Circular economy, with the bioeconomy as one of its main components (the term "biotechonomy" is specified below) is currently the most important issue in the context of the development of the economy. It is important to use bioresources for the production of products with the highest possible added value. For a broader perspective, the scientists of the Riga Technical University have introduced the concept of biotechonomy, which is an extended understanding of the bioeconomy. It is a science-based and frugal utilization of indigenous resources for creating new, market-demanded and competitive products that are produced with innovative and advanced technologies. The technological aspects at resource extraction, processing and product manufacturing stages are the key factors that determine the environmental and climate impacts throughout the life cycle of the product. The research on biotechonomy issues is closely linked to environmental engineering. The doctoral thesis was conducted with the aim of establishing a methodology for biotechonomy analysis, approbating it in Latvian forestry sector to identify its development prospects and to find a solution for the reuse of a previously under-utilized forest bioresource for manufacturing of a new product. The outline of the doctoral thesis is structured into five thematic chapters, the first four of which describe the developed methodology of biotechonomy analysis at various levels - national, sectorial, resource and product, but the fifth chapter includes the idea for the future research about the transdisciplinary approach to solving biotechonomy development issues. New methodologies have been developed at each level of biotechonomy analysis by using both theoretical research methods and applied research methods. The methods are used both individually and in combination with each other so that complex algorithms of methods and formulated. The doctoral thesis is oriented and approbated on the analysis of biotechonomy within the Latvian forestry sector, but the developed methodology may also be adapted and used for analysis of other biotechonomy related sectors in other countries in order to continue the research and to find scientifically based and practical solutions for promoting balanced biotechonomy development at the state and sectorial level. At the fourth level, the product level, of the doctoral thesis, the development of an innovative product – coniferous needle thermal insulation material – that corresponds to the principles of biotechonomy, has been initiated in order to find a solution how to use this previously under-utilized logging residue – raw or pre-treated coniferous greenery – for manufacturing of product with higher added value. Therefore, the results of the doctoral thesis can be used both for scientific and practical purposes for the development of biotechonomy.