The development of the practical side of the concept of industrial ecology has taken two different but interrelated paths during the last two decades: the product-based systems perspective; and the geographically defined local-regional industrial ecosystem approach. Both approaches focus on material and energy flows aiming at reducing the industrial system's virgin resource use and waste and emission outputs. The ideal has arisen to mimic the model of a sustainable natural ecosystem, which relies solely on solar energy as the input and creates cyclical flows of materials (and related energy cascades) between organisms and in the food chain. It is argued in the industrial ecology literature that wastes, as defined in human industrial system terms, are non-existent in the natural recycling system. In this paper, an application of the product-based systems approach is given with paper life cycles and a basic life cycle inventory model. An application to the regional approach is presented in the regional energy supply system of the city of Jyvaskyla in Finland. The paper aims at discussing the two approaches in industrial ecology and considers their contradictory characteristics as well as their similarities. When the basic vision and the overriding goal is the local industrial ecosystem, the product-based approach can serve as an inventory tool to support the project. In this situation, the two approaches would seem to be each other's complement. When the two approaches are adopted as each other's substitute, they may support conflicting decisions for environmental policy and management. This may create difficulties in the implementation of industrial ecology. On the basis of both of the approaches to industrial ecology, the external environment of an organization is considered to comprise the societal material and energy flow environment and the natural material and energy flow environment.
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