The forest-based bioproduct field has diversified into the chemical, medical, energy, nanoproduct, and construction material sectors. This paper argues that forest-based bioeconomy has kept the focus on conventional products and new bioproducts have primarily been developed as extensions to existing product portfolios due to a lock-in mechanism, i.e., a state where an economy gradually locks itself to a dominant market position due to technical interrelatedness, economies of scale, and quasi-irreversibility of investment. The study examines forest-based product transition in the context of lock-in mechanisms through narrative analysis over the past 170 years. A theoretical framework is formulated based on complex system studies and the economics of lock-in mechanisms. The relation between the lock-in mechanisms of the regime and product diversification is described for the forest-based bioeconomy in Finland. The study supports previous findings indicating that interactions occur between the lock-in mechanisms. Furthermore, lock-in mechanisms can have a neutral, adverse, or beneficial effect on product diversification. The paper extends knowledge about the role and functioning of lock-in mechanisms in changing market environments. Recent trends in network development and foreign investment, and their effects on industrial symbiosis and product diversification, is recommendable to consider in future research.

Sustainable biomass production based on efficient carbon and nutrient recycling is crucial in materially efficient, sustainable biobased production. A circular bioeconomy model of the replacement of mineral fertilizers with recycled nutrients from pulp and paper mill sludge is tested here within a hypothetical case from Indonesia, Southeast Asia. First, the financial feasibility of the use of recycled nutrients originating from pulp and paper processes was analyzed in fast-growing pulpwood production. Secondly, the comprehensive social and environmental benefits of the practice were analyzed through qualitative sustainability analysis. The availability of the basic material of all required parameters referring to Indonesia limited the analysis period to be from 1996 to 2013. The establishment costs of a pulpwood plantation were adjusted according to a reference study, while the other data were compiled from various sources. The financial profitability of the circular model was analysed by using two indicators, net present value (NPV) and internal rate on return (IRR). The application of sludge-based recycled nutrients slightly increased the establishment costs in some circumstances but had no direct impact on the financial profitability, as the financial profitability was not sensitive to the establishment costs. The results showed that the financial profitability of biomass production is not sensitive to the plantation establishment and management costs. The profitability depends on the mean annual increment and product price. The qualitative analysis showed a holistic value of the practice that goes beyond the direct benefits. The use of sludge-based recycled nutrients in the production of pulpwood closed the economic loop, which is illustrative of the circular bioeconomy within the integrated pulp and paper sector including the raw material source, forest plantation.

Countries worldwide, especially Nordic countries, have proposed a forest-based bioeconomy to halt systemic risks, such as climate change, and to create socioeconomic welfare. Entrepreneurs operating in various business sectors and regions face several complex challenges in this regard. However, the challenges faced by forest-based micro-entrepreneurs have not been addressed across various regions using systems thinking. This comparative case study aimed to identify the environmental, social, and economic challenges faced by forest-based micro-entrepreneurs and the spatial features of these challenges—their scale, interactions, and prevalence—in two different regions in Finland: Lapland and South Karelia. These regions’ economies rely heavily on the recreational value of nature and on the large-scale pulp and paper industries, respectively. Semi-structured interviews were conducted with micro-entrepreneurs from various sectors, such as forestry, logging, tourism, and natural products. The data were analyzed using qualitative content analysis. The framework used enabled a deeper spatial understanding of the challenges experienced by forest-based micro-entrepreneurs. The micro-entrepreneurs in the two case regions had great similarities in terms of themes related to trust, workload, and labor shortage. This may hinder the implementation of new practices in regional forest-based bioeconomy development. Future quantitative studies could validate the identified challenges for further policy development.