Integration of sustainable development and business development as a dominant basis of the circular economy model: theoretical aspect

Abstract

Globalization and technological progress call for more efficient supply chains, with economic, social and environmental factors becoming increasingly important. It is possible to solve problems, in particular of ecological nature, which arose during the industrial revolution, and with the existing model of economic development, thanks to the application of the principles and approaches of recycling logistics. Realizing the scale of the negative consequences of the existing model of economic development, it is necessary to move to a new modern environmentally friendly model of green, circular economy. The evolution, goals and features of the circular economy as a modern optimal direction of development are considered. The main approaches to understanding the essence of the circular economy - flow and system - are highlighted and it is proposed to add a synergetic one, which provides for interdisciplinarity and integration through different industries. It is proved that the result of the introduction of a circular economy is to increase the competitiveness of the national economy through energy and resource conservation, reducing carbon emissions, creating new jobs, modernizing the structure of the economy, changing business models. The need to manage logistics support for the development of innovation cooperation is substantiated. Sustainable development of the national economy requires destructive changes and radical innovations, and the ability to ensure this due to adaptation to the circular economy becomes relevant for innovation cooperation. The integration of sustainable development and business development offered by the circular economy model is needed.