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How to innovate business models for a circular bio‐economy?

Shifting from a linear to a circular bio-economy requires new business models. The objective was getting insights into the uncharted research field of business model innovation for a circular and sustainable bio-economy within the agrifood sector. Eight European cases valorising agricultural waste and by-products by closing loops or cascading were studied regarding their innovation drivers and elements, via interviews, on-site visits and secondary data. In this domain, the findings highlight that business model innovations are depending on the (i) macro-environmental institutional-legal conditions and market trends, (ii) driven by internal economic, environmental and/or social objectives, but especially strongly linked to (iii) other actors often from different sectors seeking synergies and (iv) value co-creation via combined organisational and technological innovations. Business models for a circular bio-economy thus depend on various action levels and need radical combined organisational and technological innovations for a most efficient usage of agricultural waste and by-products. This also means new business configurations instead of linear innovation strategies currently still being dominant due to economic viability.