Abstract

Development level of the rural areas in the different countries is usually associated with different forms of interaction and interdependence among producers, cooperative organizations, business and even research institutions. These forms and their various legal framework, as well as various levels of development trends and success have certain effect not only over the incomes generated, but also on the overall progress of the region they are located, including local community, agribusiness and its contribution over the local economy. This paper aims to conceptualize an effective local development model, enabling a more effective organization and interaction of community resources and government support. Against this background a number of representative initiatives of innovation and innovative solutions that have emerged at the regional level will be analyzed. The study corroborates that the determinants of the innovation process in the rural areas are not simply the policy measures undertaken, but rather the sense of responsibility and collaborative action taken on by the different stakeholders. This translates into the development of networks, involving local municipalities, for-profit organizations, as well as non-for profit organizations and cooperatives that explicitly pursue community well—being and regional identification.

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