In recent years, the introduction of the circular economy concept in business has been studied by academics because it entails the definition and measurement of the resources and capabilities necessary for firms to invest in innovation and adopt a circular model. In this context, this study investigates the intangible assets related to the circular economy, defined as 'circular patents', that are classified and measured to be bundled into the innovation capabilities of a firm. The impact of a business's capabilities on its level of circular patent activism is empirically analysed in this study in a theoretical framework of dynamic capabilities. To this end, a model of the cause-and-effect relationship between the circular patents held by firms and their capabilities is designed using partial least squares structural equation modelling (PLS-SEM) and is tested using a sample of 120,406 patents in 2,216 Spanish companies. In this analysis, patents that can foster the sharing economy and the circular economy in sensu latu are also considered circular patents, in addition to waste patents and other green patents, offering an enhanced measurement of the intangible assets related to the circular economy.Based on these results, this study provides new insight of how accounting can enable or constrain the transition to a circular economy business model through the measurement and valuation of related intangible assets and the specific business' capabilities in an environmental management framework.