Trust and networking in inter-firm relations: the case of eco-industrial development

Abstract

Despite much rhetoric concerning the implementation of sustainable development within local and regional economic development strategies, very few concrete examples exist of projects that combine economic, social and environmental aims. However, recently, a number of developments have occurred, based around ideas drawn from industrial ecology. These eco-industrial parks seek to reduce environmental impacts, while at the same time improving business competitiveness and creating jobs. Eco-industrial parks rely upon creating networks of material and by-product flows between participating firms. However, it is frequently assumed that the trust and cooperation between firms that this involves will arise automatically. In this paper it is argued that a much more nuanced approach is needed, drawing upon work in economic geography and regional economics on trust, networking and untraded interdependencies.