Transitioning towards a circular manufacturing industry: A mapping analysis based on the mission-oriented innovation system framework
report
The manufacturing industry is one of the sectors on which the Dutch policy development regarding circular economy is focussing. In order to obtain more insight in the functioning of the sectors innovation system in its transition towards more circularity, the concept of Mission-oriented Innovation Systems (MIS) was used as the basis for an evaluation framework.
Based on workshops and interviews with companies, an analysis was performed for OEMs, the recycling sector and several start-ups in the B2C market.
The assessment led to the observation that the creation of directionality, creation of legitimacy and coordination of activities are the largest barriers that need to be overcome in order to achieve the mission of creating a more circular economy. Furthermore, it became clear that many innovations that may be qualified as circular were the unintended outcomes of innovations of a different nature: serendipity plays an important role here, besides the disruptive consequences of digitization.
The system functions of the innovation system led to the conclusion that demand-pull policies are likely to be more effective than supply-driven routes. Market formation is an important aspect there. The government may play a stronger stimulating role in acting as launching customer or, otherwise, by clearly setting the desired direction through policies working on market-based instruments.
This analysis of the functioning of the innovation system of OEMs in the high-tech equipment sector is agrees well with the observations from almost 70 interviews with companies in this sector that were carried out in parallel projects (CESI) since 2018. Also in these interviews circularity was found to be a by-product of digital innovations. Moreover, the lack of market formation and government stimuli was often mentioned as well.
The current portfolio of the Implementation Program Circular Manufacturing Industry (UPCM) was assessed in the light of the findings of the workshops and interviews. The portfolio of projects were both of a demand-driven and supply-driven nature.
The framework of the Mission-oriented Innovation System proved to relate well to findings in the field and proved useful to investigate the balance in the portfolio of implementation programs like the UPCM.
Based on workshops and interviews with companies, an analysis was performed for OEMs, the recycling sector and several start-ups in the B2C market.
The assessment led to the observation that the creation of directionality, creation of legitimacy and coordination of activities are the largest barriers that need to be overcome in order to achieve the mission of creating a more circular economy. Furthermore, it became clear that many innovations that may be qualified as circular were the unintended outcomes of innovations of a different nature: serendipity plays an important role here, besides the disruptive consequences of digitization.
The system functions of the innovation system led to the conclusion that demand-pull policies are likely to be more effective than supply-driven routes. Market formation is an important aspect there. The government may play a stronger stimulating role in acting as launching customer or, otherwise, by clearly setting the desired direction through policies working on market-based instruments.
This analysis of the functioning of the innovation system of OEMs in the high-tech equipment sector is agrees well with the observations from almost 70 interviews with companies in this sector that were carried out in parallel projects (CESI) since 2018. Also in these interviews circularity was found to be a by-product of digital innovations. Moreover, the lack of market formation and government stimuli was often mentioned as well.
The current portfolio of the Implementation Program Circular Manufacturing Industry (UPCM) was assessed in the light of the findings of the workshops and interviews. The portfolio of projects were both of a demand-driven and supply-driven nature.
The framework of the Mission-oriented Innovation System proved to relate well to findings in the field and proved useful to investigate the balance in the portfolio of implementation programs like the UPCM.
TNO Identifier
882291
Publisher
TNO
Collation
29 p. (incl appendices)
Place of publication
Den Haag