Radical innovations key to the circular economy

Research-based startups, or academic spin-offs as they are also known, often produce radical innovations that play an important role in the circular economy. This is shown by former Norsi PhD student Phuc Hong Huynh Evertsen in her dissertation, where she studied how the fashion industry is working to become circular.

Tell us, how do circular innovations in academic spin-offs differ from those in larger companies?

– They are more radical and technology-based as these companies are often at the forefront of new technologies. Circular innovations in larger companies tend to be add-ons to already existing business models.

– But in revolutionary transitions, such as to a circular economy, incremental innovations are not enough to change consumer behavior. Radical innovations are crucial in these contexts. And this is where academic spin-offs play a very important role. Not only do they provide cutting-edge technologies to larger companies, they also lead technological change.

It sounds like academic spin-offs create value for the circular economy as a whole.

– Yes, that is true. My research shows that a majority of these companies have great potential to create high circular value. They contribute to the three principles of the circular economy – that is, they reduce, slow down and close the loop. The main focus is on the strategy of reducing by optimizing processes, offering virtual products and services, and reducing waste and energy consumption.

You have studied the fashion industry and have many good examples of how digital innovations have enabled circular business models. In particular, you have found three types.

– Indeed, one model uses blockchain technology to provide customers with information about a product’s journey from cradle to cradle, making it easier for consumers to choose sustainable products. This makes it easier for consumers to choose sustainable products. Another model uses big data and the internet of things to create new consumption behaviours. For example, people can rent clothes instead of buying new ones. This model extends the life cycle of fashion garments.

– The third model I would say is a radical innovation. Based on 3D printing, 3D models, AI and digital platforms, it creates tailor-made, personalized clothing. Customers choose a design online, adjust it to their body size and then try it on using digital technology. So instead of producing clothes based on six to nine months of market forecasts, it produces clothes based on real-time demand.

So what role do consumers’ clothing choices play in the circular economy?

– The role of consumers is crucial for the success of digital innovations in the circular economy. We need to reduce our unnecessary demand for new products and use them longer and more often. So both market and technology drivers are important for sustainable development and the circular economy.

In your research, you have found that there are two possible paths for academic spin-offs to succeed with their digital innovations. Tell us about it!

– The first path involves the start-up taking advantage of a favorable market situation when there are no resources for research collaborations and patents. When demand is high and competition low, commercialization is more likely to succeed.

– The second route to success is for companies to combine different types of commercial and technical knowledge to succeed. For example, it combines research collaboration with strategic partnerships, which in practice can mean working with both academic institutions and private companies to gain both technical and market knowledge.

What did you gain from being part of the Norsi network?

– I am very happy to be part of the Norsi network. All actors are very helpful, friendly and constructive towards us PhD students.

– I have gained so much valuable knowledge from all the PhD courses, workshops and conferences organized. In addition, I have made new friends who have supported and motivated me during my PhD journey. I highly recommend Norsi to other PhD students in the Nordic countries.

Contact pru.huynh@gmail.com

This article is produced in collaboration with Norsi.

More about the thesis and Norsi
Phuc Hong Huynh Evertsen recently defended her thesis Digital Innovations for the Circular Economy at Nord University in Norway. During her PhD studies, she participated in the Nordic Research School in Innovation and Entrepreneurship (Norsi) research network . It is primarily a graduate school for doctoral students in the Nordic countries in the field of innovation and entrepreneurship. Read more about Norsi.