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This paper provides a comprehensive assessment of the progress of circular economy (CE) implementation in the Małopolska region and offers actionable recommendations for policymakers, businesses, and research institutions. The study combines qualitative and quantitative approaches, including regional policy analysis, a survey of 1200 industrial enterprises, and Smart Lab workshops with stakeholders. The region’s strong economic and scientific base, reflected in high R&D expenditure and numerous technology-oriented companies, creates favorable conditions for circular technologies. Smart specializations in metals, chemicals, mineral products, and machinery provide opportunities for raw-material recirculation and for low-emission, advanced energy and material recovery solutions, making them well aligned with CE objectives. Findings indicate that while the region demonstrates strong potential due to its industrial base, scientific expertise, and smart specialization domains, significant challenges remain in awareness, technological adoption, and regulatory clarity. Metrics on resource efficiency, value-chain circularity, and eco-innovation are essential for informed policymaking, investment decisions, and effective dialogue with entrepreneurs. Another priority is enhancing access to financing instruments. A key recommendation is the development of an integrated monitoring system combining economic, environmental, social, and innovation indicators, supported by targeted financial instruments and skill-building initiatives. The paper presents an innovative approach to linking national and European CE strategies to subnational implementation.