Within the research field of innovation management, the so-called circular-oriented innovations are focused on combining circular economy tenets within the development of innovation. Even though academia agrees that an economic transition has to develop from the bottom up, studying the implementation of circular economy on micro-level has been thus far neglected. Thus, the paper examines the circular-oriented innovation specific activities within the general innovation process and its distinct phases. Via multiple case study, the paper analyses the development of innovations suitable for the biological cycle of circular economy in the industry of biodegradable plastic substitutes. The findings show that circular economy aspects influence the innovation development from its very beginning. Starting from the triggering of idea generation, the end-of-life considerations and material choice show high importance in the front-end of innovation. Moreover, the research shows the high importance of cross-cycle and cross-sector collaborations throughout the entire development process.