Report: How strong innovation ecosystems can create inclusive circular economies
Climate KIC and partners launched an insightful analysis of how innovation ecosystems support the development of inclusive circular economies in rapidly growing cities. The report, entitled How strong innovation ecosystems can help create an inclusive circular economy, highlights transformative approaches from the Circular Economy Innovation Clusters in Bengaluru and Nairobi that convert waste challenges into opportunities for sustainable development. The report also showcases impact results and features voices from people involved in both innovation clusters.
The Circular Economy Innovation Cluster, an initiative by Climate KIC, GrowthAfrica, and SecondMuse and funded by the IKEA Foundation, addresses key challenges within the waste ecosystem in Bengaluru and Nairobi. By breaking down barriers that hinder innovators from scaling circular solutions, the initiative goes beyond recycling to focus on waste prevention and locally grounded interventions that support vulnerable communities.
For Climate KIC and partners, an innovation cluster is a flexible approach that strengthens the core foundations of place-based innovation ecosystems, enabling the actors within to collectively foster more inclusive and sustainable economies.
Addressing waste management and prevention challenges in Bengaluru and Nairobi
Waste management poses a pressing challenge in Bengaluru and Nairobi, two vibrant and rapidly growing cities. Existing infrastructure is unable to cope with the increasing volume and complexity of waste, which has an impact on ecosystems, livelihoods and community well-being while creating serious risks to human health and the environment. Current waste management approaches are no longer sufficient, making innovative and sustainable solutions an urgent necessity.
Transitioning to circular economy principles — such as designing waste out of product lifecycles, keeping materials in use, and regenerating natural systems — offers a promising pathway to address this issue. However, the scale and interconnectedness of these challenges go beyond the capacity of any single entity or group.
Climate KIC’s Innovation Cluster-building concept is a powerful mechanism designed to meet this need by bringing together dynamic, interconnected groups for collaboration, dialogue, learning and innovation to tackle systemic challenges at the local level. By supporting new business models, fostering a shared vision for a circular economy, promoting skills development and mobilising capital, innovation clusters create pathways towards transformative climate action.
Key insights from the report
Our work in Bengaluru and Nairobi has revealed three critical insights about building effective circular economy innovation ecosystems:
- Upstream circularity remains largely untapped: While downstream waste management (recycling, refurbishing) has seen progress, greater potential lies in preventing waste at its source through innovative business models focused on reuse, product life extension and product-as-service approaches.
- Informal waste workers bring valuable knowledge and skills: These workers are essential to current waste management systems and bring opportunities for social impact to the transition toward circularity.
- Meaningful collaboration requires navigating complexity: Creating effective innovation ecosystems demands tailored approaches specific to local contexts, embracing adaptation and experimentation and building trust among diverse stakeholders.
Want to learn more about groundbreaking circular concepts from Bengaluru and Nairobi? Download the full report and follow our journey here at climate-kic.org.