How Do Intelligent Goods Shape Closed-Loop Systems?

Abstract

This article explores how disruptive technologies increase the intelligence of goods and revitalize business models in the circular economy. Applying the industrial ecology perspective, we discuss how intelligent goods can boost the sustainability of industrial ecosystems. North American and European cases highlight how business model innovators utilize goods-related information to develop more competitive closed-loop systems. We identify three archetypes of closed-loop systems – inner circles, decentralized systems, and open systems – and delineate how they leverage information resources for collaboration. This study advances the understanding of closed-loop systems in the circular economy, which is more dependent than ever on digital platforms.