Abstract
Research background: The value of clusters in developing advanced technology products and services as well as promoting regional growth is acknowledged by many policymakers and researchers (Lee et al., 2012). Hence, clusters are identified as enablers of the circular economy and resource efficiency in this study. Companies aim to enhance competencies and create competitive advantages in global competition and this can be achieved through pulling from a common and accessible pool of resources, information and demand for innovation which means that companies can profit from belonging to a cluster.
 Purpose of the article: The main aim of the article is to overview the scientific literature that addresses the circular economy, identify clusters and their role in the circular economy and suggest how small and medium enterprises could engage in a circular economy through clusters' performance development.
 Methods: Bibliometric literature analysis enables identifying the latest trends in scientific articles regarding a circular economy and clusters. The analytical hierarchy process (AHP) allows for composing the scheme of the cluster?s competitive advantage within circular economy.
 Findings & Value added: The findings suggest that resource efficiency is considered to be one of the most important ambitions and clusters can work as enablers of a circular economy for small and medium enterprises (SMEs), gaining a competitive advantage at the same time. Clusters can encourage and provide conditions in which SMEs would turn to a circular economy. The scheme of Cluster's competitive advantage proposed by the author can help cluster's coordinators, policymakers and all the concerned parties to verify the importance of clusters' involvement in the circular economy.
Highlights
Human development determined the use of natural resources rapid growth during the last century
Findings & Value added: The findings suggest that resource efficiency is considered to be one of the most important ambitions and clusters can work as enablers of a circular economy for small and medium enterprises (SMEs), gaining a competitive advantage at the same time
The scheme of Cluster's competitive advantage proposed by the author can help cluster's coordinators, policymakers and all the concerned parties to verify the importance of clusters' involvement in the circular economy
Summary
Human development determined the use of natural resources rapid growth during the last century. The extraction of global resources increases due to economic development in all the parts of the world, making people think of reusing benefits and turning to a circular economy (Fomina et al, 2018; Mishenin et al, 2018; Tetsman et al, 2017; Yevhen et al, 2018). Resource efficiency is viewed as one of the elements that can help to control resource extraction and economic growth (Blomsma & Brennan, 2017). The transition to the circular economy is a complex task that should be planned and encouraged by governments for long term implementation. Recycling and re-use are promoted to bring benefits for the environment and the economy through proposed actions
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