Regenerative Innovation in Firms: Emerging Practices and a Future Outlook

Abstract

Abstract Overview: Sustainability has become a central principle for innovation and technology management, with firms investing heavily in clean technologies, resource efficiency, and innovation driven by environmental, social, and governance (ESG) principles. Unfortunately, sustainability—primarily focused on reducing harm—is insufficient to address escalating climate and societal challenges. Increasingly, scholars and practitioners advocate for a transition toward regenerative innovation, which goes beyond sustainability and offers a long-term regenerative value for businesses, society, and the planet. However, regenerative innovation—as a practice to actively pursue climate-positive change—remains conceptually fragmented and operationally underdeveloped in industry settings. To address this challenge, building on public expert discourse on organizational engagement in regeneration, we examine how industry experts drive the societal and ecological shifts to regeneration. We also outline how organizations leverage emerging regenerative innovation practices to progressively shift from being sustainable to becoming regenerative, allowing companies to shape climate-positive futures more proactively. We identify four emerging practices in how companies pursue regenerative innovation through (1) the mindset shift, (2) purposeful governance, (3) leveraging technology as an enabler, and (4) redefining value creation. Departing from the existing sustainability logic, we contend that these practices fuel the ongoing green and digital transitions in the industry toward regenerative innovation and, at the same time, encourage scholars to shape the future research agenda on regeneration. PRACTITIONER TAKEAWAYS Move beyond sustainability toward regenerative innovation.—Organizations should shift their sustainability-oriented innovation focus from minimizing environmental harm to actively engaging in restoring ecosystems, communities, and economic systems through regenerative innovation practices that create long-lasting value for the economy and society. Reassess current practices and adapt strategically.—Organizations can strengthen their transitions from sustainability toward regeneration. We argue that organizations should reassess their current sustainability practices and identify strategic steps to advance from sustainable innovation toward regenerative innovation, supported by the deployment of emerging technologies, multistakeholder engagement, and the leveraging of transformative, climate-positive, impactful initiatives. Develop capabilities for regenerative innovation.—To adapt to the changing sustainability domain and to navigate increasingly complex socio-ecological challenges, innovation leaders need resilience capabilities—that is, systems thinking, ecosystem stewardship, stakeholder engagement, experimentation, adaptive learning, artificial intelligence (AI), and foresight competencies, all of which are critical for leading inclusive, scalable, and global sustainability transitions to regenerative innovation.