Circular innovation is a strategic tool for increasing the competitiveness and sustainability of Italian SMEs, particularly in areas with a high concentration of manufacturing, such as Veneto and Emilia-Romagna. However, its uptake is still limited and uneven, primarily due to technical, regulatory, financial, and cultural barriers.

This policy brief is based on the “Skills for the Circular Economy” survey, analysing factors promoting the adoption of circular practices in SMEs and identifying the most common obstacles. The companies most inclined towards circular innovation are small businesses with young and diverse management, aiming to join production networks and target international markets.

Based on the data collected, this document proposes operational solutions to strengthen regional policies: targeted incentives, regulatory simplification, promotion of networks and supply chains, investment in training and enabling technologies, and awareness campaigns.

The aim is to support the circular transition of SMEs by contributing to the economic and environmental adaptation of territories.