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

Abstract 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.