Finnish circular economy solutions struggle to scale in international markets – University of Vaasa seeks solutions to drive SME growth
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The University of Vaasa has received funding from Business Finland for a research project aimed at accelerating the international growth of Finnish small and medium-sized industrial companies through circular economy solutions. The project, International circular business model innovations for accelerated internationalisation, focuses on how circular economy-based business models can be made to work effectively across different international markets.
Circular economy solutions do not scale as such
Many Finnish industrial SMEs have already taken significant steps towards circular economy practices. However, as companies expand abroad, these solutions often do not work as such, which slows down growth and increases business risks.
– Finnish SMEs have enormous potential in the circular economy, but internationalisation requires the ability to adapt business models to different market contexts. Our aim is to provide companies with concrete tools to do this efficiently, says Professor Peter Gabrielsson, who leads the project.
For example, a circular economy solution that works in Finland may not work in Germany or the United States due to differences in regulation, infrastructure and customer needs.
Digitalisation and partnerships play a key role
The project examines how companies can useinternal-driven platforms (e.g. digital technologies and modularity) and ecosystem-driven platforms (e.g. partner networks) for scaling circular economy solutions in new markets. A key question is how different circular business models – such as extending product lifecycles, resource recovery and product-as-a-service solutions – can be adapted to different markets without having to redesign the entire business model from scratch.
– Companies need clear roadmaps for international circular economy business. Digital solutions and partner networks enable flexible and cost-efficient expansion, says Project Manager, University Lecturer Minnie Kontkanen.
Close collaboration with industry
The project is carried out in close collaboration with Finnish companies, including Genelec Oy, JTA Connection Oy, Tonester Oy and Uwira Oy.
The companies share a common message: circular economy is already part of their strategy, but implementing it effectively in international markets remains challenging. While solutions and capabilities exist, scaling them efficiently requires a better understanding of different markets.
The project will produce practical tools and roadmaps to help companies develop and adapt their circular business models for different markets. The aim is to strengthen the growth, exports and competitiveness of Finnish SMEs. The results will be widely disseminated to around 15,000 Finnish SMEs through workshops, reports and business networks.
Business Finland and the project’s partner companies are providing a total of EUR 270,000 in funding.