Good Manufacturing Practices and Knowledge-Centric Approaches as Drivers of Circular Economy in Local Industrial Systems

Local industries remain crucial to regional economies but often face sustainability challenges such as inefficient resource use and poor waste management. Traditional Good Manufacturing Practices (GMP) focus primarily on compliance and product quality, offering limited scope for environmental responsibility. This chapter proposes a Sustainability-Oriented GMP Framework that embeds circular economy principles, carbon reduction, and responsible resource use into local production systems, particularly for SMEs. Grounded in industrial ecology, knowledge-based theory, and stakeholder responsibility, the framework redefines GMP as a pathway to achieve the UN Sustainable Development Goals (notably SDG 12 and 13). By integrating energy efficiency, recycling, and knowledge-driven innovation with digital tools, industries can shift from compliance-based models to sustainable ecosystems. The chapter offers conceptual insights and practical directions for policymakers and managers, positioning GMP as a transformative tool for advancing sustainability in local industries.