Innovation-absorption capacity of the rural regions of Hungary – findings of a research

Abstract

One of the sub-topics of the comprehensive research agreements between the Hungarian Academy of Sciences and the Hungarian Rural Development Network had the following title: “Social and economic innovation and the absorption capacity of the rural areas”. The research had a dual purpose: On the one hand it examined the definition and components of rural innovation, while on the other hand it gave an analysis of the recipient spaces regarding social and economic innovation.

This study clarifies the related definitions, gives an empirical analysis of the innovation case studies, and, through the experience of several interviews, it also determines the main geographical, social and economic qualities which contribute to the absorption of innovation in rural areas. Furthermore the recipient space can also generate additional innovations, as the innovation of an area depends largely on the absorption capacity, the openness of the society and the economy as well as on the human capital.

The study also examines the interaction of social and economic innovations, and shows cases to illustrate how they can strengthen innovation-willingness. Finally the spatial distribution of the collected examples are shown, along with the territorial specifics and the characteristics of the innovators.

The introduction of novelties and innovations in the rural areas of Hungary is not exceptional; elements and cases for both social and economic innovations can be seen. Economic innovations are more related to the private sector, i.e. businesses, although economic renewal is often initiated by municipalities as well – although economic innovations implemented by municipalities are related to social innovations in most cases. It is very likely that social innovations are followed by organisational and later some economic innovation, while innovations initiated in isolation are less probable to lead to the other two types of innovation.

The analysis of the cases collected demonstrates that rural innovations are diverse and multi-actor processes which from many aspects take place in the way classic innovation processes do. Rural innovation spaces serve both social and financial purposes, in fact, social benefits are often more important than economic gains. In the lives of the settlements, economic and social innovations necessitate and complement each other. In places where the main innovator is the mayor or a renowned and dominant person of the village, innovative investments are not the closing acts of the process; following or prior to this, some form of social innovation has a catalyst role. In the opposite case economic innovations will fail; the inhabitants may reject them or even turn away from the economic innovations already implemented.

The West–East slope characteristic of territorial development levels cannot be demonstrated in rural innovation. In East Hungary and its backward regions we find innovation junctions just like in the western part of the country. Rural innovations are not region-specific; they are much more bound to specific persons and dependent on the spirit of the local community.