American Journal of Advanced Multidisciplinary Research and Innovation

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Volume 8 Issue 5
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Digital Technologies and Circular Economy Transitions: Innovation Strategies for Sustainable Resource Management

Author(s) Carlos Guestrin
Country United States
Abstract The transition from a linear economic model based on “take, make, use, and dispose” towards a circular economy has become increasingly important for addressing resource scarcity, environmental degradation, waste generation, and climate change. Digital technologies—including Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, cloud computing, digital platforms, big-data analytics, digital twins, and advanced tracking systems—can facilitate this transition by improving resource visibility, product traceability, predictive maintenance, sharing, reuse, remanufacturing, and recycling. This study examines the role of digital technologies in accelerating circular economy transitions and identifies innovation strategies for sustainable resource management. A qualitative and conceptual methodology based on secondary literature is adopted. The study analyses applications across product life-cycle management, supply chains, industrial production, waste management, reverse logistics, product-service systems, and resource recovery. The findings suggest that digital technologies can improve the availability and quality of information required for circular decision-making while enabling new business models based on product life extension, sharing, repair, reuse, and resource recovery. However, technological adoption alone does not guarantee circularity. High implementation costs, interoperability problems, data governance concerns, cybersecurity risks, digital inequality, rebound effects, and organisational resistance can limit the environmental benefits of digitalisation. The study proposes an integrated digital circular-economy framework linking data collection, digital intelligence, traceability, circular business models, and resource optimisation. The study concludes that successful circular transitions require coordinated technological, organisational, regulatory, and behavioural changes.
Keywords Circular Economy, Digital Technologies, Sustainable Resource Management, Artificial Intelligence, Internet of Things, Blockchain, Digital Transformation, Circular Business Models, Resource Efficiency, Sustainability.
Field Engineering
Published In Volume 5, Issue 3, May-June 2023
Published On 2023-06-02
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