Circular Economy and Innovation in Manufacturing Firms

Abstract

Circular economy (CE) principles offer significant opportunities for innovation in manufacturing. This study investigates how firms in Europe and Asia implement CE strategies, including product lifecycle extension, resource recycling, and remanufacturing, to enhance competitiveness. Data from 150 firms show that CE adoption drives innovation in product design, production processes, and service delivery, leading to cost reductions and increased customer satisfaction. Challenges such as initial investment, regulatory compliance, and supplier collaboration are analyzed. The study highlights the synergistic potential of sustainability and innovation management, providing actionable insights for managers to achieve economic, social, and environmental benefits simultaneously.