Functional Economy: Economic Models, Challenges, and Innovation Dynamics

Övrig text i vetenskaplig tidskrift, 2025

The book Functional Economy: Economic Models, Challenges, and Innovation Dynamics by Céline Merlin-Brogniart is both comprehensive and easy to access for anyone interested in Functional Economy – as a concept, in terms of its associated practical challenges, and opportunities with transitioning towards such an economy. The book is divided into three main chapters starting with the history and emergence of the concept, later discussing economic model and innovation dynamics before concluding with a focus on the challenges and difficulties associated with Functional Economy. As the book provides both the history, theoretical underpinnings, real-world applications, and challenges associated with implementing Functional Economy it functions well both as an introduction to the topic and for readers with a strong background in the field. Moreover, in various research communities globally, different concepts have been used for similar movements or transitions as captured in the concept of Functional Economy; concepts that this book helps in positioning in relation to Functional Economy. Thus, the book can also create inspiration for new perspectives in other research areas with other traditions.

Before providing reflections and insight to the three chapters of the book, let us start with the definition of Functional Economy from the Ecological Transition Agency used by Merlin-Brogniart:

“[A model which] provides companies, individuals or territories with integrated solutions including services and goods based on the sale of a usage performance or function, rather than the mere sale of goods. These solutions should enable a reduced consumption of natural resources from the perspective of the circular economy, as well as an increase in the well-being of people and economic development.” (p. xiii)

Emanating from such a definition the book looks a Functional Economy from various angles, e.g., its role in circular economy and industrial ecology, its impact on businesses value propositions, and the need for developing new capabilities in organizations and their staff.