Eco-Innovation Diversity in a Circular Economy: Towards Circular Innovation Studies

Abstract

Transition to a Circular Economy (CE) is about structural change and is predicated on the introduction of transformative eco-innovation (EI). Research on the CE–EI nexus has recently attracted attention both from an analytical and regulatory perspective. However, in-depth research exploring EI dynamics within the CE is still marginal, especially concerning the trends and dynamics of the pro-CE innovation policy and strategy. This paper addresses this gap by taking advantage of the burgeoning research on CE of the last 20 years and offers a new working synthesis. By implementing a “(systematic) review of (systematic) reviews”, this paper provides a new comprehensive framework for understanding pro-circular innovation strategies and, as a complement, argues the need to advance “circular innovation studies” as an agenda in its own right. Innovations related to recycling and recovery CE strategies along with business-model innovations and systemic/transformative innovations are found to be a major current trend in the research, connecting supply and demand side innovations and also driving other forms of innovation linked to design, product manufacturing, logistics and reverse logistics and end-of-life management and recovery. Additionally, of note is that the conceptual understanding of EI dynamics within a CE is still mainly implicit (rather than explicitly discussed) limiting the possibilities to advance knowledge in the area of innovation for CE: this is why we propose a “circular innovation studies” agenda.

Linking Eco-Innovation and Circular Economy—A Conceptual Approach

“…Putting aside the definitional differences, CE represents an economic paradigm shift [5], as it represents a shift from the traditional and linear economic model towards closing material flow loops through different types of actions undertaken, i.e., reuse, repair, recovery or recycling of existing materials and products so that they can become inputs in subsequent production processes [1,23]. The core of the CE concept is to create feedback cycles: resource-product-resource, following the 3R principle (reduce, recycle, reuse).…”

“…Despite increasing environmental degradation, most of the world's economies still operate on a traditional linear model of economic activity based on cheap energy and readily available resources. This model, known as "take-make-dispose" [1,2] is characterized by a unidirectional flow of materials: from raw materials that are transformed into products and ultimately into waste. However, this linear approach to production and consumption processes does not take into account the environmental burdens and natural limits to economic growth resulting from, for example, climate change due to increasing greenhouse gas emissions and the depletion of nonrenewable resources (i.e., fossil fuels or mineral resources).…”

“…Changes on both the supply and demand sides are therefore necessary, amounting to the design and implementation of circular business models and the realization of sustainable consumption patterns. Many 2 of 14 scholars emphasize the key role of innovation in this regard and argue that it is ecological innovation that is the necessary factor to support the use and circulation of resources in a deliberately and sustainably renewable system [1,6,8]. The underlying basis for this approach is the idea of ecological innovations that constitute new solutions leading to the avoidance or reduction in adverse environmental impacts, according to the assumption that reducing the negative influence of production and consumption activities on the environment is the main feature of ecological changes.…”

The Circular Economy Concept in the Outdoor Sporting Goods Industry: Challenges and Enablers of Current Practices among Brands and Retailers

“…Due to the complexity of transformations towards, as well as the knowledge gap about innovation processes in a CE, literature often stressed the need for collaboration, both along the supply chain and cross-sectoral [17,18]. Consequently, concepts such as circular ecosystems [17,19] or open innovation [20][21][22] have recently become more popular in the CE literature.…”

Three Anchoring Managerial Mechanisms to Embed Sustainability in Service Organizations

“…For example, Lüdeke-Freund et al [81] propose several patterns to adopt circular economy business models, including a specific focus on repairing, reusing, refurbishing, recycling, repurposing, and using organic feedstock. Moreover, De Jesus et al [82] present a framework for pro-circular innovation strategies and conclude that the main driving forms of innovation linked to design, manufacturing, logistics, and end-of-life management are innovations related to recycling and recovery, and innovations connecting supply and demand.…”