Regulatory push-pull and technological knowledge dynamics of circular economy innovation

Abstract

Addressing climate change and resource scarcity necessitates a transition toward a circular economy (CE). While regulatory push/pull policy effects on eco-innovation are well-documented, the specific case of diverse CE-related inventions—classified into biological and technical cycles—remains understudied. Through a qualitative content analysis of 528 core patents and a citation network analysis of 5655 CE-related patent families, we probed 14 significant categories of CE-based inventions. Our results highlight the strong impacts of CE regulations on recycling technologies within the technical cycle, its inherent energy inefficiencies notwithstanding. Additionally, a limited share of inventions targets more efficient loops, such as prolonging, reusing, and redistributing materials. The biological cycle, dominated by fertilizer production-related inventions, shows a less diverse trajectory. Comparing the cycles reveals similar technological knowledge dynamics but varying stability in reaction to regulatory policies, suggesting technical cycle maturity and a nascent biological cycle. Policymakers are urged to encourage efficient CE loops and to foster a stable technological knowledge trajectory within the biological cycle. Our findings have crucial implications for research on technological knowledge trajectories and policy planning in the CE.