What are the main challenges and barriers for R&D in adopting circular economy principles and practices?

2 Metrics and incentives

Another challenge for R&D in adopting circular economy principles and practices is to align the metrics and incentives that drive the research and innovation activities. Circular economy requires a long-term and systemic perspective, which means evaluating the environmental and social benefits and costs of the innovation outcomes, not only the economic and technical ones. It also means accounting for the multiple and dynamic value streams that circular solutions can generate, such as resource efficiency, waste reduction, and social inclusion. This can be challenging for R&D, which often relies on short-term and narrow indicators, such as patents, publications, and revenues, and faces pressure from funders, investors, and regulators. To overcome this challenge, R&D needs to develop new frameworks and tools that capture the circular value proposition, and to engage with diverse and supportive funding and policy mechanisms.

3 Knowledge and skills

A third challenge for R&D in adopting circular economy principles and practices is to acquire the knowledge and skills that enable circular innovation. Circular economy requires a multidisciplinary and cross-functional approach, which means integrating the insights and expertise of different fields and domains, such as engineering, biology, sociology, and design. It also means applying the principles and strategies of circular design, such as modularity, durability, repairability, recyclability, and biodegradability. This can be challenging for R&D, which often lacks the necessary competencies and capabilities, and faces gaps and barriers in the knowledge transfer and diffusion. To overcome this challenge, R&D needs to invest in education and training, and to create platforms and networks that facilitate the exchange and collaboration of circular knowledge and skills.

4 Technology and infrastructure

A fourth challenge for R&D in adopting circular economy principles and practices is to access and use the technology and infrastructure that support circular solutions. Circular economy requires a digital and physical infrastructure, which means leveraging the potential of information and communication technologies, such as big data, artificial intelligence, blockchain, and internet of things. It also means connecting and integrating the different stages and actors of the product or service life cycle, such as production, distribution, consumption, and recovery. This can be challenging for R&D, which often faces limitations and constraints in the availability, affordability, interoperability, and scalability of the technology and infrastructure. To overcome this challenge, R&D needs to explore and adopt the best practices and standards of circular technology and infrastructure, and to co-create and co-innovate with the relevant stakeholders.

5 Regulation and governance

A fifth challenge for R&D in adopting circular economy principles and practices is to comply and influence the regulation and governance that shape the innovation environment. Circular economy requires a supportive and enabling policy framework, which means aligning the rules and norms of the market, society, and environment with the circular vision and goals. It also means promoting the innovation opportunities and addressing the innovation barriers that circular solutions encounter, such as market failures, externalities, lock-ins, and trade-offs. This can be challenging for R&D, which often faces uncertainty and complexity in the regulatory and governance landscape, and lacks the voice and influence to advocate for circular change. To overcome this challenge, R&D needs to monitor and anticipate the policy trends and developments, and to engage and collaborate with the policy makers and regulators.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?