New JRC report looks at the state of rural innovation
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A new publication from the Joint Research Centre (JRC) shows that rural companies are not inherently less innovative than urban firms, but they innovate differently. It identifies drivers and barriers affecting rural businesses and offers policy directions to support rural innovation.
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The report presents the first systematic evidence on rural innovation at company level, drawn from a dedicated Eurobarometer survey of over 12 000 firms across the EU. Its findings show that business innovation is widespread in rural areas, with 64% of firms that are innovative compared with 70% in urban areas.
The results reveal that rural firms innovate differently, relying on collaboration, structured design practices, local university partnerships and local funding for innovation. However, they face barriers in translating local partnerships into formal intellectual property outcomes and in accessing finance – particularly EU and national funding. Only 5% of rural firms reported access to EU funds compared with 6.5% of urban companies.
The link between tertiary education and innovation is stronger in rural than urban areas, while firms with more gender-balanced and educated workforces are more likely to be innovative across all territories, and in particular rural areas.
The survey’s findings highlight the need for place-sensitive innovation policies that recognise distinct rural innovation pathways, strengthen university-firm linkages, and improve access to finance for rural firms and start-ups.
By integrating the report’s insights with existing frameworks such as CLLD, LEADER and cohesion policy instruments, policymakers can implement effective strategies that address rural innovation challenges, it concludes.
Analysis of the survey results was conducted under the European Parliament’s preparatory action ‘Startup Village Forum and Rural Innovation Valleys’ and contributes to the long-term vision for the EU’s rural areas.
Discover the latest Rural Pact resources on innovation. Explore our Good Practice Brochure on place-based innovation as well as videos and presentations from the Good Practice Webinar on rural innovation.