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Environmental problems, combined with European Union environmental and energy policies shaped to address them, have created pressures for change. Some of these open significant opportunities to renew industries. This report delivers new understanding of the potential of circular economy for sustainable renewal of manufacturing in bio-based industries. With particular focus on novel value chains, it provides novel insights into the role of innovation policies in facilitating the shift towards sustainable, circular bioeconomy in Finland and Sweden. The textile and multi-storey wood construction sectors, and emergent biorefineries are utilised as case studies that deepen understanding of the circular bioeconomy, its opportunities, barriers, and impacts, and the policies that affect its emergence. Recent developments of bioeconomy and circular economy solutions and governance in the Netherlands are also summarised in order to deliver contrasting context to the Nordic focus countries. In this work, the bioeconomy is conceptualised as an economy where the basic building blocks for materials, chemicals and energy are derived from renewable biological resources, such as plant and animal biomass. The essence of the circular economy, that is used here, lies in maximisation of added value and in making the best use of any extracted raw material. This analysis shows that to date discussions and activities related to the promotion of bioeconomy and circular economy have largely been separate efforts, but there are signs that the discussions may converge. It finds that while the form of developments are similar in Finland and in Sweden in the case …