DigiCirc: using digital tools to push SMEs toward a circular economy

DigiCirc is an EU supported innovation accelerator that aims to speed the transition to a circular economy by helping small and medium sized enterprises adopt digital technologies. The project pools cross sector SMEs into consortia and runs thematic acceleration programmes focused on circular cities, the blue economy and the bioeconomy. It combines coaching, matchmaking, data tools and staged funding to move prototypes toward operational testing and commercialisation.

Programme design and how it works

DigiCirc runs themed open calls and 12 week accelerator programmes that bring together cross sector SME consortia. The model is iterative. Consortia apply in response to open calls aimed at specific challenges. Selected consortia receive direct seed funding to join the 12 week programme. During the programme they develop business plans, validate prototypes and receive mentoring on technical, commercial and legal issues including intellectual property rights. At DemoDay participating consortia pitch to investors and partners. Top ranked consortia are awarded larger grants and in some cases invited to a longer period of piloting and testing in operational environments.

Thematic streams and what they focused on

DigiCirc organised its work into three thematic acceleration streams. Each stream ran an open call, selected consortia and delivered an accelerator programme. The streams were circular cities, blue economy and bioeconomy. The first accelerator was on circular cities and began the programme cycle in 2021. The blue economy and bioeconomy accelerators followed with their own open calls and schedules.

Circular cities

The circular cities open call ran from November 2020 until 31 January 2021. The first acceleration started in April 2021 and ran until July 2021. The project selected at least 15 consortia for the circular cities cohort. In practice DigiCirc reported its first acceleration programme involved 17 cross sector SME consortia working on urban issues such as food and plastic waste, renewable energy and reducing urban energy consumption, local and circular production, and urban mobility.

Blue economy

The blue economy open call ran from June to September 2021 and the accelerator programme was scheduled between December 2021 and March 2022. DigiCirc sought minimum 15 consortia composed of at least two SMEs that apply digital technologies to improve circularity and sustainability in maritime and coastal sectors.

Digital tools and platforms developed by DigiCirc

DigiCirc developed four in house digital platforms intended to help SMEs validate business models, find partners and access data. The tools are presented as practical support to reduce friction in building circular solutions that require cross sector coordination and data access.

Selection outcomes, funding pathway and IP support

DigiCirc followed a two stage selection route for applicants. A short proposal and pitch were used to screen consortia. Successful applicants were then invited to prepare full proposals with the support of business coaches. The most promising projects moved on to jury interviews and DemoDay. At the end of the 12 week programme the top five projects in a cohort were to receive a EUR 100,000 grant to develop prototypes and test them in operational environments for up to six months.

Scale and stated impact goals

DigiCirc stated an intention to spend €2.4 million and support at least 90 SMEs across its three thematic streams. The programme design combined small up front payments to consortia, coaching and tools, followed by larger awards to a small set of finalists who demonstrate traction at DemoDay. This model is common in EU innovation support. It aims to derisk early development and attract follow on investment.

A critical perspective and contextual notes

The DigiCirc approach bundles digital tools, matchmaking and staged funding to accelerate circular solutions. That is a sensible mix for early stage projects. Yet several practical challenges remain that deserve attention when assessing claimed impact. First, short acceleration programmes can help with business model clarity but do not by themselves guarantee market adoption. Long running barriers such as fragmented procurement rules across EU cities and the need for piloting in operational maritime environments require follow through support and sustained financing.

Second, digital platforms and data driven tools are only as useful as the underlying data quality and access. Aggregating waste stream data and making it interoperable across regions is a large task that usually needs national and municipal buy in. Third, moving from EUR 20,000 seed grants to prototype deployment often requires matching private capital. The project model anticipates pitching to investors but public money does not automatically unlock private finance. Lastly, monitoring and reporting evidence of environmental impact was not detailed in the core announcement. For policymakers and funders, clear metrics on material reuse rates avoided emissions and economic viability will be important to judge long term value.

Practical information and next steps for SMEs

SMEs interested in DigiCirc were invited to apply to the open calls for each theme. The Matchmaking Platform was available to help form consortia. The blue economy open call deadline was reported as 3 August 2021 and the bioeconomy call was due to open on 2 September 2021. Applicants were instructed to read the documentation kit carefully and use the Matchmaking Platform where needed.