The project targets TRADITIONAL, lagging, to a significant extend RURAL and peripheral, INDUSTRIAL REGIONS IN TRANSITION with a low innovation performance and weak innovation infrastructure, in absolute terms or comparatively to neighbouring regions. Additionally recent research indicated that the lack of consumer and user acceptance of circular offerings is one of the primary barriers for the transition to a circular economy. SMEs face great difficulty in reaching a stage of environmental excellence due to their limited resources to adopt circular practices together with I4.0 technologies. I4.0 technologies can introduce the »smart concept«, having an enormus potential to facilitate circular principles. Howewer, despite this potential, there is little awareness and knowledge how to exploit emerging digital technologies to faciitate the transition to a circular economy. On the other side, supply chains are becoming more costly, complicated, uncertain, and vulnerable, while SMEs continue to seek cheaper, faster and better supply chains. To overcome these challenges, supply chains need to be influenced by the application of both, circular practices and I4.0 technologies. For this reason there is a need for SMEs to understand the state of readiness of both I4.0 and CE directions in the supply chain and enable them to prepare and invest in circular principles with I4.0 technologies, which enable the achievement of smarter and more circular supply chains.