Abstract

Abstract Rural areas as a space have many features in common: land as a significant resource for economic activity, forests as a natural kind of climate-friendly environment, a low population density, etc. At the same time, the natural resources of rural areas tend to be exploited in a different way, which is determined by the different activities of the population of a particular territorial unit about the exploitation of the natural resources. By employing cluster analysis, an analysis of 110 administrative-territorial units forming the space outside cities of national significance allowed identifying the geographical locations of the least economically developed territorial units and the most specific socio-economic characteristics of the units. Geographically, the territorial units were spread across all the planning regions in Latvia, while business and entrepreneurship there focused on the use of natural resources, i.e. agriculture, forestry and fisheries. The trend has been observed since 2009 and requires seeking innovative ideas for changing the situation, one of which could be the expansion of the e-environment and e-commerce in these areas as well as the establishment of a cooperation network for home producers.

Highlights

  • Rural development is a vitally important policy area in the European Union

  • Either the people living in rural areas need to change, or young and competent people need to move to this space – both for living and for doing modern business being possible in rural areas

  • Latvia’s objective, is to expand its activities to approach the group of strong innovators, which requires reaching at least 90% of the European Innovation Scoreboard (EIS) average

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Summary

Introduction

Rural development is a vitally important policy area in the European Union. It works to improve aspects of theThis space becomes important in the context of global changes in climate, technology and society as a whole (OECD 2012; OECD/FAO/UNCDF 2016; CORK 2.0 2016). Rural development is a vitally important policy area in the European Union. It works to improve aspects of the. This space becomes important in the context of global changes in climate, technology and society as a whole (OECD 2012; OECD/FAO/UNCDF 2016; CORK 2.0 2016). To maintain vitality and sustainability in rural areas, they need to change. The ongoing processes show that rural areas are increasingly diversified and increasingly rely on secondary and tertiary economic sectors (EC 2019a,b). Either the people living in rural areas need to change, or young and competent people need to move to this space – both for living and for doing modern business being possible in rural areas

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