Business Model Innovation for a Circular Economy in the Agricultural Sector

Abstract

Circular economy is an increasingly popular concept that aims to reconcile economic growth with the use of limited natural resources. Shifting from a linear to a circular economy requires novel business models that offer new sustainable products or services and new market opportunities. The research objective is to get insights into the triggers, elements and barriers of business model innovation contributing to a circular economy within the agricultural sector. Eight European cases are studied with interviews and on-site visits which focus on agro-waste and by-product valorisation via a closing loop or cascading approach. Results show that circular business model innovation in the agricultural sector depends on various trends and drivers, wherein the larger business ecosystem plays a crucial role. Different innovation types exist, concerning either the overall business model or single business model elements at a technological, organisational or social level. Main innovation barriers are internal financial and technological or external political-legal and market- related. From this study, it can be concluded that business models for a circular economy in the agricultural sector need to innovate themselves towards new configurations, but that they still follow rather usual linear innovation strategies. Real disruptive technological and organisational innovations are still rare or have difficulties to be economically viable.