Important Trends in Bioeconomy

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Important Trends in Bioeconomy

1. Bio based industries have impact on other industries. The impact of bioeconomy can also be seen in the multiplier and ripple effect of bioeconomy.

It is seen that with bioeconomy there is both economic multiplier and ripple effects. This is especially important when assessing the creation of jobs in industries in a bioeconomy. As an example, the multiplier effect of direct economic contribution of the consumer supplement industry is examined and found to extend beyond direct employment, goods and services purchased, and taxation payments. It has also been shown that indirect and downstream economic contributions are also evident beyond the particular industry studied.

The study referred uses the input-output (I/O) method to calculate the multiplier and ripple effects of the consumer supplement industry. I/O model is based on the theory that when new money enters a community through investment, revenues, or income, some of it is re-spent one or more times in the local economy, thereby creating additional economic impact. This impact is most often measured in terms of employment (jobs) and income. Thus the ratio of the total employment impact to the initial impact can be measured. The study uses IMPLAN.

The study also demonstrates the interconnectedness of one industry to other industries. This study for the consumer supplement industry aims to determine how it’s direct economic impacts “ripple” through other industries in terms of economic activity and employment. Therefore governments would need to study of the total economic supply value chain to ensure a positive multiplier effect in the economy. Further, ‘quick wins’ may be possible in areas of higher multiplier ratios.

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