**1. Introduction**

The human activities are depleting available resources that mainly come from the processes such as mining and petrochemicals. At the same time, dependence on the fossil-based resources is increasing the concerns related to the climate change. In future, societies need to manage the resources much more efficiently and increase the dependence on renewable resource. The consequences of this will lead to more sustainable bioeconomy from a traditional fossil economy.

The bioeconomy is considered as the economy relying on the production of renewable biological resources and their use for food, feed, bio-based products, and bioenergy [1]. The major contribution of biomass comes from the forest; therefore it is viewed as important sub-sector of the bioeconomy [2, 3] that can take a lead in the sustainable development of bio-based economy [4]. The transition to a sustainable bioeconomy will not immediately replace the traditional facilities, but the new technologies will be integrated to the existing one. Many leading forest firms have taken major steps in developing the sustainable bio-based innovations and understanding the consumer behavior by linking these efforts to digitalization. For example, Metsä Group invested 1.2 billion euros to develop the next-generation bioproduct mill in Äänekoski, Finland.

#### *Elements of Bioeconomy*

The new industrial revolution based on new digital developments will enable the integration of dynamic supply chains, end-to-end supply chain visibility, stock level optimization, elimination of distance between upstream and downstream of the chain, and interaction among different industries and sectors. All these developments will lead forest-based bioeconomy to a consolidated platform ecosystem [5].

The transformation of forest-based bioeconomy can be extended from technological and material processes to cultural, ethical, and wider socioeconomic perspectives [6, 7]. Watanabe et al. [5] propose the following thinking for devising a new business model under digitalization:


The system nature of forest-based bioeconomy has been studied by the different authors. Wolfslehner et al. [4] highlighted the potential use of forest-based indicators in Europe and their development in future. They argue that forest-based industry can take lead in the sustainable development of bioeconomy. Hetemäki et al. [2] and Hetemäki [8] are of the view that European forest-based sector has undergone creative destruction as the production of some of the traditional forest products has declined in recent years. However, at the same time, strong growth is observed in many value-added engineering wood products. Thus, creative destruction emerged as described by the Schumpeter. Further, they discussed that knowledge on economics, politics, markets, and marketing is vital to realize the challenges, barriers, and opportunities as well as to support business and policy strategies. The mega forces such as climate change and resource scarcity are perceived more as opportunities than threats in European pulp and paper industry because pulp and paper industry is diversifying their product portfolio [9] by fostering digital solutions.

This chapter explains the transformative direction of forest-based bioeconomy into a digital platform industry; therefore all stakeholders from different sectors engaged in various roles must be considered [10]. However, consequences of transformation are not yet known.

### **2. Perspectives on the forest-based bioeconomy**

As described earlier, forest-based bioeconomy is the important sub-sector of bioeconomy that holds significant share in this economy. The forest-based products include raw materials (e.g., wood chips) and intermediate products (e.g., pulp) that can be converted to different products to fulfill the customer needs. Forest-based services (e.g., recreation and tourism) are also valuable for local economies [11, 12]. The scope of forest-based bioeconomy is demonstrated in **Figure 1**.

Mubareka et al. [14] argue that resource efficient and sustainable development of products such as biochemical, bioenergy, and biocomposites will not achieve the economic gains only but benefit the environment also by reducing the carbon footprints. The development of green energy, green transport, and other breakthrough

**131**

**Figure 2.**

*Digital Solutions in the Forest-Based Bioeconomy DOI: http://dx.doi.org/10.5772/intechopen.84828*

**2.1 Structural change in the supply chain**

tems, and innovative business models [13].

digital solution [16].

**Figure 1.**

technologies is on top priority to achieve a goal of sustainable decarbonized society worldwide [15]. Thus, forest-based bioeconomy is gaining popularity as a real global asset for both industrialized and growing economies as forest industry offers sustainable and recyclable products, reduces dependency on fossil-based nonrenewable materials, and ultimately contributes to the development of decarbonized society.

*Scope of the forest-based bioeconomy. Source: Adapted from Watanabe et al. [13].*

Pulp and paper industry (PPI) is the backbone of forest-based bioeconomy in Europe as big chunk of gross domestic product (GDP) of European Union (EU) comes from PPI. In recent years, the demand for printing and graphic paper in industrialized countries has declined; therefore the forest-based industry is prone to major structural changes, especially in forest-dependent countries. The industry needs to be more dynamic in developing new products, research-related ecosys-

**Figure 2** demonstrates the geographical structure of production and consumption of paper and paperboard in 2015. Asia is on top in both production and consumption while they are lagging behind in adopting the digital solutions. Conversely, the USA and Europe (particularly Finland) are leading in developing

*Worldwide production and consumption of paper and paperboard (2015). Original source: Watanabe et al. [13].*

*Digital Solutions in the Forest-Based Bioeconomy DOI: http://dx.doi.org/10.5772/intechopen.84828*

*Elements of Bioeconomy*

and society

fostering digital solutions.

formation are not yet known.

**2. Perspectives on the forest-based bioeconomy**

The scope of forest-based bioeconomy is demonstrated in **Figure 1**.

new business model under digitalization:

The new industrial revolution based on new digital developments will enable the integration of dynamic supply chains, end-to-end supply chain visibility, stock level optimization, elimination of distance between upstream and downstream of the chain, and interaction among different industries and sectors. All these developments will lead forest-based bioeconomy to a consolidated platform ecosystem [5]. The transformation of forest-based bioeconomy can be extended from technological and material processes to cultural, ethical, and wider socioeconomic perspectives [6, 7]. Watanabe et al. [5] propose the following thinking for devising a

1.Recognizing complexity, phenomena-driven policy, and new social dynamics

2.Understanding global interdependencies that require multilevel thinking and knowledge about the significance of the coevolution of technologies, economy,

The system nature of forest-based bioeconomy has been studied by the different authors. Wolfslehner et al. [4] highlighted the potential use of forest-based indicators in Europe and their development in future. They argue that forest-based industry can take lead in the sustainable development of bioeconomy. Hetemäki et al. [2] and Hetemäki [8] are of the view that European forest-based sector has undergone creative destruction as the production of some of the traditional forest products has declined in recent years. However, at the same time, strong growth is observed in many value-added engineering wood products. Thus, creative destruction emerged as described by the Schumpeter. Further, they discussed that knowledge on economics, politics, markets, and marketing is vital to realize the challenges, barriers, and opportunities as well as to support business and policy strategies. The mega forces such as climate change and resource scarcity are perceived more as opportunities than threats in European pulp and paper industry because pulp and paper industry is diversifying their product portfolio [9] by

This chapter explains the transformative direction of forest-based bioeconomy into a digital platform industry; therefore all stakeholders from different sectors engaged in various roles must be considered [10]. However, consequences of trans-

As described earlier, forest-based bioeconomy is the important sub-sector of bioeconomy that holds significant share in this economy. The forest-based products include raw materials (e.g., wood chips) and intermediate products (e.g., pulp) that can be converted to different products to fulfill the customer needs. Forest-based services (e.g., recreation and tourism) are also valuable for local economies [11, 12].

Mubareka et al. [14] argue that resource efficient and sustainable development of products such as biochemical, bioenergy, and biocomposites will not achieve the economic gains only but benefit the environment also by reducing the carbon footprints. The development of green energy, green transport, and other breakthrough

3.Re-understanding traditional regimes and regions as the convergence of several fields in potential industries can possibly emerge in future

**130**

**Figure 1.** *Scope of the forest-based bioeconomy. Source: Adapted from Watanabe et al. [13].*

technologies is on top priority to achieve a goal of sustainable decarbonized society worldwide [15]. Thus, forest-based bioeconomy is gaining popularity as a real global asset for both industrialized and growing economies as forest industry offers sustainable and recyclable products, reduces dependency on fossil-based nonrenewable materials, and ultimately contributes to the development of decarbonized society.
