From Theory to Practice: Designing Circular Innovation in a Former Silk Factory

Across Germany, thousands of buildings stand underused while the construction sector remains one of the largest contributors to resource consumption and emissions. What if innovation hubs could turn these spaces into living laboratories for circular economy practices? A pilot project in Krefeld, Germany set out to explore exactly that.

How can circular thinking move beyond theory and become part of everyday operations in a start-up centre? This question guided a four-month Business Pilot Project (BPP) developed within the CATALYST project.

The pilot project was carried out in collaboration with Krefeld Business and their real estate and commercial spaces development department responsible for transforming a historic former silk factory into a new start-up centre.

To explore how circular economy principles could be embedded into the future operation of the centre, a team of six international students from diverse disciplines, including design, sustainability management and urban transformation, worked closely with the CSCP and Krefeld Business.

Following a service design methodology known as the Double Diamond, the project was structured in two phases: understanding the challenge and developing solutions.

In the first phase, the team conducted research into circular building practices, co-working spaces and start-up hubs, analysing how innovation spaces can support sustainable behaviours among their users. To complement their research, the team mapped key stakeholders and conducted interviews with experts and practitioners, including representatives from FAB Region Bergisch city-triangle, a future tenant developing XR/VR solutions, Bax Innovation working in the Access Economy Alliance project, and an experienced Impact Hub operator.

These conversations revealed several key insights. Circular practices often emerge through community culture and informal collaboration, even when economic and regulatory systems are not yet aligned. At the same time, circular initiatives can struggle with bureaucratic complexity and unstable financial structures. Finally, innovation spaces are increasingly evolving from purely physical workplaces into hybrid ecosystems that combine space, community, services and knowledge exchange.

Building on these insights, the team developed a Prototype Circular Rental Agreement for the future Start-up Centre.

The agreement introduces practical ways to integrate circularity into everyday operations, including shared use of space and infrastructure, repair and reuse activities, and knowledge exchange between tenants. A commitment-and-benefit framework encourages tenants to participate in circular activities while creating value for the community.

To support implementation, the team also developed an Implementation Roadmap identifying key areas for action, including improving space efficiency, embedding circular practices into daily routines, creating incentives for participation and establishing feedback mechanisms for continuous learning.

The proposed model will serve as a foundation for future experimentation once the Start-Up Centre opens in 2027, where the concept can be tested, refined and adapted together with future tenants.

For further questions, please contact Carla Schmid.