The impact of circular economy

Abstract

There is worldwide growing attention for the shift towards a circular economy. The focus shifted from how innovation in business models could lead to more profit towards how innovation in business models may solve societal problems and hence contribute to a sustainable economy and society. Although positive ecological and social impact is embodied in the definition and promise of the circular economy, we know little about what type of impact circular enterprises expect to make, whether they measure their impact and use this to adjust their strategy where necessary. This leads us to the following research question: what is the expected impact of different types of circular innovation for firms, and how can firms measure this impact? Based on different case studies, different circular innovation strategies and their expected impact are identified and a framework is developed that can help firms to identify and measure their expected impact.