How local resources shape innovation and path development in rural regions. Insights from rural Estonia

This paper examines the role of local resources (physical, human, immaterial, social and community, and financial) in shaping firm innovation and path development in rural areas. Existing research in spatially informed innovation studies has largely overlooked the place-specific resources of rural r...

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Main Authors: Merli Reidolf, Martin Graffenberger
Format: Article
Language:English
Published: Cognitione Foundation for the Dissemination of Knowledge and Science 2019-01-01
Series:Journal of Entrepreneurship, Management and Innovation
Subjects:
Online Access:http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue3/JEMI_Vol15_Issue3_2019_Article5.pdf
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author Merli Reidolf
Martin Graffenberger
author_facet Merli Reidolf
Martin Graffenberger
author_sort Merli Reidolf
collection DOAJ
description This paper examines the role of local resources (physical, human, immaterial, social and community, and financial) in shaping firm innovation and path development in rural areas. Existing research in spatially informed innovation studies has largely overlooked the place-specific resources of rural regions as innovation facilitating qualities. This paper addresses the following research questions: (i) what is the role of local rural resources in a firm’s innovation activities, and (ii) how do these resources shape regional development paths? We propose a framework that takes a holistic view of rural resources and their role in shaping innovation and regional development paths. The empirical analyses suggest that rural resources offer valuable and diverse opportunities for firm innovation, providing that firms (pro-)actively mobilize and purposefully exploit these resources as part of their innovation endeavors. We find that rural resources have the potential to extend and upgrade regional development paths and operate as ingredients to enrich existing paths with additional functions and, thereby, to make them more future-oriented. However, merely relying on rural resources does not suffice to facilitate substantial changes in regional paths. Our analyses are based on semi-structured interviews with representatives of firms located in rural Estonia, active in different manufacturing and service industries. This paper contributes to the emerging, but still fragmented, literature on rural innovation and offers a contextually grounded micro-level framework on the role of local rural resources for firm innovation in rural areas. Furthermore, the study adds an empirical contribution from a rarely studied Central and Eastern European regional context.
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spelling doaj.art-7c2a3e6a3f1f430fb89f6933eefe6f302023-12-02T10:50:13ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262019-01-0115313116210.7341/20191535How local resources shape innovation and path development in rural regions. Insights from rural EstoniaMerli Reidolf0Martin Graffenberger1 M.A., Tallinn University of Technology, Department of Business Administration, Ehitajate tee 5, 19086 Tallinn, Estonia M.A., Leibniz Institute for Regional Geography, Schongauerstr. 9, 04328 Leipzig, Germany This paper examines the role of local resources (physical, human, immaterial, social and community, and financial) in shaping firm innovation and path development in rural areas. Existing research in spatially informed innovation studies has largely overlooked the place-specific resources of rural regions as innovation facilitating qualities. This paper addresses the following research questions: (i) what is the role of local rural resources in a firm’s innovation activities, and (ii) how do these resources shape regional development paths? We propose a framework that takes a holistic view of rural resources and their role in shaping innovation and regional development paths. The empirical analyses suggest that rural resources offer valuable and diverse opportunities for firm innovation, providing that firms (pro-)actively mobilize and purposefully exploit these resources as part of their innovation endeavors. We find that rural resources have the potential to extend and upgrade regional development paths and operate as ingredients to enrich existing paths with additional functions and, thereby, to make them more future-oriented. However, merely relying on rural resources does not suffice to facilitate substantial changes in regional paths. Our analyses are based on semi-structured interviews with representatives of firms located in rural Estonia, active in different manufacturing and service industries. This paper contributes to the emerging, but still fragmented, literature on rural innovation and offers a contextually grounded micro-level framework on the role of local rural resources for firm innovation in rural areas. Furthermore, the study adds an empirical contribution from a rarely studied Central and Eastern European regional context.http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue3/JEMI_Vol15_Issue3_2019_Article5.pdflocal resourcesrural regionsinnovationdevelopment pathresourcesEstonia
spellingShingle Merli Reidolf
Martin Graffenberger
How local resources shape innovation and path development in rural regions. Insights from rural Estonia
Journal of Entrepreneurship, Management and Innovation
local resources
rural regions
innovation
development path
resources
Estonia
title How local resources shape innovation and path development in rural regions. Insights from rural Estonia
title_full How local resources shape innovation and path development in rural regions. Insights from rural Estonia
title_fullStr How local resources shape innovation and path development in rural regions. Insights from rural Estonia
title_full_unstemmed How local resources shape innovation and path development in rural regions. Insights from rural Estonia
title_short How local resources shape innovation and path development in rural regions. Insights from rural Estonia
title_sort how local resources shape innovation and path development in rural regions insights from rural estonia
topic local resources
rural regions
innovation
development path
resources
Estonia
url http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue3/JEMI_Vol15_Issue3_2019_Article5.pdf
work_keys_str_mv AT merlireidolf howlocalresourcesshapeinnovationandpathdevelopmentinruralregionsinsightsfromruralestonia
AT martingraffenberger howlocalresourcesshapeinnovationandpathdevelopmentinruralregionsinsightsfromruralestonia