Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act

This paper examines the effects of sustainability laws on innovation, with a particular focus on the German Circular Economy Act. The study investigates whether strict environmental regulations promote technological advances and sustainable business practices. The results show a differentiated pictu...

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Main Authors: Wanja Wellbrock, Asli Ercengiz, Daniela Ludin
Format: Article
Language:English
Published: University North 2025-01-01
Series:Tehnički Glasnik
Subjects:
Online Access:https://hrcak.srce.hr/file/478147
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author Wanja Wellbrock
Asli Ercengiz
Daniela Ludin
author_facet Wanja Wellbrock
Asli Ercengiz
Daniela Ludin
author_sort Wanja Wellbrock
collection DOAJ
description This paper examines the effects of sustainability laws on innovation, with a particular focus on the German Circular Economy Act. The study investigates whether strict environmental regulations promote technological advances and sustainable business practices. The results show a differentiated picture. While the German Circular Economy Act and similar regulations encourage companies to adopt resource-efficient practices, the level of innovation varies significantly between industries. Industries such as packaging and high technology are showing remarkable progress, including the development of sustainable materials and optimized product designs for recycling and repair. In contrast, challenges such as high initial costs, technological complexity and regulatory uncertainties make it difficult to innovate, especially for small and medium-sized enterprises. In addition, supply chain innovations are often consistent with lean management principles, which shows how regulatory frameworks can contribute to leaner processes and a reduction in waste.
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issn 1846-6168
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record_format Article
series Tehnički Glasnik
spelling doaj-art-5b01fe568d5f4ef3a61a42a32c1f1d062025-08-20T03:52:32ZengUniversity NorthTehnički Glasnik1846-61681848-55882025-01-0119si111812310.31803/tg-20250209114959Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy ActWanja Wellbrock0Asli Ercengiz1Daniela Ludin2Heilbronn University, Max-Planck-Str. 39, 74081 Heilbronn, GermanyHeilbronn University, Max-Planck-Str. 39, 74081 Heilbronn, GermanyHeilbronn University, Max-Planck-Str. 39, 74081 Heilbronn, GermanyThis paper examines the effects of sustainability laws on innovation, with a particular focus on the German Circular Economy Act. The study investigates whether strict environmental regulations promote technological advances and sustainable business practices. The results show a differentiated picture. While the German Circular Economy Act and similar regulations encourage companies to adopt resource-efficient practices, the level of innovation varies significantly between industries. Industries such as packaging and high technology are showing remarkable progress, including the development of sustainable materials and optimized product designs for recycling and repair. In contrast, challenges such as high initial costs, technological complexity and regulatory uncertainties make it difficult to innovate, especially for small and medium-sized enterprises. In addition, supply chain innovations are often consistent with lean management principles, which shows how regulatory frameworks can contribute to leaner processes and a reduction in waste.https://hrcak.srce.hr/file/478147circular economyinnovationregulatory complianceresource efficiencysupply chain managementsustainability
spellingShingle Wanja Wellbrock
Asli Ercengiz
Daniela Ludin
Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
Tehnički Glasnik
circular economy
innovation
regulatory compliance
resource efficiency
supply chain management
sustainability
title Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
title_full Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
title_fullStr Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
title_full_unstemmed Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
title_short Regulatory Compliance and Innovation: A Literature Analysis on the Impact of Sustainability Legislation on Engineering and Supply Chain Innovations by the Example of the German Circular Economy Act
title_sort regulatory compliance and innovation a literature analysis on the impact of sustainability legislation on engineering and supply chain innovations by the example of the german circular economy act
topic circular economy
innovation
regulatory compliance
resource efficiency
supply chain management
sustainability
url https://hrcak.srce.hr/file/478147
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AT asliercengiz regulatorycomplianceandinnovationaliteratureanalysisontheimpactofsustainabilitylegislationonengineeringandsupplychaininnovationsbytheexampleofthegermancirculareconomyact
AT danielaludin regulatorycomplianceandinnovationaliteratureanalysisontheimpactofsustainabilitylegislationonengineeringandsupplychaininnovationsbytheexampleofthegermancirculareconomyact