The Circular Transition of the Dutch Carpet Industry - A Sectoral Innovation System approach

Abstract

The shift to a Circular Economy presents a solution to the growing problems of waste accumulation and resource depletion, especially for resource-intensive businesses. The Dutch government therefore has set to goal of establishing a Circular Economy by 2050. Even though the Netherlands is one of the world's top producers of carpet, there is a noticeable lack of research and policy on the circular transition of this sector. To comply with becoming fully circular by 2050 in the Netherlands, the carpet industry must be considered. This research aims to fill the gap in the current literature by going beyond the end-of-life carpets, focusing on the implementation of all circular strategies, taking into account a systems perspective and analysing the drivers for the circular transition within the innovation systems perspective, resulting in the following RQ: How can the implementation of circular strategies be stimulated in the Dutch carpet industry?

Sectoral Innovation System theory and the Waste Hierarchy provide the theoretical lens used in this study. The research is conducted by analysing 13 semi-structured interviews and desk research. Data analysis consisted of mapping the structural elements of the Innovation System, followed by a structural-functional analysis. This provided insights into the current system and its functioning.

The results section provides an overview of the current system and its functioning. Drivers and barriers in the implementation of circular strategies of the Dutch carpet industry are identified. Additionally, the interdependencies between these different driver and barriers are described.

This study expands the limited literature available on circularity in carpet, and contributes to Innovation Systems literature highlighting the importance of analysing drivers and demonstrating the interdependencies between drivers and barriers. The results of this study guide practical application for carpet companies and other actors. There seems to be a particular need for action from the government, as this research shows that policy is one of the deciding factors for companies to invest in circularity.

The conclusion shows the key drivers and barriers to implementing circular strategies in the carpet industry. It shows that there is a lack of guidance for this by the government, resulting in a lack of experimentation, lack of knowledge sharing and lack of knowledge diffusion by industry actors. On the other hand, even though little guidance was provided by the government, this still resulted in a wave of entrepreneurial activity, network formation, knowledge development and knowledge dissemination.