SMEs and Circular Economy drivers: empirical evidence from Italy

Abstract

The study investigates the determinants of the adoption of circular economy (CE) innovations in Italian manufacturing SMEs by using original data based on 4,042 firms for the 2017-2018 period. Results indicate that firms’ innovative efforts, size, export activity, management’s environmental awareness as well as the use of the digital innovation policy, Piano Industria 4.0, are factors that are positively correlated with the adoption of general CE innovations, showing heterogeneous results across different circular economy practices.