Circular Economy and Territorial Competitiveness: Pathways for Portugal’s Sustainable Manufacturing Sector

Changing from a linear production model to a circular one is important for sustainable industrial development. Yet, the implementation and potential benefits of circular economy practices may be uneven across regions due to different institutional capacity, infrastructure, innovation systems, human capital and industrial structure. This study explores the role of circular economy practices in the territorial competitiveness of the Portuguese manufacturing sector. It specifically looks into the adoption of resource efficiency, eco-design, industrial symbiosis, product-life extension and other circular business practices and the regional factors that facilitate or constraint their adoption. The study employs a qualitative multiple-case-study approach supported by secondary quantitative data. The selected cases are the Norte Region, the Lisbon Metropolitan Area, and less-industrialised northern interior territories, including Terras de Trás-os-Montes and Alto Tâmega. Data are collected from official statistics, national and regional policy documents, European Commission and OECD reports, academic literature, and sectoral studies. Qualitative content analysis and cross-case comparison are used to identify patterns in circular economy implementation, governance arrangements, regional capabilities, barriers, and competitiveness outcomes.