Exploring the paradigm shift towards sustainability: A systematic literature review on circular economy and eco-innovation

Amidst the adverse effects of the existing linear model on economic, social, and environmental aspects, the circular economy has emerged as a more sustainable alternative for economic growth and environmental sustainability. Further, the increasing significance of the circular economy as a means to achieve sustainability has prompted researchers to suggest various approaches. In this study, we employed a systematic literature review to present a unified perspective on the concept of circular economy and emphasize the connection of it with eco-innovation. We found that the last three years have witnessed a sudden rise in the publications related to a circular economy, stating the rise in interest of researchers towards a circular economy. While in its nascent phase of execution, much research has been carried out on the importance of adopting a circular economy for achieving sustainability. However, most researchers have failed to explore the contribution of the circular economy in the UN sustainable development strategies (SDGs) and the role of eco-innovation in the circular economy. Therefore, this research is novel, and we explored the role of circular economy and eco-innovation towards sustainability through a systematic literature review. This research indicated that while developed countries have shifted to a circular economy, developing countries need to transition to a circular economy for sustainable benefits. A correlation was also found between the circular economy and some SDGs. The results emphasized that the incorporation of eco-innovations can help in mitigating the environmental consequences of production and consumption activities. It also sheds light on notable instances of eco-innovations that have been developed for deployment in the circular economy. This research will be helpful to industries, universities, and other major sections of society in developing circular economy practices in their core processes and ensuring the attainment of sustainable development goals.