When assessing the possibilities of achieving direct and indirect network effects, which are expressed in the fact that greater benefit is achieved as the number of all users of the platform increases, scientists identify digital platforms with networks. Examples of digital platforms include social networks and messengers (WhatsApp, Telegram, etc.) [Geliskhanov, Yudina, Babkin, 2018; Babkin, Mikhaylov, 2023].
When servicing a circular industrial cluster, the digital platform is intended to ensure the creation of a database of products and waste from networked enterprises (organisations).
The network, according to Kleiner, is a communication and logistics component of the ecosystem that ensures the implementation of the opportunities offered by the infrastructure component for providing material, information and other flows between the elements of the cluster [Kleiner, 2018b]. When considering a network as an element of an industrial ecosystem, it is necessary to take into account the following components: a communication network associated with the provision of information (provision, storage, processing of information) and communication (ensuring the communication of agents among themselves) services; a logistics network (supply chain), consisting of interconnected and interdependent logistic action centers that
form a network structure, as well as channels for moving stocks from one or more sources to distribution centers and then to consumers [Salimgaraeva, 2019].
Kasyanenko and Tarasova pay attention to the fusion of networks and clusters and point out that multidimensional networks of interconnected organisations operate within clusters. At the same time, a cluster as a whole can be viewed as a kind of open interorganisational network, characterised by cooperative relationships between participants [Kasyanenko, Tarasova, 2015].
Apparently, due to the fact that the platform and the network function in a close relationship with each other, platforms are often referred to as networks, or collaborative terms such as "logistics platform", "information and telecommunications platform", "platform network" and others are formed. A network within an industrial ecosystem is meant to enable symbiotic communication between the participants of a circular industrial cluster with regard to the exchange of products and waste and the organisation of closed-loop supply chains.
In line with Kleiner, an incubator (incubator of business, business incubator) is an innovative component that includes activities related to various innovations [Kleiner, 2018b]. Having studied the definitions of the terms "incubator" and "business incubator" in the literature [Pettersen et al., 2015; Torun et al., 2018; Komarova, 2019; Khotyasheva, Slesarev, 2019], we came to the conclusion that it can be interpreted differently, depending on the approach. From the viewpoint of the process approach, it is the process of building a new business; the functional approach sees it as an element of the support system for small and medium-sized businesses; and the systems approach considers it as a generator of new ideas and innovative methods of their implementation, capable of making the ecosystem more efficient. When looking at a business incubator as part of a cluster, preference should be given to the systems approach and, above all, attention should be paid to its innovative function. In practice, this is performed not only by business incubators, but also by accelerators and technology parks. In accordance with the "Methodological recommendations for improving the efficiency of business incubators and accelerators"1, their activities are as follows.
A business incubator is an organisation that supports business projects at all stages of development: from idea to commercialisation. Their main goal is to increase the survival rate of resident companies (innovative companies). As the global and Russian experience shows, business incubators are most often created as non-profit organisations, where state authorities and universities act as founders.
1 Methodological recommendations for improving the efficiency of business incubators and accelerators in 2017. https://nangs.org/docs/rvk-metodicheskie-rekomendatsii-po-povysheniyu-effektivnosti-funktsionirovaniya-biznes-inkubatorov-i-akseleratorov-2017-g-pdf. (In Russ.)
An accelerator is an organisation whose goal is the intensive development of companies through mentoring, training, financial and technical support in exchange for a share in the capital of the accelerated company. Its main process is a multiple increase in the key performance of the local companies (innovative companies). The accelerator's business model consists of two parts: an educational and advisory programme that allows residents to make their activities successful, and a venture fund whose capital is distributed among the accelerated companies with the expectation of making super profits from some of them. The founders of the accelerator are government authorities and large private companies.
Technology park is a scientific and technological complex, the purpose of which is to ensure the accelerated development of high-tech sectors of the economy; it offers residents a wide range of services to reduce costs and achieve sustainable growth in key indicators. The technology park may include incubators and accelerators to generate a steady flow of residency applications from their graduates. The Federal law "On industrial policy"1 lists two similar infrastructure facilities that contribute to the development of industrial production: an industrial technology park and an industrial park.
Incubator is an innovative and creative component of the industrial ecosystem and fulfills not only an innovative but also a creative function [Kleiner, 2019]. The latter can be carried out by an engineering company - an organisation that undertakes full management and support of technical projects: planning a place for the placement of objects, legal and actual actions on issues related to the placement of objects, technical surveys, design, construction, legal and actual measures to legalise an object (expertise), delivery and maintenance of equipment, commissioning. According to the Federal law "On industrial policy", this organisation is called an engineering center.
The work of the incubator, which is part of the industrial ecosystem, should take into account the principles of circular economy, focus on the development of waste-free technologies, as well as the integrated and full use of industrial raw materials.
After an element-by-element study of the industrial ecosystem structure, we can conclude that all highlighted components are well justified (Figure 1). Expectedly, a circular industrial cluster is considered to be the basis of the industrial ecosystem. It is formed by a number of independent companies united under a "common roof" and relies on the principle of organising a closed-loop, waste-free production cycle. The focus of its activities is on the creation of appropriate types of industrial products and/or the provision of industrial services through closed-loop supply chains and the cascading use of primary and secondary raw materials.
1 Federal law of December 31, 2014 no. 488-FZ "On industrial policy in the Russian Federation". ConsultantPlus. https://www.consultant.ru/document/cons_doc_LAW_173119/. (In Russ.)
All other components of the industrial ecosystem (platform, network, incubator) form the infrastructure of a circular industrial cluster and ensure its stability and productivity in the context of modern social, ecological and economic development trends.
Industrial ecosystem
Fig. 1. Components of an industrial ecosystem
Organization of the industrial ecosystem. Gamidullayeva, Tolstykh and Shme-leva drew our attention to the need to consider the industrial ecosystem both as a form of integration and as a tool for harmonising production with natural processes. They argue that an industrial ecosystem, as a new form of organisation and management, offers a combination of innovation and sustainability [Gamidullaeva, Tolstykh, Shmeleva, 2020; Shmeleva, 2023]. In their opinion, innovation arises through the use of new organisational and management models and tools, and sustainability arises through the concept of a circular economy (closed-loop production cycles), which allows not only to bring industrial systems in harmony with the natural environment, but also to ensure the growth of the value added of the industries. They assign a special place to the circularity generator in the functional structure of the industrial ecosystem, which ensures the processes of resource use for as long as possible and which can be any actor (participant) of the ecosystem. Circularity in this case implies a multitude of symbiotic relationships between actors regarding the transfer of waste as secondary raw materials [Ghisellini, Cialani, Ulgiati, 2016; Bellantuono, Carbon-ara, Pontrandolfo, 2017; D'Amato et al., 2017; Potting et al., 2017; Prieto-Sandoval, Jaca, Ormazabal, 2018; Suarez-Eiroa et al., 2019; Kinnunen, Kaksonen, 2019; Tolstykh, Shmeleva, Gamidullaeva, 2020; Tolstykh et al., 2022].
Gamidullayeva, Tolstykh and Shmeleva use a functional approach when describing the organisation of an industrial ecosystem, defining the roles of its actors through the functions they perform [Gamidullayeva, Tolstykh, Shmeleva, 2020]. These features may constantly change depending on the life cycles of the projects implemented by the ecosystem. For example, the functions of the integrator, attracting other participants into the ecosystem, are the tasks of the pacemaker and the functions of the project office. Such a role can be played by universities, research organisations and digital platforms that strive for the use of innovative technologies and the equality of
ecosystem participants. Other actors are: initiators/customers (industrial enterprises); developers (technology parks, engineering companies, startups, universities, research organizations); providers of investment funds (investment and venture funds, state and local authorities); providers of unique resources: technologies, materials, skills, information (technology parks, engineering companies, startups, research organisations); project promoters (all actors). The absence of the strict management by the center, the variability of the functions of the actors and the balance of their different interests give flexibility to industrial ecosystems and, accordingly, increase their viability in a rapidly changing environment.
A step-by-step scheme of organising the industrial ecosystem in Russia is shown in Figure 2.
The scheme takes into account the existing forms of business in the industrial sector, as well as the principles of the digital and circular economy as the most promising to make such a form of integration innovative and sustainable.
! 1. Industrial enterprise ;
+ other enterprises (including industrial enterprises) using the products
or processing waste of the main enterprise
+ education institutions
+ research institutions
+ financial and investment organisations
+ government authorities
2. Circular industrial cluster
+ digital platform
+ information and communication and logistics networks
+ industrial technology park / business incubator / accelerator and engineering center
3. Industrial ecosystem
Fig. 2. Step-by-step scheme of organising an industrial ecosystem in Russia
1. An industrial enterprise as a base. A large industrial enterprise, whose products are in demand, cooperates with a number of other enterprises and organisations (including subsidiaries) that provide raw materials, auxiliary materials and various services.
2. A circular industrial cluster. A large industrial enterprise, given the rapid changes in the external environment and the need to gain competitive advantages associated with the achievements of the digital and circular economy, initiates the creation of a circular industrial cluster and assumes the role of a unifying center (core). It develops and implements joint projects with other economic entities (with
education and research institutions, financial and investment organisations, government authorities), including those focused on the use of waste to obtain secondary resources that replace primary resources in production. If the state ensures the production of import-substituting products, support in the form of subsidies is possible1.
3. An industrial ecosystem. The efficient functioning of the circular industrial cluster requires a single digital platform, an information, communication and logistics networks, an industrial technology park / business incubator / accelerator and an engineering center for the use of integrated organisations.
The possibility of practical implementation of this scheme for the formation of an industrial ecosystem can be considered using the example of the Uralasbest mining and processing plant. This is a highly mechanised enterprise that operates on the basis of the richest Bazhenov deposit of chrysotile asbestos, located in the Sverdlovsk oblast.
Various circular schemes are currently being implemented at the plant. One scheme is related to the transfer of gabbro rock to the subsidiary company Ecover, which produces thermal insulation materials, the other is the work with the subsidiary company Ultra C, which carries out deep processing of serpentinite obtained from the refinement tailings of PAO Uralasbest in order to produce magnesium oxide, burnt magnesia, sports magnesia, Epsom salt and other products. It is also planned to produce unique granules from polymer compositions filled with serpentinite fibers, which are needed in the automotive industry, housing and utility services, and individual housing construction.2.
It is possible to implement joint waste processing projects of PAO Uralasbest with companies from the building materials, chemical and metals industries.
Thanks to the use of import-substituting technologies that allow the production of high-purity chemical compounds, the plant has a chance to receive a subsidy from the Ministry of Industry and Trade of the Russian Federation when organising a circular industrial cluster. In order to expand the possibilities of the cluster development in the future, it is necessary to create a digital platform, a communication
1 Resolution of the Government of the Russian Federation of January 28, 2016 no. 41 "On approval of the Rules for Granting subsidies from the federal budget to participants of industrial clusters to reimburse part of the costs of implementing joint projects for the production of industrial products of the cluster for import substitution". ConsultantPlus. https://www.consultant.ru/document/cons_doc_LAW_193186/ (In Russ.); Order of the Ministry of Industry and Trade of the Russian Federation of October 19, 2021 no. 4166 "On approval of the regulations on the competitive selection of joint projects of participants in industrial clusters and the procedure for considering applications". ConsultantPlus. https://www.consultant.ru/document/cons_doc_LAW_402765/. (In Russ.); Sectoral import substitution plans of the Ministry of Industry and Trade of Russia. Industrial Development Fund. https:// frprf.ru/plany-importozameshcheniya/?docs=334. (In Russ.)
2 Borisova Yu. (2023) The Deputy Prime Minister highly appreciated the import-substituting technologies of Uralasbest. Special project rg.ru Innoprom 2023. https://rg.ru/2023/07/11/reg-urfo/vice-premer-vysoko-ocenil-im-portozameshchaiushchie-tehnologii-uralasbesta.html. (In Russ.)
and logistics network and an industrial technology park that will contribute to the formation of an industrial ecosystem.
Conclusion
To bring the paper to a close, let us recapitulate the main points.
First, Russian industrial enterprises need to take into account not only the risks but also the opportunities for their growth in order to improve their innovation and sus-tainability and prosper in conditions of economic and social instability. The opportunities lie, in particular, in the correct choice of the organisation form of industrial production, as well as in taking into account the principles of the actively developing concepts of the industrial revolution, the circular and digital economies.
Second, the study of the theory and practice of doing business in the industrial sphere has shown that at the moment several organisational forms of integration have developed: industrial technology parks, industrial symbioses, industrial clusters, industrial ecosystems, etc. The most holistic and promising one are industrial ecosystems, which should be considered both as forms of integration of independent but interconnected industrial enterprises and as a tool for harmonising production with natural processes.
Third, Kleiner's systems concept enables a holistic view of the industrial ecosystem and characterises it as a natural shell for the interaction of various forms of business organisation (clusters, platforms, networks and incubators), each of which creates organisational (structural), infrastructural (environmental), business process (process) and innovative (project) subsystems, respectively. At the same time, the industrial cluster is the basis of the industrial ecosystem, while the platform, network and incubator constitute the infrastructure that contributes to its efficient operation and development.
Fourth, in practice, each component (subsystem) of the industrial ecosystem can be represented by real names described in the legislation, which is important in terms of state support for their development. The term "industrial cluster" is enshrined in law, therefore it is preferable to the concept of "industrial symbiosis", and it is also the most flexible form of business integration compared to "holding". In relation to the platform, the most appropriate term in Russia is "digital platform", in relation to the network "information and communication network" and "logistics network". The incubator can be a "business incubator", an "accelerator", an "industrial technology park" and an "engineering center".
Fifth, the term "industrial ecosystem" should justify its original meaning through the prism of industrial ecology as a model of industrial activity similar to nature, in which not only the production of finished products takes place, but also the processing of the waste. In this context, within the framework of the industrial ecosystem,
which is currently being built according to the circular economy principles, all its components (subsystems) should be structured in such a way as to ensure the greatest possible closure of production cycles. The core of the industrial ecosystem should be a circular industrial cluster.
Finally, we propose characterising the industrial ecosystem as an association of industrial enterprises (organisations), and their suppliers of raw and other materials, and services. The enterprises and their suppliers are autonomous but interconnected and interdependent as they organise closed-loop industrial cycles and share digital technologies that allow them to achieve competitive advantages in the face of high environmental uncertainty. This definition is based on the statement that an industrial ecosystem represents an intermediate position between natural (biological) and non-natural (business) ecosystems, since its functioning is based, on the one hand, on the nature-like processes of organising a closed-loop system production cycle, on the other - on the cooperation of business partners.
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Information about the authors
Lyudmila A. Mochalova, Dr. Sc. (Econ.), Associate Prof., Head of Economics and Management Dept. Ural State Mining University, Ekaterinburg, Russia. E-mail: lyudmila. [email protected]
Olga S. Eremeeva, Postgraduate of Economics and Management Dept. Ural State Mining University, Ekaterinburg, Russia. E-mail: [email protected] Vladimir N. Podkorytov, Cand. Sc. (Econ.), Associate Prof., Associate Prof. of Economics and Management Dept. Ural State Mining University, Ekaterinburg, Russia. E-mail: [email protected]
© Mochalova L. A., Eremeeva O. S., Podkorytov V. N., 2024