Abstract

Collaborative innovation is necessary to explore and implement circular economy strategies. Yet, empirical investigations into such collaborations are scarce. It is unclear whether the circular context creates differences or represents adaptions within how collaborative innovation is conducted. We draw upon strategic management and open innovation literature to highlight what is known about collaborative innovation and the types of innovation conducted. We use these insights to investigate explorative qualitative case research into how practitioners in the Netherlands have conducted collaborative circular oriented innovation. Our findings show that open innovation criteria can aid our understanding and analysis. Key managerial considerations relate to the incremental or systemic nature of the innovation pursued, which induce different collaborative projects and knowledge management structures. For incremental innovation, we observe phases of collaboration, whereas for more systemic innovation, we observe a more collaborative portfolio and layered approach. Furthermore, the more radical innovation pursuits that explore slowing or recovery strategies, especially beyond business-to-business arrangements, challenge companies. A crucial challenge remains related to how to develop and assess collaborative and system-oriented business models in the transition towards a circular economy. Finally, future research is needed to assess whether the current modes of collaborative innovation are sufficient to deliver a circular economy transition.

Highlights

  • The circular economy (CE) concept promotes innovation strategies to adapt or create new systems to reduce material throughput, waste, and environmental impacts [1,2]

  • Our contributions are fourfold: firstly, we found that open innovation criteria can aid our understanding and analysis of collaborative Circular oriented innovation (COI)

  • Criteria established in strategic management and open innovation literature supports empirical investigation and analysis of collaborative COI

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Summary

Introduction

The circular economy (CE) concept promotes innovation strategies to adapt or create new systems to reduce material throughput, waste, and environmental impacts [1,2]. New value-network configurations and relationships (created through collaboration) appear needed to connect actors’ innovation activities to explore how to adapt or create new systems [11,12,13] Such innovations require a higher degree of complementary innovation activities, across different levels of interaction within a system, to generate or facilitate value creation, delivery, and capture opportunities by connecting actors business models [14,15]. It is not always clear what complementary innovations are required, how to create or test potential combinations, or even whether positive systemic changes are produced; this necessitates a more collaborative, iterative, and experimental approach towards innovation [16]

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