Abstract
The transition to a sustainable circular bioeconomy (CBE) poses complex challenges to firms especially as natural resources are mainly located in regions with lower levels of socioeconomic development and more vulnerable, traditional communities such as the Amazon region in South America. This region is being deforested at a rapid pace, largely driven by food production for global markets as agrifood commodities are directly associated with various social and environmental conflicts, which relate to the conditions of productive activities in global value chains, with the non-core activities outsourced to developing countries. With the additional impacts of the COVID-19 pandemic, the region is facing renewed environmental pressures, increasing social inequalities, and reduced local incomes. Although the use of these food products brings social and environmental risks to the region, they are also a source of opportunities for a CBE, where the role of firms is crucial. Despite the challenges, the Brazilian Amazon has developed on-the-ground initiatives involving individuals and groups, organisations and businesses, which have grown in relevance to promote a CBE. Although often overlooked, these initiatives are a source of local innovations and alternative solutions, including agroecological production, value-aggregation, and market access. Against this background, this developmental paper will contribute to the debates by setting the ground to discuss how innovation can support the transition to a CBE in the Amazon region. What underpins the discussions is the perspective that not only disruptive innovations are needed, but mainly far-reaching changes in prevailing paradigms and disruptive ways of thinking about innovation.