Program Priority: SO1.1 - Improve the framework conditions for innovation in the Alpine Space

Work Package: WP T1

Activity: A.T1.3 Users needs, expectations and SWOT analysis for the development of an overall AS plan

Deliverable: D.T1.3.1 Optimal Use models and digital technologies in AS: mapping and analysis

Author: bwcon GmbH (Lara Trikha)

Version: 02

February, 2021

CIRCULAR4.0 is co-financed by the European Regional Development Fund through the Interreg Alpine Space programme

Table of Contents

Introduction ...... 3 Sectors Selected for the Mapping ...... 5 Regional Sector choices within the working group Optimal Use Business Models ...... 5 France, Grand Est ...... 5 , Piedmont ...... 7 Germany, Baden-Württemberg ...... 8 Slovenia ...... 8 Italy, ...... 11 General Landscape ...... 11 France, Grand Est ...... 11 Germany, Baden-Württemberg ...... 18 Slovenia ...... 19 Italy, Veneto ...... 21 System Frame (visual SWOT Analysis of regions) ...... 21 France, Grand Est ...... 21 Italy, Piedmont ...... 25 Germany, Baden-Württemberg ...... 27 Slovenia ...... 28 Italy, Veneto ...... 31 Visual Map of key actors ...... 31 France, Grand Est ...... 32 Italy, Piedmont ...... 35 Germany, Baden-Württemberg ...... 36 Slovenia ...... 38 Italy, Veneto ...... 46 Conclusion ...... 46 Appendix - Lists of Actors ...... 48 France, Grand Est – Grand E-Nov ...... 48 Italy, Piedmont – Torino Wireless ...... 48 Germany, Baden-Württemberg – bwcon GmbH...... 48 Slovenia, – Technology Park Ljubljana ...... 48 Italy, Veneto – Veneto Innovation ...... 48 Bibliography ...... 50

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Introduction

This report, D.T1.3.1 Optimal Use Models and Digital Technologies in the Alpine Space: Mapping and Analysis, is a summary for the individual actor mapping of the members of the Transnational Working Group Optimal Use Models. Five members in the transnational working group from four different countries – France, Italy, Germany and Slovenia are covered in this report. The mapping of actors was collected from five areas in the alpine space from the contributing project partners.

The following project partners participated

1. Grand E-Nov for the alpine region of Grand Est, France 2. Torino Wireless for the alpine region of Piedmont, Italy 3. Bwcon GmbH for the alpine region of Baden-Württemberg, Germany 4. Technology Park Ljubljana or the alpine region of Slovenia 5. Veneto Innovazione for the alpine region of Veneto, Italy

Map of the regions the actor mapping took place:

Optimal Use Models

Within the framework of this document, the supporting circular business model of “Optimal Use” is examined. These models highlight the phase of a product during which it is used, by optimizing use and therefore extending its lifespan and saving resources. These business models often build on retained ownership of a product such as by providing a service rather than selling a product, and /or taking responsibility for the product through maintenance services, or add-ons to extend the life of a product.

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Examples for Optimal Use Models include:

 “Product-as-a-service: Provision of product performance instead of the product itself through a combination of products and services. Ownership of the product is retained by the service provider;

 Sell and buy-back: the sale of a product on condition that the product is bought back after a certain period, so that it can be reused;

 Sharing platforms (access provider): Increased product utilization by enabling sharing of usage, access or ownership;

 Lifetime extension: Extend the useful life of products and components through repair, maintenance, or upgrades;

 Support lifecycle: Sales of consumables, spare parts and add-ons to support the life cycle of products.” (Niederland Circulair, 2020)

European challenges of the circular economy and digitalisation

Figure 1 (Grand Est)

This report strives to design the alpine state of the art, existing opinion leaders, potential mentors (senior entrepreneurs) to be involved, the markets of references, the map of SMEs, large enterprises, R&D institutions etc. along these Optimal Use Models for sectors selected by each region individually.

Therefore, the report is structured as follows:

In the first section the sector selection by each region is presented and justified. Section 2 describes the general landscape of each region and its current status of Circular Economy and Digitalization focusing on the chosen sectors and optimal use business models. This gives further comprehension of the sector choices. The third section displays the chosen system framework and the corresponding SWOT analysis. Each project partner analyzed the strength, weaknesses, opportunities and threats of the chosen sector(s) in their particular region. In a fourth section, partners suggested visual or specific maps of key actors involved in the chosen sectors in the region. Actors not specifically listed in this chapter are available in the Actor mapping lists in the appendix. Finally, this report contains a summarizing conclusion.

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Sectors Selected for the Mapping

Sectors for the mapping were selected within working groups. Additionally, every region was able to select further sectors that are of special relevance in the designated region. This approach seems to best balance transnational cooperation and regional interests. Within the Circular Economy 4.0 project it was also decided in collaboration with the other Transnational Working Group that the topic of Plastics & Packaging will also be present throughout the project as an additional overarching theme that can be interconnected throughout the various sectors.

Within the TWG on Optimal Use the sector construction was chosen. Sectors were selected to reduce complexity and to simplify framing the map of actors. To cater for regional interests, individual sectors were chosen by each region, described in detail below.

Regional Sector choices within the working group Optimal Use Business Models

The following section covers the individual sector choices represented by the regions in the working group focusing on Optimal Use Business Models.. In total, four regions in four countries are covered by this working group.

The following table gives an overview of the countries, regions and individual sector choices.

Country Region Sector(s) France Grand Est Construction Textile Agri-food & Bioeconomy Italy Piedmont Packaging, Construction and buildings, Food, water and nutrients (Agri-food), Textile but also manufacturing (including machines and industrial factories, agriculture machines, Automotive and ICT) and Wood Germany Baden Württemberg Construction, Mobility, Manufacturing (Industry 4.0) Slovenia Food, wood processing, manufacturing, mobility and construction Italy Veneto Smart Manufacturing, Food Industry and Food Waste, Energy, Waste Management, Construction, Plastics/Packaging

Figure 2: Brief Overview of Sectors

France, Grand Est Textile sector, construction sector & agri-food/bioeconomy sector

In the Grand Est Region, today we face a large amount of waste of products while it could be revalued or recycled. Thus, this gives a problem of dependence to foreign markets because of critical raw material. That is why it is very important for Grand Est and for France to adopt a circular economy model to face this problem. The new innovative

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technologies and the digitalization enables a circular economy model approach. Local firms need nevertheless support to face to this challenge and respond to our territory needs.

When selecting the sectors it is important to consider the presence of driving elements and whether it will be for the agency subsequently to duplicate and disseminate the service provided during the pilot. It should be noted that CIRCULAR4.0 finances R&D, i.e. it enables us to identify the needs, skills and know-how that are missing in the geographic area or which are not coordinated, to support their acquisition, the experimentation of new support measures, the validation of schemes and the preparation of their evolution.

Following various discussions with companies, public authorities, and experts in the circular economy, we plan to focus our actions on the following sectors:

 The construction sector because it is the largest producer of waste, which could be easily reused or recycled in most cases. In the region, we have various players who offer digital solutions in response to this problem and the public authorities have made it a priority. Inter-company data sharing will be the key, but the difficulty will lie in the digital maturity of the building industry, which is low.

 The textile sector because it is under pressure from consumers and public authorities to restructure. The traceability of manufacturing operations will enable this industry to show its real impact on the environment and to stand out from textile manufacturers outside Europe. This traceability should also enable them to ensure a better quality of the products manufactured. Manufacturers are already engaged in a process of industry of the future and therefore are digitally mature.

 The agri-food and the bio-economy sector that are being driven to look for solutions to make the supply chain more resilient, transparent, and green. The packaging also raises questions. Perhaps digital printing could help to consume fewer resources. The reuse that can be made of the waste from these industries to make biofuel or other products could be processed by certain digital technologies (sensors, artificial intelligence, etc.). Digital technologies can improve yields by optimizing material flows to these processing industries or their industrial processes. This is one of the most dynamic sectors in term of innovation and acceptance by the public.

The other sectors targeted by the S3 in Grand Est also present certain indicators that support the possibility of intervention (see Figure 3).

The energy sector could also be targeted as we have different actors in the region working on smart city issues where digital technologies are on the front line.

Innovation in the health sector is strongly driven by the digital transformation. Therefore, the digital maturity of the sector would be an extraordinary basis for large-scale pilot actions, but current innovations rarely have circular economy objectives. It is only recently that the problems of resilience have been revealed by the COVID 19 crisis and that digital optimization of resources has become a prevalent interest. But regulatory complexity suggests that digital transformation projects in this sector cannot be carried out within the time frame of the Circular 4.0 project.

In the mobility sector, various initiatives proposing the use of digital technologies have been identified to optimize multimodality and the use of energy resources. The problem seems to lie more in the implementation of public-private agreements than in digital technology.

When it comes to the selection of sectors to be supported, the digital technologies that can be put in place to deal with the problems and the barriers to their adoption are to be taken into account to prioritize actions.

The question of sector selection may not be critical because the same technology such as blockchain can be used in different sectors to solve the same problem or several problems such as traceability in the textile and agri-food industry. Other examples are:

- (metal) goods manufacturing: additive manufacturing, automation of repairs - Water and energy: smart metering, network monitoring for leaks etc.

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Figure 3 - Smart Specialisation Sectors (S3) in Grand Est and targeting

Italy, Piedmont Packaging, Construction and buildings, Food, water and nutrients (Agrifood), Textile but also manufacturing (including machines and industrial factories, agriculture machines, Automotive and ICT) and Wood

From an analysis of 1850 manufacturing companies in the Piedmont territory, 43% do not know about circular economy, and about 7% of companies follow the principles of Circular Economy, 3% partially. These numbers are provided only to have a general idea, yet, are not precise.

Ecodesign is a relevant topic for the region: construct new products that are circular. Packaging is a hot topic in the region, but also Food when talking about Circular Economy. Novamont is the most known pioneer of the region that produce a new bioplastic1

Related to manufacturing companies, the use of recycled materials is of about 25% of companies, an additional 15% of companies think to use recycled materials in the future.

Recycling is a mature topic on manufacturing companies in Piedmont. Companies in Piedmont are more aware about this topic than other topics related with Circular Economy. A high percentage of companies try to reduce waste and manage material resources efficiently. There are gaps (some kinds of waste is difficult to manage also administrative task can be facilitated).

Challenges are within digitalization for Circular Economy: Traceability can help, but costs are still high. Produce and use products that can be upgradable, most electronic are non-upgradable by design. New electronic must be designed to have a longer live. Digital topic is a not so common topic when talking about Circular Economy, still interesting, but there isn’t much awareness. Digital can be considered for designing new products. Digitalization can be useful for Share knowledge, better management of logistics. To provide economic instruments for companies to be able to apply in their industrial reality.

In Piedmont we have identified the following sectors as those relevant for digitalization actions towards CE: Packaging, Construction and buildings, Food, water and nutrients (Agrifood), Textile but also manufacturing (including machines and industrial factories, agriculture machines, Automotive and ICT) and Wood. Most of these sectors are also S3 regional sectors.

Forest-based value chains: forests cover a significant portion of Piedmont territory, and this has increased in the last decades due to the abandonment of the mountain areas and the consequent invasion by spontaneous vegetation. Local woods are an untapped resource but are unfortunately no longer managed and they have ceased to be source of income. Opportunities for economic exploitation reside in energy, furniture, and structural application supply chains, with digitalization supporting chain of custody system for certification of sustainable

1 https://www.novamont.com

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management, claim of low embodied energy/ local wood. Impact on the territory would be significant as managed forests would lower the hydrogeological and fire risks.

Germany, Baden-Württemberg Mobility, Industry 4.0 & Construction sector

The selected sectors for the actor mapping and SWOT analyses of Baden Württemberg are Mobility, Industry 4.0 (Circularity in production processes) and the construction sector. These sectors have long standing traditions and represent a relevant size in Baden Württemberg. We also considered the fact that these industries are all highlighted by the EU Commission as being of relevance due to their impacts concerning Circular Economy (EU CE Plan). Additionally, the construction sector was also chosen in order to capitalize on synergies with the two other working groups on circular design and value recovery, which focus this sector, too.

The city of Freiburg can be highlighted as a great example, which, has had a Circular Economy Strategy for over 30 years (Stadt Freiburg im Breisgau, 2020), however a lot of the discourse around Circular Economy is still strongly focused on waste management. “In Germany, waste prevention and waste disposal are governed primarily by the new "Closed Substance Cycle Act". Whereas the focus was previously on waste disposal, today the overriding principle is the responsibility of the economy and of consumers for the production and efficient recycling of waste as a resource and the recirculation of material.” (Ministery of the Environment, Climate Protection and the Energy Sector Baden-Württemberg, 2021) The State Government aims to make Baden- Württemberg a pioneer of sustainable mobility by enhancing public transport and supporting the development of green automotive technologies, in particular electromobility.

Regarding the Digital Strategy in Baden Württemberg, The Federal Environment Ministry (BMU) launched the Digital Policy Agenda for the Environment to ensure digitalization benefits the environment, climate and nature. The Agenda defines strategic principles and targets and comprises over 70 measures, many of which are already underway, some which are being initiated and others which are in the development stages. Furthermore, as stated in the Digital Strategy of the state of Baden Württemberg, (Ministerium für Inneres, Digitalisierung und Migration Baden-Württemberg, 2020) digitalization is seen connected with driving innovation and sustainability. Baden- Württemberg is striving to become a leading region for smart, resource-saving and climate-friendly technologies and through Digitization there has also been a rise in social innovations such as the sharing economy. This has great potential within mobility and optimizing the use of resources. (Ministerium für Inneres, Digitalisierung und Migration Baden-Württemberg, 2020)

Furthermore, Industry 4.0 was chosen the state government is striving to make Baden-Württemberg a leader in Industry 4.0 and artificial intelligence. Through an initiative of the Ministry of Economic Affairs, the Alliance Industry 4.0 Baden-Württemberg has been established, which networks all key players in the state. “Since its founding in 2015, the alliance has established itself in Baden-Württemberg as a platform for the topic of Industry 4.0. Today, the network has more than 50 partners from industry, applied research, associations, chambers and social partners” (Ministry of economics labor and housing Baden Württemberg, 2021). bwcon GmbH is also a part of this initiative

Slovenia Food, wood processing, manufacturing, mobility and construction

Slovenia has adopted a National Circular Economy Roadmap already in 2018 and has since than been amended every year. The key priority industry areas identified also in the framework of the Development Strategy till 2030, Strategy of smart specialization, National energy and climate plan, Resolution on the National environmental protection, Long terms climate strategy and Strategy of the spatial planning until 2050 are: - food, - wood processing, - manufacturing, - mobility and - construction.

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Plastics value chains (as a Transnational Working Group selected area – so called umbrella of all sectors) therefore cannot be treated as a separate sector in Slovenian circular economy eco system but rather considered as material used in many priority sectoral industries.

The Roadmap defines needed system changes from gradual (financing projects, dispersed actions often associated with technological changes) to transformative (financing the portfolio of projects, portfolio of interconnected innovative projects, recognizing measures for transformative changes).

The Government of the Republic of Slovenia is currently preparing also a national transformation plan is a partnership between the various governmental ministries that collaborate with the Climate KIC EIT, EIT Raw Materials and Joint Research Center.

The main idea of the plan for transformation is to set up a Center for smart transitioning into circular economy based on 3 pillars:

- By creating circular schools, leaning about circular and resources, circular synergies;

- Strengthening circular development (process of circular discovery, monitoring efficiency, support to circular innovations in SME’s;

- Development of the circular policies (laboratory of transition policies, circular procurements, circular high school education);

Expected impacts during 2020-2023 are focusing on 5 key areas of industry, activating 200 local municipalities and 1000 companies, producing 120 new products and services for market use, 12 action plans, and circular start-ups will be incentivized with 25 million EUR.

A transformation of the value chains is foreseen also in order to reach the sustainability goals in relation to the global climate change towards Zero CO2 emission. Some of the objectives of the transformation of industries are:

- In wood-forestry value chain: increase export value of wood/forestry sector by increased market share and decrease of CO2. - In construction/building strengthening of innovations to better connect, spatial planning and circular building. CO2 retention because of building with wood. - In mobility reduction of traffic jams, shortening travelling time, wider use of public transportation. - In manufacturing industry reuse of materials, replacing fossil fuels and reduction of use of raw materials. - In low carbon food production reducing production of food ingredients, multiple supply of foods are foreseen.

Another reason for selecting sectors and industries of the national/regional interest is a company base in the scope of Slovenia’s regional specialization as they are all involved with the Circular economy in Slovenia (in regional specialization strategies there are companies with largest investments in R&D). All five sectors are represented in Slovenia’s Strategic Research Innovation Partnerships (SRIP’s) where value chains are formed around wood- forestry chain, construction/building, mobility, manufacturing i.e. industry 4.0 Factories of the future and circular economy and food production.

Additional base for selecting multiple sectors of industries from Slovenia is a new Industrial Strategy 2021-2030 where digitalization and circular economy along with a creative sector represent a cornerstone of future industrial development in the country. The future industry development strategy is based on three pillars: green, creative and smart thus encompassing principles of circular economy, digitized industry and creative- design based production. It strongly addresses transition into a low carbon industry with assistance of digitalization and design- based principles.

Smart industry plan for the future also takes into account the National program for development and use of artificial intelligence of Slovenia until 2025 and industry 4.0 (r)evolution and digital transformation at the level of

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digitalization of products/services and new digital (smart) business models on one hand and digitalization of the business processes and production on the other hand (including cyber security).

Regarding digitalization Slovenia is part of the group of medium-performers2 among EU Member States. On the Digital Economy and Society Index (DESI), Slovenia ranks 16th in 20193. Slovenia has a quality and stable human capital. The level of innovation, especially in niche areas, is very high while major challenges are connected with broadband connectivity and take up of digital services by the Slovenian economy, especially SMEs. Slovenia is preparing an artificial intelligence strategy and a new digitalization strategy. Since November 2019 Slovenia hosts a UNESCO International Research Center for Artificial Intelligence at the Jožef Stefan Institute in Ljubljana.

 Slovenia adopted two strategies regarding digitizing industry. Digital Slovenia adopted in 2016 acts as a development strategy, setting guidelines for creating an information society by 20204. The guidelines with set measures are then concretized in the Smart Specialization Strategy, in which Slovenia identified its priority areas for future investment. A new digitalization strategy is under preparation and will address key priority areas such as:

 Gigabite infrastructure  Data economy  Artificial intelligence  Cyber security  Digital public administration  E-inclusiveness of society

Digital economy in Slovenia represents only 5% of GDP and has 0.5% estimated annual growth. Slovenia has a good base for growth as it is estimated that growth of digital economy could be significantly increased for about 2.5% until 2025 i.e., for 2.1 billion. While public sector is well digitized small and medium size companies do not invest in digitalization as general view is to invest more into equipment and work/production space and less into new business models supported by digitalization. This is not the case with bigger companies that are well aware of the digitalization needs and importance of digitalization.

Digital Innovation Hub in Slovenia states awareness of the data as economic potentials, automatization of business and digital culture of companies are amongst the biggest motivators of digitalization in Slovenia. Digitalization is supported by some national instruments such as the vouchers for digitalization for rising digital competences in companies. Digitalization is in particularly lacking in the major industrial sectors where human capital will be mostly affected due to automation in the future. Government is making some measures to address new needed skills i.e. technology related skills as well as social skills.

2 Medium-performing countries are Spain, Austria, Malta, Lithuania, Germany, Slovenia, Portugal, Czech Republic, France and Latvia. Based on Digital Single Market report 2018. 3 https://ec.europa.eu/digital-single-market/en/scoreboard/slovenia 4 https://www.gov.si/assets/ministrstva/MJU/DID/Digital-Slovenia-2020-Development-Strategy-for-the-Information-Society-until- 2020.pdf

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Slovenia scores above EU average in math and digital skills in younger population with well-developed digital infrastructure (96% of population has access to 4G network infrastructure) comparable with most digitized regions in EU. It needs to be pointed out that digitalization often gets confused with industry 4.0, factories of the future and smart factories and key enabling technologies are often misunderstood concepts as well.

There are national but also private investment plans made by many companies from selected areas in the region. Their aim is to accelerate digital transformation by investing more into broader set of technologies (that reach beyond traditional back office technologies), into business process re-engineering and optimization. Opening new business models and ways of doing business, redesigning organizational structures and organizational culture, increase efficiency of entire organization and addressing higher risks with digital transformation as they entails changes across organizations (people, processes and technological aspects of organizations) are identified as the core actions in the near future with regards to Slovenia’s digitalization.

Recently published productivity report in Slovenia 2020 identified digitalization also as the key factor to boost country industry productivity level. The measure include bigger investment into digital technologies, digital knowledge, investments in R&D related to digitalization and organizational transformation of business models based on digitalization. 5

Italy, Veneto Smart Manufacturing, Food Industry and Food Waste, Energy, Waste Management, Construction, Plastics/Packaging

Following the discussions held during the initial meetings of TWG Optimal Use Model and to the input given by the experts involved, the attention of our Region focused on the Construction sector.

The building and construction sector is identified within RIS3 as one of the leading sectors of the Veneto industry. The sector obviously includes the construction sector, which with its 49,692 businesses (2015) and a number of employees equal to 127,000 represents 12% of the regional economy. Moreover, the sector purchases goods and services from about 90% of the other economic sectors (31 sectors out of 35 are construction suppliers): in particular, there is a strong interconnection with the manufacturing sector of components, accessories and systems (wood, furniture, furnishings, plant engineering, air conditioning machines, lighting, textiles, building components, tiles, taps, etc.).

Needless to say, the impact of the sector in terms of waste generated and resource consumption is very high. The current and future market scenarios outline interesting development opportunities within which it will be possible to operate only with high technological, organizational and financial skills, reachable thanks to investments in research, development and technology transfer. Within this framework the circular approach could become a great asset for the global development of the sector.

General Landscape This section gives an introduction to the general landscape of each region and its current status of Circular Economy and Digitalization focusing on the chosen sectors and optimal use business models.

France, Grand Est Textile sector, construction sector & agri-food/bioeconomy sector

As France’s first European and cross-border region, the strategic positioning of the region in the heart of Europe gives it a special vocation and role. In addition to its more than 700 km of borders shared with 4 countries, including the entire French-German border, its 162,000 border workers (45% of France’s border workers), and its long-standing and proven practice due to the use of the neighbor’s language, the Great East benefits from the proximity of the great European backbone which, from London to with its 70 million inhabitants, is the political and economic center of Europe.

5Productivity Report 2020, Umar: https://www.umar.gov.si/fileadmin/user_upload/publikacije/Porocilo_o_produktivnosti/2020/slovenski/POP2020.pdf

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It has a solid ecosystem of higher education, research, and innovation, with recognized quality and skills, widely open to international, high-performance, dynamic, and articulated with the industrial ecosystem. A region with a strong industrial tradition, today it is the 2nd industrial region in France (outside Ile de France), with strong specificities in many sectors, in the automotive, energy, food-processing, textiles, as well as one of France’s leading agricultural, wine-growing and forestry regions.

One of the great strengths of the region lies in its inhabitants, its youth, its know-how and the quality of its workforce. In recent years, the region has executed ambitious strategic plans in the manner of its regional plan for economic, innovation and internationalization development (SRDEII), its regional plan for planning, sustainable development, and territorial equality (SRADDET), and soon its regional plan for higher education research and innovation (SRESRI).

Région Grand Est SRDEII

The region has 6 main challenges to take up: The Industry of the future, Innovation, International opening, Territorial synergies, Efficiency of public action and Business Financing. Thus, the region has established 6 strategies to its competences: economic development, youth, high school, international and cross-border relations, transport and travel, commitment and citizenship, innovation, higher education and research, environment, spatial planning, tourism, culture, sport, vocational training, agriculture and forestry. Among them, the most important is the Regional Plan for Economic Development, Innovation and Internationalization called Be EST.

Be EST provides a set of ambitious and adapted tools at the service of companies to make the economy of the Greater East a proactive, innovative economy, ready to take up and anticipate the new challenges of the 4th industrial revolution. It’s the blueprint that provides the regional line for innovation. It’s built around 6 objectives, 7 strategic orientations and 27 priority actions. The 7 strategic orientations are divided as follows:

 Industry of the future: Boost innovation and economic transition towards the industry 4.0 economy, to become a European leader for Factories of the Future and the bioeconomy sector.  Innovation: Foster innovation by pooling several related mechanisms: increasing private investments in R&D, increasing collaboration between private companies, public institutions, and users, and increasing the number of start-ups.  International growth: Help SMEs grow internationally by supporting company export strategies  Attractiveness: Boost cross border economic relations to increase the territorial attractiveness and bring in more FDI  Territorial synergies: Ensure that innovation occurs throughout the territory by enabling territorial synergies, notably between rural and urban areas  Effectiveness of public action: Reinforce the region’s role as an innovation leader, to structure networks and increase public involvement in innovation  Financial engineering: Create innovative funding solutions to assist the development of SMEs (European Commission , 2020)

SRDE-II is oriented towards innovation, in the choice of sectors or fields with high innovation potential, such as the industry of the future or the bio-economy (Orientation 1), and in the desire to increase private investment in R&D and innovation, in particular by developing links between the various players but also by increasing the number of start-ups (Orientation 2).

The region also faces the impact of the digitalization on the industry. Therefore, the region has launched several supporting activities e.g. a plan to detect and assist companies that would like to audit their activities impacted by the transition towards Industry 4.0, support programs to foster investment (AMI Industry of the Future) or to strength relationships between traditional industries, digital industries and RTD performers (AMI Digital) trough collaborative programs.

The objectives of Frances’ Digital Agenda (e.g. development of high-speed broadband, support R&I on Internet of Things (IoT), robotics and additive manufacturing etc.) are implemented through specific support programs e.g. French Tech is an accreditation awarded to French cities recognized for their digital ecosystem. Its philosophy is to build on member initiatives of the French Tech themselves, highlight what already exists and create a snowball

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effect. It is a shared ambition, propelled by the State but carried and built with all the actors of the French tech and start-up scene. One of the French Tech networks is focused on IoT and Factory of the future.

In Grand Est, there exist two important initiatives in the frame of this program:

 LornTech: An entrepreneurial collective, dynamic in the Sillon Lorrain, an association of entrepreneurs for Entrepreneurs. French Tech Label obtained in June 2015.  French Tech Alsace: A collective initiative led by the “Strasbourg Colmar Mulhouse “Metropolitan Hub, aimed at encouraging, promoting, and accelerating start-ups and federating the entire innovation ecosystem in Alsace. It joined the French Tech as a regional ecosystem in June 2015 in the field of Health (Biotech and MedTech).

Related to the topic of Responsible Research & Innovation, it is necessary to mention the French Tech Tremplin program. The objective of this program is to facilitate inclusion of entrepreneurs, which have not the network and the facilities of most favored people. The program includes mentoring from successful entrepreneurs (French Tech 2020, 2020)

Frances’ Digital Agenda also includes the “Industry of the Future program”. Its goal is to modernize France’s production tools and provide support for manufacturers as the digital changeover transforms their business models. The New Industrial France program is based on the nine following industrial solutions that provide real- world responses to key economic and social challenges: data economy, smart objects, digital trust, smart food production, new resources, sustainable cities, eco-mobility, and medicine of the future and transport of tomorrow. Further actions taken concerning the Digital Agenda include “The Industry of the Future Alliance”, PIA (a French national investment plan), digital Inclusion and extending digital infrastructure (L’Agence du numérique 2018, 2020)(L’Agence du numérique 2018, 2020a, 2020b).

Since 2016, Region Grand Est implements an ambitious strategy to foster digitalization of the industry but also the agriculture (Strategic plans industry of the future and farm of the future). More than 600 companies were audited to access their digital maturity and identify actions to be implemented to integrate state of the art technologies adapted to the specific needs of the companies (objective to assist 1000 companies in three years). Grand E-nov as regional innovation agency has integrated competencies coming from the industry to provide assistance to the implementation of action plans. Specific funding programs dedicated to investment or collaborative projects between technology providers and companies from traditional industrial areas were set up since 2016 (Grand Est 2020a, 2020)(Lifelong learning is also key to foster digitalization in companies. The Region Grand Est has signed a partnership with Syntec Numérique (National association of the digital industry) and the regional innovation agency, Grand E-nov to implement actions on the topic (Grand Est 2019a, 2020)

Specific policies in the region have been implemented e.g. on Artificial Intelligence (AI) to boost competitiveness of enterprises using AI and to promote and sustain academic excellence on the topic and foster valorization of research works. This regional plan is open to international cooperation especially with partners coming from Germany, Switzerland, Belgium, and Luxembourg. The next step is to set up a virtual institute focused on digital that will integrate other topics as cybersecurity, HPC, IoT, Blockchain, etc., connecting to other transition aspects as energy saving and environmental protection, activities on Green IT will be developed. The funding of the activities of the Institute will be a mix between public (regional, national and European programs) and private funding (Grand Est 2019b, 2020)

Other regional or local stakeholders’ programs on digitalization are:

 Chamber of Commerce of Grand Est: Increase offer of solutions for digitalization  Clusters Alsace Digital and Rhenatic: Industry Hacking camp  Private Innovation Platform 4iTEC 4.0  Metropolitan area of Strasbourg: Tango & Scan Local initiative with annual call for proposals

Expansion of the digital infrastructure is also a priority goal of the region Grand Est. The objective is to ensure a minimum of 30 Megabits per second broadband in all the points of the region Grand Est in 2023. This project is strongly supported (300 million euros) by the European Bank of Investment (Juncker plan). Thanks to the

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investment of the Grand Est Region, in addition to the private operators, 5132 municipalities will be connected to the THD by 2020 (Grand Est 2020b, 2020)

Digitalization in the education system has been pushed forward with the program: lycée 4.0. Much more than a digital book, a set of tools and resources have been made available to students and teachers in schools, at home or accessible on a laptop. The Grand Est region is the first region in France to have made this ambitious choice of educational digital technology in order to offer each high school student in the Grand Est modern working conditions, meeting today's educational challenges and helping to facilitate their professional integration (Grand Est 2020c, 2020).

SRADDET - Grand Est Region

The sector of major importance in the Grand Est are metallurgy and mechanics, food processing, wood and forests, chemistry, plastics, health, and biotechnologies. The analysis of the industrial sectors (or activity sectors) was however difficult because of a lack of reliable data on the Grand Est. Aside from a few cases, where national issues have been identified and broadcasted (food waste) or even inscribed in law (the TE law which imposes a 70% recycling rate for construction industry in 2020), the studied sectors point out that the circular economy issues still remain around waste management and recycling. It is especially the case for the sectors consuming raw materials the most (metallurgy, plastics, etc.…) as well as energy efficiency for the most-energy intensive (chemical, agri-food industry).

The situation is much better documented and a strong potential for valorization is accessible concerning energy efficiency and notably fatal energy: 16% of fuel consumption in industry (i.e. 51 TWh) is rejected in the form of fatal heat superior 100°C, including 8.6 TWh in the Grand Est (17% of the national potential). The ¾ of the deposit concern the chemical-plastics, non-metallic materials (glass, cement), food-processing and metals (steel industry), being the four great activity sectors strongly represented in our region.

For the major activity sectors for the region, the goal is to identify priority actions and leverage effects to the economic actors (particularly the professional organizations that often steer these reflections). The current state of knowledge and initiatives in the region of Grand Est can best be described along the seven pillars of Circular Economy.

1. Sustainable supply

It consists of exploiting and/or extracting resources while limiting their impacts on the environment and the as well as the waste production as much for renewable resources as non-renewable. Within this pillar of circular economy, we meet again particularly the producers of raw material cultivated in organic agriculture, producers of raw materials from bio-sourced materials (e.g. wood, straw, hemp) and producers of raw materials using waste.

 For Food Raw Materials: o Agricultural products exported in majority (e.g. 87% of the cereals produced in Lorraine are exported without being processed) o An agro-food industry in 4th national place (1st place on value added) but which does not mainly source local raw materials. o Local distribution channels insufficiently developed but that presents real potential of development and farm diversification  For Bio-sourced Materials: o A timber construction sector with a strong presence in Alsace and Lorraine. The Grand Est is the 4th French region in terms of forestry activity. The sector is also the 4th employer of the region with 2 200 companies and more than 12 000 employees. o Several straw construction realizations o 1st French region for hemp production: about 5350 ha (around 95% in Champagne Ardennes, i.e. 50% European surfaces of hemp are cultivated in France of which ¾ are in Champagne Ardennes) o A production of interesting Miscanthus: 90 ha in Alsace, 12,5 ha in Champagne Ardennes.  For Waste: o Recycled materials (2,5 million of metric tons) represent 4,4 % percent of direct entry of materials (AFME 2015).

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2. Eco-Design

Public support is offered for companies in our region to develop their eco-design approach (e.g. a personalized support of around 5 days proposed by CCI Alsace for companies). Another support service is also offered to companies through the package of ADEME „very small business, small and medium size business (SME) winning on all costs". At the moment 34 companies are engaged in the eco-design in Grand Est region, whose the majority are the companies of construction and textile (e.g. Stellcase, Kermel), and 80 firms are ongoing in sensibilization, support or training (CCI Alsace Eurométropole 2020)

3. The functionality economy

It consists to commercialize the function(s) of a good instead to commercialize the good (e.g. to sell mobility instead of a vehicle, the washing of 2000 t laundries instead of a washer…). A collective operation ongoing aims to support about 12 companies of the territory to re-question, in a strategic level, their economic model and to study the potential of a swing towards a functionality economy. Besides, 19 firms are selected among the list of adherents in the association “Centre des Jeunes Dirigeants” (CJD) Alsace and ideas Alsace (e.g. the Casterot Office, ALTODIS, ADRENE, De Tuiles Et De Bois). The objective is to allow these firms the integration and the good appropriation of concepts and methods offered by the EFC.

4. The industrial and territorial ecology

Based on systematic approach, it is an operational process that inspires from natural ecosystems to tend toward an optimal substances and energy management. It aims to identify and create industrial synergies. This approach allows thus to institute partnership relations et to encourage the exchanges among economic and industrial actors while favoring the local economic development and the account taking of environmental issues. E.g., the waste and co-products of an activity can become a resource for another activity. That is to say, the firms can reuse their production residuals (vapors, co-products, exhaust gas, effluent, waste…) among themselves or/ with the collectives, and thus to limit the pollution, the resources abstraction, the waste production and the energy consumption. Pooling can also make it possible to rationalize the supply and processing of certain flows or even the materials use (boiler, tools, etc.) or infrastructure (car park, warehouse, etc.). In other words, the consumption of the same product and the pooling of their needs can allow to reduce supply costs (rationalization of transport linked to delivery, pooling of a production, etc.). In practice, when VSEs and SMEs are involved in industrial ecology initiatives, the pooling of certain skills is often the object of synergies (employers' groups, etc.). The industrial activity zone is the most favorable scale for the development of industrial ecology approaches, but it is not always suitable and the number of approaches in France goes beyond the "area" framework. The Grand Est region is home to 19 industrial and territorial ecology initiatives. With 9 new initiatives since 2016, the territory has strongly boosted these initiatives in recent years (3 initiatives exist for more than 10 years).

5. Responsible consumption

Public purchase: The Grand Est Region consider its commitment to the elaboration and implementation of a development scheme for socially and ecologically responsible purchasing (ORCHIDEE approach) as a priority. It wishes more for supporting local employment that cannot be relocated, VSE-SMEs and local craft businesses that create jobs, while having specific attention for the integration through economic activity, short circuits in the proximity and sustainable development. The region wants to develop the local economy through a better knowledge of the local economic fabric in proximity and a better dissemination of information to SMEs/VSEs (There are 28 commitments in 3 main categories, being the social aspect (development of integration clauses, allotment), the ecological aspect (performance and environmental impact of public procurement) and the economic aspect (local consumption).

Private purchase (firms): Three internet portals proposed to professionals and individuals, seek to bring a social and/or environmental dimension to their purchases while respecting the logic of economic efficiency (nearly 500 actors are referenced in the 3 regions).

6. Extending the length of use

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In Grand Est there is a significant development in the second-hand market for recent years thanks to specialized websites such as LeBoinCoin (2,251,231 advertisements for active offers in Grand Est Region in January 2018, i.e., 0.40 offers/inhabitant, a higher number than the national average (0.22 offers/inhabitant)). Reuse and Repair structures also exist in the region of Grand Est. 365 reuse and re-use physical structures (including 213 companies and craftsmen and 152 associations), 3 structures that are adherents in the resources- recycling center network, 28 Emmaus sites and 13 other structures have been counted. Additionally, 16 Repair-café shops in the Grand Est region, a network of Repair-actors in Meurthe-et-Moselle, 42 Repair-actors and 20 repairers identified and a testing currently in process in Alsace. CRESS Grand Est also lists a dozen repair actors in its directory.

7. Recycling

In 2017, the region has 17 operational sorting centers for sorting recyclables. It is difficult today to know the local use of materials at the regional level, but despite everything the analysis of Lorraine's metabolism had estimated the use of recycled materials at around 1.8 Mt, i.e. 2% of the material mobilized by the socio-economic system (Source AFM). The development of this pillar is studied within the framework of the Waste Prevention and Management Plan. In total, more than 260 initiatives have been listed (including the 42 Repair- actors).

The existing structures lead us to the development of seven possible pilot actions. Those are displayed in the blueprint below with the thematic and partnerships in Grand Est Region.

Figure 1 - 7 possible pilot actions with the thematic and partnerships in Grand Est Region

The question of the mobilizable financing to accompany the transition to a circular economy is crucial. This financial support may concern necessary technical supports for project implementation, innovations, business creation or investment aid for industrial project. We can identify different support at Regional, National and European Level.

At regional level, the State-ADEME-Region partnership & specifically the Climaxion Program offers technical support, financial aid & regional animation implemented with a network of partners in favour of the energy transition & circular economy. The region’s financial commitment within the scope of CPER for the circular economy amounts to 12 million euros for the period 2017-2020. Its objectives are to develop a regional strategy

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around the circular economy with all the concerned actors, steer companies towards the eco-design of goods and services, and clean production as well as giving priority to the prevention of waste otherwise favor their valorisation in resource. Actions implemented in accordance with this program were e.g. training programs, organization of actors’ network encouraging the maximum of firms to enter into circular economy approaches as well as several supporting plans for economic development permitting to accompany the firm’s evolution toward the economic model of the circular economy (e.g. AMI Modernization of SMB, counselling help, support for social utility companies (ESS in French).

At national level, the ADEME disposes an aid panel (mobilized by the regional directives) which can be mobilized to support projects or initiatives related to the circular economy. They include support for realization e.g. support for decision-making (diagnosis of projects to reduce loss in energy, material, waste and water), support for knowledge e.g. research projects with “general character” (including benchmarking, forecasts, development of tools, method or assessment etch) as well as support for behavioral change e.g. communication programs & trainings.

At European level, a circular economy support portal has been developed in partnership with CCI France, PEXE and the actors of circular economy to support providers and future users to best meet the company’s needs (Ministère de la Transition écologique et solidaire 2020, 2020)

For the road ahead concerning Circular Economy, the Regional Plan of Actions in favor of the Circular Economy (PRAEC) guides the way with five strategic axes displayed in the figure below.

Figure 2 - 5 strategic axis of the PRAEC

The 1st axis aims to ensure a shared governance, develop the communication/ sensibilization/ hosting about the circular economy issues, and emphasize the exemplarity of the Region in terms of circular economy. The 2nd axis aims to enrich material resources knowledge of the territory, know better the circular economy actors and practices to circulate them largely. The 3rd axis aims to accompany companies towards circular economy thanks to new production models linked with their financial and public partners, accompany companies towards new waste management models and accompany collectives and their relays to encourage and better deploy the circular economy. The 4th axis aims to develop the waste sectors as resources and the agricultural and food sectors as local distribution channel. The 5th axis aims to develop circular economy in heart of Research and Innovation and integrate circular economy in training courses.

The Grand Est region has suffered numerous impacts from the current COVID situation. The State and the region developed a recovery plan, named a “Business Act Post-COVID-19” by associating all the vital forces of the territory. The Business Act Grand-Est is a co-construction approach which proposes an economic and societal model that tends to rebuild public policies in terms of economy, ecology and digital. Its objective is to help the region recover from the crisis, to build the Greater East of tomorrow to re-boost the confidence and health of businesses and to position the region as a proactive leader in the recovery. It focuses on three challenges which are drivers of change and constitutes a new approach to create added value in the region. The plan tackles three main challenges: the ecological challenge, the digital challenge and the challenge of the Industry 5.0 (Industry 4.0 augmented by man and ecology) by investing in and financing of ecological, digital and industrial transformation

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projects, supporting companies in their path of energy transition, environmental and circular economy, digitalization and transformation path towards the Industry 5.0 via a “Dedicated Institute” for each challenge and supporting emerging markets of low carbon transition and accompanying industrial reconversion accordingly (e.g. electromobility, hydrogen, etc.…). In its approach, the Greater East relies both on a strategy of specialization on the base of its local know-hows, but also on a positioning on priority sectors to develop some recognized fields of expertise and thus generate economic activity, through the creation of new industrial sectors and an ecosystem of innovative SMEs.

Even though the previous selection of business sectors was based on SRDEII, SRADDET and the degree of sectors’ digital maturity, this recovery plan fully supports the vision of the accompanying we had established. The plans are therefore aligned.

Germany, Baden-Württemberg Mobility, Industry 4.0 & Construction

When it comes to selecting the sectors to be supported, digital technologies can utilized in many different ways in order to create business models- within the optimal use framework. Furthermore, with Optimal Use Models it is important to focus on and address the service providers that implement the digital business models. Sharing Platforms, Digital Tools and Online Services, as well as Cradle to Cradle Approaches play important roles here.

In narrowing down the sectors, Mobility, Industry 4.0 and Construction has been highlighted as this region is very strong in these areas.

The Automotive industry in Baden Württemberg is extremely important but it could be harder to find SME front runners in this field. From an-economic view it’s important to include this for the area,

In the realm of Industry 4.0 there is a lot of potential for optimal use business models and the Digital Strategies of Baden Württemberg place strong emphasize on the development of this arena. Furthermore, there are several SMEs in the area in this field.

Regarding Construction in terms of Optimal Use it’s better to look at how can buildings be designed for a flexible use. Water management in relationship to construction could be an interesting overlap. We have an excellent Frontrunner here in Baden Württemberg, Lorenz Meters who highlight Resource efficiency and circularity in both economic and ecological ways: After operation the measuring devices are taken back in order to be returned to the production cycle after disassembly and reprocessing. Resource efficiency and environmental protection thus become a competitive advantage for these quality water meters Made in Germany.6

In Germany the construction industry acts mainly regionally and locally (apart from some large international companies) and is rather conservative. The increasing application of new electric technologies in smart buildings and higher energy standards are often high-tech based. Although they are aiming for more energy efficiency, they may present a challenge for recycling at the end of the life span in 30 to 100 years when it comes to demolition. Approaches like material and building pass or BIM (Building information system) can already help to reduce problems and costs at later stages.

Compared to centuries ago, construction material these days contain more and more composite materials. The mixtures of concrete, bricks, ceramic need to be separated from non-mineral fractions. Especially, thermal insulation composite materials present a challenge for recycling companies as well as harmful substances in construction materials (e.g. wood with finish) and fibre concrete. The complexity of construction waste requires new technologies and innovative solutions. These include technologies for re-construction, separation, sorting, quality control and analytics of the construction material (Bayern Innovativ 2019, 2020)

Pioneers in sustainable construction and circular economy thinking in the construction sector in Germany is the DGNB (Deutsche Gesellschaft für nachhaltiges Bauen – German Association for Sustainable Construction)7, with its extensive guidelines and certification systems on sustainable construction but also deconstruction, as well as

6 Lorenz Meters | Wasserzähler vom Fachmann aus Deutschland (lorenz-meters.de) 7 Circular Economy | DGNB

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some start-ups as “Concular” or “Restado”, trying to bridge gaps between deconstruction and new construction by digital solutions (digital platforms, digital inventory recording) for the first time enabling the use of existing buildings as urban mines.8

The question of sector selection may however not be viewed as set in stone, because digital technologies such as blockchain and AI be applied in several different ways, particularly within Mobility, Manufacturing/Industry 4.0 and Construction and this allows for several overlaps within sectors and business models.

Slovenia Food, wood processing, manufacturing, mobility and construction

It is important to note, that within Circular Economy, the three Models are interconnected and should not be treated separately. Issues concerning a value-chain, or an industry sector are very interrelated

Plastics

I. A methodological dilemma: a sector or a material tackling many sectors?

In December 2015, the European Commission adopted its first EU Action Plan for a circular economy. There, it identified plastics as a key priority and committed itself to ‘prepare a strategy addressing the challenges posed by plastics throughout the value chain and taking into account their entire life-cycle. A European Strategy for Plastics in a Circular Economy, presented in January 2018, set the ambition for the EU to lead the transition to the use and reuse of plastics of the future.

From this perspective a focus on plastics entails several industries, including plastics and rubber as such, including nylon producers. It furthermore entails all manufacturing industry, since plastics producers most often relate to other manufacturing firms as suppliers, service providers and buyers.

An important aspect of the use of plastics are clothing (textiles) and packaging. Therefore, other industries are directly tackled, including textile industry, agriculture, food processing industry, logistics and retail, and those industries providing materials which can act as substitutes for single-use plastics are also tackled, such as wood processing industry and paper and pulp industry.

Given the overwhelming effects that single-use plastics and plastics in globally – and in the EU - has on excavation, CO2 emissions and the accumulation of waste, the leveraging effects that the EU (and the World) can achieve by promoting recycling, substitution of single-use plastics with alternative materials, or bio-degradable or compostable plastic materials, nonetheless by promoting and accelerating circular practices, all this laid upon the EU Strategy for Plastics in a Circular Economy, this focus area is very well chosen for the project. However, it can only be tackled when taking into consideration a cross-sectorial approach in the same way in which it is tackled in the very EU Strategy for plastics.

From this standpoint key issues are collected concerning plastics in the table below. These issues are analysed from the perspective of (potential) circular business model transformation along all three business model types: circular design, circular use and circular recovery.

Table 1: Key issues concerning plastics in the Alpine Space, the case of Slovenia (SWOT)

Issues Circular Design Optimal Use Value Recovery Models

Use and recycling of Consumer preference for High awareness and High awareness and plastics durable products, less participation by citizens, participation by citizens, plastics (O) consumers (O) consumers, important innovative initiatives by

8 Circular Economy | DGNB

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producers, cities and retailers (S)

Strong internationalised Capacity to adapt to Capacity to work on More efforts needed to connected and adaptable alternative materials (S) durability (S) close the loops (O) sector of plastics producers

Excellent front-runners Plastika Skaza, a circular Valtex, used beverage with global relevance firm in durable and cartons recovery for reusable plastics (S) Lucart Group (S)

AquafilSLO championing reuse of nylon (S)

Slow application of the EU Limited new market for Limited incentives for Limited incentives to Strategy for plastics substitutes (W) market growth for deploy new technologies durable plastic products for recycling, reuse and Limited incentives for (T) production of products market growth for out of recovered plastic recycled plastics (T) materials (T)

Take-back possibilities for Limited incentives for Limited incentives for Limited incentives for producers are limited due market growth for market growth for the application of new to legislative obstacles reused or recycled reused or recycled (4.0) technologies and plastics (T) plastics (T) for market growth for reused or recycled plastics (W)

No regulatory bans of Limited incentives for Limited incentives for Limited incentives for single-use plastics in market growth for market growth for the application of packaging, bags in retail, alternative materials, alternative materials, technologies to recover or incentives to use durable or reusable durable or reusable plastic for durable or alternatives packaging (W) packaging (W) reusable packaging (W)

Problem concerning green public procurement! (W)

Recycling limited to Producers cannot Producers cannot take authorised waste exercise extended back their own products management firms, product liability (W, O) from consumers (W, O) limited license, no competition, no capacities

Use of plastics in retail Continuous waste No market for substitutes No market for substitutes creation (T) (bags, packaging, …) (W, (bags, packaging, …) (W, O) O)

Opportunities arising Substantial savings of from the transition to 4,0 materials, logistics and technologies time with additive manufacturing (3D printing etc.) (S, O)

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Tooling In Slovenia there are advanced tooling and moulding providers, a strong competitive advantage (S)

Alternative materials to A number of research Opportunities to plastics results available to substitute single-use substitute single-use plastics and plastics at all plastics and plastics at all with reusable and with reusable and biodegradable materials biodegradable materials (O) – New product development (S, O)

Italy, Veneto Smart Manufacturing, Food Industry and Food Waste, Energy, Waste Management, Construction, Plastics/Packaging

At regional level this sector need support in order to take advantage of the opportunities that come both from the digital transition and the circular approach. Even if many initiatives were implemented on the last years to support companies in the digital transition, this sector is still in need of external aid to boost a process that is not completely started.

Concerning the circular approach, the situation is even more difficult as the companies are, in most of the case, very far from the implementation of such an approach mainly because of their size, in fact many companies are very small and most of them are more focused on the day-by-day management than in improvements paths.

System Frame (visual SWOT Analysis of regions)

Creation of a visual SWOT analysis for every contributing region.

France, Grand Est Bioeconomy

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Further analysis of the bioeconomy sector:

Strengths:

- Opportunities for our agricultural and forest farms: Increases the competitiveness of our industries by providing sustainable solutions to today's environmental and societal challenges confronted

Weaknesses:

- In Grand Est, only 32% of waterway (compared to 43% nationally) are in good or very good ecological status and 70% of groundwater bodies are in poor chemical status, especially the three major fields. - Nearly 2/3 of greenhouse gas (GHG) emissions are of energy origin. - The share of emissions related to the energy sector is higher in the Grand Est than at the national level (13% compared to 9%) as well as those of the industrial sector (30% compared to 23%).

Opportunities:

- Opportunities for our agricultural and forest farms: Increases the competitiveness of our industries by providing sustainable solutions to today's environmental and societal challenges confronted

Being one of the 2 main pillars of the Grand Est economic development Plan (SRDEII), Bioeconomy is at the crossroads of several business sector which process biomass (Agriculture, forest, agro-food processes, bio-based chemicals, etc.…). It is:

- A new manner to see economy with respecting the environment - Based on the biomass production and mobilization for an optimal valuation. - Allows maximum use of abundant, renewable, and free energy: solar energy

The region has an important asset which is its excellence of the Industry of the Future and the know-how of agricultural, forestry and viticultural producers. Thus, it is important to give interest to bioeconomy because France can lean on its agricultural and forest resources to supply diversifying bioeconomy, offer then new openings to these primary sectors, and creating added value and employment. We have a great mobilization of actors in the Region Grand Est in bioeconomy.

Textile Industry

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Further analysis of the textile industry:

Strengths:

- Sustainable Innovations: HDR laser technology (reducing the amount of water used in the production of jeans (Spanish company Jeanologia) - Transformation of algae into ecological dyes and biofibre: releases antioxidants, vitamins and other nutrients that nourish the epidermis - Development of ecological shop concepts (by some retailers to reduce the carbon footprint while cutting energy costs: Starbucks)

Weaknesses:

- One of the most polluting and inefficient industries in the world (2nd place for fashion as the world’s most polluting industries, just behind the oil industry) - 1.2 billion tons of greenhouse gases are emitted worldwide each year by the textile sector, being more than air and sea transport gathered. - 4,900 billion litres of water used for dyeing - Low recycling (less than 1% of new clothes are eventually recycled)

Opportunities:

- Energy savings: about a third of companies reported cost savings from greenhouse gas emission reduction programs.

Threats:

- A major break to come in the fashion industry (the entire value chain, from design to recycling will undergo a profound change in this new model).

The textile industry is one of the most polluting industries in the world (2nd place for fashion as the world’s most polluting industries, just behind the oil industry). About 20% of water pollution is linked to the textile sector ((uses about 8,000 synthetic chemicals). Yet, the integration of new technologies at different stages of the value chain can help brands to control their cost structure and become then sustainable businesses. That is, every link in the value chain can be optimized using environmentally friendly technologies and methods. For example:

- Creation: Customer personalization, reduction of unsold goods with Big Data, IA (e.g. Amazon, Google…) … - Manufacturing: Reduction in natural and energy resources consumption with Biotechnologies (e.g. The North Face, Orange Fiber) - Logistics: Reduction of greenhouse gas emissions with RFID (e.g. Source Map) - Delivery: Reducing the carbon footprint of shops with IA... (e.g. ZARA) - Recycling: Reduction in natural and energy resources consumption with Biotechnologies (e.g. H&M Foundation)

It has been shown that:

- An energy saving of 10% per year translates into an increase in net margin of 1.55% - A cloud platform, combined with new technologies used in smart buildings (IoT type), can save at least 20% in energy costs per year.

Many major initiatives have been launched in recent years to make fashion more sustainable: Fashion for Good, Leather Naturally, the Better Cotton Initiative, the Bangladesh Alliance, the Responsible Leather Round Table, the Better Work program etc.

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Construction Industry

Further analysis of the construction industry:

Strengths:

- Increase in salaried employment in construction (1.8%for the region, 2.9% for France in the second quarter of 2019)

Weaknesses:

- Slight decrease in the sector's activity in the Greater East Region (construction sector: - 2.65% in 2011- 2016, -0.80% in 2015-2016) - Nearly 260 million tons of waste produced in France by this sector (220 million from public works and 40 million from construction)

Opportunities:

- R&D projects to lift the brakes: - “GT Acceptabilité”: Roadmap for the drafting of the guide on the environmental and health acceptability of alternative materials in construction - ANR ECORE : aim to reuse all the materials from deconstructed concretes, including the fine fraction, in new concretes and to recycle the materials from concrete deconstruction as raw material for cement production. - New technical regulation "RT 2020“: (energy performance and carbon footprint): major impact in new construction and renovation of buildings, new materials (bio-sourced, short circuits.

Threat:

- An increase of failure in the construction sector in Europe (increase from 15% to 24% according to Euler Hermès). France will be particularly affected due to the lower profitability of its SMEs.

The construction industry includes everything relating to building and public works. It is one of the most important sectors of activity and employment pool in France: In 2016, the Grand Est region had 15,400 employer establishment in the construction industry (about 30 000 job has created in this sector in Grand Est, that is an increase of 2,8 % compared to 2017).

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The challenges of developing a circular economy are very strong in the construction sector because it is the first consumer of resources and the first producer of waste. As indicated on the SWOT above, nearly 260 million of tons of waste is produced in France by the construction sector.

Italy, Piedmont CIRCULAR OPTIMAL USE MODEL in Piedmont

STRENGTHS WEAKNESSES

Many efficiency results can be Business model changes, from achieved through digitalization product to service requires a actions for SME’s in the lot of effort for SMEs. Initial

selected sectors. System Core Frame reasoning actions, feasibility studies can be done. OPTIMAL USE MODEL

+ Construction and buildings OPPORTUNITIES + Food, water and nutrients THREATS + Packaging - Plastics + Textile The use of tracing Low maturity level of technologies and data + Forest-based value chains + Manufacturing, Automotive, companies specially SME in management can enable new ICT, Mobility order to make actions to models of use, or better save obtain real changes in a short and use of materials, wastes time. Need of financing tools and products. and many support actions.

+ Construction and buildings

STRENGTHS WEAKNESSES

Evolved energy efficient building solutions provided Interfacing with infrastructure not always easy by many companies in the territory. Heightened (market/regulatory conditions); old building stock. A attention to sustainability of buildings over its life cluster entity of reference for construction sensible to cycle, also link to energy communities at CE not yet identified. condominium, district or larger scale, and to social issues like mitigation of energy poverty.

OPPORTUNITIES THREATS

Is an important sector that can growth much on the Difficult to interface with existing procedures. Low use of digital technologies. Energy related action can awarness and maturity about CE, need time to raise be stimulated. High cost of energy becomes a more awareness and educate entrepreneurs in this stimulation to adopt technologies. Possibility of area. develop policy and regulations to support the possible changes brought about by the digitalisation (for example; tracing materials to certify they are local; enable recovery/reuse; allow exchange of energy produced via renewables)

+ Food, water and nutrients

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STRENGTHS WEAKNESSES

Regional smart specialization (S3), is a key to the Fragmentation, small outfits, low degree of regional economy of the territory. There is a presence mechanization for specific cultures (e.g. vineyards, of regional cluster, and specialized University in this hazelnuts, in general for hill (mountain agriculture). topic. The capacity/willingness to invest in digitalization actions must be verified.

OPPORTUNITIES THREATS

A lot of actions can be proposed in this area with Long value network actors need to work . impact. Precision farming; digital sensors onboard Presence of numerous SMEs, artisan and commercial packaged food checking for actual bacterial in the supply chains of food excellence contamination, or for chilled food the continuity of the cold chain etc.

+ Packaging - Plastics

STRENGTHS WEAKNESSES

Presence of Regional cluster. Widespread sector in the Innovation is needed but capacity to invest and territory in particular linked to food packaging. competences are not always present. Complexity of the sector by multi-material, multi-layer and by type of packaged goods, sometimes with stringent technical specifications (food, medical products)

OPPORTUNITIES THREATS

From single use to reusable - innovation opportunity; Heavy regulatory presence for costs and obligations ensuring true biodegradability of biopolymers. of the manufacturer (CONAI Consortium Systems). Novamont is the most known pioneer of the region Probably not ready for some changes. that produce a new bioplastic (https://www.novamont.com)

+ Textile

STRENGTHS WEAKNESSES

Regional smart specialization (S3), there is a presence Unknown maturity on this topic for this SME's. of Regional cluster. Supply chain and sector Capacity to invest limited. Low tendency to work with historically present in the territory. Conversion other sectors - e.g. textiles for electronics (wearables) projects underway also for COVID emergency support products (masks and gowns)

OPPORTUNITIES THREATS

Examples of local companies investing in Sector in crisis with competition from emerging functionalized textiles (conductive fabrics, flame countries and China. resistance through physical treatments). High

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interest on this topic of the other partners in Alpine Space areas, good presence of SME in the Region

+ Forest-based value chains

STRENGTHS WEAKNESSES

A large portion of the Piedmont territory is covered by fragmentation of the property; unmanaged woods as wood. many local initiatives on sustainable forestry they are no longer considered a source of income and chain of custody/certification

OPPORTUNITIES THREATS

digitalization to support chain of custody for traditionally very low level of technology adoption and sustainable forest, local wood trademarks; mitigation low interest to invest of forest fires through remote control

+ Manufacturing, Automotive, ICT, Mobility

STRENGTHS WEAKNESSES

Regional smart specialization (S3), a high number of Heterogeneity of cases and needs, concrete circular SME's with a relative maturity on this this topic. actions need focused efforts. Very few large Traditionally strong sector linked to automotive, companies, many small specialized companies with metal working, automation; from production of goods limited decision-power. Productions of SMEs very to production of machinery. often not intended for end-users.

OPPORTUNITIES THREATS

Actions in manufacturing can potentially produce downturn due to economic situation and lower much more benefits than other sectors. Big companies production of cars locally. Value Chain actors to be can stimulate SMEs. Adaptation of technologies from involved for some actions, and agreements needed. larger companies to small companies (downscaling).

Germany, Baden-Württemberg

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Innovation-Related Strengths and Weakness as well as Opportunities and Risks for Baden Württemberg

STRENGTHS WEAKNESSES

Core economic sectors: Reluctance to cooperate

Mobility, ICT, environmental technology, Technology transfer (outreach), Software industrial process technology, development in the B2C sector, Broadband and mobile network, Productivity in services, Restrained High willingness to invest on the part of large and innovation behavior and, Stagnating innovation medium-sized companies in research and dynamics, Innovations more incremental and less development Outstanding university and non- disruptive Implementation of cutting-edge research, university research infrastructure Balanced Hardly any innovative services, Software solutions in corporate structure Comprehensive transfer the end customer sector structures

OPPORTUNITIES THREATS

Combining digitization with the Strengths of the Insufficient optimization of business processes product-oriented core areas Electrification of the Autonomous vehicles and Embedded systems (B2B) software solutions, connected driving New mobility services Declining Autonomous and connected driving, Services in the innovation dynamics Lack of skilled workers Internet of Things, Digitization of mobility, Data- Intensification of global innovation competition based value-added services, Individualized Research infrastructures in future technological fields healthcare solutions, Critical mass of platform and future technologies in other countries partners, Biologization of technology, Resource- Protectionism: global developments in trade/free efficient and resilient, value creation trade processes/systems, Efficient integration of specific know-how through cooperation, Cooperation with Lack of willingness to change neighboring countries and – regions, Expansion of European multilevel cooperations, Cooperation/networking of innovation, innovation intermediaries, Transparency in technology transfer

(Bauer, 2020)

Slovenia

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Comment by an expert: It is not possible to distinguish analysis of business environment per three business model types. Optimal use model & product development model, sector 1

STRENGTHS WEAKNESSES

System Core Frame

OPPORTUNITIES (TWG + Sector) THREATS

A general SWOT analysis developed upon a results of the survey conducted prior 2020 (there are no specific data available to which of the three CE models the SWOT analysis refers to):

Survey on Circular Economy (CE) and Industrial Symbiosis (IS) conducted in Slovenia in 2017 by Government Office for Development and European Cohesion Policy (SVRK) within Symbi project (Interreg Europe) related to mapping the investment potential in industrial symbiosis – analysis of survey data and SWOT analysis

SYMBI project was aimed to contribute to improve the implementation of regional development policies and programs related to the promotion and dissemination of Industrial Symbiosis and Circular Economy from 7 participating countries faced to policies alignment with the Circular Economy strategy of the European Commission to transform Europe into a more competitive resource-efficient economy. https://www.interregeurope.eu/symbi/

2000 companies were surveyed (121 replied, 6,5% response rate), 250 organizations from public sector (35 replied, 14% response rate), 13 investors and banks (2 relied, 15% response rate).

Picture 1 is showing the general SWOT analysis made upon the responses received by companies (mostly SMEs), public sector and investors and banks.

Picture 1: SWOT related to Industrial Symbiosis and Circular Economy upon survey of SMEs/public sector organizations/investors/banks in 2017 in Slovenia made by SVRK (Government Office for Development and European Cohesion Policy) within project Symbi (Interreg Europe)

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Source: Mapping the investment potential in industrial symbiosis – analysis of survey data and SWOT analysis, p.42-43, 2018

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Italy, Veneto

STRENGTHS

- One of the regional leading sectors

- Presence of research centers and regional innovative networks

- Political attention both to the sector and the topic of Circular Economy and Digitalization

WEAKNESSES

- Low awareness of the topic among the majority of the companies

- Lack of specific skills to deal with the topic

OPPORTUNITIES

- Need to face the amount of waste generated by the sector

- Strong interconnections with other sectors

THREATS

- Need to implement medium to long term programs to consolidate the transition

- Not clear understanding of the potential positive impact of a CE approach

- Not clear legislative framework

Visual Map of key actors

Identification of initial set of Key Actors and their roles in the systems in the market of reference

- Existing opinion leaders

- Potential mentors

- Senior entrepreneurs

- Business developer

- Researcher

- Etc. (SMEs, LE, Start-ups, R&D Inst., etc.)

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France, Grand Est Main actors in economic development and innovation:

 Grand E-nov: The Region Grand Est, the Chamber of Commerce and Industry of Grand Est have decided in 2018 to join their efforts and set up Grand E-nov, the regional innovation agency with the main objective to provide services to regional companies to foster innovation: through supporting the innovation projects, accelerating start-ups, funding projects and supporting the implementation of complex territorial projects  The Chamber of Commerce and Industry of Grand Est (CCI Grand Est), in charge of supporting the local businesses  The Euro metropolitan area of Strasbourg and the three metropolitan areas of Metz, Nancy, and Reims, which support economic development and innovation in their respective territories.  The six competitiveness clusters  The regional clusters  The three SATT that is a public institution that is supported by public research stakeholders and local entrepreneurs to facilitate technology transfer activities based on publicly funded research: SATT Conectus Alsace, SATT Grand Est, and SATT Nord  Twelve Regional Technology Transfer centers (CRITT) whose role is to facilitate collaborations and synergies between companies and to increase their technological level  The Institute of Technology on materials and processes M2P, offering a development and research programme on materials, metallurgy and related processes  Regional incubators (SEMIA and Incubateur Lorrain...) and three regional Technopolis (“Technopole de l’Aube”, “Technopôle Henri Poincaré” and “Technopôle de Nancy Brabois”) that help start-ups based on public and private research to grow  And the key institutions representing the national level: The State administration representing the Ministry in charge of research, higher education and innovation (DRRT), the State administration representing both the Ministry in charge of industry and the Ministry in charge of labor (DIRECCTE)  The various universities of Grand-Est are innovation drivers in the region which are connected with national public research centers and the SATT to help foster innovation in the region  The bank of Investment (BPI) which supports innovation through grants, loans, etc.….

Bioeconomy

Industrial Base:

 Territorial biorefineries of Pomacle-Bazancourt, Golbey, European Hemp cluster  Big Industrial names: InVivo, Cristal Union, Vivescia, Malteurop, Soufflet, MHCS, Tereos, Tismail, Petit Bateau, Albea Tubes France, Rehau Industrie, Tricoflex, Tereos, Roquette, Dupont de Nemours, Norske Skog, Schmidt Group etc.  Main companies particularly in the food-processing industry: Mars Chocolat, Nestlé Waters Supply Est, Wrigley, Cristal Union, Glaces Thiriet, BestFoods Industries, Bongrain-Gérard

R&D institutions:

 IAR, France's leading bio-economy cluster, in Europe and internationally  Public and private research: European Centre for Biotechnology and Bioeconomy (CEBB), INRAE, university laboratories (URCA, UL, UNISTRA, etc.) and grandes écoles.  Technology transfer and experimental platforms: ARD (Agro-Industrie Recherches Développement), FRD (Fibres Recherches Développement), RITTMO Agroenvironnement, Aérial, CRITT Bois, CETELOR, Terralab, Experimental farm network (ARVALIS…)  Other key Research Insititute in Bieconomics: Grand Est Nancy - Research Centre: INRAE (the centre actively contributes to research in Lorraine and Reims for the development of a sustainable bio-economy based on the multiple services provided by ecosystems). --> in 6 locations (Champenoux, Mirecourt, Nancy, Vandeouvre-les-nancy (uni Lorraine & ENSAIA), Reims); Les instituts techniques agricoles (ITA): Organisations of collective interest specialising in applied research and the transfer of agricultural and agri-food innovation: ARVALIS, Terres Inovia, AGPH, CNPF, ASTREDHOR, ITB, CTIFL, IDELE, IFV

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 Public insitutitions: FranceAgriMer (Châlons en Champagne): Directorate-General for Food, Agriculture and Forestry (branch in Strasbourg); Agria Grand Est: association created on the initiative of Lorraine companies. Its aim is to promote the competitiveness and technological development of regional industries processing and valorizing agro-resources: agri-food and agro-resources.

Four structuring projects in the region:

 Structuring of a complete regional bast fibre valorization value chain  Setting up governance of Bazancourt-Pomacle biorefinery and strengthening synergies  Production Plan Project of "Black Pellet de l'Européenne de Biomasse"  Terrasolis, portfolio of "low carbon" projects

Construction Industry

Industrial Base:

 VINCI Construction, BOUYGUES Construction, EIFFAGE Energie Systemes Clemessy, COLAS, PREMYS, ACTEA, ASP Architecture, ADAMI Construction, AVENNA SAS, CRITT BOIS, DELLA ROSA, ALSAPAN...  Examples of construction industry start-ups committed to sustainable development: ALTAROAD, BOMA HESUS (greentech partner of the building sites, specialized in the evacuation and valorization of earth, excavated material and waste and in the supply of earth and materials derived from these resources).

R&D institutions:

 CERC Grand Est (provides objective and shared economic knowledge of the challenges facing the entire construction sector in the region.  CERC Grand Est (METZ): A study carried out on the management of waste and Materials in construction industry in Grand Est  A study realized about the management of waste and materials in construction Industry in Grand Est – 2018  A deliverable to assess the current situation of the energy performance and the environmental quality of the existing fleet (with the financial support of ADEME and the Region, as well as the partnership of the DREAL and the ADILs)

Other structures:

 ENSAS Strasbourg: National School of Architecture in Strasbourg  INSA Strasbourg: National InstiREGIONAL OPtute of Applied Sciences  Envirobat Grand Est: association that aims to promote sustainable building and construction by respecting a global approach in order to limit the impact of the built environment on the environment and to promote the quality of life for users of the built environment. Composed with 3 resources center (Envirobat Grand Est - ARCAD LQE, Envirobat Grand Est - energivie.pro, Envirobat Grand Est - PQE)  Professional networks for building and sustainable development: o OKTAVE: integrated service for the energy-efficient renovation of housing, initiated by the Grand Est region and ADEME in 2015 → service put in place to meet the requirements of the Law of Transition from Energy to Green Growth (LTECV) o CAUE 54: a departmental association that advises, informs and raises the awareness of individuals and communities free of charge in the fields of architecture, town planning and the environment. o Agence Qualité Construction: association whose vocation is the prevention of disorders and the improvement of the quality of construction.  Competitiveness clusters: o Fibres Energivie: It is intended to accelerate innovations in sustainable building: A network of nearly 200 members bringing together the worlds of industry, research and training. Focused on the building sector, it brings together all the players in the building value chain (from materials suppliers to integrators).

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o Materalia: association of the actors of the sector of Materials and Processes of the Grand Est region. It helps its members (companies, laboratories, technical centers and local authorities) to prepare "the industrialization of their innovations in the field of materials, processes and products" to conquer new markets. Materalia's members include world industrial leaders, start- ups, VSEs, innovative SMEs and ETIs, higher education and research institutions, competence centers and also local authorities and territorial partners (Edf, Acrotir,Alsapan, Fbm, Safran,...)

Textile Industry

Industrial Base:

 Mise Au green, Jacob Holm Industry, Petit-Bateau, Innothera, Lacoste Operations, Mephisto, Bergère de France, Francois Hans, Chantelle, Maroquinerie des Ardennes, Faurecia Automative Industry, Bragard SA, Compagnie Vosgienne de la Chaussure, DMC, Fiberweb France, Linvosges, Valrupt Industry…

R&D Insitutions:

 CETELOR (Centre d’essais Textile Lorrain): A technology transfer centre and a textile metrology laboratory attached to the University of Lorraine  IFTH (Institut francais du textile et de l’habillement): Areas of research and application markets: Circular economy and sustainable development, factory of the future, valorisation and transformation of materials, development of intelligent textiles.  Sustainable Development Institute: Eco TLC: eco-organization of the textile clothing, household linen and footwear sector. At the heart of the sector's ecosystem and at the service of all stakeholders, Eco TLC participates in the financing of the transition to the circular economy of textiles.

Other structures:

 Pôle Textile Alsace: federates and promotes the textile sector, Technological and marketing watch: The Club Innovation Textile Alsace (CITA), University partnerships at the heart of the campus with ENSISA, IFTH, ISTA, HEAR and the Carnot Institute - MICA are forging links on the Textile Campus. A professional network dedicated to textiles and soft materials located in the east of France (Alsace, Lorraine, Champagne Ardenne)  BSC – Maille 4.03: BSC is an economic development agency for the Aube and the south of Haute-Marne created in November 2018 with GIP status. Its objective is to develop the economic fabric through the promotion of the region, business canvassing, strengthening its attractiveness, enhancing know-how and supporting structuring economic projects. The new excellence center “Maille 4.03” has been created whose objective is to raise today’s challenge such as amplifying the companies eco-responsibility process or the textile innovation capacity of South Champagne  Clubtex: a network of companies, institutes and laboratories, schools and training centers dedicated to textiles for technical uses. It accompanies the development of the company through network and businesses (a network with 73 members as Archroma, Bugis Sas, Club Textile Intégral, Concordia Textiles, Etam...)

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Italy, Piedmont

Identification of initial set of Key Actors and their roles in the systems in the market of reference

- Existing opinion leaders - Potential mentors - Senior entrepreneurs - Business developer - Researcher - Etc.

(SMEs, LE, Start-ups, R&D Inst., etc.)

Providers: ICT, Environment,

Customers: SMEs, LE, Start-ups, R&D Ins

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Germany, Baden-Württemberg

Key Actors Stakeholder Type

Wirtschafts Region Stuttgart Regional Authority

Wirtschafts Ministerium Stuttgart Regional Authority

Jeannette Jäger Potential Mentor

Dr. Christoph Soukup Potential Mentor

Frauenhofer Large Company, Circular Frontrunner

VDMA Large Company, Circular Frontrunner

Bosch Large Company

Festo SME

Grüne Effizienz Business Support Organization

Digital BW Regional Authority

Circular Transformation Hub Business association

Cisco Large Company

Cyber Valley Regional Authority

AR Experts SME

Circular Economy Club Stuttgart Business Support Organization

Allianz Industrie 4.0 Baden-Württemberg Business Support- From Regional Authority

Tru Physics SME

UMWELT TECHNIK BW Public Actor

FEESS SME

Scitis SME

ipolog GmbH SME

Lorenz Meters SME Circular Frontrunner

TechProtect SME

DigiHUb SüdBaden Digital Hub Business Support Organization

Deutsche Gesellschaft für Nachhaltiges Bauen Business association

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MicroTech SüdWest Business association

BadenCampus Business Support Organization

GlobalFlow Business Support Organization

Restado SME

SIMPI Startup

Technologiepark Heidelberg Business Support Organization

City of Freiburg Regional Authority

DREES & SOMMER Large Company, Circular Frontrunner

City of Friedrichshafen Regional Authority

Oberle SME

Babel Startup

BioPro SME

Koduti Startup

Recyda Startup

Beschläge Koch SME

United Planet Business Support Organization

Green Party Stuttgart Public Actor

Robert Bosch Stiftung Foundation

WirsindHandwerk Startup

Haufe Lexware SME

University of Freiburg University

SolidWhite SME

Uhlmann SME

Marquardt GmbH SME

VDC- Fellbach Business Support Organization

MicroTech SüdWest Business Support Organization

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Slovenia

Comment: Reference to all three CE models

Key actors in Slovenia Key roles Contact (optional) (all three models) National level Web

MOP – Ministry of Environment Key policy maker in Circular https://www.gov.si/en/state- and Spatial Planning Economy – CE. authorities/ministries/ministry-of-the- environment-and-spatial-planning/ Division for the Environment and Climate Change: Key policy MOP is a lead partner of the Life project maker at ensuring air quality, Care4Climate: soil conservation, nature conservation, effective waste https://www.care4climate.si/en management, protection against noise and radiation, Supporting green public procurement. industrial pollution, industrial accidents, climate change, and environmental impact assessment.

MGRT – Ministry of Economic Key policy maker in CE. https://www.gov.si/en/state- Development and Technology authorities/ministries/ministry-of-economic- Observer of the Circular4.0 development-and-technology/ project.

SVRK - Government Office for Responsible for the https://www.gov.si/en/state- Development and European preparation of Smart authorities/government-offices/government- Cohesion Policy (under MGRT) Specialization Strategy and its office-for-development-and-european- upgrade. cohesion-policy/

Implementation of two project https://www.interregeurope.eu/symbi/ related to Circular Economy and Industrial Symbiosis SYMBI project has been nominated for (Retrace and Symbi – both RegioStars Award 2020 in the category Interreg Europe) Sustainable growth: Circular economy for a green Europe.

https://www.interregeurope.eu/retrace/

Other six Ministries (Ministry of Involved in the Strategic https://www.gov.si/dogodki/2020-06-19- infrastructure, Ministry of project of decarbonisation of spletna-predstavitev-celoviti-strateski-projekt- Agriculture, Forestry and Food, Slovenia through CE razoglicenja-slovenije-preko-prehoda-v- Ministry of Education, Science krozno-gospodarstva-v-nastajanju/ and Sport, Ministry of Foreign Affairs, Ministry of Finance, (in development, only in Slovene) Ministry of Public Administration)

Regional Level 12 Regional agencies related to 12 statistical regions in Slovenia

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Regional development agency of Involved in the https://www.interregeurope.eu/symbi/news/ the Ljubljana urban region (RRA implementation of Symbi pilot news-article/8819/pilot-action-in-slovenia/ LUR) project:

Regional development agency of the Ljubljana urban region in cooperation with the Government Office for Development and European Cohesion Policy was hosting three-day online training on Industrial Symbiosis (IS) in the framework of the SYMBI pilot project.

BSC Kranj Conducting many EU projects https://www.alpine- on CE: CaSCo (Interreg Alpine space.eu/projects/casco/en/about-casco Space) and Dynamic Light (Interreg Central Europe) to reduce the emissions of carbon dioxide in the Alpine Space through low carbon timber products.

https://www.interreg- central.eu/Content.Node/Dynamic-Light.html

The Dynamic Light project focusses on reduction of CO2-emissions and enhancement of energy efficiency in public lighting.

Local level Municipalities and Local Energy Agencies Association of Municipalities and Supporting CE at the local https://www.interregeurope.eu/circe/ Towns of Slovenia (Skupnost občin level within municipalities of Slovenije - SOS) Slovenia. Strengthening the diffusion of Circular Economy (CE) in Europe, consistently with the Collaboration in EU project European Commission’s Circular Economy related to CE (CircE – Interreg Package (2015). In particular the project aims Europe, – H2020) at helping the Partners involved to increase the capability of their Policy instruments to steer economy towards a circular model. https://greensproject.eu/en/about-greens/

Supporting green public procurement. City municipality of Ljubljana Implementing CE project https://www.ljubljana.si/en/applause/ Applause The project addresses unsolved questions with In 2016, Ljubljana was regard to invasive alien plant species in terms awarded with the title of the zero‑waste approach and circular European Green Capital. economy.

Ljubljana is a member of the https://www.ljubljana.si/en/ljubljana-for- Circular Cities Network you/environmental-protection/towards- circular-economy/ For the sixth time, Ljubljana has made the Global TOP 100 Sustainable Destinations list

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in 2020, maintaining its https://www.ljubljana.si/en/news/ljubljana- position as one of the world’s in-the-global-top-100-sustainable- most sustainable destinations/ destinations’.

Additional commitment to the transition to circular economy. In Oct. 2020 Ljubljana joined a group of signatories of the European Circular Cities Declaration. By doing so Ljubljana additionally committed itself https://www.ljubljana.si/en/news/additional- to the transition from linear to commitment-to-the-transition-to-circular- circular economy. economy/

City municipality of Maribor A lead partner on CE project https://www.alpine- Greencycle (Interreg Alpine space.eu/projects/greencycle/en/about Space) System of circular economy as a holistic approach to support implementation of low- carbon strategies and provide additional 2-4 % greenhouse emission reduction to the partner cities.

NGO’s

Ekologi brez meja (Ecologists Promoting sustainable https://ebm.si/glavna/web/o-nas without borders) development, zero waste management

Umanotera Promoting sustainable https://www.umanotera.org/english/ development

Inštitut za politike prostora Promoting green transition https://ipop.si/en/ (Institute for spatial policies) https://ipop.si/2020/10/19/mednarodna- konferenca-zelene-prakse-mest/

Conference: Green practices of towns

E-Zavod Sustainable development https://www.ezavod.si/en/about-e-institute

Implementation of several Eu projects related to the topics on green and smart mobility https://greenmind.interreg-med.eu/ (Green Mind, Interreg Mediterranean)

Collaboration as a partner on https://www.alpine- CE project Greencycle space.eu/projects/greencycle/en/about (Interreg Alpine Space)

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Business associations, advisories (Think Thanks) and institutes

Circular Change A platform for development https://www.circularchange.com/services and implementation of communication strategies focused on circularity; Communication and dissemination activities for European projects oriented towards CE.

Initiator and an author of the Roadmap toward CE in Slovenia, 2018

Circular Business Academy (by Circular Business Academy is https://www.circularbusiness.academy/ Gm) a platform of practitioners in training and application of the auditing/self-evaluation tool developed by the company Giacomelli Media http://www.giacomellimedia. com/. It offers a Circular portfolio analysis and circular self-assessment tool for SME«s self-evaluation of readiness for transitioning to CE. It offers a complete practitioners ‘toolkit for the circular business model transformation

Center for Energy Efficient A network of advanced http://cer-slo.si/en/ Solutions - CER companies and organizations from different sectors, which plays a leading role in promoting and developing climate neutral economy and green technologies with a focus on increasing energy efficiency, using renewable energy sources and reducing greenhouse gas emissions.

Bank Association of Slovenia Promotion and support of https://www.zbs-giz.si/en/ Stanislava Zadravec Caprirolo financing CE projects.

SRIPs related to the CE

SRIP CE (Chamber of commerce Member based organization; https://srip-circular-economy.eu and Industry of Štajerska) is joining industry, academia, research, support and government institutions in one of the nine areas of

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regional specialization areas in Slovenia- Circular economy.

SRIP Factories of the Future SRIP Factories of the future is http://ctop.ijs.si/en/home/ (operates within Jožef Stefan joining industry, academia, Institute - JSI) research, support and government institutions in one of the nine areas of regional specialization areas in Slovenia- FoF. It is a member-based organization i.e. “cluster”.

Collaboration at Circular4.0 (Interreg Alpine Space) https://www.alpine- space.eu/projects/circular4_0/en/home

R&D institutions

Jožef Stefan Institute (JSI) Leading and collaborating on Centre for energy efficiency (Life project: many projects related to CE, Climatepath 2050) energy efficiency and https://www.podnebnapot2050.si/ digitalisation) http://celkrog.si/?lang=en Collaboration at Cel.Krog Regeneration of invasive plants biomass Collaboration at Circular4.0 (Interreg Alpine Space) https://www.alpine- through SRIP Factories of the space.eu/projects/circular4_0/en/home Future

Chemistry Institute Ljubljana Collaboration in EU projects http://interreg- related to CE: central.eu/Content.Node/BIOCOMPACK- Bopcompack (Interreg Central CE.html Europe) Mobilization of synergies between business and research in the area of combined paper- bioplastics packaging design, production and recycling in Central Europe.

https://bioecordi.adrioninterreg.eu/ BIO ECOnomy Research Driven Innovation project (Interreg ADRION) https://www.ita-slo.eu/sl/bioapp BioApp Strengthening cooperation between research organizations and key economic stakeholders to accelerate the development of pilot technology in the field of advanced biopolymers.

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http://celkrog.si/?lang=en Paper processing industries with recycling papers and packaging models (regeneration of invasive plants biomass). Cel.Krog

Institute for pulp and paper Conducting many projects on http://celkrog.si/?lang=en CE: Cel.krog. https://bioeast.eu/ BIOEASTsUP project and Advancing Sustainable Circular Bioeconomy in others Central and Eastern European countries;

Wcycle Institute Maribor In 2020 collaborated at the https://wcycle.com/vizitka/ development of the declaration of the European circular cities. https://www.alpine- Collaborated at the project space.eu/projects/greencycle/en/about Greencycle (Interreg Alpine Space)

ZRS Bistra Ptuj Collaboration at several EU https://bistra.si/en/ projects on efficient energy, zero waste management, sustainable development etc.

Lead Partner at the project Renewable energy (Interreg https://renewable-energies.interreg-med.eu/ Mediterranean)

Collaboration at the project E- SME (Interreg Slovenija- http://www.si-at.eu/si2/e-sme/ Austria)

Slovenian Institute of Hop Implementation of LIFE https://www.life-biothop.eu/project/about- Research and Brewing BioThop project the-project/

BioTWINE hop waste transformation into novel product assortments for packaging and horticulture sector.

Universities

University of Primorska Leading InnoRenew CoE www.innorenew.eu. project The project focuses on the development of the Renewable Materials and Healthy Environments Research and Innovation Centre of Excellence, which is chosen as one of nine projects in the Teaming call of the European Union's Horizon 2020 Framework Research and Innovation Programme

Business support organisations

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Chamber of Commerce and Conducting project in CE http://www.interreg-danube.eu/approved- Industry of Slovenia (Moveco – Interreg Danube, projects/moveco Retracking (Interreg Slovenia – Italy) Mobilising Institutional Learning for Better Exploitation of Research and Innovation for the Circular Economy: The new EC Circular Economy Strategy aims a "closing the loop" of product lifecycles through greater recycling and re-use, to bring benefits for society, environment and economy.

https://www.ita-slo.eu/en/retracking

Traceability of manufactured products made from Fibre-Reinforced Composites (FRC)

Technology Park Ljubljana Supporting start-ups and https://www.tp-lj.si/sl/novice/climate-kic- Ljubljana scale-ups in knowledge accelerator-slovenia-2018-2018-03-27 transfer in CE/digitalisation within Climate KIC https://www.tp-lj.si/sl/novice/next-round- Accelerator and financing (on investicijska-konferenca-bo-povezala-dve- the first day of the last Next milijardi-evrov-tezke-investitorje-in-uspesne- Round conference was regijske-startupe-na-vec-kot-540-spletnih- focusing to CE and sestankih-2020-09-29 digitalisation). https://www.tp-lj.si/sl/novice/najvecje- Collaboration at tekmovanje-zelenih-poslovnih-idej-2018-05- ClimateLounchpad 2018 23

Lead Partner of Circural4.0 https://www.alpine- (Interreg Alpine Space) space.eu/projects/circular4_0/en/home

Pomurski Tehnološki park Collaboration at Moveco http://p-tech.si/en/projects/ project (Interreg Danube) http://www.interreg-danube.eu/approved- projects/moveco

Large firms, circular frontrunners

Aquafil SLO Recycling nylon fishing nets https://www.aquafil.com/ and carpets. Plastika Skaza Ecocare; sustainable plastic https://www.skaza.si/eco-care (rethink plastic); biobased materials, recyclable materials; reuse of products, sustainable use of products (recycling plastic, recycling organic waste); recycling scheme for products

Eltec Petrol Public-utility company https://www.petrol.eu/sustainable- development/environment/sustainable-petrol

Agraria Koper Sustainable retail (food) http://www.kz-agraria.si/projekti/

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Talum Metal processing and recovery https://eles.group/our-companies/talum-dd- (environmentally friendly kidricevo aluminium production and processing)

Sij Group Metal processing and recovery https://www.sij.si/en/company/social- (stainless steel production) responsibility/environment-protection/

VIPAP Videm Krško A producer of newsprint https://www.vipap.si/eng/ coated graphic papers and wrapping/packaging papers. The main raw material used is recycled fibre obtained from recovered paper in deinking process (removal of printing inks).

SMEs (10-50 employees)

Valtex in cooperation with Lucart Pulp and paper production http://www.valtex.si/ Group from recycling tetra pack

Lumar Zero emission houses https://www.lumar.si/

Riko Sustainable housing https://www.riko.si/en/674

Lušt Sustainable food production https://www.lust.si/zdruzenje (tomato)

Avant2go, (electric car sharing) Product-to-service, urban and https://avant2go.si/en/about inter-urban mobility

Start-ups

DS meritve Digitalization and innovation https://www.2ggtech.com/ in the field of gathering, transfer and analysis of energy and water consumption data.

Syntech Innovative solution in carbon https://www.startup.si/en-us/startup- gasification of materials that map/startups-scaleups/syntech enables a real CE.

Evegreen Fully biodegradable plant https://www.startup.si/en-us/startup- pots. map/startups-scaleups/evegreen

Fabrikor IOT solutions to support CE https://www.startup.si/en-us/startup- processes. map/startups-scaleups/fabrikor

Sileo The first photovoltaic roof tile https://www.startup.si/en-us/startup- that is compatible with the map/startups-scaleups/sileo classic brick version.

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Italy, Veneto Some of the initial key actors to work with are listed below:

Regional Innovative Networks: Green Tech Cluster, Green Building Cluster, Foresta Oro Veneto.

Regional Agencies: ARPA Veneto (Agency Environmental Agency), Veneto Innovazione S.p.A.

Public Administration – Policy Makers: Department for Research, Innovation and Energy, Department for ICT and Digital Single Market; Economic policies, human capital and EU planning Area.

Research: Dept. of civil, building and environmental engineering University of Padua, Dept. of management Cà Foscari University of Venice, Department of Design and Planning in Complex Environments - IUAV University of Venice, Center Giorgio Levi Cases – Economics and Technology of Energy University of Padua.

Conclusion

Next to the chosen sector of construction, most of the project partners saw the need for additional regional sector choice. This leads to a clustered structure of sector choices within the working group on optimal use models which will pose a challenge to the progress of the collaboration. However, the construction sector will be the missing link between all partners within the working group.

Each partner reflected on their chosen sector and the connection to their area accordingly and a few are highlighted here in this conclusion.

Grand E-Nov concludes for the region Grand Est that actions within the project need to be integrated in the already existing regional strategy on Circular Economy. The regional action plan in favor of Circular Economy in the PRPGD (Plan Régional de Prévention et de Gestion de Déchets) converges strongly with the two other important regional innovation plans also integrating the circular economy (SRDEII and SRADDET). The SRDEII integrates the resource economy as a source of efficient development, attractivity and dynamism of the territory identifying especially the EIT (L’écologie industrielle et territorial: Industrial and Territorial Ecology). The SRADDET is strongly integrational, focusing on insuring a spatial planning consistent with ecology transition, energy transition, and, resource savings strategies.

Germany has not set a concrete strategy for Circular Economy, however several initiatives and policy measures are in place regarding sustainability and digitalization. Furthermore, the Circular Economy Initiative Deutschland 2020 is currently working on an overall CE strategy for Germany. Furthermore, several cities in Baden Württemberg, such as Freiburg, have City Specific Circular Economy Action Plans.

Plastics as a TWG selected sector is treated rather as materials used in multiple regional specialization sectors in Slovenia. Slovenia has a well-established circular economy related ecosystem and was among the first EU countries to adopt the National Circular Economy roadmap. However, it can only be tackled when taking into consideration a cross-sectorial approach in the same way in which it is tackled in the very EU Strategy for plastics.

In Slovenia sectors addressing circular economy and digitalization are predominantly selected due to other important aspects of economic and social transformation that are coming from regional specialization priorities, new industrial policy strategy, new national Roadmap for circular economy and new digitalization strategy to name just a few of strategic orientations towards transitioning to circular economy by means of digitalization after 2021 where plastic is a very important element but not the only one.

5 key areas of the national industry have been identified for the needed circular transformation in Slovenia (i.e. wood forestry chain, construction/building, mobility, manufacturing industry, low carbon food production), activating 200 local municipalities and 1000 companies, producing 120 new products and services for market use, 12 action plans, circular start-ups will be incentivized with 25 mio EUR. Expected results of transition by 2030 are

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as follows: (1) Environmental: 50 % decrease of the quantity of waste per capita compared to 2017, saving of 10MT CO 2eq in industrial production; (2) Economic: 1 mrd EUR additional investments in Slovenian circular economy (3) Social: 10.000 new employments

Multiple stakeholders are involved in the needed systemic changes for transitioning into circular economy and digitized industry including actors from business, academia, research, national government and non-profit organizations.

More efforts need to be made at the national and EU levels to clarify a broader set of technologies involved with digitalization (that reach beyond traditional back office technologies) as well as some concepts have to be further explained particularly to the small and medium size companies in relation to the business process reengineering and optimization, opening new business models and ways of doing business, re-designing organizational structures and culture and other aspects of business transformation using digital technologies and systems changes to transition into circular and smart economy.

Higher level of digitalization is greatly affecting also industrial productivity levels. Efforts are being made to invest more into digital infrastructures, digital knowledge of employees, research and development in support of digitalisation, investment into new business models based on digitalisation.

Especially the SWOT analysis conducted by each region shows the potential across all sectors and regions for actions taken by the working group and the overall project. It is duly noted that especially in France one can build upon already existing policies and regional strategies on Circular Economy and Digitalization. With such a high level of awareness one can start off actions on a very different level compared to other regions in the alpine space. This bears the advantage of extensive learning potential for all regions within the working group and multifaceted further actions within the project. The multi-sector, multi-level and transnational approach of this working group on Optimal Use Models balancing regional interests and transnational inspiration and learning will benefit all project partners and the overall project.

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Appendix - Lists of Actors

France, Grand Est – Grand E-Nov

Gra n d E - No v

Italy, Piedmont – Torino Wireless

Piedmont

Germany, Baden-Württemberg – bwcon GmbH

bwcon

Slovenia, – Technology Park Ljubljana

Slovenia

Italy, Veneto – Veneto Innovation

Veneto

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