Brufonctionnel project

What is the Functional Economy

The linear economic model structured according to the sequence "resource extraction - raw materials - production - distribution - consumption - waste" is proving to be increasingly unsuited to the requirements of the transition to a socially and environmentally sustainable society. Among the alternative economic models, the economy of functionality (EF, also referred to as sustainable product-service system), whereby the sale of a product is replaced by the provision of its function, is promising for dematerialising economic development, i.e. creating maximum social and economic value by minimising the use of resources and energy.

More precisely, the functional economy refers to an innovative economic model that consists of breaking with the logic of selling increasing volumes of material goods and moving towards the provision of services or 'solutions' that meet the needs of consumers in the most relevant way possible.

There could be many environmental benefits of EF. One of these is the potential of EF to extend the life of a product. Indeed, as the ownership of the product remains with the producers, the latter have an interest in keeping it in good condition as long as possible. Producers also have an incentive to recycle, repair and reuse products or their components, which is in line with the principles of the circular economy.

Moreover, as the product is made available to several users through a rental or subscription system, fewer products are needed to satisfy all users than in the case of a linear economic model (where the product is sold). In this way, fewer natural resources are required to satisfy the same need.

The Brufonctionnel project

Since it challenges the well-established paradigm of ownership, the EF implies systemic changes. The expansion of the functional economy in the Brussels-Capital Region therefore comes up against barriers, both technical-legal-economic (unsuitability of the system for the practice of functional economy) and behavioural (difficult break with usual practices in both the entrepreneurial and consumer fields). Unfortunately, little is known about these problems.

To overcome these obstacles, it is important, first and foremost, to define their scope and to understand them in detail. The Brufonctionnel project proposes to study the obstacles to strengthening functional economy in Brussels, as well as the potential catalysts for such an economic model, both on the supply and demand sides.

To this end, we are working with several companies in the Brussels-Capital Region that are involved in a functionality approach and are trying to understand, in their ecosystem, the levers and barriers to the development of their approach (relations with their customers, suppliers, public authorities, the regulatory environment, etc.). In parallel to companies, we also study libraries, organisations that implement (often without knowing it or without pushing the logic to its end) certain principles of the functional economy. These are undoubtedly privileged observatories of the concrete implementation of the provision of services rather than the sale of goods.

Our analysis is based on the cross-fertilisation of two major research streams. On the one hand, we mobilize transition theories in order to specify the relations between the still marginal (or 'niche') practices we are studying and the dominant economic 'regime', based on the growth of sales of material goods, a linear economy that takes little account of the life cycle of products, and the private appropriation of these by consumers. On the other hand, we rely on the theory of usual practices to best describe the behavioural lock-ins at the level of both consumption and production practices.

The project is anchored in the Brussels-Capital Region. The project's impacts are on several levels:

• First of all, we aim to contribute to strengthening the viability of projects led by actors willing to move their business model towards the functional economy, first and foremost the companies we work with.
• We then aim, at the level of Brussels households, to ensure the conditions of access to the functional economy for a wider and more diversified public than at present.
• We are also working on identifying the economic sectors that are 'equipped' to switch to the functional economy as well as those whose switch to this new model would be relevant.
• Finally, we will propose to the Brussels authorities and to the institutions supporting the companies located in Brussels a set of levers and concrete tracks to be developed in view of the expansion of the functional economy in the Brussels-Capital Region.

Results

The main results of the "Brufonctionnel" project were made public at an international conference (ICHEC, 27 January 2022). In addition to a presentation of the project's results, this conference provided an opportunity to discuss them through the reaction of policy actors (Marie Vanderheyden, Advisor on Innovative Business Models in the cabinet of Secretary of State Barbara Trachte) and public actors (Anthony Naralingom, Strategic Advisor to the General Management of hub.Brussels). Two international speakers then put these results into perspective by presenting their own research results, related to the functional economy. The presentations were "Circular X: experimentation towards circular service businessmodels", models" by Prof. Nancy Bocken (Maastricht University, NL) and "Two case studies of SPSS - the role of possession" by Dr. Maurizio Catulli (University of Hertfordshire, UK).  

For an overview of the conference content and the " Brufonctionnel" results, click here.

• Photo 1: "Main results of the Brufonctionnel project". Géraldine Thiry, ICHEC

• Photo 2: "Discussion of the results of the Brufonctionnel project". Panelistes: Anthony Naralingom (Strategic advisor to the general management of hub.Brussels) et Marie Vanderheyden (Advisor on innovative business models in the office of Secretary of State Barbara Trachte). Moderator: Philippe Roman, ICHEC

• Photo 3: "Two case studies of SPSS - The role of possession". Dr. Maurizio Catulli, University of Hertfordshire, UK

The research team