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Adriana Neligan / Rupert J. Baumgartner / Martin Geissdoerfer / Josef-Peter Schögg in Business Strategy and the Environment External Publication 23. May 2022 Circular disruption: Digitalisation as a driver of circular economy business models

New circular business models can evolve at all stages of the life cycle of a product. Digitalisation can drive disruptive innovations, new business models and novel ways of collaboration and thus can accelerate the economic transition to more resource-efficient and circular production systems.

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Digitalisation as a driver of circular economy business models
Adriana Neligan / Rupert J. Baumgartner / Martin Geissdoerfer / Josef-Peter Schögg in Business Strategy and the Environment External Publication 23. May 2022

Circular disruption: Digitalisation as a driver of circular economy business models

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German Economic Institute (IW) German Economic Institute (IW)

New circular business models can evolve at all stages of the life cycle of a product. Digitalisation can drive disruptive innovations, new business models and novel ways of collaboration and thus can accelerate the economic transition to more resource-efficient and circular production systems.

Yet, there is little empirical research on the enabling role of digitalisation for a circular economy. To address this gap, this paper investigates the role of digitalisation in facilitating circular business models, based on the empirical analysis of a data set of 599 German manufacturing firms and 296 industrial service providers. While relatively few German firms rely on new business models to foster their resource efficiency strategy, we find this share higher for companies with a strong digital focus in the manufacturing sector. This suggests that digitalisation can indeed be a driving force for the implementation of circular business models.

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Digitalisation as a driver of circular economy business models
Adriana Neligan / Rupert J. Baumgartner / Martin Geissdoerfer / Josef-Peter Schögg in Business Strategy and the Environment External Publication 23. May 2022

Circular disruption: Digitalisation as a driver of circular economy business models

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German Economic Institute (IW) German Economic Institute (IW)

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Digital Innovation for Decarbonization
Hubertus Bardt Event 3. June 2022

virtual symposium: Digital Innovation for Decarbonization

Cracking the „twin challenge” of digital and green transformation could have a huge impact on future energy supply and decarbonization. Our experts will show the potentials of digital innovation along the entire value chain, from energy production to a ...

IW

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Sarah Fluchs / Adriana Neligan / Carmen Schleicher / Edgar Schmitz IW-Report No. 27 20. May 2022

Circular Business Models: How circular are companies?

On the way to climate neutrality, the transition from a linear economy to a circular economy plays an important role. Resource cycles can be implemented in different ways in companies.

IW

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