The aim of this research is to evaluate the spatial differences of the agricultural economy of Latvia during the First Republic by using spatial autocorrelation calculations. Morans’s I coefficient of spatial autocorrelation is used to describe the spatial relations of the analyzed indicators. The obtained results show that Moran’s I for more than half of the obtained parameters is greater than 0.5, which indicates a rather high spatial autocorrelation. It was observed that variations of the spatial autocorrelation values can be explained by what affects these parameters. Spatial autocorrelation is significantly higher for those parameters whose value depends mainly on the variety of natural factors (land use, specific crop share). Moran’s I value for those parameters whose values depend on the actions by the local government in rural parishes is considerably lower (for example, budget allocation, etc.) A large portion of the examined parameters characterizing the level of parish economic development show the biggest differences when comparing Latgale with the rest of Latvia. In the case of such regional differences, Moran’s I is usually within 0.5–0.7, indicating moderately close spatial autocorrelation. For many indicators regarding agriculture and land use many southern parishes within Jelgavas and Bauskas county show a very considerable difference from the rest of Latvia showing much higher rate of agricultural production.

The aim of this research is to evaluate the spatial differences of the agricultural economy of Latvia during the First Republic by using spatial autocorrelation calculations. Morans’s I coefficient of spatial autocorrelation is used to describe the spatial relations of the analyzed indicators. The obtained results show that Moran’s I for more than half of the obtained parameters is greater than 0.5, which indicates a rather high spatial autocorrelation. It was observed that variations of the spatial autocorrelation values can be explained by what affects these parameters. Spatial autocorrelation is significantly higher for those parameters whose value depends mainly on the variety of natural factors (land use, specific crop share). Moran’s I value for those parameters whose values depend on the actions by the local government in rural parishes is considerably lower (for example, budget allocation, etc.) A large portion of the examined parameters characterizing the level of parish economic development show the biggest differences when comparing Latgale with the rest of Latvia. In the case of such regional differences, Moran’s I is usually within 0.5–0.7, indicating moderately close spatial autocorrelation. For many indicators regarding agriculture and land use many southern parishes within Jelgavas and Bauskas county show a very considerable difference from the rest of Latvia showing much higher rate of agricultural production.

Social innovations are recognized as one of the most promising innovations in solving social problems in rural areas. When assessing the creation of social innovation, it should be noted that not only the goal and the result but also the whole process of creation of social innovation is important. The analysis of theoretical and practical research has revealed that traditional methods of solving problems in rural areas are not working, which consequently leads to search for innovative solutions. The most obvious social problems in rural areas, such as an aging society, youth departure, lack of breakthrough and innovative ideas, etc. can be noticed when assessing factors of social environment. At this stage, the solutions sought through the prism of social innovation can become those that will ensure the wellbeing of the rural area and support people living there. Social innovation is widely spread at the level of the European Union; however, in Lithuania, social innovation is taking just the first steps. The article analyses the case of Sėlynė village in Rokiškis region, during which social innovation that succeeded to unite rural community has been created. The article aims to analyse the process of creation of social innovation in rural areas from the theoretical point of view and to present the case of Sėlynė village of Rokiškis region. The main problem is the complex understanding of the creation process of social innovation.