Journal of Cleaner Production 87 (2015) 375e384

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Understanding and addressing business needs and sustainability

challenges: lessons from Devens eco-industrial park
Vesela Veleva a, *, Svetlana Todorova e, Peter Lowitt b, 1, Neil Angus c, 2, Dona Neely d, 3
a
Center for Sustainable Enterprise and Regional Competitiveness (SERC), College of Management, UMass Boston, 100 Morrissey Blvd., Boston, MA 02125,
USA
b
Devens Enterprise Commission, Eco-Industrial Development Council of North America, 33 Andrews Parkway, Devens, MA 01434, USA
c
Devens Enterprise Commission, 33 Andrews Parkway, Devens, MA 01434, USA
d
Devens Eco-Efciency Center, 33 Andrews Parkway, Devens, MA 01434, USA
e
D'Amore-McKim School of Business at Northeastern University, Boston, USA

a r t i c l e i n f o a b s t r a c t

Article history: Attracting and retaining companies is critical for successful development of eco-industrial parks. By
Received 28 August 2013 examining and addressing the main business needs and sustainability challenges, policy makers, de-
Received in revised form velopers and other champions, can promote both business value and social value creation. This paper
29 May 2014
provides valuable lessons from Devens, Massachusetts, an eco-industrial park established in 1993. Based
Accepted 4 September 2014
Available online 23 September 2014
on 29 interviews with local organizations (30% participation rate) the study reports on key business
needs and sustainability challenges of local organizations and how Devens Enterprise Commission has
worked to address these as part of its vision for Sustainable Devens. The study found that access to
Keywords:
Industrial ecology
infrastructure e such as rail, green buildings and roads e was the most important factor for companies
Eco-industrial parks to locate to Devens, followed by the lower cost of real estate (59%) and tax benets (52%). Top two
Sustainability sustainability challenges for Devens companies included improving energy efciency and improving
Competitiveness materials efciency. Eighty six percent of Devens organizations reported partnering with others locally,
Eco-efciency and 79% said their organizations could benet from such partnerships in the future. Companies were
Industrial clusters most interested in partnering around joint sourcing, infrastructure and knowledge sharing. The study
conrmed that local government efforts to develop Devens infrastructure and establish supportive
sustainability policies and programs were in line with business needs and a key factor for Devens'
success. It conrmed earlier research on the role of industrial ecology as a cluster development policy
and the importance of diversity of rms, trust, sustainability policies, and supporting network devel-
opment as key to creating both business and social value.
2014 Elsevier Ltd. All rights reserved.

1. Introduction human systems to maximize efciencies? A main goal of industrial

Nature is highly efcient at using resources and maintaining a
balance within a system of inter-linked groups of organisms. With
an ever increasing demand for a nite set of natural resources, can
the lessons learned from studying nature be applied to redesign
* Corresponding author. Tel.: 1 617 287 6293.
E-mail addresses: Vesela.Veleva@umb.edu, vesela@comcast.net (V. Veleva), s.
todorova@neu.edu (S. Todorova), PLowitt@devensec.com (P. Lowitt), NAngus@
Massdevelopment.com (N. Angus), donaneely@ecostardevens.com (D. Neely).
1
Tel.: 1 978 772 8831x3313.
2
Tel.: 1 978 772 8831x3334.
3
Tel.: 1 978 772 8831x3304.
ecology is to change the current linear nature of our industrial
systems and move to a circular system where the wastes are
reused as energy or raw materials for another product or process.
Within the broader eld of industrial ecology, which examines the
ow of physical resources through systems at different scales, the
sub-eld of industrial symbiosis (IS) focuses on these ows at the
level of industrial clusters and industrial parks. Eco-industrial parks
(EIPs) are dened as a community of businesses that cooperate
with each other and with the local community to efciently share
resources (information, materials, water, energy, infrastructure and
natural habitat), leading to economic gains, gains in environmental
quality, and equitable enhancement of human resources for the
business and local community (PCSD, 1997).

http://dx.doi.org/10.1016/j.jclepro.2014.09.014
0959-6526/ 2014 Elsevier Ltd. All rights reserved.
376 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
In a world of constrained resources and growing population,
EIPs are increasingly seen as a means for green growth and reduced
resource consumption. In 2010, the Organization for Economic
Cooperation and Development (OECD) recognized industrial sym-
biosis as a systemic innovation vital for green growth (Lombardi
et al., 2012). China became the rst country to globally launch an
eco-industrial park standard in 2006, and presently has at least
1568 national and provincial-level industrial parks which are seen
as critical for achieving a circular economy and national competi-
tiveness (Geng et al., 2008; Shi et al., 2012).
Literature on eco-industrial parks has demonstrated qualitatively
and quantitatively that these sorts of arrangements are likely to be
advantageous for participating rms (Cote and Cohen-Rosenthal,
1998; Esty and Porter, 1998; Chertow and Lombardi, 2005; Moore
and Manring, 2009; Yuan and Shi, 2009). With the Sarbanes-Oxley
Act's requirement for disclosing the cost of retiring polluted
manufacturing facilities, a growing number of U.S. companies will be
trying to remove these from their balance sheets.4 Presently there
are approximately 490,000 sites and almost 15 million acres of
potentially contaminated properties across the United States that
could benet from sustainable redevelopment (EPA, 2012). Yet, very
few developers are interested in redeveloping such sites despite the
fact that they often have an ideal infrastructure for clean energy/
clean tech industry development (McKittrick, 2012). To promote
redevelopment of contaminated and other sites as eco-industrial
parks and be able to attract and retain companies, it is critical to
understand and address rms' key business needs and sustainability
challenges. In addition, there is a need to better communicate the
business benets of locating to an EIP to companies, prospective
investors, and local communities. Such benets include both direct
economic benets including savings from reduced energy and ma-
terials use, as well as indirect economic benets including improved
reputation, innovation, supply security, operational resiliency, and
ability to attract and retain employees.
This paper presents insights from a study of the business needs
and sustainability practices of companies located in the Devens
eco-industrial park and how local policy makers are working to
address these while promoting local sustainability (Veleva, 2014). A
former military site listed under the Comprehensive Environmental
Response, Compensation, and Liability (CERCLA) Act, Devens had a
sustainability vision from the very beginning and a goal to improve
the regional economic base by employing the principles of indus-
trial ecology. Today Devens is a regional enterprise zone which has
attracted 95 organizations and contributed over $1.45 billion and
3200 high quality jobs to Massachusetts economy while cleaning
up the local environment and advancing more sustainable infra-
structure such as a rail and green buildings (Veleva, 2012).
Yet little is known about the main factors behind companies'
decision to locate in Devens as well as whether and how being a part
of an EIP has helped address their top sustainability challenges while
providing direct and indirect business benets. The authors seek to
address this knowledge gap by examining the following questions:
What are the main reasons for companies to move to an eco-
industrial park like Devens? What is the role of the organizational
and human factors, including the Devens Enterprise Commission
(DEC) and Devens Eco-Efciency Center (DEEC), in supporting
business and sustainability goals? How companies benet from
4
The Sarbanes-Oxley Act strengthens the requirement for disclosure of envi-
ronmental liabilities, including retiring facilities, by mandating that the CEO and
CFO personally certify the disclosures in the annual report. The Act authorizes
imprisonment for up to 10 years and $1 million in nes if a CEO or CFO knowingly
certies a report that does not satisfy the requirements of the Act (Pfefferle III,
2004).
being a part of an eco-industrial park? The paper begins with a
literature review examining the business benets of EIPs and the
human and organizational factors for successful development. The
Devens case is presented next, including its sustainability vision and
process for redevelopment. The main part of the paper includes data
and analysis of the interviews with 29 local organizations. The au-
thors conclude with discussion of the results, limitations of the
study and recommendations for future research.
2. Literature review
The business benets of industrial ecology and EIPs have been
studied by both researchers and practitioners. In examining
Kalundborg eco-industrial park Jacobsen (2006) reported both
direct and indirect economic benets for participating companies.
Direct economic benets relate to higher value byproduct ex-
changes such as steam and water and are typically a result of
avoided discharge fees or reduced disposal costs. The indirect
business benets are related to improved operational capability,
including supply security, increased exibility, or innovation. The
latter provides insight into business motivation for collaborations
in cases of low-value by-product exchanges.
Chertow and Lombardi (2005) demonstrate the signicant
economic and environmental benets for co-located rms in
Guayama, Puerto Rico, including reduced costs for water, energy
and materials. Yet, the study nds that without proper policy
intervention and encouragement, such collaborations among rms
are much less likely. The authors identify as potential organiza-
tional hurdles: the lack of information across rms, the perception
of high transaction costs, the lack of trust or communication across
rms or regulatory requirements.
A more recent study of a smelter in China found that industrial
ecology can improve the competitive advantage of supply chains
by reducing production cost and improving environmental per-
formance (Yuan and Shi, 2009). Rao and Holt (2005) examined
greening of rms' supply chains and found that the process leads
to integrated green supply chain which ultimately leads to
competitiveness and economic performance. The study builds on
an earlier work by Bacallan (2000) which suggested that improved
competitiveness is a result of improved performance and ability to
meet growing number of environmental regulations, ability to
address environmental concerns of customers and to mitigate the
environmental impact of production and service activities.
Historically industrial ecology has focused on material and en-
ergy ows, including water and by-products. Developing EIPs
around a narrow denition of physical exchanges among closely
located rms, however, has been problematic. Studies have iden-
tied the main barriers to such eco-industrial development,
including technical, economic, informational, organizational and
legal (Gibbs and Deutz, 2007). In the 21st century knowledge-based
economy, business success is increasingly determined by factors
such as skills and knowledge (human capital), innovation and
infrastructure. Recently Lombardi and Laybourn (2012) proposed
expanding the denition of EIPs to include the exchange of
knowledge, information, and expertise which they nd also
positively inuences the physical ows of materials and energy
and are seen as sources of innovation.
Concerns about global warming, weather-related business dis-
ruptions, energy and materials security are also becoming important
sources of innovation and competitiveness (Drucker, 1985). Nidumolu
et al. (2009) demonstrate how sustainability today is becoming a key
driver of innovation for small and large companies. By focusing on
creating more sustainable supply chains, operating their facilities more
efciently, designing more sustainable products and services,
enhancing reputation, and attracting employees by improving the
 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
workplace, companies can reduce their operating costs and increase
market share. Seventy-six percent of the executives in a 2010 McKinsey
study said that engaging in sustainability contributes positively to
shareholder value in the long term (McKinsey, 2010).
Hoffman (2003) was among the rst to call for examining the
role of the social systemsesocial interaction, culture, and in-
stitutions e in implementing industrial ecology in practice. He
argued that the physical and social systems are closely inter-
connected and the full potential of industrial ecology cannot be
achieved without understanding and leveraging the power of the
social systems. Implementing industrial ecology in practice re-
quires developing network embeddedness by connecting rms and
individuals, developing trust and shared actions toward eco-
industrial development and sustainability (Paquin and Howard-
Grenville, 2012). Such embeddedness occurs over time and has
been found to accelerate the formation of relationships and in the
case of EIPs, leads to reduced transaction costs, including the search
and negotiation costs involved in identifying exchange partners
(Chertow and Ehrenfeld, 2012).
Having the right institutional setting in a region is among the most
important elements for successful development of eco-industrial
parks (Mirata, 2004). However, trust and co-operation must be
developed between rms before they are prepared to link processes
together in ways that have an impact upon the economic viability of
the rm (Gibbs and Deutz, 2007). Thus supportive local policies and
champions can play a critical role in advancing eco-industrial
development that leads to environmental and business benets.
They can serve as network brokers and institutional anchor tenants'
initiating the actor networks and providing political and managerial
support as well as informational and educational services and
infrastructure support for the other participants of the industrial
ecosystem (Korhonen et al., 2004). Because of the limited time and
resources of company managers, there is a need for a coordinating
organization which can facilitate such collaboration and create
interaction spaces where rm members could meet and share ideas
(Lombardi et al., 2012). In this sense, the development of EIPs can be
viewed as an environmentally-based variant of cluster policies used
increasingly in recent years to advance economic development ini-
tiatives, argue Deutz and Gibbs (2008).
In their literature review of the drivers and limitations for suc-
cessful development and functioning of EIPs Tudor et al. (2007)
identify improved environmental performance, shared access to in-
formation, suppliers, distributors, markets, resources and support
systems. Roberts (2004) reports that clustering of companies has also
been found to lead to cost avoidance through reduced waste collec-
tion costs as well as improved materials and energy efciencies.
More broadly, the literature on sustainability clusters has
identied the importance of supporting infrastructure and other
local factors in promoting productivity, innovation, and competi-
tiveness (Maskell and Malmberg, 1995; Martin and Mayer, 2008;
Porter and Kramer, 2011). Diverse industrial clusters include not
only the local businesses but also institutions such as schools,
universities, trade associations, and non-prot organizations. Local
governments can play a particularly important role in promoting
cluster development and rm competitiveness by setting clear and
measurable social goals which can promote social development
and business sustainability (e.g., around energy use, health and
safety or infrastructure improvement) (Deutz and Gibbs, 2008).
In their recent work on creating shared value, Porter and Kramer
(2011) emphasize the profound effect of a business location on a
rm productivity and innovation, which still remains understudied
by researchers. They argue that companies can create economic
value by creating societal value. There are three distinct ways to do
that: a) by reconceiving products and markets, b) by redening
productivity in the supply chain, and c) by building supportive
377
industry clusters at the rm's location. A company's supply chain
clearly affects and is affected by various societal issues, claim Porter
and Kramer (2011), including natural resource and water use,
infrastructure development, health and safety, and working con-
ditions. The increasing costs of energy and transportation, growing
political and other supply chain risks may lead companies to
remake their value chains by moving some activities closer to home
and having fewer major production locations. Such trends will
make the location increasingly important. Porter and Kramer
(2011) argue that shared value helps uncover new needs to
meet, new products to offer, new customers to serve and new ways
to congure the value chain, where the resulting competitive
advantage will often be more sustainable than conventional cost
and quality improvements. The ability to increase self-reliance
within the network of collaborating rms is another indicator of
improved business competitiveness.
3. Devens eco-industrial parke history and process for
sustainable redevelopment
Devens is a regional enterprise zone created by the Massachu-
setts legislature in 1993 to aid the redevelopment of the former Fort
Devens (see Fig. 1). First created in 1917 by the U.S. Congress and
the Department of the Army as a military base, Fort Devens con-
sisted of predominantly rural lands from the adjacent Towns of
Ayer, Shirley, Harvard, and Lancaster. When the closure of Fort
Devens was announced in 1991, a local and regional movement
toward base reuse planning was initiated. The Massachusetts
legislature adopted Chapter 498 of the Acts of 1993, which created
the Devens Enterprise Commission (DEC) to take regulatory and
permit-granting responsibilities for the redevelopment of Devens.
MassDevelopment, a quasi-state agency, retains the infrastructure,
police, re, and public works and is responsible for the sale and
leasing of real estate within the Devens Regional Enterprise Zone
(DREZ) (Devens Sustainability Indicator Report, 2000).
The 1993 Fort Devens Charrette and the Devens Reuse Plan
began the process of establishing the vision and goals for Devens
redevelopment. Sustainability for Devens was dened as: the
thoughtful and careful redevelopment of the base for the purpose of
promoting economic development, social welfare, environmental
protection, and natural resources (Devens Sustainability Indicator
Report, 2000).
Redevelopment of Devens was focused on attracting a diverse
set of companies to provide a range of employment opportunities
Fig. 1. Map of Devens, Massachusetts (Lowitt, 2012).
378 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
in order to provide resilience from impacts associated with the
loss of a single primary employer. Business development efforts
were particularly focused on attracting employers from the clusters
that were seen as good t for the community e e.g., military de-
fense, life sciences, medical devices, plastics and renewable energy
technology (Hammer et al., 2012).
In 2000 Devens developed a framework of sustainability issues
and indicators as a tool to measure and communicate progress
towards its sustainability vision (see Fig. 2). These indicators were
updated in 2012 when a comprehensive review and assessment of
Devens sustainability achievements was undertaken. The assess-
ment revealed that overall Devens has made signicant progress in
most areas over the past decade (Veleva, 2012). Most progress has
been made in the following areas:
 The number of organizations based in Devens increased from 60
to 95;
 Since its launch in 2007, the Devens Eco-Efciency Center had
interacted with more than 80% of the establishments in Devens;
 The number of people participating in community events
increased from 120,000 to 300,000 annually;
 All 324 CERCLA sites have been cleaned up and all known un-
dergraduate storage tanks (USTs) removed;
 The total linear feet of sidewalks has doubled from 40,673 to
65,482, representing 57% of the Devens roads in 2012;
 The total linear miles of trails increased from 5.44 miles to 12.46
miles;
 Percentage of commuters using alternatives to driving increased
from 4% to 10%;
 Freight rail available to local businesses increased from 8000
linear feet to 14,300 linear feet;
 Percent of sustainable/high performance (green) buildings
reached 14% of the total square footage of all occupied space in
2012 (no green buildings existed in 2000).
3.1. Devens Enterprise Commission (DEC)
In the process of redevelopment, DEC and its Director Peter
Lowitt have played a critical role in working towards achieving
Devens sustainability vision. As a Chair of the Eco-Industrial
Development Council of North America and the key person
behind the development of the Londonderry Ecological Industrial
Park, Mr. Lowitt focused on three main aspects in redeveloping
Devens as an internationally recognized EIP: a) promoting sup-
portive local policies; b) establishing a separate entity to focus on
providing education and building a network of collaborating rms,
Fig. 2. Sustainable Devens: Framework and seven key issues (Veleva, 2012).
and c) implementing an open and inclusive process for measuring
achievements and identifying gaps.
For instance, the initial Sustainable Indicator Report in 2000
identied two major issues that DEC worked to address over the
past 12 years: (a) Lack of public transportation and alternatives to
single occupancy passenger vehicles to commute to and from
Devens, and (b) Lack of green buildings. To address the rst issue,
the Fitchburg Line Working Group was established with DEC
Director Mr. Lowitt as chair. The group managed to secure $200
million investment to double track the rail between South Acton
and Ayer and thus enable a viable reverse commute. To address the
second issue, DEC adopted an Green Building Incentive Program
and various regulatory changes to encourage the deployment of
green buildings in Devens. DEC has also adopted policies for low-
impact development and water resource protection (Lowitt, 2012).
3.2. Devens Eco-Efciency Center (DEEC)
To engage local organizations and promote building linkages
and advancing Devens development as an eco-industrial park, DEC
Director Mr. Lowitt brought in a sustainability consultant in 2001 to
assist in developing the membership program EcoStar which was
launched in 2005 as a voluntary branding and achievement pro-
gram to enable businesses and organizations in the Devens (MA)
area to gain eco-efciencies by pursuing strategies that improve
environmental and economic performances (EcoStar, 2012). In
2007 EcoStar transitioned to become the Devens Eco-Efciency
Center, a non-prot organization with the goal to assist local
businesses and organizations in reducing operating costs and
environmental impacts through efciency, reuse and recycling. The
Center offers workshops around green building more sustainable
operational practices, environmental, health and safety (EHS)
roundtable (a monthly open forum for EHS professionals to discuss
experiences, trends and best practices as well as potential collab-
orations), energy efciency assistance, recycling assistance, the
Great Exchange (a forum for exchanging and repurposing waste),
and educational tours among others. For example, Eglomise De-
signs saved over $1800 per year by implementing an employee
engagement program to promote energy conservation. The Great
Exchange helped repurpose 61 tons of materials in 2012, saving
$24,000 to the 50 participating entities (see Text Box 1).
Text Box 1
The Great Exchange, Devens.
The Great Exchange was launched in 2007 as a forum to
divert unwanted items and materials from the landfill to
reusable opportunities. Managed by Dona Neely, Executive
Director of the DEEC, the program repurposed 61 tons of
materials in 2012 saving $24,000 to the 50 entities partici-
pating in it. Some of the main materials exchanged included
foam packing sheets, bubble wrap, elastics, cloth bags,
furniture, equipment, and small boxes. Waste such as 10
gallon pails, plastic jars, Styrofoam blocks and fabric scrap
are turned into art by local schools and museums. Since
the first Exchange took place in 2008, the program has
partnered with over 100 global firms, small businesses,
service providers, daycare facilities, non-profits, and mu-
nicipalities and repurposed 500 tons of materials helping
participants avoid over $200,000 in purchase and disposal
costs (DEEC, 2012 Annual Report, http://www.
ecostardevens.com/2012%20annual%20report.pdf).
 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
Although the new set of sustainability indicators for Devens
helped better evaluate progress over the past decade, it did not
include indicators that measured the EIP benets for rms such as
improved operational efciency, innovation, learning, employee
engagement and job satisfaction, among others. Understanding
such direct and indirect business benets (including sustainability
challenges and opportunities) and the main reasons for rms to
locate to Devens, is critical for attracting and retaining companies
in an eco-industrial park.
As Devens moved into its second decade of promoting sustain-
able local development, DEC wanted to better understand, measure
and communicate Devens achievements as well as existing barriers
to greater collaborations among local companies. The study aimed to
examine local organizations' current practices, challenges and op-
portunities in advancing mutually benecial collaborations with
other Devens organizations to improve efciency and business
competitiveness while advancing local sustainability goals.
4. Research methods
In order to examine the main reasons for locating in Devens and
the sustainability challenges and practices of local organizations,
the research team designed a 20-question survey. A simple random
sample from nite population of 95 Devens organizations was used.
The main reason to conduct a sample study and not a census was
that the research team had limited resources. To determine a
sample size for the estimation of proportion from nite population,
the researchers took into consideration the 95% condence interval
and maximum error of 0.15. Thus the conservative estimate of the
sample size was determined to be 29. To obtain additional feedback
from companies, DEC scheduled interviews with all 29 survey
participants.
The interviews were held in the period between JanuaryeMarch
2013 and were open-ended, semi-structured and conversational in
style. The interviewers' team included representatives from DEC,
DEEC, Mass Development and UMass Boston. Company represen-
tatives included senior executives such as CEO, CFOs or a vice
president, as well as other personnel involved in implementing
sustainability practices such as environmental health and safety
managers and sustainability/recycling coordinators. Questions
addressed issues such as the main reasons for locating in Devens,
top sustainability challenges, current collaborations with other
Devens organizations, product take back, waste management
practices, and contingency planning for weather and other business
disruptions, among others. Study participants were provided with
the survey in advance of the interview. In addition to responding to
the survey questions, participants were encouraged to provide
additional input into the sustainable redevelopment of Devens, as
well as identify areas where Devens Enterprise Commission and
Devens Eco-Efciency Center services could help support their
sustainability mission and business goals. Collected data were
analyzed using SPSS software package. Only questions that pro-
vided a sufcient number of responses were reported in the results.
For deeper and precise analysis the research team used not only the
proportions of selected indicators, but also the 95% condence in-
tervals (CI).5
5. Study results and analysis
Text Box 2 lists all 29 organizations participating in the study
(30% of Devens organizations). Of these, 79% were businesses, 14% -
5
95% CI indicate that we are 95% condent that the interval constructed from the
sample will contain the true population proportion.
379
Text Box 2
Devens organizations participating in the study, April 2013.
AMSC Mount Wachussets College
Biognostics Nashoba Valley Chamber of Commerce
Bristol Myers Squibb NBKenney
Comrex New England Sheets
Devens Recycling Parker Charter School
Eglomesie Designs Parker Hannifin
Guild of St Agnes Patterson Veterinary
Integra Red Tail Golf Course
Johnson Matthew Rofin Baasel
Laddawn Ryerson
Learning Express Sabic Polymer
Liberty Tire recycling True North Hotel Group
Loaves and Fishes UNACC
Magnemotion Waiteco
Media News
non-prot and 7% - government entities. The majority of partici-
pating companies (90%) were manufacturing entities. More than
half of the organizations (59%) had a small number of employees in
Devens (less than 50 FTEs). Forty one percent (41%) of participants
reported having 50 or more FTEs in Devens. In terms of total
number of U.S. employees, more than half (53%) reported having
over 500 FTEs and 47% reported less than 500 FTEs in the U.S.
Seventy-six percent of participants (CI, 55%e91%) were familiar
with the DEEC EcoStar program and other offerings and 45% (CI,
26%e64%) knew that Devens is internationally recognized as EIP.
5.1. Main reasons for locating to Devens
Majority of study participants (67%) identied access to good
infrastructure e rail, green building and roads e as the main
reason for locating to Devens (see Fig. 3). More than a third of study
participants (36%) were interested in participating in an employee
shuttle to the new commuter rail terminal in Littleton. A large
number of rms mentioned traditional business factors such as the
lower cost of real estate (59%) and tax benets (52%) as key rea-
sons for locating to Devens. One in three organizations (33%)
identied the ability to collaborate with other businesses as one
of the top three reasons for locating to Devens. Twenty-two percent
said that Devens' sustainability vision and policies were a factor
in their decision. After an international search Bristol Meyers
Squibb (BMS) chose to locate a large biopharmaceutical
manufacturing plant in Devens because the site had the necessary
infrastructure capacity, a unied and expedited permitting process
and competitively priced utilities. Devens commitment to sus-
tainability also aligned with the company's mission and was also an
additional selling point (Hammer et al., 2012).
5.2. Key sustainability challenges of Devens organizations
The top two sustainability challenges identied by study par-
ticipants included reducing the cost of energy (improving energy
efciency) and reducing the cost of materials (improving mate-
rials efciency), each mentioned by 61% of interviewed organiza-
tions (see Fig. 4). In this area DEEC offers a range of services
designed to help businesses decrease their energy consumption
and save money. These services include employee outreach and
engagement guidelines, energy consumption benchmarking with
Energy Star's Portfolio Manager, and professional audit service by
the Industrial Assessment Center at UMass Amherst to help identify
380 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
Fig. 3. Main reasons for locating to Devens, April 2013.
efciency opportunities with a payback period of two years or less
(DEEC, 2013).
About one in ve Devens organizations (21%) identied
reducing waste generation among its top three sustainability
challenges. The study found that most organizations did not track
waste generation, reuse and recycling, and therefore no reliable
information was available to measure progress and cost savings.
With the growing waste reduction mandates, including the 2014
Massachusetts Organics Ban, it is expected that waste management
will grow in importance (Massachusetts EEA, 2013). Forty-ve
percent of study participants reported using other companies'
waste as a raw material, a traditional EIP indicator. DEEC's Great
Exchange Forum has helped facilitate such connections and save
companies' money; the exchanges, however, were typically low
value items such as bubble wrap, foam packing sheets, small boxes
and furniture (see Text Box 1).
Many companies identied employeeerelated issues as key
challenge: 39% reported difculties with access to highly skilled
employees, 21% mentioned employee health and well-being and
another 21% - the challenges in engaging employees around sus-
tainability initiatives. These ndings conrm the growing impor-
tance of knowledge, skills and employee health and well-being for
improving business performance and competitiveness and is an
area where DEC and DEEC have played an important role. For
instance, with its monthly workshops and roundtables around
Green Building, Environmental Health and Safety and Regulatory
Compliance, each attracting around 20 people, DEEC has provided a
forum for area businesses to share best practices, discuss chal-
lenges, exchange resources, and build partnerships, thus helping
them run more efciently and sustainably. Expanded trails and
sidewalks are supporting local rms' wellness programs. Thirty-
nine percent of study participants reported having walking clubs
or other programs to encourage employee tness.
5.3. Other sustainability practices of Devens organizations
With the increasing costs of raw materials globally, a growing
number of companies are adopting strategies for product take-back
and reuse or dematerialization (selling services instead of prod-
ucts), which can bring signicant bottom line benets (Veleva et al.,
2013). The study found that 71% (CI, 49%e87%) of Devens
manufacturing rms were taking back old products for reuse or
remanufacturing from their customers.6 Thirty-two percent (CI,
13%e57%) of study participants reported offering services instead
of selling products.
Over a half or 56% (CI, 35%e76%) of study participants reported
being engaged in contingency planning for improved resilience
in cases of weather or other business disruptions. Contingencies
included telecommuting, and sharing infrastructure with other
businesses, among others. Such planning has become increasingly
important after the widespread business disruptions caused by
hurricane Sandy in the U.S. in October 2012. During the interviews,
several companies expressed interest in collaborating with others
in Devens to nd space for employees in cases of re alarm or other
emergency. A few rms were planning to expand and looking for
new space while others had space they were looking to lease. In
such cases DEC played a critical broker role in helping companies
make the connection and thus reduce transaction costs, leading to
improved business efciency.
Seventy-six percent (CI, 55%e91%) of participants reported
increasing the use of local/U.S. suppliers to reduce supply chain
risks. While many companies were involved in sourcing materials
and selling products globally, they recognized the increasing supply
chain risks and costs and were looking for more local opportunities
to meet their needs.
5.4. Collaborations between Devens companies
The level of collaboration by companies in an EIP is an
important indicator of building local networks which enable cost
savings (e.g., resulting from materials exchanges or joint sourcing)
and knowledge sharing. The study found that 86% (CI, 67%e96%) of
Devens organizations partnered with others locally. On average
each organization partnered with 2.5 others; three companies -
Laddawn Inc., Integra, and Devens Recycling - reported partner-
ships with eight other organizations. The presence of non-prot
6
While there are some business connections among the rms located in Devens,
majority of companies' suppliers and customers were located outside Deven, MA.
 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
Fig. 4. Top sustainability challenges for Devens organizations, April 2013.
organizations such as the Parker Charter School (secondary school),
Mount Wachusetts Community College (higher education) and
Loaves and Fishes (food pantry) has helped increase the diversity of
local organizations and thus create additional opportunities for
collaborations e from student internships, to waste repurposing,
donations and volunteering.
When asked about future opportunities for collaboration, 79%
(CI, 59%e92%) of study participants said their organization could
benet from partnerships with others such as joint purchasing, coop
bidding for snow plowing, landscaping and waste disposal, joint
safety and other training, contingency space use during re alarm
and other business disruptions, cardboard exchange, and employee
offerings such as walking clubs, gym facilities and eld trips. Such
collaborations are important for successful development of eco-
industrial networks because they create short mental distance,
trust openness and communication (Ashton and Bain, 2012).
5.5. Intangible benets from locating in an eco-industrial park like
Devens
Devens offerings have helped local organizations advance their
sustainability practices, which are also often seen as key to their
business success and rm competitiveness. Being part of Devens
EIP has helped us become more competitive with prospective na-
tional and local accounts that use our hotels for corporate travel.
Many large companies inquire as to sustainability practices and
methods during the RFP (request for pricing) process. If they
themselves have a sustainability initiative, they often won't do
business with vendors that don't hold similar values, shared
Maura Peeler, Area General Manager of the True North Hotels
Group.7 For other organizations, being a part of an EIP and
7 8
Source: Email follow up with Maura Peeler, Area General Manager, True North
Hotels Group, August 15, 2013.
381
participating in Devens programs has helped improve employee
morale and satisfaction, as shared Melissa Fetterhoff, President and
CEO of Nashoba Valley Chamber of Commerce.8
Local government responsiveness is an important factor for
business success, which can lead to reduced costs for obtaining
permits, addressing infrastructure and other business needs.
Almost two-thirds (66%) of study participants rated local govern-
ment as very responsive to their needs and 24% stated it was
somewhat responsive (Veleva, 2012). In follow-up interviews
with study participants, many commented on the attractiveness of
the redevelopment (landscaping and maintenance of public
spaces). In addition to the streamlined permitting of the DEC, re-
spondents also valued the coordination and accessibility/avail-
ability of DEC and MassDevelopment staff for day to day issues.
Proposed in the initial Devens sustainability indicator set, local
government responsiveness was never reported before due to the
lack of data. It is, however, an important measure for EIPs de-
velopers and policy makers to track and communicate as part of
their strategy to attract companies.
6. Discussion
This study demonstrates that a large number of Devens orga-
nizations see sustainability practices as important business issue
and source of competitive advantage. By identifying and addressing
local rms' key sustainability challenges and priorities e energy
efciency, materials efciency, good infrastructure and employee
skills and well-being e DEC has been able to help support and
advance these challenges and priorities by implementing local
government policies and initiatives that have resulted in an in-
crease in access to rail, more green buildings and more companies
Source: Email follow up correspondence with Melissa Fetterhoff, President and
CEO, Nashoba Valley Chamber of Commerce, August 15, 2013.
382 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
in Devens collaborating to maximize efciencies. Having local
policies and initiatives that are in-line with local business needs can
serve as a valuable lesson for other policy makers and developers
interested in attracting and retaining companies. The study results
conrm previous research by Deutz and Gibbs (2008) of using in-
dustrial ecology as a tool for local and regional economic devel-
opment. While some parks report challenges in getting companies
to relocate, Devens has been more successful as a result of building
on successful spatial planning and infrastructure sharing (Deutz
and Gibbs, 2008).
Continuous communication about available programs for local
organizations is key for advancing local sustainability goals and
increasing collaborations (Tudor et al., 2007). With its workshops
and roundtables as well as the Great Exchange, DEEC has played a
critical role in promoting shared knowledge and learning, building
trust and encouraging environmentally favorable behavior among
rms located in Devens and neighboring communities. This nding
conrms previous studies that have examined the role of social
factors, including champions, in advancing collaborations and
cooperative approaches to resource management (Hoffman, 2003;
Ashton and Bain, 2012; Boons and Spekkink, 2012). By creating a
separate entity focused on promoting industrial ecology principles
and greater collaborations among local rms, Devens has estab-
lished the necessary institutional infrastructure to ensure eco-in-
dustrial activities will continue, even in the case of personnel
changes or the loss of key industrial ecology champions (Tudor
et al., 2007).
The fact that despite its two-decade long redevelopment Devens
still does not have any major exchanges of materials or by-products,
conrms earlier studies that have identied a range of technical,
legal, economic, and organizational barriers to such exchanges
(Gibbs and Deutz, 2007). In addition, since most heavy
manufacturing has moved abroad, there is less heavy material us-
age available for major by-product exchanges. In this sense Devens
represents an eco-industrial model for light industrial parks, which
is more relevant to the U.S. industry presently (Lowitt, 2008). In the
21st century knowledge-based economy, the Devens case provides
empirical evidence in support of the Lombardi and Laybourn (2012)
proposal to expand the denition of EIPs to include exchanges of
knowledge, information, and expertise, which are all sources of
innovation. Such vision for developing EIPs is particularly valuable
for small and medium enterprises (SMEs) as it enables them to
become more efcient suppliers in global supply chains through
sustainability practices (Moore and Manring, 2009).
The study ndings conrm the importance of indirect economic
benets for participating companies (Jacobsen, 2006) including
development of collaborations and green networks as instruments
for learning and innovation (Stormer, 2008). With the growing
number of environmental regulations, the value of such green
networks and peer learning is expected to increase further (Rao and
Holt, 2005). Greater diversity of involved rms not only promotes
cross-sector knowledge transfer but also greater resilience and
reduced fragility of the system when some participants leave
(Tudor et al., 2007).
The case of Devens supports the idea that developing EIPs is
likely to be a long process where immediate results are unlikely to
be forthcoming (Lowitt, 2008; Gibbs and Deutz, 2007). While EIP
policies and initiatives cannot force companies to change their
behavior, providing educational and networking opportunities,
knowledge, and guidance (especially when associated with costs
savings or reduced business risks) can promote greater participa-
tion, collaboration and ultimately advance sustainability and
competitiveness of local rms. Adopting local policies and in-
centives to encourage such development are additional factors for
successful eco-industrial park development in the light of regional
economic development (Chertow and Lombardi, 2005; Deutz and
Gibbs, 2008).
By simultaneously pursuing environmental and community
goals, Devens EIP provides empirical evidence in support of Porter
and Kramer's (2011) recent theory on creating shared value. The
case demonstrates in practice how the right kind of government
approach (including tax breaks and regulations) can encourage
companies to pursue shared value. This approach, used by Devens,
includes setting clear and measurable social goals, establishing
performance standards to meet these goals without being too
prescriptive (e.g., the Green Building incentives and regulations
encouraging the use of low impact development storm water
management techniques), investing in the development of a mea-
surement and reporting system to benchmark progress (Devens
Sustainability Indicators), and efciently and timely reporting of
results to all stakeholders (Veleva, 2012).
While locating in an eco-industrial park enables companies to
create shared value at all three levels outlined by Porter and Kramer
(2011), the greatest potential is at level 2, redening productivity in
the value chain. This is in line with previous research which has
found that clustering of companies results in synergies and eco-
nomic benets related to access to information, networks, sup-
pliers, distributors, markets, resources and support systems
(Tudor et al., 2007). While DEC has a robust system in place to
measure the social, economic and environmental results of local
collaborations (Veleva, 2012), it is critical to also measure and
communicate the business results as part of their strategy to attract
more tenants. Porter et al. (2013) provide a framework for identi-
fying such measures. For example, promoting alternatives to the
single occupancy vehicle to get to work leads to reduced green-
house gas emissions, reduced air pollution and trafc (social ben-
ets) while at the same time improving companies' environmental
performance, reputation and employee satisfaction (business
benets). Improved energy and materials efciency can lead to
improved protability (business benet) while reducing energy use
and pollution (economic and environmental). Joint purchasing and
shared infrastructure (e.g., in case of weather or re emergency)
can reduce costs and operational disruptions for participating
companies (business benet) while promoting local cluster devel-
opment and job opportunities (social benets). Sustainability
practices such as product take-back for reuse and remanufacturing
are seen as a key part of adopting sustainable supply chain man-
agement which is also associated with both business and social
benets (Zhu and Cote, 2004).
Understanding and addressing the main business needs and
sustainability challenges of companies is critical for developers
and policy makers interested in advancing local and regional
sustainable economic development. In such cases eco-industrial
parks like Devens can provide valuable lessons on how industrial
ecology can serve as a tool for establishing environmental and
social goals, promoting education, trust and collaborations among
rms that lead to both business and social benets. While there
are many factors that determine the success of such cluster
development (many beyond the control of local policy makers and
developers), the Devens case conrms that developers should
focus on what they can control and provide exibility and support
for the growth of social interactions and networking activity
(Deutz and Gibbs, 2008). As results demonstrate, sustainability is
not the main reason for companies to move to an EIP therefore
local authorities should not abandon their economic develop-
ment objectives as suggested by Deutz and Gibbs (2008). Un-
 V. Veleva et al. / Journal of Cleaner Production 87 (2015) 375e384
derstanding and addressing the main business needs in addition to
promoting sustainability practices is key for attracting and
retaining rms.
7. Limitations of the study and recommendations for future
research
Due to limited resources, the study used a small sample which
did not allow for conducting more sophisticated statistical analysis
and moving beyond descriptive statistics. Future research could
include stratied sampling from several eco-industrial parks to
examine the business benets from locating to an eco-industrial
park, the differences between small and large facilities and the
impact of offered programs on sustainability practices and rm
competitiveness. Potential analysis to use includes inferences about
differences between two or several population proportions, such as
condence intervals and hypothesis testing.
Another limitation of the study is the lack of nancial data to
quantitatively evaluate rm performance. Part of the challenge is
that earnings cannot be attributed by facility. Many of the rms
located at the Devens EIP have other facilities in the U.S. and abroad.
Future research could focus on identifying a few companies to
study and collect time-series data to compare the performance of
their facilities in Devens to others in the U.S., controlling for variety
of other factors.
More research is needed to examine the role of environmental
technologies (e.g., recycling, composting, co-generation and clean
energy generation) on building a greater number of mutually
benecial collaborations which can promote cost and risk reduc-
tion as well as knowledge creation. Such work can build on the
research by Geng et al. (2008) which examined the role of scav-
engers and decomposer businesses on increasing rm collabora-
tions and competitiveness.
Finally, limited research has been done on studying the effects of
the link between business cluster development and EIPs. Porter
(1998) has pioneered this concept and his most recent work on
shared social value outlines the need to focus on cluster develop-
ment for advancing business competitiveness and local and
regional sustainability (Porter and Kramer, 2011). In examining
how industrial symbiosis happens, Chertow (2007) also makes the
parallel to the development of business clusters. Deutz and Gibbs
(2008) further provide valuable insights into using industrial
ecology as a cluster development policy. Research into the business
benets of EIPs can build on the literature around diverse cluster
development and how the latter promotes greater rm competi-
tiveness and sustainability. Clusters of similar industries create
similar by-products. A diverse industrial base has been shown to
produce a greater number of by-product exchanges and collabo-
rations (Bain et al., 2010).
8. Conclusion
Key to Devens EIP success is its vision that serves community
and business interests, a plan to achieve that vision, a collaborative
structure to implement the plan and a viable process to measure
progress, revisit goals and rene plans and strategies as conditions
change. This study conrms the importance of examining and
addressing business needs and sustainability challenges as well as
establishing an organization focused on identifying and facilitating
networking activities and collaborations (Tudor et al., 2007). It
provides valuable insights for policy makers and developers about
how to attract and retain tenants by addressing their main business
needs and sustainability challenges which leads to both business
value and social value creation. Finally, the case of Devens EIP
demonstrates that eco-industrial parks today can be less about
383
physical exchanges of materials, energy, water and by-products,
and more about infrastructure and knowledge sharing, joint
sourcing, building local supply chain and reducing the risks from
weather and other business disruptions. All of these elements are
critical components of business competitiveness in the 21st century
knowledge-based economy.
About the authors
Vesela Veleva is a lecturer and co-director of the Center for
Sustainable Enterprise and Regional Competitiveness, College of
Management, University of Massachusetts Boston. Svetlana
Todorova is an Adjunct Assistant Professor in D'Amore-McKim
School of Business at Northeastern University. Peter Lowitt is the
Director/Land Use Administrator for the Devens Enterprise Com-
mission and the Chair of the Eco-Industrial Development Council of
North America. Neil Angus is the Environmental Planner of the
Devens Enterprise Commission. Dona Neely is the Executive Di-
rector of Devens Eco-Efciency Center.
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