Integrating Circular Economy in the Innovation Process for Startups.

Abstract: Most people are aware of the environmental issues that planet Earth is facing, such as climate change, biodiversity loss, water scarcity, expanding deserts and rising sea level. A report from CDP (2017) shows that 100 companies stand for over 70% of the industrial greenhouse gases in the world. The purpose of the study is therefore to facilitate the innovation process of building a sustainable business and addresses the potentials with it. The target group of the study is startups in Sweden developing physical products. Startups were chosen so that already from the beginning of a business, they could be able to build it sustainable. The innovation process explored in the study is the Lean Startup, as it is the most used innovation process by startups (Bortolini et al., 2018). Circular economy is a concept that optimizes the use of resources, eliminates waste and preserves nature. It has been recognized to have big innovation potentials and opens for new business opportunities. In the circular economy, innovation is co-created with all involved stakeholders related to the business, not the least the customers. Earlier research has developed tools, methods and strategies for circular economy that can be used to develop circular projects. With this in consideration, the author addresses the following research questions. • Have startups in Sweden used the Lean Startup process to develop their businesses? • Have startups in Sweden considered circular economy strategies when creating, capturing and delivering value? • Which circular economy tools, methods and strategies can be integrated into the Lean Startup process for startups to develop environmentally friendly businesses? • How would the Lean Startup process with integrated circular economy tools, methods and strategies look like? The study was an exploratory study that gathered data from the literature review on circular economy and the Lean Startup, and from qualitative interviews with startups and experts in different areas within circular economy. The study resulted in a new framework called the Lean Circular Framework, adapted from the Lean Startup process, but with integrated tools, methods and strategies from the circular economy.