ASSESSING THE INFLUENCE OF ECONOMIC GROWTH ON COMPETITIVENESS AND INNOVATION IN THE CIRCULAR ECONOMY

This research explores the relationship between economic growth and competitiveness and innovation in the circular economy across the 27 EU countries from 2011 to 2020. Using descriptive statistics, Principal Component Analysis (PCA), panel data regression, and cluster analysis, the research investigates how the key economic indicators, such as GDP, GDP per capita, and gross fixed capital formation, affect the performance of the circular economy. The results obtained indicate a positive correlation between overall economic growth and circular competitiveness, though wealthier nations do not consistently lead in circular transitions. The analysis underscores the need for tailored, country-specific policies to promote sustainable practices in the circular economy, especially in less developed economies. These findings provide valuable insights for policymakers aiming to balance economic growth with sustainability.