BACKGROUND REPORT
LIMA, PERU, 11-12 JUNE 2019
1. Introduction
The International Conference on “Industrial Parks for Inclusive and Sustainable
Industrial Development” will be held in Lima, Peru, on 11 and 12 June 2019. It is
organized jointly by UNIDO, the Ministry of Production of Peru (PRODUCE) and
the National Association of Industries (SNI) of Peru. It will bring together and
present a wide range of international knowledge and experience in different aspects
of industrial parks, including government policies, innovation, environmental
protection, financial tools, management models, social inclusion, eco-industrial parks,
circular economy and industry 4.0.
The conference will be organized within the framework of the Programme for
Country Partnership (PCP) Peru which seeks to accelerate inclusive and sustainable
industrial development and builds on a multi-stakeholder partnership led by the
Ministry of Production. A joint declaration was signed by the Ministry of Production
and UNIDO in December 2015. The implementation phase of the PCP Peru started
early 2018.
This background paper aims to provide conference participants with relevant
background information on the definition of industrial parks, UNIDO’s expertise
in this topic, as well as a description of the various issues related to industrial
parks which will be outlined in the presentations and discussed in the panels of
the conference, namely: national and regional industrial development strategies;
industrial park management models and social inclusion; eco-industrial parks;
financial instruments and investment models and special economic zones for
industrial development; and industry 4.0 and circular economy. Furthermore
UNIDO will present its international guidelines for industrial parks.
During the International Conference the side event “Leveraging South-South and
Triangular Cooperation for the Development of Inclusive and Sustainable Industrial
Parks” will also be held. It will provide an opportunity to explore the potential
for creating synergies and establishing potential collaborations for industrial
park development in the future within the South-South and Triangular Industrial
Cooperation (SSTIC). SSTIC is a key instrument for the promotion of UNIDO’s
mandate for inclusive and sustainable industrial development (ISID).
2. Industrial parks: definition and role
in sustainable and inclusive industrial
development (ISID)
The term “industrial park” is frequently used synonymously with the terms:
industrial estate, industrial zone, economic zone, and export processing zone. While
there is not a single specific definition of industrial parks, it is commonly understood
as the ‘allocation of specialized infrastructure in selected areas to attract new
investors’. Broadly defined, an industrial park is “a tract of land developed and sub-
divided into plots according to a comprehensive plan with the provision for roads,
transport and public utilities, sometimes also with common facilities, for the use of a
group of industrialists” (UNIDO, 1997).
To achieve inclusive and sustainable industrial development, developing and
middle-income countries must attract investment. However, many of them lack the
infrastructure and the institutional framework to be attractive for investors. To reach
that goal by enhancing GDP growth, promoting innovation and competitiveness,
creating jobs, diversifying the economy and protecting the environment, governments
have to apply well-designed industrialization strategies and industrial policies that
will be able to answer today’s and future challenges in a sustainable way.
One of the solutions is to prioritize the development of industrial parks as a strategic
policy tool to achieve structural transformation and industrialization in developing
and middle-income countries as they help decision makers to promote investments,
innovation and competitiveness, create employment and foster economic growth as
well as environmental protection.
Over the last few decades, the manufacturing sector has been undergoing a profound
transformation – especially in terms of structure, technology, sectoral interlinkages
and boundaries. The manufacturing value added has been increasing steadily
since 1990 in both, industrialized and developing countries. At the same time, the
manufacturing paradigm has evolved in terms of production system and technology:
many developing and middle-income countries still rely on the abundance of
natural resources whereas developed countries more frequently emphasize
re-industrialization through technological innovations and scientific discoveries.
Concurrently, the continued growth of the manufacturing sector is essential for
employment creation, especially as it absorbs surplus labor from agriculture and
other traditional sectors, while simultaneously increasing household income and
expanding the consumption of industrial products. At the same time, environmental
protection should also be considered for promoting economic growth.
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Historically, industrial parks rapidly expanded first in North America in the 1950s
before reaching Asia and Africa from the 1970s onwards. Industrial parks are
acknowledged as having played a catalytic role in facilitating industrial upgrading
and export-led growth in East Asia, most notably in the “tiger economies” during the
1980s, and in China since the early 1990s, as well as in Latin America and other parts
of South Asia.
Since the 1960s, an increasing number of countries have embarked on the road to
promote industrialization and economic restructuring through industrial parks. In
developing and middle-income countries, industrial parks can maximize resource
integration for limited production factors within a certain spatial scope. By attracting
labor and capital-intensive domestic and foreign investment in manufacturing and
service industries, industrial parks have the potential to increase job opportunities, in
terms of wages and skills for the local workers. Furthermore, they can establish links
to global value chains through an increased participation in international competition,
and the full use of their comparative advantages to promote the upgrading of the
industrial structure, and to improve the country’s position in the international
division of labor as well as its competitiveness.
The characteristic features of industrial parks are the integration of production,
relevant services, training and support bodies into a specific region. Industrial
parks offer a structured institutional framework, integrated services and a physical
infrastructure that may not be available outside them.
Moreover, industrial parks development is highly relevant to achieve the Sustainable
Development Goals, particularly the following:
» SDG 9 “Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation”; aiming to significantly raise industry’s
share in employment and gross domestic product by 2030, and double its share
in least developed countries, and, also by 2030, retrofit industries to make them
sustainable, with increased resource-use efficiency and greater adoption of clean
and environmentally sound technologies and industrial processes.
» SDG 12 “Ensure sustainable consumption and production patterns”; reaffirming the
commitment to implement the 10 Year Framework of Programmes on Sustainable
Consumption and Production, by 2030, per capita global food waste, and, to achieve
by 2020 the environmentally sound management of chemicals and all wastes
throughout their lifecycle, for which companies are encouraged to adopt sustainable
practices and report on their outcomes.
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At the same time, industrial parks also contribute to the following SDGs:
» SDG 7 “Ensure access to affordable, reliable, sustainable and modern energy for
all”; confirming the importance of energy as driver of development and aiming,
amongst others, at doubling the rate of energy efficiency improvement as well as
significantly increasing share of renewable energy, both by 2030.
» SDG 8 “Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all”; targeting sustained per capita
economic growth per cent per annum in the least developed countries, whilst pro-
gressively improving global resource efficiency in consumption and production
behaviors to decouple economic growth from environmental degradation.
» SDG 11 “Make cities inclusive, safe, resilient and sustainable”; Cities are hubs for
ideas, commerce, culture, science, productivity, social development and much more.
However, many challenges exist to maintain cities in a way that continues to foster
employment and prosperity while not straining land and resources. Common urban
challenges include congestion, lack of funds to provide basic services, a shortage
of adequate housing and declining infrastructure. The challenges cities face could
be overcome in ways that would allow them to continue to thrive and grow, while
improving resource use and reducing pollution and poverty.
» SDG 13 “Take urgent action to combat climate change and its impacts by regulating
emissions and promoting developments in renewable energy”; targeting resilience
and adaptive capacity to climate related hazards and natural disasters; integration
of climate change measures into national policies and strategies; improvement of
education, awareness raising and human and institutional capacity; promotion of
mechanisms for raising capacity for effective climate change-related planning and
management.
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3. UNIDO’s expertise and experience in
industrial parks
UNIDO has extensive experience in promoting the development of industrial parks.
UNIDO published its first guidelines for the establishment of industrial parks back
in 1978, and issued guidelines and specifications for the construction of small-scale
industry estates in 1988. In 1996, UNIDO published the document entitled ‘Export
Processing Zones: Principles and Practices’. A new publication entitled ‘Industrial
Estates: Principles and Practices’ was also published in 1997.
For over forty years, UNIDO has been actively involved in the planning, design
and management of industrial parks around the world. The Organization has been
providing integrated assistance at different stages of industrial park development to
its Member States.
Since the 1970s, UNIDO has been an active advisor and partner to its Member States
in the planning, design and management of industrial parks, export processing zones,
special economic zones and eco- industrial parks around the world. Countries have
benefited from UNIDO’s expertise in capacity-building assistance at different stages
of industrial parks development. UNIDO has been assisting in the preparation of pre-
feasibility and feasibility studies (e.g. in China, Côte d’Ivoire, Ethiopia, Iraq, Nigeria
and Vietnam), and has facilitated public-private partnerships, and in addressing
regulatory and institutional issues (e.g. in Côte d’Ivoire, Iraq and Nigeria).
UNIDO has been assisting in the development of industrial parks in various countries
within the framework of the Programme for Country Partnership (PCP). The PCP
is UNIDO’s innovative model for accelerating inclusive and sustainable industrial
development in Member States. Aligned with the national development agenda and
focused on sectors with high growth potential, the programme supports a country in
achieving its industrial development goals.
In Peru, UNIDO is also working with the Government to develop industrial parks and
transform existing industrial zones through the PCP Peru which seeks to accelerate
inclusive and sustainable industrial development in the country and builds on a
multi-stakeholder partnership led by the Ministry of Production. The PCP provides
an opportunity for the Government of Peru to orientate development strategies and
initiatives towards achieving the SDGs, above all SDG 9 (Build resilient infrastructure,
promote inclusive and sustainable industrialization and foster innovation). The
outlines of the National Strategy on Industrial Parks Development in Peru, developed
jointly by PRODUCE and UNIDO over the past two years, aim to show that industrial
parks have the potential to boost productive diversification and sustainable industrial
development in the country if building on the right market conditions.
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Also in Senegal, UNIDO is assisting the Government in operationalizing the first
phase of Diamniadio, Senegal’s first integrated industrial park. Together with
partners, UNIDO has developed a business model for the park’s management and
an incentive package to attract public and private investment for infrastructure
development.
In Ethiopia, UNIDO is assisting in the establishment of four integrated agro-industrial
parks (IAIPs) which is a priority initiative of the Government. UNIDO has assisted
in the feasibility study and engineering design and has provided capacity-building
services to the Government for establishing a nodal entity – a Regional Industrial
Park Development Corporation (RIPDC) – which will be responsible for developing,
coordinating and managing the design of the IAIPs as well as promoting the IAIPs at
an international level.
One of the most recent UNIDO publications on industrial parks entitled “An
international framework for Eco-Industrial Parks” was prepared jointly by UNIDO,
the World Bank and GIZ. It is a common framework comprising minimum
requirements that define EIPs, and how an EIP is expected to demonstrate
environmental and social performance that exceeds compliance with national
regulations, in addition to being economically viable.
On the occasion of the Conference on “Industrial Parks for Inclusive and Sustainable
Industrial Development”, UNIDO will launch the UNIDO International Guidelines
for Industrial Parks, that aim to provide appropriate guidance on “what needs
to be done, by whom, and when” and to present practical tools to strengthen an
industrial park. The guidelines propose a step-by-step approach from the planning
to the operationalization of industrial parks, as well as cross-cutting issues such as
investment promotion, management and risk management. This reference framework
contains a series of performance indicators that will provide infrastructure and
service requirements to set up new industrial parks and/or to improve performances
of the existing ones. The guidelines also propose key indicators to measure the
economic, social and environmental performances of industrial parks.
During the side event “Leveraging South-South and Triangular Cooperation for the
Development of Inclusive and Sustainable Industrial Parks” UNIDO will highlight
its works under the South-South and Triangular Industrial Cooperation (SSTIC).
Industrial parks do not only provide strong momentum for economic growth in
developing countries but also serve as cooperation platforms for them to share
experience and lessons learnt during the development process. The operationalization
of innovative ideas within industrial parks, once proved to be successful, would play
a catalytic role to the overall upscaling of the industrial sectors not only beyond the
boundary of the industrial parks within certain country but also to other countries as
well. One typical example is the industrial park development in China and its impact
in other developing countries, such as in the establishment of Ethiopia’s Oriental
Industrial Park with UNIDO’s proactive match-making.
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4. Issues for industrial parks
This section describes the different issues related to industrial parks’ development.
I. Industrial Parks as part of national and regional industrial
development strategies
A successful industrial policy implementation has the potential to enhance the
competitiveness of new industrial sectors in the economy of a country while enabling
the restructuring of existing sectors and enterprises to become more efficient and
competitive. Industrial parks are therefore effective industrial policy tools for decision
makers to promote investments, create employment and foster economic growth at
the national level.
In that perspective, it is crucial to identify the existing national and international
regulatory landscapes of industrial parks to enhance their effectiveness in the
industrialization process. Understanding the regulatory landscapes of industrial
parks will pave the way for upscaling best practices and enable a more systematic and
sustainable implementation of industrial parks’ strategies in the development process
of developing countries.
Developing and middle-income countries have to establish a holistic and
comprehensive approach to industrial policy through its diverse components.
Governments, the private sector, academia and all other parts of society have to
participate in its design and implementation.
The long-term objectives of a sustainable industrial policy should usually consist
of the following:
• Measures to stimulate production and exports while enhancing R&D and
innovation capabilities as well as the diversification of sectoral production
• Being competitive and productive in sectors which require higher technology and
skill levels
• Integration into global value chains and attraction of more investments into
competitive sectors
• Development of the physical infrastructure
• Development of competitive human resources
• Upgrade enterprises and improve the effectiveness of public service delivery
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Industrial policy cannot be separated from the macroeconomic and social
development of the country and its environmental impact. A lack of macroeconomic
stability will hinder the flow of investments into productive sectors with a
competitive advantage. Fair distribution of wealth, employment creation and an
enabling environment for women to take part in economic activities are fundamental
to achieving inclusive and sustainable industrial development and must therefore be
taken into consideration. An economic development, which pollutes the environment,
cannot be sustainable in the long-term and will, at a later stage, increase costs for the
society and drive up transaction costs for the private sector as well.
During the implementation phase of the policy, it is crucial to diversify those strategic
sectoral sectors that bring a comparative advantage for the country. On one hand,
labor-intensive sectors can lose their competitiveness with the economic development
or rise in wages. On the other hand, other countries which carry out research,
development and innovation, and start producing more competitive products, can
become more competitive at the expense of other countries. As the competition
on the lower technology sectors is very high, it is important to move up to higher
added-value industries with research and development, innovation and technological
production.
As previously said, industrial parks represent an effective industrial policy tool
because many of the following policy components, like investment policy, trade
policy, financing mechanism, support system for enterprises including incentives,
physical infrastructure development, labor force development, research and
development and innovation policy, can be utilized within the framework of
industrial park development.
The other benefits of industrial parks are the planned industrialization, urbanization,
environmental policies and elimination of regional development disparities.
Industrial park development goes beyond the investment into a physical
infrastructure as it offers research and development potential and a suitable place for
investments to be carried out by the private sector. Industrial parks can indeed be
used for labor force development, investment promotion and facilitation, trade policy
and exportation, and development of the competitiveness of enterprises. As a result,
these parks can be an efficient policy tool to enhance development through growth,
exports and competitiveness.
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II. Management models of industrial parks and social inclusion
Industrial park management models are generally distinguished following three
categories: public, private or joint management by means of a public-private
partnership. The management of industrial parks combines public relations,
administration of standards, and the coordination of activities while ensuring the
active participation of occupants and of the community.
The three most commonly used industrial park management approaches are the
following:
• Public management model: It is a widely adopted management approach in
many developing and middle-income countries where a government has the
highest stake in an industrial park. In China, the vast majority of industrial parks
are directly managed by governmental administrative committees. Governments
can also indirectly manage a park by transferring or outsourcing its responsibility
to a specialized company (special purpose vehicle). The company can be owned,
founded or invested by the government, and therefore the government still has a
strong influence on decision-making, while the company runs the park and deals
with technical issues.
• Private management model: This is mainly adopted where industrial parks are
largely invested and/or owned by private investors. The park operator is a private
company, and usually contracted by the owners/investors.
• Joint management model: Industrial parks owned in public-private partnership
are jointly managed by the government (and its representatives) and the
private investors. The power-sharing mechanism allows both parties to divide
responsibilities. Despite its flexibility, the joint management model is sometimes
criticized for its ‘ambiguity of the government’ as it may act both ‘as the player and
as the referee’.
At the same time, the development of social inclusiveness indicators is important for
industrial parks in order to ensure a socially inclusive approach. Fair distribution of
wealth, employment creation and an enabling environment for women and men to
take part in economic activities are fundamental to achieve a sustainable industrial
development and must be taken into consideration.
Social aspects of industrial park development can refer to social policies for the
communities around the park, for the companies and the infrastructure in the park
as well as social services. It can also refer to the social impacts that the industrial
park development can and will have. To that effect, these social aspects should be
considered in the different management models of industrial parks.
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III. Eco-Industrial Parks
The following definition is commonly used to define Eco-Industrial Parks: “(…) a
community of manufacturing and service businesses located together on a common
property. Member businesses seek enhanced environmental, economic, and social
performance through collaboration in managing environmental and resource issues.”
(Lowe, E.A., 2001. Eco-industrial park handbook for Asian developing countries. Rep.
Asian Dev. Bank).
The Eco-Industrial Park (EIP) concept has increasingly been recognized as an effective
tool to facilitate a modern and sustainable investment regime for industrial zones
while addressing the issue of environmental protection. Promoting sustainable
business practices in EIP constitutes a systematic up-scaling. Further development of
the Resource Efficient Cleaner Production (RECP) approach and international best
practices illustrate that the types of economic, environmental, and social benefits from
EIPs vary greatly, transcending conventional business case benefits.
The concept of Eco-Industrial Parks was formally discussed for the first time at the
United Nations Conference on Environment and Development (UNCED) in Rio de
Janeiro in 1992. In the 1990s, European countries, USA, Japan and Canada as well as
some developing economies such as China and India had already started adopting
some Eco-Industrial concepts.
The following figure shows the common key components of an EIP:
Park Park Industrial Healthy and Spatial Collective
management and company symbiosis integrated planning and park level
level resource and synergies workforce, zoning infrastructure
efficiency local commu- and utility
and cleaner nity, natural services
production environment
Material use-Energy-Water
Waste -Emissions
Key elements of Eco-Industrial Parks
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EIP benefits include reducing an industrial park’s environmental footprint;
promoting efficiency gains; enabling community cohesion; providing better access
to finance and technical support; and enhancing business competitiveness. The
benefits are not just commercial but also strategic, leading to reduced exposure to
risks, increased competitiveness, business development, and a better reputation with
key stakeholders. Among their many positive externalities, EIPs promote circular
economy and can foster sustainable cities.
IV. Special Economic Zones
“Special Economic Zones” are a policy-enabled type of industrial parks, where
liberalized and often experimental business policies and reforms are introduced
to complement the park’s infrastructure offering. There are many misconceptions
about the ‘unique’ character of these zones, what distinguishes them from other
industrial parks, how they can contribute to economic development, and which
supportive policies (or other instruments) should characterize them to be successful
in a sustainable manner.
Due to their customs policy - which reduces costs related to movements of
merchandise inputs and cargo - and their special tax incentives, they are often used
for industry. Other reasons for their industrial use are their significant spatial and
infrastructure requirements - which lead to agglomeration solutions - and the fact
that such economic activity takes place most often in peri-urban and environmentally
resilient locations.
Special Economic Zones therefore often resemble industrial parks, but going far
beyond industrial parks’ conventional infrastructure offering.
Considerations linked to the business environment, investment climate, regulatory
compliance burden, ease of dealing with customs, ready access to business services,
relative absence of bureaucracy, clean and transparent government departments,
flexibility in managing one’s labor relations, ease of obtaining factory licenses and
building permits, ease of bringing in expatriate management, simplicity of resolving
commercial disputes, etc. were attractive elements that fostered interest in special
economic zones.
Acknowledging the importance of investors’ needs, and following China’s early lead
in this area from 1978 onwards, in addition to providing high-quality infrastructure,
the global priority of Special Economic Zones programs became then, in the mid-
1990s, to shift their ‘value proposition’ to focus on these considerations, rather than
on mere tax benefits. Following these lines, large numbers of older zones programs
began to “reboot” their offering, in order to address these needs as well.
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By offering a concentrated infrastructure, “value add” services among other
incentives, Special Economic Zones provide their occupant enterprises with reduced
production and economic transaction costs, improved cash flows, and resulting
economies of scale, sales and profits, which can be reinvested in improved production
facilities as well as in increased workforce numbers and skills.
V. Financial instruments and investment models
Different types of funding models have been set up for the development of industrial
parks. Their modalities range from grants to various forms of co-financing between
project developers and funding agencies. One can distinguish between the following
models:
• The traditional financing model represents direct or indirect public sector
investments for industrial park development, including direct allocation of
national budget or indirect investment through public enterprises. This investment
mechanism is more effective to gain access to loans from national banks, whereas it
suffers from limitations inherent to an inefficient utilization of capital.
• Industrial park projects can also be financed through capital market instruments
such as issuing stocks, bonds or trust products. This mechanism eases the
government’s financial burden and promotes the effective use of various capital
elements. However, some countries lack stock markets and the ability to issue
government bonds (which are also subject to strict controls).
• The project financing model is comprised of public-private partnerships (PPP)
initiatives, such as the Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer
(BOOT), Design-Build-Finance-Operate (DBFO) and Build-Own-Operate (BOO).
The PPPs are mainly driven by limitations in public funds for investments and
encourage major private sector investments. They mobilize funds based on the
industrial parks’ own assets and consider the future earnings of the project.
This financing model increases the efficiency of spending and the quality of
infrastructure; however, delay in accessing funds is an important limitation.
• Impact financing. All investments have consequences for individuals as well as
for whole communities and for the economy. In addition to generating financial
returns, investments can create jobs and thus have positive impact on the society
and also on the environment. Impact investment goes beyond avoiding harm and
managing risk and aims to generate a positive social or environmental impact
alongside a financial return.
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VI. Industry 4.0 and circular economy
Industry 4.0 focuses on research, innovation and technology as drivers for economic
growth through industrial development and as such is a highly relevant paradigm
for the development of industrial parks. Industry 4.0 is a paradigm shift from
centralized to decentralized smart manufacturing and production and refers to
the computerization of manufacturing. Increasingly, companies are applying
innovative solutions, including through the “Internet of Things” (IoT), cloud
computing, miniaturization, and 3D printing that will enable more interoperability
and flexible industrial processes and autonomous and intelligent manufacturing.
These developments are highly relevant for industrial parks as they can transform
the industrial parks to become state-of-the-art hubs of technology and optimize their
production processes.
Moreover, Industry 4.0 has the potential to improve productivity and
competitiveness, increase energy and resource efficiency and effectiveness and hence
protect the environment. It could enable the transition to a circular economy in which
end of life products are reused, remanufactured and recycled.
Industrial development and subsequent increased consumption do not guarantee
sustainable outcomes. Increased consumption intensifies environmental impacts,
through higher pollution, overuse of natural resources and creation of waste.
Increased income generates more packaging, imports, electronic waste and
appliances. The growing mass consumption of manufactured products is likely to
increase demand for non-renewable natural resources, such as fossil fuel energy and
materials, putting severe pressure on the environment. Manufacturing also generates
huge amounts of waste, putting current disposal systems under mounting pressure.
As such, on the middle and long term, the virtuous circle of consumption is a critical
underpinning for achieving inclusive and sustainable industrial development.
In industrialized and, to a lesser degree, emerging economies, the preferences of
businesses and consumers appear to be gradually shifting towards recycling and
greater resource efficiency. Yet, today’s mass production remains a linear process.
Resources are extracted from the environment, transformed into new products, and
then disposed back into the environment after use. Governments and other entities,
including China and the European Union, are increasingly encouraging the adoption
of circular economy principles against this backdrop in order to increase resource
efficiency and reduce waste.
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The concept of circular economy is gaining increasing attention worldwide as a
means to reduce dependency on primary materials and energy, while becoming
an economically viable alternative to the linear economy at the same time. Circular
economy could help developing and middle-income countries ‘leapfrog’ to a more
sustainable development pathway that would avoid locking in resource-intensive
practices and infrastructure. To achieve a circular economy, we need incremental and
ground-breaking innovations including technological, regulatory, social and busi-
ness-model innovation. Research and innovation can thus drive a transition to the
circular economy.
The circular economy concept can be visualized as follows1:
1
https://blog.anthesisgroup.com/procurement_in_circular_economy
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5. Conclusions
Industrial parks have the great potential to contribute to inclusive and
sustainable industrial development as well as the Sustainable Development
Goals in developing and middle-income countries as they are key policy tools
to attract investments, enhance GDP growth, create jobs and achieve economic
diversification. If well integrated in the markets, they can be fully part of countries’
industrialization strategies that will have the potential to respond to todays and
future challenges.
The key factors for successful industrial parks are multiple. First, a solid national
legal framework and long-term government commitment are required to create
an attractive environment for the business sector. Second, a strong association of
the private, public and financial sectors is needed to ensure investments and a
coherent business approach to the companies inhabiting the industrial park. Third,
a viable business model, relevant and adapted for each park under consideration
is important. In that perspective, different emphasis can be put on specific parks,
for example an Eco-Industrial Park or a Special Economic Zone, depending on the
requirements of the respective stakeholders. Fourth, to be truly sustainable, and
ensure the active participation of its occupants and the community, these models
should be socially inclusive and forward-looking, based on the dialogue between
the multiple parties involved.
Moreover, in addition to promoting industrial development, industrial parks can
contribute to lower the environmental impact of industries, promote innovation
and encourage the application and development of new technologies and
innovative concepts, which can be of value for a country’s economic growth in a
sustainable perspective. A topic such as industry 4.0 is a highly relevant paradigm
for the development of industrial parks as it focuses on research, innovation and
technology as drivers for economic growth through industrial development,
enabling a critical shift from centralized to decentralized smart manufacturing
and production and referring to the computerization of manufacturing. Recent
developments such as cloud computing, miniaturization, or 3D printing together
with digitalization and block-chain technologies are of significant importance for
industrial parks as they can transform them to become state-of-the-art hubs of
technology and optimized production processes that will improve competitiveness,
increase energy and resource efficiency and hence protect the environment.
Industrial parks could then enable the transition to a circular or industrial economy
in which end of life products will be reused, remanufactured and recycled, reducing
dependency on primary materials and energy, while at the same time becoming an
economically viable alternative to linear economy.
To develop sustainable and efficient industrial parks in the framework of a circular
economy, incremental and ground-breaking innovations are still needed, including
in the fields of technology, regulation, society and business-models. Research and
innovation must be further pursued to enable and drive this transition in a successful
and sustainable way.
UNIDO has developed several guidelines that consider the above mentioned
elements in order to support the establishment and operation of industrial parks
that are in line with the principles of ISID and the SDGs. The most recent publication
of the UNIDO International Guidelines for Industrial Parks that will be launched
at the Conference proposes a step-by-step approach from the planning to the
operationalization of industrial parks and contains a series of social, environmental
and economic performance indicators.
This background paper has provided more detailed information on the definition of
industrial parks, as well as UNIDO’s expertise in the topic and has presented brief
descriptions of the various issues to be considered when developing industrial parks
to foster ISID. As such, this paper provides conference participants with relevant
background information to bear fruit from the different panel discussions and
presentations during the conference.
Layout: Maria Grineva
Images and photos copyrights: UNIDO;
Kletr; eclipse_images; vm; Alex Bryce/PROMPERU, Anthesis, freepik
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