The European Commission’s Joint Research Centre (JRC) has published a report on Revitalising Rural Areas through Innovation and Entrepreneurship, analysing public and private initiatives that help train, attract, and retain talent in rural Europe. Developed as part of the Startup Village Forum, the study highlights how innovation can transform rural areas into places of opportunity and reduce the territorial innovation gap.
Human Capital as a driver of Rural Innovation
A central finding of the report is that human capital (the knowledge, skills, and attitudes people bring to the workforce) is essential for innovation and economic growth. The study notes that urban areas generally have a higher concentration of human capital due to the presence of more educational institutions and diverse employment opportunities. The initiatives studied aim to address the challenge of lower human capital in rural areas, which is coupled with other factors such as population decline, lack of access to production factors or business support services.
Urban-rural networks are vital to the success of the initiatives, fostering both ‘brain circulation’ and ‘brain banks’. Brain circulation refers to the movement of skilled labour across different territories where individuals migrate for educational or professional opportunities and then return with new skills. The brain bank is the idea that emigrants provide access to valuable external knowledge and contacts that can benefit those who remain in the specific territory. The report also identifies that collaboration with higher education institutions, engagement with public institutions, and strong political support at all levels of government are key to the success of these initiatives.
Initiatives Supporting Rural Talent and Innovation
The JRC report categorises initiatives into three different approaches. First, horizontal initiatives are initiatives that take a broad approach, addressing talent needs across various sectors. For instance, Connected Hubs (Ireland) offers mentoring, training for community leaders, and tertiary education programs while Lärcentrum (Sweden) provides diverse education and training for students, adults, and entrepreneurs. Second, vertical initiatives take a sector-specific approach, focusing on agriculture, tourism, and the digital sector, such as RAISE Youth (Spain). Finally, private initiatives also play a significant role in revitalising rural areas. Rural Move (Portugal) is focused on attracting remote workers and has expanded its mission to support training and capacity building in rural communities. Incubatore SEI (Italy) focuses on mentoring startups and developing talent in digital and entrepreneurial skills.
The role of Physical Hubs and Social Inclusion
Many of these initiatives have developed or used physical hubs to support their work and to facilitate local entrepreneurial and innovation ecosystems. For instance, Connected Hubs, Incubatore SEI, RAISE Youth and Lärcentrum all developed dedicated spaces where training, networking, and business support take place.
The initiatives also demonstrate social and economic sustainability and resilience. They foster community involvement and have adapted to changing conditions. Social inclusion is a main goal of these initiatives. The report highlights a “talent development trap” in rural areas, where a shrinking working-age population and a lower share of tertiary educated individuals are often seen.
Policy Implications for Rural Development
Addressing the challenges of smaller communities requires a coordinated national, regional, and local effort, as well as substantial political support. Initiatives should prioritise social inclusion and rural areas need access to external knowledge, resources, and markets as well as place-based initiatives.
This resonates with the objectives of the GRANULAR project, which focuses on fostering rural development by understanding and addressing local needs. While the JRC report highlights the importance of human capital and innovation ecosystems, GRANULAR’s work seek to complement this by providing practical tools and insights to shed light on the multiple dimensions of rurality, which can help stakeholders develop effective policies for rural development and revitalisation.