Leveraging on circular economy technologies for recombinant dynamics: do localised knowledge and digital complementarities matter?

Abstract

This paper investigates the relationship between local knowledge bases and recombinant dynamics in circular economy (CE) technologies. We focus on the role of accumulated green and digital complementary capabilities and posit that they are positively associated to the regional ability to absorb and integrate new technological opportunities in CE-based recombinations. The empirical analysis, conducted on a dataset of European NUTS2 regions over the period 1985–2015, suggests that both green and digital complementary localised capabilities represent crucial leverage for regional recombinant activities around CE technologies.

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