Circular innovation is a strategic tool for the competitiveness, resilience, and sustainability of Italian SMEs, particularly in the manufacturing regions of Veneto and Emilia-Romagna.

This policy brief, developed as part of the GRINS project, analyses the results of the “Skills for the Circular Economy” survey, which included over 1,500 companies, highlighting the main determining factors and obstacles influencing the transition to circular production models and aims to provide an interpretation of the evidence gathered from the survey in order to propose operational recommendations to consolidate and implement the skills and technological infrastructures necessary to support a more circular transition.

The evidence shows that around one-third of companies have introduced at least one circular innovation in the three-year period 2020–2022.

In particular, the most significant interventions relate to raw materials and energy, the adoption of renewable sources, and waste management.

The most innovative companies are often small, flexible, with a strong presence of young people (22.35% compared to 13.87%) and women in management (42.05% compared to 33.41%, with an average of 0.62 female managers per company versus 0.49), integrated into networks (24.24% versus 10.25%) and production chains (25.38% compared to 11.58%), and oriented towards international markets (70.08% versus 36.91%)¹.

However, significant obstacles remain: difficulty in accessing dedicated funding, bureaucratic complexity, lack of specific skills, limited collaboration with external bodies, and uncertainty about the demand for circular products.

These factors risk slowing down the large-scale adoption of circular practices and accentuating inequalities between businesses and territories.

The policy brief proposes a series of operational recommendations for regional policy makers and stakeholders:

• Strengthen incentives and funding dedicated to circular innovation, with simplified procedures that are also accessible to micro-enterprises.
• Follow data-driven administrative practices and update the regulatory and administrative framework to promote one-stop shops and clear guidelines.
• Encourage the creation of circular networks, districts, and supply chains, promoting collaboration among businesses, universities, and research centers.
• Invest in technical and managerial training, valuing generational and gender diversity.
• Support the adoption of enabling technologies and the digitalisation of production processes.
• Improve communication and awareness of the benefits of the circular economy.

Only through an integrated, inclusive, and action-oriented approach will it be possible to accelerate the transition to the circular economy, contributing to sustainable growth and the reduction of inequalities across regions, in line with the objectives of the GRINS project and European strategies.