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We go beyond the literature that argues for environmental innovation as an essential driver of the transition to a Circular Economy (CE), examining whether firms deploying specific innovation strategies are better placed to adopt this transition. Distinguishing four basic Schumpeterian innovation strategies (product, process, single, complex innovation strategy) and three others (frugal, organizational, business model innovation), we measure the transition to the CE by examining the adoption by firms of five categories of circular practices proposed in the Flash Eurobarometer survey, used extensively in the literature. Estimations of multivariate probit models show that product innovator strategy has a minor influence on the adoption of CE practices, while a process innovation strategy has a slightly stronger impact. Most influential strategies are complex and frugal innovations. Business model innovation influences the implementation of only two CE practices. Our study reveals specific innovation strategies which are more impactful regarding the transition to the CE.JEL Codes: L1, O31, O33, Q2

Eco-design is a response to the collective desire to engage in sustainable development combining innovation, environment, and profitability and participates in the development of products that serve circular economy. While some authors attempt to provide evidence on the link between eco-design and profitability, very few analyze the drivers of profitability in this case. To reduce this gap, we try to identify factors influencing profitability for eco-designed products. Through direct collaboration with professional organizations, we conduct an original phone survey with European and Canadian firms adopting eco-design. We perform an econometric analysis using a robust order probit regression. The results prove that regulation and market motivations are important factors to achieve superior financial performance. Moreover, firms using rigorous eco-design tools increase the probability to improve their financial performance. We demonstrate that in Europe the motivations and characteristics of eco-design have significant effects on profitability, in Canada only the latter is influential.JEL Codes: O31, Q55

In recent years, a strong political ambition to develop ocean energy technologies (OETs) has emerged, especially in Europe. As part of regime shifts towards a decarbonized energy system, the development of OETs is influenced by multi-level interactions occurring between the niche, regime, and landscape levels. This paper deepens the analysis of technological niches (the principal locus for regime change) by analysing the knowledge elements underlying the long-term evolution of OET trajectories. Examination of the relational properties among the knowledge elements in the OET knowledge base allows a better understanding of the structural coherence of the knowledge base within the sector. We use patent data to build a dataset of OET patents granted between 2000 and 2015. Based on this patent analysis, we discuss the knowledge base of OETs and analyse its coherence over time. Finally, we derive policy implications.JEL Codes: O33, Q42, Q55