Innovation and the circular economy: A systematic literature review

The circular economy emerged as an alternative model to the linear system, which now appears to be reaching its physical limitations. To transition to a circular economy, companies must not only be aware of but also engage in more sustainable practices. For such a transition, companies must rethink and innovate their business models and the ways they propose value to their clients while simultaneously considering environmental and social facets. This systematic literature review sought to map out from the company perspective the key topics interrelated with innovation and the circular economy, describing the internal and external factors to consider in such transition processes. Key lines of research were identified, and suggestions for future research and for facilitating movement toward a circular economy are provided. This work contributes to deepening the literature by identifying the priority areas concerning the circular economy and encouraging future research that meets international standards of excellence.

Automated summary

The circular economy offers an alternative model to the linear system, requiring businesses to adopt more sustainable practices. By rethinking business models and value propositions to customers while considering environmental and social factors, companies can successfully transition to a circular economy. The systematic literature review identifies key research areas related to innovation and the circular economy, providing suggestions for future research and advancements in achieving a circular economy.