You are on page 1of 10

Journal of Cleaner Production 87 (2015) 375e384

Contents lists available at ScienceDirect

Journal of Cleaner Production
journal homepage:

Understanding and addressing business needs and sustainability
challenges: lessons from Devens eco-industrial park
Vesela Veleva a, *, Svetlana Todorova e, Peter Lowitt b, 1, Neil Angus c, 2, Dona Neely d, 3
Center for Sustainable Enterprise and Regional Competitiveness (SERC), College of Management, UMass Boston, 100 Morrissey Blvd., Boston, MA 02125,
Devens Enterprise Commission, Eco-Industrial Development Council of North America, 33 Andrews Parkway, Devens, MA 01434, USA
Devens Enterprise Commission, 33 Andrews Parkway, Devens, MA 01434, USA
Devens Eco-Efficiency Center, 33 Andrews Parkway, Devens, MA 01434, USA
D'Amore-McKim School of Business at Northeastern University, Boston, USA

a r t i c l e i n f o a b s t r a c t

Article history: Attracting and retaining companies is critical for successful development of eco-industrial parks. By
Received 28 August 2013 examining and addressing the main business needs and sustainability challenges, policy makers, de-
Received in revised form velopers and other champions, can promote both business value and social value creation. This paper
29 May 2014
provides valuable lessons from Devens, Massachusetts, an eco-industrial park established in 1993. Based
Accepted 4 September 2014
Available online 23 September 2014
on 29 interviews with local organizations (30% participation rate) the study reports on key business
needs and sustainability challenges of local organizations and how Devens Enterprise Commission has
worked to address these as part of its vision for Sustainable Devens. The study found that access to
Industrial ecology
infrastructure e such as rail, green buildings and roads e was the most important factor for companies
Eco-industrial parks to locate to Devens, followed by the lower cost of real estate (59%) and tax benefits (52%). Top two
Sustainability sustainability challenges for Devens companies included improving energy efficiency and improving
Competitiveness materials efficiency. Eighty six percent of Devens organizations reported partnering with others locally,
Eco-efficiency and 79% said their organizations could benefit from such partnerships in the future. Companies were
Industrial clusters most interested in partnering around joint sourcing, infrastructure and knowledge sharing. The study
confirmed that local government efforts to develop Devens infrastructure and establish supportive
sustainability policies and programs were in line with business needs and a key factor for Devens'
success. It confirmed earlier research on the role of industrial ecology as a cluster development policy
and the importance of diversity of firms, trust, sustainability policies, and supporting network devel-
opment as key to creating both business and social value.
© 2014 Elsevier Ltd. All rights reserved.

1. Introduction human systems to maximize efficiencies? A main goal of industrial
ecology is to change the current linear nature of our industrial
Nature is highly efficient at using resources and maintaining a systems and move to a circular system “where the wastes are
balance within a system of inter-linked groups of organisms. With reused as energy or raw materials for another product or process.”
an ever increasing demand for a finite set of natural resources, can Within the broader field of industrial ecology, which examines the
the lessons learned from studying nature be applied to redesign flow of physical resources through systems at different scales, the
sub-field of industrial symbiosis (IS) focuses on these flows at the
level of industrial clusters and industrial parks. Eco-industrial parks
(EIPs) are defined as “a community of businesses that cooperate
* Corresponding author. Tel.: þ1 617 287 6293. with each other and with the local community to efficiently share
E-mail addresses:, (V. Veleva), s. resources (information, materials, water, energy, infrastructure and (S. Todorova), (P. Lowitt), NAngus@
natural habitat), leading to economic gains, gains in environmental (N. Angus), (D. Neely).
Tel.: þ1 978 772 8831x3313. quality, and equitable enhancement of human resources for the
Tel.: þ1 978 772 8831x3334. business and local community” (PCSD, 1997).
Tel.: þ1 978 772 8831x3304.
0959-6526/© 2014 Elsevier Ltd. All rights reserved.

376 V. enhancing reputation. informational. Yet. business success is increasingly determined by factors address this knowledge gap by examining the following questions: such as skills and knowledge (human capital). being a part of an eco-industrial park? The paper begins with a EIPs are increasingly seen as a means for green growth and reduced literature review examining the business benefits of EIPs and the resource consumption. there is a need to better communicate the are much less likely. The Act authorizes “imprisonment for up to 10 years and $1 million in fines if a CEO or CFO knowingly creating more sustainable supply chains. Today Devens is a regional enterprise zone which has environmental impact of production and service activities. address environmental concerns of customers and to mitigate the trial ecology. 2007). (2009) demonstrate how sustainability today is becoming a key ronmental liabilities. 2012). By focusing on CFO personally certify the disclosures in the annual report. terials use. as well as indirect economic benefits including improved A more recent study of a smelter in China found that industrial reputation. 2005. innovation. Developing EIPs up the local environment and advancing more sustainable infra.. 2009. designing more sustainable products and services. attracted 95 organizations and contributed over $1. The could benefit from sustainable redevelopment (EPA. information. Shi et al. and presently has at least thors conclude with discussion of the results. Esty and Porter. however. Yet. in supporting “positively influences the physical flows of materials and energy” business and sustainability goals? How companies benefit from and are seen as sources of innovation. Compensation. Literature review Literature on eco-industrial parks has demonstrated qualitatively and quantitatively that these sorts of arrangements are likely to be The business benefits of industrial ecology and EIPs have been advantageous for participating firms (Cote and Cohen-Rosenthal. In the 21st century knowledge-based providing direct and indirect business benefits. et al. Concerns about global warming. In examining 1998. Moore Kalundborg eco-industrial park Jacobsen (2006) reported both and Manring. and attracting employees by improving the . located firms. Chertow and Lombardi. supply security. decision to locate in Devens as well as whether and how being a part including technical. studied by both researchers and practitioners. it is critical to and materials. China became the first country to globally launch an and analysis of the interviews with 29 local organizations. organizational and of an EIP has helped address their top sustainability challenges while legal (Gibbs and Deutz. potentially contaminated properties across the United States that including supply security. firms or regulatory requirements. around a narrow definition of physical exchanges among closely structure such as a rail and green buildings (Veleva. and local communities. the perception investors. 2012). by mandating that the CEO and driver of innovation for small and large companies. Nidumolu 4 The Sarbanes-Oxley Act strengthens the requirement for disclosure of envi. 2. very latter provides insight into business motivation for collaborations few developers are interested in redeveloping such sites despite the in cases of low-value by-product exchanges. fact that they often have an ideal infrastructure for clean energy/ Chertow and Lombardi (2005) demonstrate the significant clean tech industry development (McKittrick. 2009). including retiring facilities. 1998. 2012). weather-related business dis- ruptions. has been problematic. In addition. Studies have iden- Yet little is known about the main factors behind companies' tified the main barriers to such eco-industrial development. Puerto Rico. infrastructure. and ecology “can improve the competitive advantage of supply chains ability to attract and retain employees. 2012). The au- eco-industrial park standard in 2006. such collaborations among firms challenges. Recently Lombardi and Laybourn (2012) proposed industrial park like Devens? What is the role of the organizational expanding the definition of EIPs to include “the exchange of and human factors. the lack of trust or communication across economic benefits including savings from reduced energy and ma. Veleva et al. energy parks and be able to attract and retain companies. including its sustainability vision and biosis “as a systemic innovation vital for green growth” (Lombardi process for redevelopment. A competitiveness and economic performance. including the Devens Enterprise Commission knowledge. To promote economic and environmental benefits for co-located firms in redevelopment of contaminated and other sites as eco-industrial Guayama. companies will be changes such as steam and water and are typically a result of trying to remove these from their balance sheets. The Cooperation and Development (OECD) recognized industrial sym.S. a growing number of U. 1985). The authors seek to economy. Devens had a competitiveness is a result of improved performance and ability to sustainability vision from the very beginning and a goal to improve meet growing number of environmental regulations. increased flexibility. In 2010. With the Sarbanes-Oxley direct and indirect economic benefits for participating companies. The authors identify as potential organiza- business benefits of locating to an EIP to companies. prospective tional hurdles: the lack of information across firms. limitations of the 1568 national and provincial-level industrial parks which are seen study and recommendations for future research.. The main part of the paper includes data et al. or innovation. economic.” The study builds on former military site listed under the Comprehensive Environmental an earlier work by Bacallan (2000) which suggested that improved Response.45 billion and Historically industrial ecology has focused on material and en- 3200 high quality jobs to Massachusetts economy while cleaning ergy flows.. 2008. 2014).000 sites and almost 15 million acres of business benefits are related to improved operational capability. the study finds that without proper policy understand and address firms' key business needs and sustainability intervention and encouragement. operational resiliency. as critical for achieving a circular economy and national competi- tiveness (Geng et al.4 Presently there avoided discharge fees or reduced disposal costs. including water and by-products. Act's requirement for disclosing the cost of retiring polluted Direct economic benefits relate to higher value byproduct ex- manufacturing facilities. and Liability (CERCLA) Act. operating their facilities more certifies a report that does not satisfy the requirements of the Act” (Pfefferle III. and expertise” which they find also (DEC) and Devens Eco-Efficiency Center (DEEC). including reduced costs for water. / Journal of Cleaner Production 87 (2015) 375e384 In a world of constrained resources and growing population. Rao and Holt (2005) examined and sustainability practices of companies located in the Devens greening of firms' supply chains and found that the process “leads eco-industrial park and how local policy makers are working to to integrated green supply chain which ultimately leads to address these while promoting local sustainability (Veleva. by reducing production cost and improving environmental per- This paper presents insights from a study of the business needs formance” (Yuan and Shi. 2012). innovation and What are the main reasons for companies to move to an eco. ability to the regional economic base by employing the principles of indus. The indirect are approximately 490. 2004). Yuan and Shi. energy and materials security are also becoming important sources of innovation and competitiveness (Drucker. Such benefits include both direct of high transaction costs. Devens case is presented next. efficiently. 2009). the Organization for Economic human and organizational factors for successful development.

Devens was announced in 1991. (2007) protection. Such embeddedness occurs over time and has within the network of collaborating firms is another indicator of been found to accelerate the formation of relationships and in the improved business competitiveness. 2012). 1. They argue that companies can create economic value by creating societal value. The increasing costs of energy and transportation. In their recent work on creating shared value. V. the development of EIPs can be The 1993 Fort Devens Charrette and the Devens Reuse Plan viewed as an environmentally-based variant of cluster policies used began the process of establishing the vision and goals for Devens increasingly in recent years to advance economic development ini. redevelopment. culture. Porter and Kramer (2011) emphasize the “profound effect” of a business location on a firm productivity and innovation. A company's supply chain market share. formation.” Such trends will connected and the full potential of industrial ecology cannot be make the location increasingly important. and working con- Hoffman (2003) was among the first to call for examining the ditions. distributors. new products to offer. 2008). Harvard. health and safety. universities. 2007). Diverse industrial clusters include not only the local businesses but also institutions such as schools. infrastructure development. and natural resources” (Devens Sustainability Indicator identify improved environmental performance. Thus supportive local policies and sisted of predominantly rural lands from the adjacent Towns of champions can play a critical role in advancing eco-industrial Ayer. resources of company managers. There are three distinct ways to do that: a) by reconceiving products and markets. 2012). shareholder value in the long term” (McKinsey. ecosystem” (Korhonen et al. leads to reduced transaction costs. First created in 1917 by the U. thoughtful and careful redevelopment of the base for the purpose of In their literature review of the drivers and limitations for suc. Sustainability for Devens was defined as: “the tiatives. new customers to serve and new ways quires developing network embeddedness by connecting firms and to configure the value chain. promoting economic development. Because of the limited time and MassDevelopment. Porter and Kramer achieved without understanding and leveraging the power of the (2011) argue that “shared value helps uncover new needs to social systems. case of EIPs. Roberts (2004) reports that clustering of companies has also set of companies to provide a range of employment opportunities been found to lead to cost avoidance through reduced waste collec- tion costs as well as improved materials and energy efficiencies. political and other supply chain risks “may lead companies to stitutions e in implementing industrial ecology in practice. 2011). around energy use. which still remains understudied by researchers. social welfare. Map of Devens. trust and co-operation must be setts legislature in 1993 to aid the redevelopment of the former Fort developed between firms “before they are prepared to link processes Devens (see Fig. there is a need for a coordinating police. The ability to increase self-reliance Grenville. 2010). retains the infrastructure. 1). including the search and negotiation costs involved in identifying exchange partners 3. which created support as well as informational and educational services and the Devens Enterprise Commission (DEC) to take regulatory and infrastructure support for the other participants of the industrial permit-granting responsibilities for the redevelopment of Devens. Martin and Mayer.. and having fewer major production locations. claim Porter study said that “engaging in sustainability contributes positively to and Kramer (2011). including natural resource and water use. Fort Devens con- the firm” (Gibbs and Deutz. trade associations. suppliers. Massachusetts (Lowitt. More broadly. a quasi-state agency. where the resulting competitive individuals.. However. the literature on sustainability clusters has identified the importance of supporting infrastructure and other local factors in promoting productivity. 2012). sustainable redevelopment Having the right institutional setting in a region is among the most important elements for successful development of eco-industrial Devens is a regional enterprise zone created by the Massachu- parks (Mirata. and Lancaster. resources and support Redevelopment of Devens was focused on attracting a diverse systems. He remake their value chains by moving some activities closer to home argued that the physical and social systems are closely inter. a local and regional movement They can serve as “network brokers and institutional anchor tenants' toward base reuse planning was initiated. growing role of the social systemsesocial interaction. 2000). and competi- tiveness (Maskell and Malmberg. and quality improvements”. advantage will often be more sustainable than conventional cost industrial development and sustainability (Paquin and Howard. Local governments can play a particularly important role in promoting cluster development and firm competitiveness by setting clear and measurable social goals which can promote social development and business sustainability (e.S. The Massachusetts initiating the actor networks and providing political and managerial legislature adopted Chapter 498 of the Acts of 1993. meet. Implementing industrial ecology in practice re. environmental cessful development and functioning of EIPs Tudor et al.. shared access to in. and non-profit organizations. Devens eco-industrial parke history and process for (Chertow and Ehrenfeld. 2000). Porter and Kramer. Congress and together in ways that have an impact upon the economic viability of the Department of the Army as a military base.g. 2012). 2008. In this sense. developing trust and shared actions toward eco. Shirley. health and safety or infrastructure improvement) (Deutz and Gibbs. and in. . and c) by building supportive Fig. 2004). and public works and is responsible for the sale and organization which can facilitate such collaboration and “create leasing of real estate within the Devens Regional Enterprise Zone interaction spaces where firm members could meet and share ideas” (DREZ) (Devens Sustainability Indicator Report. innovation. 1995. 2004). companies can reduce their operating costs and increase industry clusters at the firm's location. argue Deutz and Gibbs (2008). / Journal of Cleaner Production 87 (2015) 375e384 377 workplace. Report. When the closure of Fort development that leads to environmental and business benefits. b) by redefining productivity in the supply chain. Seventy-six percent of the executives in a 2010 McKinsey clearly affects and is affected by various societal issues. fire. markets. Veleva et al. (Lombardi et al.

representing 57% of the Devens roads in 2012. b) establishing a separate entity to focus on The Great Exchange. The group managed to secure $200 updated in 2012 when a comprehensive review and assessment of million investment to double track the rail between South Acton Devens sustainability achievements was undertaken. Devens Enterprise Commission (DEC) Great Exchange (a forum for exchanging and repurposing waste). DEC and its Director Peter signs saved over $1800 per year by implementing an employee Lowitt have played a critical role in working towards achieving engagement program to promote energy conservation. 2. http://www. Veleva et al. and small boxes. were particularly focused on attracting employers from the clusters For instance. medical devices. bubble wrap.000 in purchase and disposal costs (DEEC.46 environmental and economic performances” (EcoStar. cloth bags. The Great Exchange was launched in 2007 as a forum to divert unwanted items and materials from the landfill to reusable opportunities. equipment.. military de. For example. and (b) Lack of “green” buildings. Eglomise De- In the process of redevelopment. 2012). 2012 Annual Report. launched in 2005 as a voluntary branding and achievement pro-  The total linear feet of sidewalks has doubled from 40. The linear feet to 14. furniture. 2012).1. Waste such as 10 gallon pails. Executive Director of the DEEC. small businesses.44 miles to 12. identified two major issues that DEC worked to address over the fense. and Ayer and thus enable a viable reverse commute. the program repurposed 61 tons of materials in 2012 saving $24. Sustainable Devens: Framework and seven key issues (Veleva. and educational tours among others. environmental. DEC increased from 120. daycare facilities.300 linear feet. Since the first Exchange took place in 2008. 2012).com/2012%20annual%20report. 2). 2007 EcoStar transitioned to become the Devens Eco-Efficiency  Percentage of commuters using alternatives to driving increased Center.g.000 to 300. Center offers workshops around green building more sustainable  Percent of sustainable/high performance (“green”) buildings operational practices. experiences. the initial Sustainable Indicator Report in 2000 that were seen as good fit for the community e e. ecostardevens. These indicators were Director Mr. behind the development of the Londonderry Ecological Industrial Park. the program has partnered with over 100 global firms.482. . Devens Eco-Efficiency Center (DEEC)  Since its launch in 2007. a non-profit organization with the goal to assist local from 4% to 10%. DEC has also adopted policies for low- impact development and water resource protection (Lowitt. Lowitt as chair. Styrofoam blocks and fabric scrap are “turned into art” by local schools and museums. plastics and renewable energy past 12 years: (a) Lack of public transportation and alternatives to technology (Hammer et al. To address the first issue. Text Box 1 portive local policies. 2012). Lowitt brought in a sustainability consultant in 2001 to  All 324 CERCLA sites have been cleaned up and all known un- assist in developing the membership program EcoStar which was dergraduate storage tanks (USTs) removed.” Business development efforts achievements and identifying gaps. saving Development Council of North America and the key person $24. elastics. health and safety (EHS) reached 14% of the total square footage of all occupied space in roundtable (a monthly open forum for EHS professionals to discuss 2012 (no “green” buildings existed in 2000).  The number of organizations based in Devens increased from 60 to 95. Lowitt focused on three main aspects in redeveloping Devens as an internationally recognized EIP: a) promoting sup. the 3. To address the ment revealed that overall Devens has made significant progress in second issue. and mu- nicipalities and repurposed 500 tons of materials helping participants avoid over $200. plastic jars.673 to gram “to enable businesses and organizations in the Devens (MA) 65. recycling assistance.000 to the 50 participating entities (see Text Box 1). The Great Devens sustainability vision. and indicators as a tool to measure and communicate progress the Fitchburg Line Working Group was established with DEC towards its sustainability vision (see Fig.000 annually.000 to the 50 entities partici- pating in it. The assess. 2012).2. Managed by Dona Neely. providing education and building a network of collaborating firms. 3. trends and best practices as well as potential collab- orations). service providers. To engage local organizations and promote building linkages  The number of people participating in community events and advancing Devens development as an eco-industrial park. single occupancy passenger vehicles to commute to and from In 2000 Devens developed a framework of sustainability issues Devens. Devens.pdf). Some of the main materials exchanged included foam packing sheets. energy efficiency assistance. Director Mr. Fig. In miles. As a Chair of the Eco-Industrial Exchange helped repurpose 61 tons of materials in 2012. businesses and organizations in reducing operating costs and  Freight rail available to local businesses increased from 8000 environmental impacts through efficiency. Mr.378 V. DEC adopted an Green Building Incentive Program most areas over the past decade (Veleva. area to gain eco-efficiencies by pursuing strategies that improve  The total linear miles of trails increased from 5. the Devens Eco-Efficiency Center had interacted with more than 80% of the establishments in Devens. / Journal of Cleaner Production 87 (2015) 375e384 in order to provide “resilience from impacts associated with the and c) implementing an open and inclusive process for measuring loss of a single primary employer. non-profits. Most progress has and various regulatory changes to encourage the deployment of been made in the following areas: “green” buildings in Devens.. life sciences. reuse and recycling.

DEC wanted to better understand. For deeper and precise analysis the research team used not only the 5. employees. Media News 4. analyzed using SPSS software package. DEC scheduled interviews with all 29 survey participants.. Key sustainability challenges of Devens organizations proportions of selected indicators. More than a third of study tatives included senior executives such as CEO. 2012).government entities. Understanding AMSC Mount Wachussets College such direct and indirect business benefits (including sustainability Biognostics Nashoba Valley Chamber of Commerce challenges and opportunities) and the main reasons for firms to Bristol Myers Squibb NBKenney locate to Devens. 5. infrastructure e rail. employee engagement and job satisfaction. April 2013. it did not Devens organizations participating in the study. Collected data were additional selling point” (Hammer et al. 3). designed to help businesses decrease their energy consumption and save money. Company represen- reason for locating to Devens (see Fig. as well as other personnel involved in implementing shuttle to the new commuter rail terminal in Littleton. / Journal of Cleaner Production 87 (2015) 375e384 379 Although the new set of sustainability indicators for Devens Text Box 2 helped better evaluate progress over the past decade. sample size was determined to be 29. Forty one percent (41%) of participants The main reason to conduct a sample study and not a census was reported having 50 or more FTEs in Devens. include indicators that measured the EIP benefits for firms such as improved operational efficiency. 4). 14% . Research methods In order to examine the main reasons for locating in Devens and non-profit and 7% . Eglomesie Designs Parker Hannifin As Devens moved into its second decade of promoting sustain. In this area DEEC offers a range of services (30% of Devens organizations). Twenty-two percent practices. To determine a number of U. more than half (53%) reported having sample size for the estimation of proportion from finite population. Main reasons for locating to Devens The interviews were held in the period between JanuaryeMarch 2013 and were open-ended. but also the 95% confidence in- tervals (CI). innovation. One in three organizations (33%) top sustainability challenges. Devens commitment to sus- Devens Eco-Efficiency Center services could help support their tainability also aligned with the company's mission and was also an sustainability mission and business goals. To obtain additional feedback 26%e64%) knew that Devens is internationally recognized as EIP. These services include employee outreach and engagement guidelines. A large sustainability practices such as environmental health and safety number of firms mentioned traditional business factors such as the managers and sustainability/recycling coordinators. 79% were businesses. green building and roads e as the main DEEC. Questions lower cost of real estate (59%) and tax benefits (52%) as key rea- addressed issues such as the main reasons for locating in Devens. CFOs or a vice participants (36%) were interested in participating in an employee president. After an international search Bristol Meyers the survey in advance of the interview. Mass Development and UMass Boston. Thus the conservative estimate of the with the DEEC EcoStar program and other offerings and 45% (CI. participants were encouraged to provide manufacturing plant in Devens “because the site had the necessary additional input into the sustainable redevelopment of Devens. In addition to responding to Squibb (BMS) chose to locate a large biopharmaceutical the survey questions. energy consumption benchmarking with 5 95% CI indicate that we are 95% confident that the interval constructed from the Energy Star's Portfolio Manager. A simple random half of the organizations (59%) had a small number of employees in sample from finite population of 95 Devens organizations was used. challenges and op. In terms of total that the research team had limited resources. measure Integra Red Tail Golf Course and communicate Devens achievements as well as existing barriers Johnson Matthew Rofin Baasel Laddawn Ryerson to greater collaborations among local companies. the researchers took into consideration the 95% confidence interval Seventy-six percent of participants (CI. Liberty Tire recycling True North Hotel Group portunities in advancing mutually beneficial collaborations with Loaves and Fishes UNACC other Devens organizations to improve efficiency and business Magnemotion Waiteco competitiveness while advancing local sustainability goals. The majority of partici- the sustainability challenges and practices of local organizations. as infrastructure capacity. Veleva et al.1. over 500 FTEs and 47% reported less than 500 FTEs in the U. learning. The interviewers' team included representatives from DEC. and contingency planning for weather and other business said that Devens' sustainability vision and policies were a factor disruptions.2.15. and professional audit service by sample will contain the true population proportion. The study aimed to Learning Express Sabic Polymer examine local organizations' current practices. from companies. Study results and analysis efficiency) and reducing the cost of materials (improving mate- rials efficiency). sons for locating to Devens. waste management of the top three reasons for locating to Devens.S. V. Only questions that pro- vided a sufficient number of responses were reported in the results. More than the research team designed a 20-question survey. product take back. Study participants were provided with in their decision. pating companies (90%) were manufacturing entities. Guild of St Agnes Patterson Veterinary able local development. among others. the Industrial Assessment Center at UMass Amherst to help identify .S. each mentioned by 61% of interviewed organiza- Text Box 2 lists all 29 organizations participating in the study tions (see Fig. Of these. among others. is critical for attracting and retaining companies Comrex New England Sheets Devens Recycling Parker Charter School in an eco-industrial park. 55%e91%) were familiar and maximum error of 0.5 The top two sustainability challenges identified by study par- ticipants included reducing the cost of energy (improving energy 5. a unified and expedited permitting process well as identify areas where Devens Enterprise Commission and and competitively priced utilities. current collaborations with other identified the ability to collaborate with other businesses as one Devens organizations. Devens (less than 50 FTEs). semi-structured and conversational in Majority of study participants (67%) identified access to good style.

suppliers to reduce supply chain tance of knowledge. April 2013. manufacturing firms were taking back old products for reuse or About one in five Devens organizations (21%) identified remanufacturing from their customers. On average each organization partnered with 2. 35%e76%) of study participants reported information was available to measure progress and cost savings. with its monthly workshops and roundtables around to meet their needs. waste generation. three companies - 5. were typically low in Devens to find space for employees in cases of fire alarm or other value items such as bubble wrap. / Journal of Cleaner Production 87 (2015) 375e384 Fig.6 Thirty-two percent (CI.380 V. 6 While there are some business connections among the firms located in Devens. reuse and recycling. which can bring significant bottom line benefits (Veleva et al.. including the 2014 in cases of weather or other business disruptions. 3. 67%e96%) of or other programs to encourage employee fitness. Collaborations between Devens companies forum for area businesses to share best practices. These findings confirm the growing impor. The study found that 71% (CI. they recognized the increasing supply area where DEC and DEEC have played an important role. Devens organizations partnered with others locally. The study found that most organizations did not track of selling products. leading to employees. Integra. Veleva et al. Expanded trails and important indicator of building local networks which enable cost sidewalks are supporting local firms' wellness programs.S.S. however. a growing number of companies are adopting strategies for product take-back and reuse or dematerialization (selling services instead of prod. in October 2012. The study found that 86% (CI.4. Thirty- savings (e. small boxes emergency. Seventy-six percent (CI. DEEC's Great hurricane Sandy in the U. In Many companies identified employeeerelated issues as key such cases DEC played a critical “broker” role in helping companies challenge: 39% reported difficulties with access to highly skilled make the connection and thus reduce transaction costs. skills and employee health and well-being for risks. among others. 55%e91%) of participants reported tainability initiatives. During the interviews. While many companies were involved in sourcing materials improving business performance and competitiveness and is an and selling products globally. MA. 21% mentioned employee health and well-being and improved business efficiency. the exchanges.3. and Devens Recycling . A few firms were planning to expand and looking for and furniture (see Text Box 1). it is expected that waste management included telecommuting. .. Exchange Forum has helped facilitate such connections and save several companies expressed interest in collaborating with others companies' money. Contingencies Massachusetts Organics Ban.5 others. For chain risks and costs and were looking for more local opportunities instance. 2013). Such planning has become increasingly percent of study participants reported using other companies' important after the widespread business disruptions caused by waste as a raw material. Green Building. and therefore no reliable Over a half or 56% (CI. Forty-five businesses. and sharing infrastructure with other will grow in importance (Massachusetts EEA. reducing waste generation among its top three sustainability 13%e57%) of study participants reported offering services instead challenges. ucts). thus helping The level of collaboration by companies in an EIP is an them run more efficiently and sustainably. Environmental Health and Safety and Regulatory Compliance. exchange resources. DEEC has provided a 5. 2013). and build partnerships. another 21% . foam packing sheets. efficiency opportunities with a payback period of two years or less 2013). Other sustainability practices of Devens organizations Laddawn Inc.. being engaged in contingency planning for improved resilience With the growing waste reduction mandates.g.the challenges in engaging employees around sus. majority of companies' suppliers and customers were located outside Deven. a traditional EIP indicator. The presence of non-profit With the increasing costs of raw materials globally. increasing the use of local/U. new space while others had space they were looking to lease. 49%e87%) of Devens (DEEC. discuss chal- lenges. Main reasons for locating to Devens. resulting from materials exchanges or joint sourcing) nine percent of study participants reported having walking clubs and knowledge sharing.reported partner- ships with eight other organizations. each attracting around 20 people.

President and Hotels Group. V. good infrastructure and employee themselves have a sustainability initiative. In addition to the streamlined permitting of the DEC. 2012). Veleva et al. 2013.5. President and Loaves and Fishes (food pantry) has helped increase the diversity of CEO of Nashoba Valley Chamber of Commerce. cardboard exchange.” shared advance these challenges and priorities by implementing local Maura Peeler. participating in Devens programs has helped improve employee Mount Wachusetts Community College (higher education) and morale and satisfaction. organizations such as the Parker Charter School (secondary school).7 For other organizations. Proposed in the initial Devens sustainability indicator set. being a part of an EIP and crease in access to rail. Nashoba Valley Chamber of Commerce. which can lead to reduced costs for obtaining donations and volunteering. nizations see sustainability practices as important business issue tional and local accounts that use our hotels for corporate travel. to waste repurposing. If they efficiency. True North Source: Email follow up correspondence with Melissa Fetterhoff. Area General Manager of the True North Hotels government policies and initiatives that have resulted in an in- Group. re- offerings such as walking clubs. It is. 2013. business success. more green buildings and more companies 7 8 Source: Email follow up with Maura Peeler. Discussion sustainability practices. August 15. 79% Almost two-thirds (66%) of study participants rated local govern- (CI. . Devens offerings have helped local organizations advance their 6. “local “trust” “openness” and “communication” (Ashton and Bain. When asked about future opportunities for collaboration.8 local organizations and thus create additional opportunities for Local government responsiveness is an important factor for collaborations e from student internships. Intangible benefits from locating in an eco-industrial park like velopers and policy makers to track and communicate as part of Devens their strategy to attract companies. Top sustainability challenges for Devens organizations. “Being part of Devens This study demonstrates that a large number of Devens orga- EIP has helped us become more competitive with prospective na. / Journal of Cleaner Production 87 (2015) 375e384 381 Fig. materials efficiency. August 15. CEO. many commented on the attractiveness of safety and other training. permits. as shared Melissa Fetterhoff. joint with study participants. 4. an important measure for EIPs de- 5. 59%e92%) of study participants said their organization could ment as “very responsive” to their needs and 24% stated it was benefit from partnerships with others such as joint purchasing. government responsiveness” was never reported before due to the lack of data. industrial networks because they create “short mental distance”. Area General Manager. they often won't do skills and well-being e DEC has been able to help support and business with vendors that don't hold similar values. coop “somewhat responsive” (Veleva. contingency space use during fire alarm the redevelopment (landscaping and maintenance of public and other business disruptions. and employee spaces). which are also often seen as key to their business success and firm competitiveness. landscaping and waste disposal. April 2013. addressing infrastructure and other business needs. By identifying and addressing Many large companies inquire as to sustainability practices and local firms' key sustainability challenges and priorities e energy methods during the ‘RFP’ (request for pricing) process. Such spondents also valued the coordination and accessibility/avail- collaborations are important for successful development of eco. 2012). however. In follow-up interviews bidding for snow plowing. and source of competitive advantage. gym facilities and field trips. ability of DEC and MassDevelopment staff for day to day issues.

reduced air pollution and traffic (social ben- age available for major by-product exchanges. since most heavy single occupancy vehicle to get to work leads to reduced green- manufacturing has moved abroad. which are all sources of can reduce costs and operational disruptions for participating innovation. in advancing collaborations and While locating in an eco-industrial park enables companies to cooperative approaches to resource management (Hoffman. communicate the business results as part of their strategy to attract confirms earlier studies that have identified a range of technical.g. trust and collaborations among (Tudor et al. While DEC has a robust system in place to et al. house gas emissions.. 2012). 2008). and expertise.. and efficiently and timely reporting of confirms previous studies that have examined the role of social results to all stakeholders (Veleva. Continuous communication about available programs for local includes setting clear and measurable social goals. 2006) including benefits (Zhu and Cote. the Devens case provides improved profitability (business benefit) while reducing energy use empirical evidence in support of the Lombardi and Laybourn (2012) and pollution (economic and environmental).. By creating a (2011). Devens EIP provides empirical evidence in support of Porter opment. (2013) provide a framework for identi- legal. which performance. sustainability is savings or reduced business risks) can promote greater participa. Devens has estab. Veleva et al. the value of such green and policy makers interested in advancing local and regional networks and peer learning is expected to increase further (Rao and sustainable economic development. This finding Sustainability Indicators). promoting alternatives to the (Gibbs and Deutz. companies to pursue shared value. In addition. development of collaborations and green networks as instruments Understanding and addressing the main business needs and for learning and innovation (Stormer. collaboration and ultimately advance sustainability and local authorities “should not abandon their economic develop- competitiveness of local firms. Joint purchasing and proposal to expand the definition of EIPs to include exchanges of shared infrastructure (e. not the main reason for companies to move to an EIP therefore tion. promoting education. Greater diversity of involved firms not only promotes parks like Devens can provide valuable lessons on how industrial cross-sector knowledge transfer but also greater resilience and ecology can serve as a tool for establishing environmental and reduced fragility of the system when some participants leave social goals.g. 2007). factors. 2007). The study results Gibbs. distributors. providing educational and networking opportunities. 2012). 2003. redefining productivity in separate entity focused on promoting industrial ecology principles the value chain.. While some parks report challenges in getting companies and Kramer's (2011) recent theory on creating shared value.S. The to relocate. Improved energy and materials efficiency can lead to 21st century knowledge-based economy. used by Devens. With its workshops prescriptive (e. resources and support systems” changes or the loss of key industrial ecology champions (Tudor (Tudor et al. industry presently (Lowitt. As results demonstrate. confirm previous research by Deutz and Gibbs (2008) of using in. Sustainability become more efficient suppliers in global supply chains through practices such as product take-back for reuse and remanufacturing sustainability practices (Moore and Manring. Boons and Spekkink. 2007). economic and environmental results of local The fact that despite its two-decade long redevelopment Devens collaborations (Veleva. 2008). 2005. 2012). more tenants.. even in the case of personnel pliers. create shared value at all three levels outlined by Porter and Kramer Ashton and Bain. are seen as a key part of adopting sustainable supply chain man- The study findings confirm the importance of indirect economic agement which is also associated with both business and social benefits for participating companies (Jacobsen. For example. found that clustering of companies “results in synergies and eco- lished the necessary institutional infrastructure to ensure eco-in. and organizational barriers to such exchanges fying such measures. This is in line with previous research which has and greater collaborations among local firms. there is less heavy material us. 2004).382 V. 2012. goals. DEEC has played a encouraging the use of low impact development storm water critical role in promoting shared knowledge and learning. for the growth of social interactions and networking activity knowledge. While EIP developers). the Devens case confirms that developers should policies and initiatives cannot force companies to change their focus on what they can control and provide flexibility and support behavior. the greatest potential is at level 2. 2007). economic. Such vision for developing EIPs is particularly valuable companies (business benefit) while promoting local cluster devel- for small and medium enterprises (SMEs) as it enables them to opment and job opportunities (social benefits). In the benefits). ment objectives” as suggested by Deutz and Gibbs (2008). Porter et al. Having local centives to encourage such development are additional factors for policies and initiatives that are in-line with local business needs can successful eco-industrial park development in the light of regional serve as a valuable lesson for other policy makers and developers economic development (Chertow and Lombardi. In such cases eco-industrial Holt. 2007). With the growing sustainability challenges of companies is critical for developers number of environmental regulations. the Green Building incentives and regulations and roundtables as well as the Great Exchange. 2005). sup- dustrial activities will continue. nomic benefits related to access to information. including champions. building management techniques). Devens has been more successful as a result of building case demonstrates in practice how the right kind of government on successful spatial planning and infrastructure sharing (Deutz approach (including tax breaks and regulations) can encourage and Gibbs. firms that lead to both business and social benefits. Deutz and interested in attracting and retaining companies. and guidance (especially when associated with costs (Deutz and Gibbs. 2007). By simultaneously pursuing environmental and community dustrial ecology as a tool for local and regional economic devel.. Gibbs and Deutz. 2009). measure the social. 2008). markets. In this sense Devens efits) while at the same time improving companies' environmental represents an eco-industrial model for light industrial parks. information. Un- . it is critical to also measure and still does not have any major exchanges of materials or by-products. 2008. networks. 2008). / Journal of Cleaner Production 87 (2015) 375e384 in Devens collaborating to maximize efficiencies. in case of weather or fire emergency) knowledge. investing in the development of a mea- trust and encouraging environmentally favorable behavior among surement and reporting system to benchmark progress (Devens firms located in Devens and neighboring communities. This approach. While there The case of Devens supports the idea that “developing EIPs is are many factors that determine the success of such cluster likely to be a long process where immediate results are unlikely to development (many beyond the control of local policy makers and be forthcoming” (Lowitt. Adopting local policies and in. establishing organizations is key for advancing local sustainability goals and performance standards to meet these goals without being too increasing collaborations (Tudor et al. reputation and employee satisfaction (business is more relevant to the U. 2008).

eco-industrial park development..05. 2005. 2008. Laybourn. tion as well as knowledge creation. University of Massachusetts Boston. 61e69. P. Drucker. Such work can build on the Chertow.13.. change. A. Spekkink. Ecol... W. J. Devens e a sustainable community. Ehrenfeld. .13. 16 beneficial collaborations which can promote cost and risk reduc. 2012. energy generation) on building a greater number of mutually Chertow. revisit goals and refine plans and strategies as conditions Korhonen.. Ecol. R..pdf (accessed 28. 13e27. Peter Lowitt is the competitiveness. 16 (1).. 6 (5). Research into the business ecostar.. 181e188. Agarwal. Assessing the “short mental distance” in eco-industrial their facilities in Devens to others in the U. 2000. 2012. F. Ecol. 272e276. 2008. Svetlana park. 15e26.05. Industrial symbiosis in Kalundborg. the case of Devens EIP Martin. N.13. Industrial symbiosis: testing the networking activities and collaborations (Tudor et al...bus.umich. J. such as mission and the Chair of the Eco-Industrial Development Council of confidence intervals and hypothesis testing.devensec. M. 13 (1) Casebook. Cote. (2008) further provide valuable insights into using industrial EcoStar. co-generation and clean Boons. J. Ecol. M. 2013. J.F. Levels of institutional capacity and actor expectations about industrial symbiosis...05. progress.. Lombardi. 2008. 22 (4). of other factors.). Ind. Chertow (2007) also makes the sustainreport. Dev. 11e12.. structure to implement the plan and a viable process to measure 239e255. Veleva et al. Ind.).. Environ.ecostardevens. A diverse industrial base has been shown to Ecol. 8. Ecol. the differences between small and large facilities and the Todorova is an Adjunct Assistant Professor in D'Amore-McKim impact of offered programs on sustainability practices and firm School of Business at Northeastern University. Clusters of similar industries create industrial park standard for promoting industrial symbiosis in P.ecostardevens. Sustainability. value and social value creation. 2012. Hammer. technologies (e. Ashton. 2e6.tbltool. R. W.. Prod. J. Neil Angus is the Environmental Planner of the Another limitation of the study is the lack of financial data to Devens Enterprise Commission. provides valuable insights for policy makers and developers about Lowitt. This study confirms the importance of examining and Strat. R.. Bain.. Gibbs. (1). Bus. Due to limited resources. Part of the challenge is rector of Devens Eco-Efficiency Center. Designing eco-industrial parks: a synthesis of tions and competitiveness. / Journal of Cleaner Production 87 (2015) 375e384 383 derstanding and addressing the main business needs in addition to physical exchanges of materials. Ecol. Energy Efficiency and Conservation. Industrial ecology and regional development: eco-industrial the link between business cluster development and EIPs. Organizing self-organizing systems. 11e30. 16. J. joint retaining firms.08. 6536e6541. . 1278e1287. Ind. Environ. energy. Geng. 35e43. 2004.). Devens Eco-Efficiency Center (DEEC). Putting Concepts into Practice: Triple Bottom Line Economic Development.. that earnings cannot be attributed by facility.).. R. Prod. Clean. Ind.). But- parallel to the development of business clusters. 2011). H. 2007. clusters and competitiveness. M. 289e305. F. Future research could Vesela Veleva is a lecturer and co-director of the Center for include stratified sampling from several eco-industrial parks to Sustainable Enterprise and Regional Competitiveness.. 70e82. North America. 2007). A..).com/index_files/ ecology as a cluster development policy. Shenoy. and abroad. promoting sustainability practices is key for attracting and and more about infrastructure and knowledge sharing. building local supply chain and reducing the risks from weather and other business disruptions. Econ. Technol. Ind. A.05. Innovation and Entrepreneurship: Practice and Principles. Potential analysis to use includes inferences about Director/Land Use Administrator for the Devens Enterprise Com- differences between two or several population proportions. “Uncovering” industrial symbiosis. Ind. Porter.. demonstrates that eco-industrial parks today can be less about Q. K. 2 (1). Porter development as a cluster policy. 2012. Fujita. Program Overview. controlling for variety networks. 1985. rations (Bain et al. engers and decomposer businesses on increasing firm collabora. A. S. In examining Devens Sustainability Indicator Report.. Deutz. water and by-products. J. 2003. 1683e1695. Shi.. College of examine the business benefits from locating to an eco-industrial Management. Key to Devens EIP success is its vision that serves community pub_academic/2003%20O&E.A. M. Resour.htm (accessed 28. 2000. 16 (1).. J. 13. recycling.. Organ. 2012. P. Ehrenfeld Jr. (1998) has pioneered this concept and his most recent work on Devens Eco-Efficiency Center (DEEC). 16 (1). V.. Bain. Stud. P. a collaborative assessment of economic and environmental aspects. Reflections on implementing industrial ecology through produce a greater number of by-product exchanges and collabo. Ind. 2012. Ind. shared social value outlines the need to focus on cluster develop. Finally. Bus. It boundaries and advancing knowledge. Ind.). E. Assessment of the national eco- tiveness and sustainability. W.. 2012. Clean. J. Industrial ecology and competitiveness: strategic impli- benefits of EIPs can build on the literature around diverse cluster cations for the firm.13. Dona Neely is the Executive Di- quantitatively evaluate firm performance. References Future research could focus on identifying a few companies to study and collect time-series data to compare the performance of Ashton. Cohen-Rosenthal.html (accessed 28. Environ.. D. 2007. Conclusion Hoffman. 42 (10). J. All of these elements are 7. Limitations of the study and recommendations for future critical components of business competitiveness in the 21st century research knowledge-based economy.htm (accessed 29. needs and sustainability challenges which leads to both business Lowitt.. November 13.htm (accessed 28. a plan to achieve that vision. how industrial symbiosis happens.. 2010). von Malmborg. 11 (1). Co^te . 2008. H. http://webuser. 2010. Industrial symbiosis and waste More research is needed to examine the role of environmental recovery in an Indian industrial area. Ecol. http://www. similar by-products. Greening the supply chain. ment for advancing business competitiveness and local and ecostardevens.. http://www.13.. J. Annual Report. D. some experiences. addressing business needs and sustainability challenges as well as Lombardi. J..05. http://www. UMASS how to attract and retain tenants by addressing their main business Boston. 1313e1328. Strachan.... P.S. development and how the latter promotes greater firm competi. Linking social systems analysis to the industrial ecology framework. J.pdf (accessed 26.05.pdf (accessed 25. Quantifying economic and environmental benefits of co-located firms. 28e37. limited research has been done on studying the effects of EIP-cote. Chertow. Y... J. http://www. Bacallan. Sci. Ecol.. 6. Esty. Mayer. In: Presentation. Reg.. M.. J. J. Many of the firms located at the Devens EIP have other facilities in the U. composting. Lyons. Recycl. (2008) which examined the role of Finally. 15. Zhang. 1998. 10 (1e2). Jacobsen. UK.S.. Ind. J. 12 (4). research by Geng et al. Deutz and Gibbs terworth-Heinemann.13. 39 (17). P.. sourcing. Oxford. P.J. 54. Redefining industrial symbiosis: crossing establishing an organization focused on identifying and facilitating academic-practitioner boundaries. 2012.. Lombardi. Babcock. T. 497e500. http://www. regional sustainability (Porter and Kramer. Management and policy aspects of industrial ecology: an emerging research Agenda..g. M. Deutz. Gibbs. the study used a small sample which About the authors did not allow for conducting more sophisticated statistical analysis and moving beyond descriptive statistics. Moosbrugger. 2006. 1998. R. Ecol. 2012. P. Conser.. 16 (1). Denmark: a quantitative and business interests. 66e86. Devens redevelopment: the emergence of a successful eco- industrial park in the United States. http://www.

nara. 32e47. H.01. Do green supply chains lead to competitiveness and eco- September 2012. P. 61. US Industrial Eco-park Development Networking Event.fsg. 8e10. Clean. 12 (8-10). M. NY.). Hills. UC Berkeley.. Society: Themes and Cases. Malmberg. 12951302. (accessed 26. Tudor. China's quest for eco-industrial parks. Harv. Clean. Re-powering America's Land: Moore. 56e64.14. M.08. (accessed 20... J. http://www. guidelines for the development of eco-industrial parks: an Australian case McKittrick. part I: history McKinsey & Company. Rev. MA. Yuan. Eco-industrial Park Work- Massachusetts Energy and Environmental Affairs. 1995. University of Western Porter. Prod. V.. R.). Harv. Cleaner Prod. 1998. Devens. V. Clabby.html (accessed 21. http://www. 16 (1). Business. B. J. 89503-882-1. Adams. Rao. Creating shared value. 62e77. . 2013.). T. programme in the UK: determinants and coordination challenges. Announces Plan to Ban Disposal of Commercial Food Waste.).. http://www.08. Strategy development in small and medium sized Renewable Energy on Potentially Contaminated Land and Mine Sites.. E.html (accessed 28. M.pdf (accessed 13. In: Pre.devensec.. Q. http://escholarship. Patrick Administration shop Proceedings.bakerlaw. 276e282. March 2010. U. L. L. (6). 25 (9).08.. survey_results (accessed 20. 967e983.07. 2012. Bus. 2004. (accessed 25.13. FSG. Ind. 17. 17. Accessed on 5/27/2014. Bus.. P. E.. R. J. How Companies Manage Sustainability: and distinctiveness.. J.13. Bus. President's Council on Sustainable Development... S.). Holt. 2013. A.07. Montanari. 2008. Prahalad. Zhu.. Shi... Ecol. 1997. Virginia.S.epa. Devens. Massachusetts. 67 Ontario. Ecol. http:// enterprises for sustainability and increased value creation. Clean. 2012..13. 16 (1). 2014. sentation.web. www. Environmental Protection Agency.). JanuaryeFebruary. Econ. Drivers and limitations for the successful Case#9B12M115w. 77e91. J.).). 87 (9). Manag. J. McKinsey Global Survey Results.. Prod. Clean..13. 2013.384 Stormer.oxley. Shi. http://hbr. 997e1010. Baywood Publishing.). 2007. July 10. B. D. / Journal of Cleaner Production 87 (2015) 375e384 Maskell. 2004... M. Why sustainability is now the Veleva. Localized learning and industrial competitiveness. Ecol. 898e916. (Ed. Baker & Hostetler LLC.. M. Rev.. M. factsheet. Amityville.pdf nomic performance? In: Berkeley Roundtable on International Economy. Rangaswami.. Prod. 12.. The evolution of facilitated industrial sym. symbiosis: case study of a smeltery in China. M. Lese. Reuse and Recycling. Rev. Greening as strategic development in industrial change e why sustainability/how_companies_manage_sustainability_mckinsey_global_ companies participate in eco-networks. Manring. www. Patscheke.. Devens Sustainability Indicator Report 2000e2012: Progress Pfefferle III. Environment and org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation/. Prod. Clusters and the new economics of competition. ISBN 978-0- Paquin.13. Paper 80. The Sarbanes-Oxley Act: Implications for Environmental Report. E. study..13. Value: How to Unlock Value by Measuring Business and Social Results. 2004. S. 2005. V. Veleva et al. Nidumolu. G.. A. biosis. The business benefits of eco-industrial parks: Insights from key driver of innovation. J. 2009.. Kramer..html (accessed Roberts.. Canada. T. Improving enterprise competitive advantage with industrial Porter. ReVenture park: Charlotte's first eco-industrial park... PerkinElmer: Old Instrument publicdocs/news/alerts/sarbanes. 1025e1035. Cote. The application of industrial ecology principles and planning 26. In: Veleva.pdf. Geoforum 39.08. S. 2012. Bates. Prod. Integrating green supply chain management into an em- Porter. http://www.13. Ind. 12 (8e10). Tian..mass. 2009. Chen. 2004. J. Veleva. Harv.08. R. J. J. September. http:// Publications/Eco_Workshop. Howard-Grenville. Ch. 3. Richard Ivey School of Business. Management. Measuring Shared bryonic eco-industrial development: a case study of the Guitang Group.. Veleva. Experiences from early stages of a national industrial symbiosis development and functioning of EIPs (eco-industrial parks): a literature review. 2009. J.. http://www. 83e93. Cape Charles. Hawkins. 199e207.. Value. C. V. Oper. http://clinton2.