Opportunity domains for new entrants in the circular economy: a keyword-in-context analysis of Norwegian RD tax incentive projects

How has venturing within the circular economy - related to R & D, innovation, commercialization, etc. - emerged in response to incentive-based public policies? This study adds to the existing literature by examining the alignment between top-down public policies to promote circular economy innovations and the interests of a range of stakeholders, including new ventures. The extent to which policies align with stakeholder interests is a key factor in determining the effectiveness of those incentives; this analysis is therefore highly relevant to understanding and improving the effectiveness of incentive-based policy approaches. Using a keyword-in-context methodology, we analyse 4072 project applications submitted by start-up businesses to SkatteFUNN, a Norwegian tax deduction scheme aimed at supporting research and development initiatives, between 2004 to 2015. A text similarity and network analysis indicate that the concept of CE is much more complex than the few general principles highlighted in the literature. The way these technological opportunities are described in the applications sheds light on the diversity of exploiting CE technologies. This finding addresses an existing gap in application of these methods to analyse CE innovation opportunities, as different sectors innovate in myriad ways according to their CE principles.