The circular economy is often presented as a technical solution to environmental problems—less waste, more recycling, more efficient use of resources. In practice, however, it represents a much deeper transformation. It is not only about technologies, but above all about cooperation between organizations, knowledge sharing, and the ability to innovate across company and industry boundaries.
Research shows that the transition from the linear “produce–use–dispose” model to a truly circular system is extremely demanding for individual firms. It requires new know-how, new processes, and often new markets as well. This is precisely why open innovation plays a crucial role—an approach in which companies deliberately collaborate with external partners rather than relying solely on their own resources.
The study highlights two basic forms of collaboration through which the circular economy is put into practice. The first is the circular supply chain, where companies from the same or related industries coordinate material flows so that the waste of one actor becomes the input for another. The second is the circular ecosystem, which connects organizations from different sectors—manufacturing, research, and public institutions—and creates space for more complex and innovative solutions.
A key element of both approaches is the presence of a central actor. In the supply chain, this role is played by a coordinator who manages the flow of resources and information. In the ecosystem, the actor functions more as an “orchestrator”—building trust, connecting stakeholders, and supporting a shared vision. Without such leaders, collaboration would often fail due to conflicting interests or a lack of coordination.
It is also important that open innovation helps overcome the main barriers of the circular economy: a lack of technical knowledge, high costs, and market uncertainty. When companies share knowledge, technologies, and experience, they can experiment more quickly and translate environmental principles into viable business models.
From a practical perspective, the research clearly shows that the circular economy is not an individual project of a single company. It is a collective effort that requires trust, openness, and long-term cooperation. Sustainable innovations, therefore, do not emerge behind closed doors, but within networks of relationships among companies, institutions, and communities.
Citation:
Perotti, F. A., Bargoni, A., De Bernardi, P., & Rozsa, Z. (2025). Fostering circular economy through open innovation: Insights from multiple case study [Article]. Business Ethics the Environment & Responsibility, 34(2), 390–408. https://doi.org/10.1111/beer.12657
