Abstract

This paper investigates how a publicly funded programme community of practice can enhance SMEs’ circular economy understanding, innovation capabilities, and contribution to regional innovation networks. Drawing on qualitative and quantitative evidence from a UK Government-funded intervention in Wales, the study examines a challenge-led programme underpinned by social learning theory. Data from surveys, interviews, focus groups, and case studies indicate that communities of practice can support peer learning, reflective practice, and inter-organisational collaboration. The findings suggest that this pedagogical approach helps SMEs develop and apply circular economy principles, strengthen innovation capabilities, and support more place-based, sustainable, and collaborative forms of regional innovation.