Functional Economy

Céline Merlin-Brogniart is Associate Professor in economics at the Université de Lille (Clersé laboratory), France. Her research field is service innovation, and her recent work focuses on sustainable economic models, territorial development and social innovation.

Foreword vii

Acknowledgments xi

Introduction xiii

Chapter 1. The Emergence of the Functional Economy: Context and Approaches 1

1.1. Towards a service and environmental model 4

1.1.1. New production dynamics 4

1.1.2. The Functional Economy in political decisions 18

1.2. The Functional Economy approaches 24

1.2.1. The origins 25

1.2.2. "Product-service systems" 30

1.2.3. Functional and cooperative economy 38

1.2.4. The Functional Economy 42

1.2.5. Synopsis 51

1.3. The Functional Economy and its applications 52

1.3.1. The Functional Economy and the circular economy 52

1.3.2. The Functional Economy and industrial ecology 59

Chapter 2. Economic Model and Innovation Dynamics 65

2.1. The Functional Economy as an economic model 68

2.1.1. The value proposal 70

2.1.2. New cost and income structure 82

2.1.3. A supply co-produced with the customer 85

2.1.4. An economic model based on cooperation 89

2.1.5. Environmental performance 92

2.1.6. Territorial ecosystem and collective heritage 101

2.2. Innovation dynamics 105

2.2.1. The application of an analytical division 107

2.2.2. A complex dynamic 112

Chapter 3. Functional Economy Challenges and Difficulties 137

3.1. The Functional Economy challenges 138

3.1.1. The evolution of the organizations' trajectory 139

3.1.2. The territory, the commons and the ecosystem of territorial actors 148

3.1.3. The difficult assessment of value 158

3.2. From traditional difficulties to great obstacles 161

3.2.1. Difficulties encountered at a micro-economic scale 163

3.2.2. Difficulties encountered at a meso-economic scale 167

3.2.3. Difficulties encountered at a macro-economic scale 175

Conclusion 187

References 195

Index 213