Unveiling the role of circular startups in innovation ecosystems: literature review

Purpose – This study aims to investigate the role of circular startups in driving the transition to a circular economy (CE), particularly within the framework of innovation ecosystems. Despite increasing interest in CE, strategic management still lacks structured guidance on adapting business models, especially in relation to startup dynamics. Design/methodology/approach – The research combines a systematic literature review with bibliometric analysis to explore academic contributions on circular startups (CSUs) and their interactions within innovation ecosystems. This dual approach allows for both quantitative mapping and qualitative interpretation of the literature. Findings – The analysis reveals that CSUs, intrinsically aligned with CE principles, act as key enablers of environmental, technological and social innovation. However, their strategic role within innovation ecosystems remains underexplored in current research. The findings underline the importance of ecosystem-based collaboration in supporting sustainable business model innovation. Originality/value – This research addresses a gap in the literature by systematically examining the intersection of CSUs and innovation ecosystems. It contributes to both CE and strategic management studies by offering an integrated perspective on how emerging ventures can accelerate sustainability transitions through ecosystem collaboration.