813

1 INTRODUCTION

Maritime sector’s growth is specified by EU

Integrated maritime policy

 and Blue growth

strategy

. Blue Growth is the long‐term strategy to

support sustainable growth in the marine and

maritimesectors.Seasandoceansaredriversforthe

European economy and have great potential for

innovationandgrowth.Itisthemaritimecontribution

toachievingthegoalsoftheEurope2020strategyfor

smart,

 sustainable and inclusive growth. Theʹblueʹ

economy represents roughly 5.4 million jobs and

generatesagrossaddedvalueofalmost€500billiona

year.However,furthergrowth ishighlighted within



 https://ec.europa.eu/maritimeaffairs/policy_en

 https://ec.europa.eu/maritimeaffairs/policy/blue_growth_en

sectors that have a high potential for sustainable

jobs and growth, such as: a.aquaculture, b.coastal

tourism, c.marine biotechnology, d.ocean energy,

e.seabed mining. Essential components to provide

knowledge,legalcertaintyandsecurity intheblue

economy: a.marine knowledgeto improve access to

information about the sea;

 b.maritime spatial

planning to ensure an efficient and sustainable

management of activities at sea; c.integrated

maritime surveillance to give authorities a better

pictureofwhatishappeningatsea.

Not seeing to great attention and optimism of

EuropeanCommissiontoBluegrowth[2]overallstate

ofEUgrowth

andpartiallymaritimesectornotshows

rapid changes towards smart, inclusive and

sustainablegrowth.RealannualGDPgrowthstillin

decelerating trend, what according to Virtualics [12]

Blue Growth Circular Innovation

S.Paulauskas

PublicInstitutionStrategicSelf‐ManagementInstitute,Klaipeda,Lithuania

ABSTRACT:Maritimesector’sgrowthisdefinedandspecifiedbyEurope2020strategyforsmart,sustainable

andinclusivegrowth,IntegratedmaritimepolicyandBluegrowthstrategy.However,practicalimplementation

of such positive regulations isn’t so resultative, because Blue growth, same as overall EU zone

 economic

developmentmeetssignificanttroubles.Bluegrowthmethodologyneedstobemorecertainandsustainedin

overallsystemofEUdevelopmentapproaches.Hereishighlighted,thatfurthergrowthispossibleinseveral

areas: aquaculture, coastal tourism, marine biotechnology, ocean energy, seabed mining. Majority of core

maritime activities as industry, logistic

and infrastructure hasn’t provided as valuable in reason of

methodologicalunderstandingofagrowthintermsofphysicalandeconomicgrowth.AppliedauthorCircular

economy 3.0 methodology discovers sense of qualitative growth of holistic maritime economy system what

enforces all maritime branches  by advanced growth abilities of CleanTech, HealthTec and SmartTech



approaches.Thisopenspanelfordiscussionwithbusiness,politicians,communitiesonmatterofimprovement

EUBluegrowthstrategytowardsradicalisationofEUgrowthtrends.



http://www.transnav.eu

the International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 12

Number 4

December 2018

DOI:10.12716/1001.12.04.21

814

resultsdisintegration,migra tionandotherchallenges

ofthisthebestofalltimesproject(Figure1.).

Figure1. Real GDP growth in Baltic countries and EU28

(Source:Eurostat)

Bluegrowthmethodologyisn’tenoughcertainand

sustained in overall system of EU development

approaches and needs of more deep understanding

[18]. Frequently it’s directly linked to green and

environmental issues of economy. However, clean

technologies as resources of green growth aren’t

enough highlighted as strong priority. Term of

sustainability frequently

 used as synonym of green

growthby usemarine resources [11]. Human health

roleinmaritimeeconomystillnotfixedascrucialin

second level of human demands growth pyramid

(A.Maslow).Smartgrowth isused in sense of smart

decisions,butnotasqualitativestageofBluegrowth.

Undoubtfuladvanced

Bluegrowthapproachneed

to be clarified and detailed in terms of EU2020

strategy.TheEuGlobalPeacestrategycouldhelpto

navigate EU towards accelerating growth [12]. The

task is to assure transition to accelerating growth of

GDP asap firstly by introduction of opportunities of

maritime sector, which undoubtful has

 the most

significantpotentialforgrowth.Thiscouldbereached

by social innovation of Blue growth [16]. Applying

innovative methodological approach Circular

economy 3.00 enabled to frame many buzzword

initiativesandapproachesintoclearandconstructive

growthsystem[14].

ThemainaimofthearticleistoframeBlue

growth

on the ground of author Circular Economy 3.00

methodology.

Maintasksare:

1 To apply Circular Economy 3.00 growth

methodologytomaritimesector.

2 Topresentcircularmodelofmaritimecluster.

3 Todescribecircularsystemofbluegrowth.

Analysing methodology is continuation of forth

decadedevelopingmethodologyofvirtual

modelling

[13] and it is applying in maritime sector. Practical

applications related to author participation in

activities of South Baltic programme projects

CleanTech International

, CIRTOINNO and

INTERMARE.



 https://www.southbaltic‐cleantech.eu/

2 CIRCULARECONOMY3.00ASBLUEGROWTH

METHODOLOGY

Faced to stagnation and destruction challenges

European Union second decade composes strategic

methodologies, programmes and tools, which

targeted to increase growth and competitiveness of

EU in global market. The Lisbon strategy for last

decade and current strategy EU2020

 is targeted to

become European Union smart, sustainable and

inclusive growing community, which uses

innovations as sustainable development engine.

However, here is lack of understanding of holistic

system and structure of EU growth methodology in

qualitative and time scales. „Green”,

“environmental”,“sustainable”,“inclusive”,“smart”,

“circular economy” and overall blue growth

frequentlyareinterpretingasbuzzwords,hawingnot

significantsenseandimpactto practical EU growth.

Their disposition one to other frequently varies in

outlooks of different authors and especially in

practiceofinnovationsandbusinessactors.

InnovativeapproachtoEUCirculareconomy1.00

and2.00 strategy enabled recognise it as ground

 for

frame growth initiatives on the basis of synthesised

by author of this article Circular economy 3.00

methodology [14].„A circular economy

 is a

regenerative system in which resource  input and

waste, emission,  and energy leakage are minimised

by slowing, closing, and narrowing material and

energy loops. This can be achieved through long‐

lasting design, maintenance,  repair, reuse,

remanufacturing,refurbishing,andrecycling. This is

contrastto a linear economy whichis aʹ

take, make,

disposeʹmodelofproduction.”



Figure2. The circle and its projection in to time scale on

basisofdichotomicvirtualmodel(S. Paulauskas)

where:K’(t)–Lineareconomyquality;K(t)–Circular

economyquality,K(t)=1‐K’(t)

However, the state of development of Circular

economyconceptisenoughdraftandpartial,because

it accents only two circles – loops of material and

energyresource flow. These loopscan’t be excluded

from loops of other business

 resources, like time

(human, communication, etc.), finance, legislation,

knowledgeandother.PracticalimplementationofCE

solutions requires to consider also other business

cycles. As an analogy: not a disease, but a person

needstobetreated.

Circular economy as business activity firstly is

smart, because it is grounded on feed‐

back loop



 EUROPE2020AEuropeanstrategyforsmart,sustainableand

inclusivegrowth,http://ec.europa.eu/europe2020/index_lt.htm

 http://ec.europa.eu/environment/green‐growth/index_en.htm

815

activity cycle. Businessmenisinvolvedinsuch cycle

as innovator, interested to increase profitability of

business.

Deeping into sense of Circular economy gives

opportunity to see its internal qualitative steps as

historic paradigms of human economic activity (Fig.

3). The historical path from Linear economy to

Circulareconomygoesthrough

Physical,Economical,

Environmental(Green),SustainableandSmartsteps.

From ancient times physical deals with material

things during production of other things hasn’t

unified methodological frames. Only individual

human smartness was a handbook for economic

activityinnaturaleconomy.

Some hundreds year ago occurred economic

theories enabled to change physical language

of

naturaleconomytoeconomicallanguageofvalueand

largesystemofquantitativeandqualitativemicroand

macroeconomicindicators.Environmentorecological

andGreeneconomyparadigmoccurredinendoflast

century as antithesis to polluting economy.

Sustainable development paradigm synthesised

economic, environmental and social priorities with

responsibility against future generations.

 Smart

growthparadigmwasdeclaredinEU2020strategyas

official strategic methodology of European

communityincurrentdecade.



Figure3.Qualitativeleapofcirculareconomyparadigms(S.

Paulauskas,2017)

Oneofthemostsignificantfeatureofgrowthloops

is spreading of business resources (Table 1). For

physical level materials and energy are main

resources of business. Economical paradigm adds to

them office and manual work. Green growth is

impossible without clean technologies. Sustainable

growth requires of health technologies. Artificial

intelligence

isnecessaryfor smart qualityofcircular

economy.

Different economy paradigm forms different

understandingofeconomygrowth.Hereisthereason

ofsomemisunderstandingincontactsbetweenpeople

and overall countries used different economy

paradigms, including scientists and developers.

European community take care for common

understandingofcurrentparadigmthrough

strategic

documents,whichareobligatoryforallactorsofEU.

Achieving of highest Smart growth methodology is

themainbenefitofCirculareconomy.

3 CIRCULARAPPROACHTOMARITIME

CLUSTERS

Accordingtogeneralprinciplesofcircularityandlife

cycle, we composed structure of Maritime economy

onbasisofaSelf‐Managementcycle,

whichconsistof

foursteps:a)Programming‐Developmentservice,b)

Decision‐making–Maritimecouncil,c)Implementing

‐ Administration and d)  Control – market feed‐back

(Figure4).

Figure4.Maritimeeconomystructureaccordingtolifecycle

principle(S.Paulauskas,1999).

Table1.Thematrixofgrowthbyparadigms

__________________________________________________________________________________________________

Paradigm PhysicalEconomicGreenSustainableSmart

__________________________________________________________________________________________________

Resources Materialsand  MarketingCleantechnologies HealthtechnologiesSmarttechnologies

energyMaterialsandenergy

Manualwork  Manualwork

Applications Productionand MarketingWind,solar,  Wellness,gene  Artificialintelligence,

consumptionelectricity,smart enginery,organ  roboticsvirtualreality

houses,modular regeneration

load,etc.

Indicators NoEconomicEcologicResponsibilityHappinessof

people

EconomicSocial

Ecologic

Economic

Feed‐back long‐lastingdesign,ProfitClimatechange Lifespanofpeople Happiness

maintenance,repair,

reuse,remanufacturing,

refurbishing,recycling,

andupcycling

FinancesEU,StateBusinessBusinessBusinessBusiness

__________________________________________________________________________________________________

816

Not seeing, that Blue growth strategy gives

priority to main five activities, another 16 are also

necessaryforfunctioningofoverallMaritimesystem.

Qualitative growth of overall Maritime economy

requiresandconsistofgrowthofallitsconstituents.



Table2.ThematrixofBluegrowthcontent

__________________________________________________________________________________________________

QualityPhysicalEconomic  GreenSustainableSmart

__________________________________________________________________________________________________

1 Self‐Management

1.1 Governance Freemarket  Largebusiness Environment SustainableStrategic

protection  development  Self‐Management

1.2 Planning  Territorialland Economic  Environmental, Sustainable,  Smart,groundedon

planninggrowthplanningtargetedtosave orientedtopublicvirtualmodelling

naturewellness

1.3 Marketing  SearchforclientsProfitoriented Orientedtoclean

Orientedto  Virtuallybasedself‐

environment wellbeingofpeoplemarketing

1.4 Innovations Takeafreeniche InventionsandCleanHealthtechnologiesSmarttechnologies

applyingof  Technologies  (wellness,organ (artificialintelligence,

novelties  (wind,solar, regeneration,gene internet,robotics,

smarthouse, engineering)  democracy)

electric

transport)

1.5 FinanceStateorEU

   BusinessincomeCleanHealthtechnologies Smarttechnologies

supportTechnologies

2 Blueindustry

2.1 Shipindustry Universal‐Specialised  Specialised to Usesmodular  Roboticconstruction

constructsconstruction pollutionfree construction

everythingconstruction technologies

2.2 Biotechnologies FishingIndustrial  Recreational Aquaculture  Marinebiotechnologies

fisheryfishery

2.3 MiningOilGasSeabottom  Mineral

andrare Smartroboticmining

cleaningmetals

2.4 EnergyOil,gasRenewable‐  Notpolluting– Electricatall  Smartatall

recovering  wind,solar

2.5 Entertainment SailingandCruiseshipping Ecologic‐   Electricshipping Virtualtourism

coastalrestpollutionfree

shipping

3 Bluelogistics

3.1 Forwarding Atcareofcargo

 Specialised  GreenSustainablyVirtualself‐forwarding

ownerforwarding  forwarding  forwarding

serviceservice

3.2 Shipping  Universalcargo Specialised  Pollutionfree SustainableSmartcrew‐less

cargoshipping

3.3 LoadingUniversalloads Specialised  ModularSustainableSmart–roboticload

terminals  (Containerand loading

ro‐ro)

3.4 Agenting  CrewcareSpecialised  Clean

SustainableVirtualself‐service

servicestechnologies agenting

used

3.5 Passenger  NoserviceBusinessserviceCleanservice SustainableSmartself‐service

servicespassengerservice

4 Blueinfrastructure

4.1 Marinewaters Shippingand  Miningofoil Useforclean Sustainableuseof Smartplanningand

fishingandgastechnologies marine

watersresponsibleuse

4.2 PortsAsuniversalforallSpecialisedforaGreen–   SustainableSmart–operatingon

kindsofcargosortofcargo pollutionfree portsartificialintelligenceand

robotics

4.3 SafetySafetyoftechnics Worksafety SafeSustainablesafety Peoplewellness

Environment

4.4 CoastalindustryPhysical‐

new Economical‐  CleanSustainable‐   Smart‐transitionto

constructions,  moreincome technologies‐  increasingof  artificialintelligence,

largerproductionandlesscosts electrictransport,wellnessandlifeinternetandrobotics

andservicewindandsolar spanofpeople 

energy

4.5 Socialservices Physical‐new Economical‐  CleanSustainable‐   Smart‐transitionto



constructions,  moreincome technologies‐  increasingof  artificialintelligence,

largerproductionandlesscosts electrictransport,wellnessandlifeinternetandrobotics

andservicewindandsolarspanofpeople

energy

__________________________________________________________________________________________________

817

4 BLUEGROWTHQUALITATIVEMATRIX

Circulareconomy3.00approachwasappliedtoeach

maritime activity and here was tried to specify

development sense by qualities of growth: physical,

economic, green, sustainable and smart (Table 2).

Herewedon’tpretendtofinal definitionofcontentof

eachcell – thisis

aimofourfurtherinvestigationof

South Baltic maritime sector market research and

strategic planning during implementation of South

Baltic programme project INTERMARE. The most

importantistofixdifferencesbetweeneachqualityof

growth,whatshouldgiveusebetterunderstandingof

overall scope of Blue growth instrumentation and

opportunities.

The matrix enables to understand, that maritime

industry is faced to such variety of growth

approaches and opportunities. However, priorities

and best scenarios  for efficient growth, what is the

mostimportant for nowadays EU, aren’t defined. In

some Baltic countries we can expect surplus of

attentionstophysicalgrowthwithuse

State’sandEU

support.Greenandsustainableportsstillacceptedas

trouble, which could stop physical growth of non‐

modular loading. Sustainable maritime is

contradictoryinoppositeaimstoimprovewellnessof

people and reduction of manual work places. Smart

robotic maritime and crew‐free shipping signalised

about reduction of

employment in maritime sector,

what isn’t accepted as progressive for coastal

societies.

However,thepointofchangeofattitudestoblue

growthiscomeanditisevident,ifwewanttokeep

EUand defend our communities fromdisintegrative

forces.Answer to question, to which qualityof blue

growthwe

mustgivepriorityisevident:ashigheras

youcan‐smart growth. It’salsoevident,that smart

bluegrowthisimpossiblewithoutactiveinvolvement

of business and communities. Business must be

oriented to advance technologies by clear EU Blue

growth strategy, which must be modified in nearest

time. Coastal communities

must be interested in

smart growth despite reduction of jobs in maritime

sector.Forthatspecialundisclosedbasicincome(UBI)

and undisclosed basic  dividend (UBD) tool must be

actualisedasit’sdeclaredintheNewEuropeandeal



5 CONCLUSIONS

European Blue growth strategy as undoubtfully

positive EU growth initiative meets troubles of

practical application and turning up growth trends

due to uncertainty and lack of clear growth

methodology.

Author Circular economy 3.00 methodology

enabledtoframeEUandBluegrowthaccordinglyto

clear qualitative growth stages: physical,

economic,

green, sustainable and smart. Presented matrix of

growth enabled to recognise and separate growth

features and construct clear prioritised leap of

possibleapproaches.



 https://diem25.org/end/

Existingamorphousliberalsetofpossiblegrowth

opportunitiesmustbetransferredintoclearlydefined

target strategy with clear understanding of

supporting and resisting forces of Blue growth. The

smartgrowthmustbeacceptedasdefinedpriorityof

Blue growth including its social innovation –

democratisationofcommunities.

Special attention must be

 given to take common

business and communities towards smart blue

growth by introduction unavoidable initiatives of

inclusion of all participants into target interests like

undisclosed basic income, undisclosed basic

dividends, green investments and other initiative of

progressiveNewEuropeandeal.

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