Abstract

The circular business model is a cooperation between industries: waste, by-products, surplus energy, or wastewater from one enterprise is transferred for production to other enterprises, often located in geographical proximity. Circular economy technologies have significant potential to decarbonize resource-intensive industries. Experts estimate that the overall application of circular economy tools based on existing technologies can reduce CO2 emissions by 10%, save up to 40% of the fresh water required by industry, including agribusiness, and lead to significant cost savings. Because circular economy companies come from a variety of industries that do not normally collaborate, the process of discovering new circular exchange opportunities resembles an innovation process. It may seem that innovation occurs by chance. Although the innovation process is largely an unpredictable movement into the unknown, innovation is not necessarily a random event, unplanned and uncontrollable. On the contrary, innovation can be facilitated and the chances of success can be increased. It is recommended to establish circularity centers based on public-private partnerships as a means of promoting the innovation process and demonstrating its potential environmental, social, and economic benefits. In terms of building innovation capacity, the circular economy, including its potential and benefits, should be included in the training of engineers and students in order to build relevant skills and competencies. The possibility of creating suitable tools to link promising R&D projects of the appropriate maturity level with investors and funding should be assessed to accelerate the commercial deployment of innovation in the circular economy. Under these conditions, the paper considers a three-stage innovation process in a circular economy. The key characteristics of each stage are given. The main role in the organization of the innovation process in a circular economy is assigned to the facilitator of innovative transformations and implementation of innovative projects.

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