The Circular Economy: From a Linear to a Circular Economy

Co-Creation and Interacting

As a result we need to focus on co-creation and interacting rather than on competing. We want to move from a hierarchical market-based model to society- and value-based business models. Because everything is related, we call this multiple valuation through cross-sectoral cooperation via international knowledge networks.

Figure 1. The linear economy

In a circular economy, the desire to recycle all product components is taken into account from the outset in the design phase. As a consequence the demand for production and for the extraction of raw materials falls and the amount of waste decreases. The objective is to scale up to chains of recycling which results in less pollution and a decrease in the consumption of energy. Through investing in a circular economy, the Netherlands will be less dependent on raw materials from abroad.

Figure 2. The circular economy

From the beginning, in the design phase of products and services, attention should be paid to circularity. In this regard, Niesenbaum's theory in which he mentions 'value-sensitive design' is relevant. This design method takes the objectives of all stakeholders into account, looks at effective work processes and communication between stakeholders, pays attention to cooperation (transdisciplinary), keeps an eye on the alignment of stakeholders' interests, and provides the infrastructure for the exchange of knowledge.

Translating the theoretical concepts of the circular economy to the stubborn and slow-to-change practices of international business is the challenge. At the World Economic Forum in Davos, the Ellen MacArthur Foundation and McKinsey presented a report on the economic benefits of the circular economy. They called it 'Reconciling the circular economy with the reality of the world economy and the complexity of supply chains'.

According to both organizations, the circular economy should stimulate or drive industrial innovations and value creation in the 21st century. Ellen MacArthur placed these drivers in the so-called 'drivers' tree' with the factors 'refurbishing, remanufacturing, recycling and collection rates'. The drivers' focus is rather one-sided on saving costs for companies.