The Circular Economy - Developments, concepts and research in search for corresponding business models

Which business models can promote a circular economy? The study "The Circular Economy: Developments, Concepts, and Research in Search for Corresponding Business Models" examines research, development and implementation of circular economy (CE) concepts with a focus on corresponding business models and emphasises the need for systemic innovation in order to establish a comprehensively sustainable circular economy.

The transition from a linear to a circular economy must take place in several phases, starting with "in-house" circularity and ending with the establishment of a comprehensive macroeconomic system. Each phase poses growing organisational challenges and requires close cooperation between the parties involved. To overcome these challenges, new business models based on collaboration and shared value creation are needed. These models should close the raw material loops, promote the transition from ownership to services and intensify the utilisation of product functions.

The implementation of the circular economy not only influences environmental management, but also the composition and deployment of labour in companies. It also harbours the potential to rethink traditional business models and put them on a more sustainable footing. Despite the growing interest and various local initiatives, however, the practice of the circular economy is still in its infancy. Although companies are showing great interest in introducing circular principles, they face numerous legal, material and financial obstacles.

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