153
The biggest potential for creating jobs and developing skills lies in repairing and
remanufacturing standardised goods, such as infrastructure, buildings and standalone mobile and immobile goods, preferably in local workshops using and developing the human capital represented by skilled labour. They thus contribute to
preserving the “industrial commons” – an industrial network of customers, skilled
labour and subcontractors which is an essential knowledge base for innovation and
the emergence of new industries (Pisano and Shih 2012). Some companies active in
repair, maintenance and remanufacturing activities acquire sufficient knowledge to
move upstream into manufacturing innovative new products in their field of activity
(see box).
4.3 Fiscal Policy
By reducing dependence on primary resources and energy and providing skilled
employment, the performance economy has the potential to alleviate many current
economic, environmental and social problems, i.e. to contribute to improved sustainability. However, promoting and developing this economic model requires a
comprehensive re-examination of public policies, moving away from the fragmented policies of most public administrations. The “whole system” approach of
industrial ecology, which provides the background to the idea of the performance
economy, reveals the inconsistencies between policies to preserve stocks (natural
and cultural capital, for example), to tax flows (levies like Value Added Tax) and
stocks (human and financial capital) and to subsidise consumption of stock (such as
fossil fuels).
These inconsistencies are exemplified by the 2012 “cash for clunkers” policy
followed in 22 countries, which had the ambitions of stimulating national economies by increasing the demand for new cars (i.e. the flow of new goods) and simultaneously reducing GHG emissions from vehicles in use. The policy ignored the
GHG emissions resulting from recycling old cars (i.e. the ‘clunkers’) and manufacturing their replacements. In many countries, the cars bought were imports; in some
The Hidden Innovation Potential of Operation and Maintenance
Services
Some companies active in repair, maintenance and remanufacturing activities
acquire sufficient knowledge to move upstream into manufacturing innovative
new products in their field of activity. Witness Israeli Aircraft Industries (IAI),
which started as maintenance service provider before assembling fighter
planes and today is a leading manufacturer of drones (pilot-less remotely controlled aircraft); and Stadler Rail in Switzerland, moving from a local maintenance service provider for rolling stock (railways) to become a major
European manufacturer of regional trains.
7 Stocks and Flows in the Performance Economy
The biggest potential for creating jobs and developing skills lies in repairing and
remanufacturing standardised goods, such as infrastructure, buildings and standalone mobile and immobile goods, preferably in local workshops using and developing the human capital represented by skilled labour. They thus contribute to
preserving the “industrial commons” – an industrial network of customers, skilled
labour and subcontractors which is an essential knowledge base for innovation and
the emergence of new industries (Pisano and Shih 2012). Some companies active in
repair, maintenance and remanufacturing activities acquire sufficient knowledge to
move upstream into manufacturing innovative new products in their field of activity
(see box).
4.3 Fiscal Policy
By reducing dependence on primary resources and energy and providing skilled
employment, the performance economy has the potential to alleviate many current
economic, environmental and social problems, i.e. to contribute to improved sustainability. However, promoting and developing this economic model requires a
comprehensive re-examination of public policies, moving away from the fragmented policies of most public administrations. The “whole system” approach of
industrial ecology, which provides the background to the idea of the performance
economy, reveals the inconsistencies between policies to preserve stocks (natural
and cultural capital, for example), to tax flows (levies like Value Added Tax) and
stocks (human and financial capital) and to subsidise consumption of stock (such as
fossil fuels).
These inconsistencies are exemplified by the 2012 “cash for clunkers” policy
followed in 22 countries, which had the ambitions of stimulating national economies by increasing the demand for new cars (i.e. the flow of new goods) and simultaneously reducing GHG emissions from vehicles in use. The policy ignored the
GHG emissions resulting from recycling old cars (i.e. the ‘clunkers’) and manufacturing their replacements. In many countries, the cars bought were imports; in some
The Hidden Innovation Potential of Operation and Maintenance
Services
Some companies active in repair, maintenance and remanufacturing activities
acquire sufficient knowledge to move upstream into manufacturing innovative
new products in their field of activity. Witness Israeli Aircraft Industries (IAI),
which started as maintenance service provider before assembling fighter
planes and today is a leading manufacturer of drones (pilot-less remotely controlled aircraft); and Stadler Rail in Switzerland, moving from a local maintenance service provider for rolling stock (railways) to become a major
European manufacturer of regional trains.
7 Stocks and Flows in the Performance Economy