Regenerative Innovation in the Circular Economy: Towards a Theoretical Framework for Understanding the Transformation of Linear Business Models (#1021)

Authors

Ramos-Zaga, Fernando

Abstract

This article develops a comprehensive theoretical framework to understand regenerative innovation as a transformative mechanism for overcoming the limitations of linear and traditional circular economic models. Grounded in an integrative analysis of strong sustainability theory, complex systems theory, and responsible innovation frameworks, the study conceptualizes how innovation can catalyze a transition from extractive to regenerative modes of value creation. Rather than merely closing material loops or improving efficiency, regenerative innovation is shown to entail a systemic reconfiguration of business ontologies, incorporating ecological restoration and social revitalization as intrinsic components of economic purpose. The proposed model identifies three critical dimensions of this transformation: the reorganization of value chains into regenerative flows, the emergence of collaborative and adaptive ecosystems among stakeholders, and the embedding of natural capital regeneration within organizational core logics. These findings underscore the necessity of rethinking prevailing metrics of corporate success, governance structures, and stakeholder roles in alignment with long-term planetary and societal health. By offering a novel theoretical synthesis, the paper contributes to the ongoing redefinition of innovation not as a tool for optimizing within existing paradigms, but as a vehicle for paradigm change itself.