This study examines the role of industry-wide data sharing in facilitating the transition towards a circular economy (CE) using the case of the Digital Product Passport (DPP), a product’s digital twin. It considers the challenges of large-scale data-sharing ecosystems and explores potential strategies and solutions. The authors develop the Ecosystem Adoption Model (EAM), a framework of ecosystem characteristics relevant for adopting the DPP ecosystem.
A mixture of academic and industry literature is analysed to explore how data sharing can facilitate implementing the CE. Interviews with industry experts confirm the findings. The authors develop the EAM and apply it to the DPP ecosystem.
Despite recognising data sharing’s usefulness for circularity, significant challenges remain for industry initiatives. These include technology selection and scalability, data quality, data sovereignty, product-specific data requirements, standardisation and interoperability and ecosystem momentum. The study identifies potential strategies and solutions to these challenges.
Given the DPP’s nascent stage, this study is based on developing information. Nonetheless, continued research and discussions are important to foster understanding and shape the development of data sharing in facilitating the CE.
The study provides valuable insights for companies, policy makers and other stakeholders interested in adopting circular practices. Additionally, the EAM can facilitate evaluating data ecosystems.
This paper addresses the potential and complexities of large-scale data-sharing initiatives in transitioning to a CE. To the best of the authors’ knowledge, the EAM is the first technology assessment tool to integrate the aspect of complementarity.
