Commercialising circular economy innovations: a taxonomy of academic spin-offs

Abstract

Innovation and the commercialization of new technology are seen as an important driver for the transition to more sustainable development. An actionable strategy to achieve this is outlined in the EU strategy on resource efficiency and the development of a circular economy (CE). This paper seeks to gain a more systematic understanding of the role that academic spin-offs (ASOs) can play in commercialising CE innovations. ASOs are based on scientific research and are a potential source of radical innovations, but their role in the sustainability transition has not been systematically examined. We rely on a unique dataset covering the population of ASOs in Norway and coded newspaper articles to identify potential CE-related innovations being commercialized by these firms. Using multiple correspondence analysis and clustering analysis, we find that the CE-related innovations commercialized by ASOs can be classified along two main dimensions, related to the type of innovation (product or process) and the type of CE principle (narrow, slow, or close the loop). Moreover, we identify five clusters of CE-related ASOs having specific roles in the CE transition. We conclude by outlining an agenda for further research and implications for how policies can harness the innovation potential of ASOs for realising a more CE.