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The Role of Patents in Circular Innovation: The Case of Sustainable and Recyclable Materials in the Textile Industry

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  • Ulla A. Saari
  • Arho Suominen
  • Marja Rissanen
  • Frank Tietze
  • Maarit Salolainen

Abstract

This article examines whether and how patenting advances circular innovation and therefore contributes to the sociotechnical transition toward a circular economy. Using the multilevel perspective (MLP) as a theoretical framework, we conducted a case study set in the empirical context of man‐made cellulosic fibers. These heavily patented fibers were a suitable subject for a case study because they are developed to produce more sustainable textile materials, thereby facilitating closed‐loop recycling systems. A total of 102 relevant patent families were identified and analyzed using Leximancer and qualitative data analysis software. The TEMPEST framework was applied to examine their alignment with the hierarchical levels of the MLP. According to the findings, material‐related patents, especially nano‐level innovations, appear central to circular product innovation systems. The results suggest that patented innovations have broad implications and support systemic circularity through coevolution across technological, industrial, and societal dimensions. Four propositions were developed regarding how material‐related patents contribute to circular innovations.

Suggested Citation

  • Ulla A. Saari & Arho Suominen & Marja Rissanen & Frank Tietze & Maarit Salolainen, 2026. "The Role of Patents in Circular Innovation: The Case of Sustainable and Recyclable Materials in the Textile Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 35(1), pages 967-1002, January.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:1:p:967-1002
    DOI: 10.1002/bse.70203
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