Closing the loop: Indusry 4.0 and open innovation for circular economy transition

In response to the need for digital and circular transformations in Europe, this study examines how the integration of Industry 4.0 (I4.0) and open innovation (OI) is facilitating the shift towards a circular economy (CE) by mitigating environmental impact and enhancing regional competitiveness. Using panel data for 27 European Union member states, hierarchical cluster analysis reveals four distinct transition paths among EU countries: 1: balanced transition (Bulgaria, Belgium, Czechia, Denmark, Croatia, Austria and Slovakia belong to this cluster), 2: open innovation focused (Estonia, Ireland, Greece, Cyprus, Luxembourg, Hungary, Malta), 3: circular economy and Industry 4.0 leaders (belong Germany, France, Latvia, Lithuania, Poland, Romania, Sweden), 4: growing circular potential (Spain, Italy, Netherlands, Portugal, Slovenia, Finland). These groupings diverge from traditional economic or R&D league tables, suggesting that the combination of different long‑term policies shapes digital‑circular synergies. The findings highlight the need to modify digital manufacturing roadmaps to address specific circular bottlenecks (e.g., open innovation in Cluster 2, growing circular potential in Cluster 4). For policymakers, the findings emphasize that coupling Industry 4.0 incentives with OI policies can facilitate faster, more inclusive circular transitions across the EU.

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Publication Details

Journal
Technological and Economic Development of Economy
Published
2026-10-27
DOI
https://doi.org/10.3846/tede.2026.28604
Primary Topic
Digital Economy and Transformation
Type
article
Field-Weighted Citation Impact
0.00

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article

Closing the loop: Indusry 4.0 and open innovation for circular economy transition

Rasa Smaliukienė, Zuhair Abbas, Imen Ghannouchi
3 links
Technological and Economic Development of Economy
Digital Economy and Transformation
article

Closing the loop: Indusry 4.0 and open innovation for circular economy transition

Rasa Smaliukienė, Zuhair Abbas, Imen Ghannouchi
article en

Abstract

In response to the need for digital and circular transformations in Europe, this study examines how the integration of Industry 4.0 (I4.0) and open innovation (OI) is facilitating the shift towards a circular economy (CE) by mitigating environmental impact and enhancing regional competitiveness. Using panel data for 27 European Union member states, hierarchical cluster analysis reveals four distinct transition paths among EU countries: 1: balanced transition (Bulgaria, Belgium, Czechia, Denmark, Croatia, Austria and Slovakia belong to this cluster), 2: open innovation focused (Estonia, Ireland, Greece, Cyprus, Luxembourg, Hungary, Malta), 3: circular economy and Industry 4.0 leaders (belong Germany, France, Latvia, Lithuania, Poland, Romania, Sweden), 4: growing circular potential (Spain, Italy, Netherlands, Portugal, Slovenia, Finland). These groupings diverge from traditional economic or R&D league tables, suggesting that the combination of different long‑term policies shapes digital‑circular synergies. The findings highlight the need to modify digital manufacturing roadmaps to address specific circular bottlenecks (e.g., open innovation in Cluster 2, growing circular potential in Cluster 4). For policymakers, the findings emphasize that coupling Industry 4.0 incentives with OI policies can facilitate faster, more inclusive circular transitions across the EU.

Technological and Economic Development of EconomyVol. 32(5)
Vilnius Gediminas Technical University (LT), University of Sousse (TN)
Lietuvos Mokslo Taryba
Industry, innovation and infrastructure, Decent work and economic growth, Responsible consumption and production
Openalex Percentile: Top 9%
Digital Economy and Transformation
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