Novel Metrics Introduced to Quantify the Level of Circularity in Business Models Enabled by Open Innovation

This research introduces circularity measures for open innovation-enabled business models. Based on open innovation and circular business model frameworks, the study builds and applies RCE, SCI, and KSI measurements. Using a diverse sample of companies, the metrics assess resource circulation, collaboration, and knowledge transfer across open innovation ecosystems. The results indicate strong links between financial performance and circularity metrics, highlighting the economic benefits of circular processes. This study adds to the understanding of open innovation and circular economies and gives organizations practical advice on how to navigate the new innovation environment. The recommended metrics give a new framework for businesses to analyses, compare, and improve their business model circularity to support a paradigm shift towards more resilient and sustainable practices. This research, which promotes ethical consumption, production, and innovation, may help academics, legislators, and industry practitioners.