Linking Eco-Innovation and Circular Economy—A Conceptual Approach

Abstract

The socio-economic transformations taking place nowadays bring about the necessity to transform the currently dominating linear paradigm of economic growth. The basis for such a transformation is, first of all, the implementation of sustainable systems of production and consumption, so that they evolve into companies implementing the assumptions of a closed-circle economy. Although the concept of such an economy has been widely accepted by both researchers and practitioners, there is still a lack of thorough recognition of the determinants of its application at the organizational level. Attempting to fill this research gap, this paper addresses the conceptual link between companies’ eco-innovation activities and the CE paradigm. It attempts to assess the importance of eco-innovation, both technological and nontechnological in nature, as determinants of the implementation of the concept of a closed-loop economy. The prospects for the implementation of a closed-loop economy are described, then the concepts and types of eco-innovation are organized, and finally the role of eco-innovation as a catalyst for the implementation of the CE concept is explained. The article also indicates the most important management practices, understood as strategic actions necessary in the process of generating and implementing innovations leading to the realization of the idea of reverse material flows. As a consequence of the discussion, the proposition suggested herein is to develop the existing circular business models by taking into account the eco-innovative activities of enterprises. The article is also an attempt to start a discussion on the category of open eco-innovations and to popularize the practice of open access to eco-innovations.

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“…The popularity of the CE concept caused the original 3R principle to be extended first to the 4Rs, then to the 6Rs, and later on evolved to the 9R concept and even to the 12Rs (considering recover, refuse, rethink, repair, refurbish, remanufacture, repurpose, redesign, research). However, the existence of various alternative R-strategies remains the same logic of CE understanding, implying the need to create economic, social, and environmental value (Pichlak, Szromek, 2022).…”

Circular economy and public policies: A dynamic analysis for European SMEs

“…To facilitate the transition, policymakers deploy public policies to promote the reduction of the use of non-recoverable resources, improve waste management, and the development of eco products (Pichlak & Szromek, 2022). 7 These public interventions involve areas such as innovation, industry, education, employment and international trade (Kautto & Lazarevic, 2020).…”

“…As a result, CEIs are subject to the so-called 'double externality' since they have standard knowledge 4 A linear model is characterized by a unidirectional flow of materials, from which raw materials are transformed into products and, ultimately, into waste. This linear approach to production and consumption processes does not consider the environmental burdens and natural limits to economic growth resulting from climate change because of increasing greenhouse gas emissions and the depletion of non-renewable resources (Pichlak & Szromek, 2022). 5 According to the European Commission (2020) 'Entrepreneurship and Small and mediumsized enterprises (SMEs)', in 2020 SMEs represented approximately 99% of all businesses, employed around one hundred million people, and generated more than half of European GDP.…”

Comparative Analysis of Eco-Innovations Using the Circular Economy Perspective in European Union Countries

“…Many models are unusable without modifications and the introduction of additional practices, like radical changes such as transformation and reengineering within organizations (Erić & Dabetić, 2019), as well as specific managerial practices which would promote the transition to model of CE and its principles. In the contex of these practices, eco-innovation as the basic determinants within the application of the model of CE, three types of eco-innovation are recognized: process eco-innovation, product eco-innovation and organizational eco-innovation (Pichlak & Szromek, 2022), as shown in Picture 1.…”