Innovating towards a circular bioeconomy: dynamic capabilities of firms in the Brazilian Amazon

Patricia Prado and Wladmir Motta

Chapter 14 in Research Handbook of Innovation in the Circular Bioeconomy, 2025, pp 237-257 from Edward Elgar Publishing

Abstract: A circular bioeconomy (CBE) requires innovative behaviour across all levels and actors in society. In transitioning from a linear to a CBE, firms need to develop dynamic capabilities to address any changes in the markets or business environment. This chapter explores dynamic capabilities that firms require to drive innovation towards a CBE, focusing on the Amazon Forest in Brazil. Drawing on qualitative data, it analyses the emerging Brazilian bioeconomy strategies and the dynamic capabilities developed by three firms that operate in the region. These firms employ various circular strategies, from those related to circular inputs to those related to establishing reverse logistics. The chapter identifies that innovating towards a CBE in the Brazilian Amazon requires firm-specific capabilities grounded in activities aimed at preserving the forest and its socio-biodiversity. This needs to combine traditional, local knowledge and expertise with innovative practices, processes and products, in line with a bio-ecology perspective of bioeconomy. The chapter concludes with practical implications and recommendations for firms operating within this context.

Keywords: Circular bioeconomy; CBE; Dynamic capabilities; Innovation; Bioeconomy; Amazon region (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035307951
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